Note: Signup for COINBASE using Rakuten for more FREE cash rewards!
What is Coinbase and how does it work?
Coinbase is a digital platform where you can buy, sell, and store something called cryptocurrency. Cryptocurrency is like digital money that exists only on the internet. It's not like the coins or bills you use to buy things in the real world.
Imagine you have a special digital wallet, like a piggy bank on your computer or phone. You can use this digital wallet on Coinbase to buy different types of cryptocurrency, like Bitcoin or Ethereum. It's a bit like going to a virtual store where you can exchange your regular money for cryptocurrency.When you buy cryptocurrency on Coinbase, it keeps a record of your transactions in a special ledger called a blockchain. The blockchain is like a big digital book that keeps track of who owns what cryptocurrency. It's a way to make sure that everything is fair and transparent.
Now, here's the interesting part. The value of cryptocurrency can change a lot, just like the price of toys or snacks. Sometimes it goes up, and sometimes it goes down. So, if you buy some cryptocurrency and its value goes up, you can sell it later to make a profit. But if its value goes down, you might lose some money if you sell it. Coinbase helps you keep your cryptocurrency safe in your digital wallet. It uses strong security measures to protect your money from hackers. It's like having a lock on your piggy bank so no one can take your coins.
You can also use Coinbase to send cryptocurrency to other people. It's a bit like sending an email, but instead, you're sending digital money. Just like you can't send the same email to two people, you can't send the same cryptocurrency to two different wallets. The blockchain makes sure that each transaction is unique and can't be copied.
Quick Tip - Members can use COINBASE to get started with storing Bitcoin and then as you feel more comfortable, you can change to a non-custodial wallet and store your keys in a safe place. Do not ever share your keys.