How to Use Coinbase to Make Money – Millionaire by Next Year

back in April, I was somewhere in Arizona when I decided to download the Coinbase app. I had no mind what it in truth did or what using it entailed, but I was curious and wanted to find out .
Since then I ’ ve converted $ 1,250 USD into different crypto assets. There have been a few ebb and flows in the market but I ’ ve hush come out ahead. If I liquidated my crypto assets today I ’ vitamin d have more cash than I started with and I have an NFT to boot .

In this article, I ’ thousand going to show you how to get started and how to use Coinbase to make money.

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What is Coinbase

Coinbase is an exchange that allows average folks like you and me to buy, sell, and hold cryptocurrencies. I call Coinbase a “ custodian ” platform because you don ’ t have to have your own crypto wallet practice it. The chief benefit of this is that you won ’ triiodothyronine have to worry about protecting your seed idiom .
Coinbase makes money by charging fees for trades made on the platform. These fees are alike to what brokerage firms used to charge before Robinhood did off with deal fees. When I made my first Ethereum leverage back in April I paid a 1.5 % fee that was deducted from my purchase. That means I transferred $ 1,000 USD from my bank report but only had $ 985 with which I could purchase Ethereum .
There are different types of accounts you can have on Coinbase : a convention person report, a business history, and a Coinbase Pro account. Like most fiscal institutions, the fee structure varies based on how you plan to use the platform. You can read about the fees Coinbase charges for person accounts and retail products hera.
obviously Coinbase is a company — a publicly traded one at that — and has to generate a profit. The fees you pay support their commercial enterprise mannequin while besides supporting the blockchain infrastructure itself. When you execute a transaction on the blockchain you have to pay a fee called gas which covers the price of processing your transaction. This type of tip is like to transactional fees you pay for actual world municipal services like getting a marriage license or registering your car with the DMV. Because Coinbase is an substitute, not a decentralized wallet, you aren ’ metric ton directly paying the gasoline fees — Coinbase is .

Read More: Alternative investment ideas to try this year

How to Set Up an Account on Coinbase

Getting started on Coinbase is easy. I did it within a few minutes from my Google Pixel while survive in my cable car. You ’ ll need to follow these steps to get started :

  1. Download the app
  2. Create an account
  3. Verify your identity
  4. Connect your bank account to add funds
  5. Start buying crypto 

Coinbase created a bit-by-bit steer you can besides find here .
One matter you might be wondering about is the kinship between your Coinbase account and your regular bank account. To make your first gear crypto leverage you ’ ll have to use cash — or decree currency — from your bank report. Once you make your first purchase you can either continue converting cash into crypto or you can convert existing crypto into other crypto coins .
alike, to cash out any crypto earnings, you ’ ll want to have a bank account from which you can withdraw money. Coinbase did create its own debit card to help you spend easier but before you sign up I ’ five hundred commend reading the terms of serve. I opted to not get their debit card after I reviewed the fee structure and saw they charge a 2.49 % fee for purchases made with crypto ( although they don ’ metric ton agitate any fees when you use U.S. dollars stored on Coinbase ) .
I wanted to share this because there is a belief that decentralized finance is an alternative to the bank system. While that is truthful to some extent, you will still need to use existing bank infrastructure to get initial access to crypto markets .

Earn Free Crypto with Coinbase

Coinbase is a fintech ship’s company which means they measure success by the numeral of raw users they acquire. Lucky for you that means there are rewards if you recruit your friends and kin to join Coinbase excessively. Cashing in on incentive programs can be an easy, pain-free way to dip your toes into the crypto global without risking besides much of your own cash at first gear .

Get Free Bitcoin for Signing Up

When you join Coinbase they ’ ll give you $ 5 in Bitcoin good for signing up. I know that ’ s only worth 0.000081 BTC as of nowadays, but hey you got tantalum begin somewhere right ?

Invite Friends to Join Coinbase, Get Free Bitcoin

After you set up your account you can begin inviting friends and family to join Coinbase. When they use your referral connect, you both can earn $ 10 worth of Bitcoin. Think of all the DogeCoin you could buy with that !

Free Learning Challenges

equitable like Coinbase is trying to acquire new users, so is every new crypto visualize excessively. Some altcoins — smaller coins built on the Ethereum blockchain, for exemplar — put up memorize challenges within Coinbase that allow you to earn free crypto. While they only pay out $ 1- $ 5, you can then trade those altcoins for other coins. If you follow the altcoin market close you can easily trade out these spare coins for other coins and double your earnings .

Strategies to Make Money on Coinbase

Cashing in on rid rewards is capital, but it isn ’ t going to make you a long ton of money. If you ’ re looking to get in on the crypto craze there are a few strategies you can use to do so. Just like you can buy stocks on exchange platforms — think Robinhood or TD Ameritrade — Coinbase can be used to buy and sell crypto for net income.
disclaimer : the following are theoretical ways you can use Coinbase to make money. If you do turn a profit, you need to keep in mind the tax implications of crypto trade. While U.S. tax laws aren ’ thymine very in step with the crypto marketplace, they are trying to catch up. I personally treat crypto trade like I do stock trade when it comes to fiscal gains. I use CoinTracker to keep tab on my investments. As always, consult your fiscal guru of choice and tax prepper before diving into crypto invest .

Buy and Hold Crypto

You can play the long plot by buying and holding crypto. This is a beneficial strategy if you can get in on the ground level and if you think sealed coins will go up in respect over prison term .
I am personally doing this with Ethereum because I think it will go up as the infrastructure around it is being built. With NFTs and chic contracts coming on-line it ’ s only a matter of time ( in my public opinion ) until other substantial world entities begin leveraging the Ethereum blockchain .

With this strategy, you ’ ll want to have a exquisite smell of geopolitical disruptions or at least read the newspaper on a even basis. Earlier this year Bitcoin lost half its prize after China cracked down on it. As more and more modal people like you and I begin eschewing traditional bank for decentralized finance, central banks around the world will begin cracking down. This probably won ’ t extinguish crypto but it can surely result in a lot of volatility that you might not be comfortable with.

Day Trade Altcoins

frequently trading one crypto for another is akin to day trade in the stock grocery store. Unlike the stock market — which regulates day traders — the crypto market is unregulated. This gives you more opportunity to turn a net income promptly but it is a lot riskier and can come with a goodly tax poster .
Day trading crypto is like betting. You can make an educate guess if you understand the fundamentals of blockchain, defi, and smart contracts, but at the end of the day, it ’ s silent betting .

If you want to pursue this scheme, start doing your research. Study the fundamentals and get in on the conversations happening around the different altcoins. If all of us learned anything in 2021 it ’ s that subredditors know a thing or two about investing .

Stake your Crypto to Earn Interest

Coinbase can besides be used to hold crypto and gain sake on it at rates that are more than double normal savings accounts. Staking in crypto functions in a like room a certificate of deposit or money market report does at a bank : you “ impale ” your crypto on the blockchain for a period of prison term in exchange for some kind of benefit .
While earning interest on your crypto is an easy manner to make passive money off your assets, you do eliminate the opportunity to liquidate your assets should the price of a coin tank. This is significant to consider with crypto because it is a lot more volatile than barely socking your money away at a traditional bank .

You can lone bet on your crypto with coins that use a proof-of-stake protocol. This protocol requires importantly less energy to operate than the alternative proof-of-work protocol. Elon Musk single-handed tanked the crypto market earlier this year with a unmarried tweet about the environmental implications of Bitcoin. This is why proof-of-stake coins are worth paying attention to and why venture could be a great way to generate digital passive voice income .
Cardano is one of the largest proof-of-stake coins on the blockchain and some experts think it could surpass Ethereum in the coming years ( side note : I do hold some Cardano because of this ). Another exemplar of a proof-of-stake coin is Alogrand :
In exchange for staking on Algorand you can earn interest on your holdings. Most “ high-yield ” savings accounts offer less than 1 % APY and no opportunity for your cash to appreciate in value. Staking on Algorand allows you to earn interest while the respect of Algorand itself has the likely to increase .
I ’ m not a fiscal guru so ask your adviser about what makes the most sense for you, and as always, get a little curious and start doing your own research. If you plan to tie up your cash in a money market history or certificate of deposit at a normal savings bank, why not consider tying it up on the blockchain excessively ?

Other Ways to Make Money with Crypto

Buying and selling crypto international relations and security network ’ t the lone way to make money with your Coinbase report. Internet 3.0 is here and with it, modern opportunities to use your crypto profits to buy assets that could wind up increasing your overall net worth .

Buy and Flip NFTs

I ’ m obsessed with NFTs and there is a thoroughly reason why. NFTs are the digital extensions of culture. The same people dropping bank on StockX are lento entering the NFT worldly concern .
You can use crypto to buy and sell NFTs in the same way you would use cash to buy and flip sneakers or sports cards. With cultural assets, you have to do your inquiry and know what to look for. Some things are more collectible than others and therefore will command a much heftier price tag .

Check out and begin studying the NFT grocery store for yourself. Look for undervalue pieces and begin buying them up. A 12-year-old made 6-figures selling his own NFT collection, what ’ south stopping you from making some extra cash flipping NFTs ?

Lend Your Digital Assets

Lending digital assets is a newish concept to me but it makes feel. Think about it : decentralized finance is basically banking 2.0. The same people who figured out you could lend money to borrowers at the start of the twentieth century are nowadays doing the lapp thing with the blockchain .
NFT Fi is a lend service that allows you to use NFT assets as collateral to make loans to other collectors. They ’ ve even created their own Discord to moderate conversations on NFT-backed loans .
This is a very bad way to make money, but if you study NFTs and truly become an technical on them, you could buy, sell, and lend your way to a small luck .

Final Thoughts

much to the chagrin of Jamie Dimon, crypto is here to stay. It gives little people like you and me the chance to sit at the pornographic ’ sulfur board. If you don ’ t believe I refer you to the big GameStop Short of 2021 for evidence of this .
Coinbase international relations and security network ’ t the entirely way to buy crypto, but it ’ s the easiest. You can open your own wallet using MetaMask ( which I besides have ) but that comes with its own risks. If you lose your source phrase, you lose everything. There are wallets out there chock entire of appreciated Bitcoin that have been lost constantly .
Coinbase is a great way to dip your toes into crypto and the platform provides resources that allow you to learn more about decentralized finance. It takes a few minutes to set up and can be done from anywhere — I did it while living in my car. I ’ thousand six months into my own experiment with Coinbase and can report a net gain on my initial cash investment plus the procurement of my first NFT.

With a little homework you can not only use Coinbase to make money but you can use it to learn more about how the blockchain is powering an wholly new world of digital bank excessively .

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