As one of the most popular cryptocurrency trading platforms, Coinbase allows its users to buy and sell cryptocurrencies like Bitcoin, Ethereum, and Litecoin. While some people use Coinbase as a way to invest in cryptocurrencies, others use it as a way to buy and sell cryptos for profit. So, can you buy and sell on Coinbase?
The answer is yes, but there are a few things to keep in mind. First, when you buy or sell on Coinbase, you’re not actually buying or selling the underlying cryptocurrency.
Instead, you’re buying or selling a “token” that represents the cryptocurrency. This means that the price of the token will fluctuate based on the price of the underlying cryptocurrency.
Second, Coinbase has a fee for each transaction. When you buy or sell on Coinbase, you’ll be charged a 1.
49% fee. This fee goes to cover the costs of running the exchange, including things like customer support and security.
Finally, it’s important to remember that Coinbase is not an exchange like Binance or Kucoin. Instead, it’s more like a broker that allows you to buy and sell cryptocurrencies.
This means that you’re not able to trade directly with other users on the platform. Instead, you’ll need to place an order for the amount of cryptocurrency you want to buy or sell, and Coinbase will match you with another user who wants to trade in the opposite direction.
All in all, yes – you can buy and sell on Coinbase. However, there are a few things to keep in mind before doing so.
Make sure you understand the fees involved and remember that you’re not actually buying or selling the underlying cryptocurrency – you’re buying or selling a token that represents it.