Coinbase Kenya Review: How to Register, Trade, Transaction fees, Wallets, and everything you need to know

This tutorial will take you through everything you need to understand Coinbase if you are starting with cryptocurrency and Blockchain technology. Everything is included in this guide.

Coinbase Kenya Review: How to Register, Trade, Transaction fees, Wallets, and everything you need to know
Coinbase Kenya

Launched in June 2012 in San Francisco in June 2012, Coinbase is one of the most outstanding cryptocurrency platforms you can have today. As of the writing of this article, the platform has a subscriber base of over 45 million people in over a hundred countries.

How to get started and register for Coinbase

The platform is designed to encourage users to join, as a field prominently displayed from the first lines invites users to enter their e-mail address and click on a "Start" button. You will be prompted for your traditional last name, first name, and password to complete the registration process. Warning: the days of fake identities are over, and Coinbase now asks you to verify your identity before making any transactions.

The KYC ("Know Your Customer") procedure begins as soon as you receive an e-mail confirmation of your registration and is extremely thorough when compared to other platforms: you will be asked for a phone number, an identity document such as a driver's license, and proof of address that is less than three months old. It is usually a good idea to enable double-factor authentication (2FA) as soon as possible after establishing an account using a service that handles money.

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How to make a deposit

Coinbase, like most other crypto platforms, allows users to fill their accounts using a credit card (at present, only Visa and Mastercard are allowed). No Mpesa payment option exists even though coinbase is already available in Kenya.

Regarding transfers, the platform generates a sequence of numbers that must be placed in the transfer's subject line; otherwise, the transfer will be rejected. The process is straightforward and well-explained, and Coinbase walks you through it.

The platform has made a real effort in terms of the number of assets offered for trading. Indeed, we are going from a few dozen assets proposed a few quarters ago to more than 150! The prices displayed are in real-time, indicating the variation over the last 24 hours, making it possible to assess investment opportunities accurately. The purchase functionality could not be simpler, with a succession of clear and intuitive screens. Once the purchase is made, the cryptocurrencies are immediately found in the wallet.

 Coinbase transaction fees

Be wary of Coinbase's transaction fees, which may be as high as 2% on crypto purchases made with a credit or debit card and 1.49 percent on all other transactions. It's also worth noting that each transaction has a set minimum cost. For example, if you purchase a cryptocurrency for less than Ksh 1500, the fee is KSH 125. This is, therefore, higher than the classic 1.49% commission applied to all orders over Ksh 24,540. Below you have the fixed fees that are charged on the smallest amounts :

  •  Less than  Ksh 1500: Ksh 125 fixed commission
  • Between Ksh (1500 and 3065): Ksh 182.69 fixed commission
  • Between Ksh (3065 and 6130.80): Ksh 244.01 fixed commission
  • Between Ksh(6130.80 and 24,523): Ksh 366.23 fixed commission
  • Above24,523: 1.49% commission

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How to start trading

To start trading, you first need to know what the Bid-Ask is: these are terms used on the stock exchange to designate the best available offer to buy (Ask) and the best available offer to sell (Bid) on an asset if you are a buyer of the latter. The spread represents the Bid-Ask difference.

Coinbase offers a single price, which can be very far from market prices, especially in periods of volatility. To summarize it even differently, at a given moment, you can pay your bitcoin much more expensive on Coinbase than on another platform that gives direct access to the markets and order books.

 In addition to this flaw, Coinbase is not the only platform to practice elsewhere, and the graphical tools are minimalist but sufficient to start on the markets. This simplicity often pleases beginners because the platform has sought to soften all the complexity of graphical analysis.

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Exchanges between cryptocurrencies are also possible on Coinbase. The platform has brought together buying, selling, and conversion in a single window. The user can thus convert cryptocurrencies that he already holds on Coinbase (for example, bitcoin to Ethereum) through a "Convert" button that is easy to access and understand. But here again, the fees and spreads disappoint: this Bitcoin to Ethereum conversion operation is charged with a large spread of 2%, incomparable with the 0.1% fees found on other platforms for the same operation.

What is Coinbase Pro, and how does it work?

A more complex platform devoted to experienced traders is also available on Coinbase. As a result, Coinbase Pro provides additional trading tools, such as an order book, and risk management tools, such as the ability to set stop and limit orders.

Although still expensive compared to other platforms, the costs charged by Coinbase Pro are much lower than those charged by the original Coinbase, with price lowering as the amount of transactions increases over 30 days.

Margin products with a maximum leverage of three are also available. On the other hand, the user continues to be unable to trade futures or options. However, Coinbase Pro provides access through an API that allows for order processing automation, which is in high demand among market experts.

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What is Coinbase Wallet, and how does it work?

Coinbase also has online wallets where you may keep your cryptos. Coinbase Wallet, the platform's "basic" wallet, permits cryptocurrency trades and allows you to receive cash instantaneously, as described in the paragraph on depositing money. Coinbase Vault, on the other hand, is a virtual "safe" where users may store their cryptocurrency.

Withdrawing money from Coinbase is a straightforward and quick procedure. Remember that a bank transfer will cost you 15 cents each transfer, and a credit card withdrawal will cost you 2% of the total amount. Another feature that isn't always visible on all trading platforms is Coinbase's ability to move cryptos from a third-party wallet.

 Coinbase Payment cards

Coinbase has had a card that enables customers to purchase with cryptos at businesses or make a traditional withdrawal at an ATM since 2019.

A commendable attempt, but one that makes you giggle when you notice the costs charged while making a purchase: at least 2.49 percent of the total purchase price, that is 1.49 percent conversion fees and 1 percent transaction fees.

Conclusion 

Despite its high transaction fees, Coinbase is a popular platform because of its simplicity of use and attractive aesthetics, making it suitable for novices. Although it is well-known for its security, it does have certain drawbacks, such as a restricted number of crypto pairings and risk management tools. Traders may be penalized in the short term if disruptions often occur during times of high volatility.

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