Coinbase Referral Program
Ready to buy your first crypto?
Currently, Singapore Coinbase accounts can only buy and cannot sell cryptocurrencies. Scroll to the bottom of the article for details.
Thus I transferred my Coinbase holdings to Coinhako, which is Singapore based.
Despite the selling restriction, Coinbase has a useful learning platform which lets you earn FREE alt coins by going through various presentation slides and videos and answering simple quiz questions.
I suggest completing these mini-courses as soon as you can because they expire after awhile. I procrastinated and missed the opportunity to earn at least USD$100 worth of alt coins. Examples of alt coins I received include GRT, CGLD, XLM, COMP and NU.
What is Coinbase?
Founded in June of 2012, Coinbase is a digital currency wallet and platform where merchants and consumers can transact with new digital currencies like bitcoin, ethereum, and litecoin. We’re based in San Francisco, California.
Coinbase has more than 30 million users and has conducted trades worth more than 150 billion.
You can use Coinbase to manage your crypto portfolio or to read on the latest news on cryptocurrencies. You can also setup recurring purchases.
If you prefer to watch videos, you can watch a video on Coinbase’s “Mission, Vision & Strategy”:
Avoiding cryptocurrency scams
Cryptocurrency transactions are irreversible, if you send cryptocurrency to a third party, you cannot reverse it or stop payment.
When you send cryptocurrency to a blockchain address, you must be certain of the legitimacy of any involved third party services and merchants, and only send cryptocurrency to entities you trust.
Coinbase supports a wide number of cryptocurrencies. You can check them out here.
Is it difficult to create an account at Coinbase?
Registration was efficient. After I registered with my email and phone number for two-factor authentication (2FA), I added my credit card information to my Coinbase profile.
However, before I was allowed to perform any purchase transactions, I had to upload a photo ID to be verified.
The verification took only a couple of minutes and I was good to go.
My poor experience on being charged a cash advance fee when investing through credit card
I did my first couple of purchases (S$150 and S$300) at Coinbase via credit card. However, when I received my credit card monthly statement, I was taken aback that a separate charge of S$15 was imposed for each of these two transactions.
I searched on Google and found:
Coinbase, the most popular cryptocurrency exchange and the one most associated with recent speculation by retail investors, sent an email to some customers early Feb. 1, alerting them that credit card networks are beginning to treat cryptocurrency purchases as cash advances, leading to fees and higher interest rates on these transactions.
“Recently, the MCC code for digital currency purchases was changed by a number of the major credit card networks,” Coinbase’s email said. “The new code will allow banks and card issuers to charge additional ‘cash advance’ fees. These fees are not charged or collected by Coinbase.”
My solution to avoid the cash advance fee
Use a debit card instead.
I realised that at present, Singapore Coinbase accounts can only buy and cannot sell cryptocurrencies.
Extract from: Coinbase
The payment methods supported by Coinbase vary by country, and are determined by our partnerships with local banks and payment processors.
In some countries, the only supported payment methods are credit/debit cards (Visa & MasterCard). Cards are only able to be used for buys. At this time we are not able to transfer funds back to a card, so they cannot be used to sell digital currency. Please take note of this limitation before using Coinbase if you are in a country where credit/debit cards are the only payment option, because you will not be able to sell digital currency. You are still able to send digital currency from your Coinbase account to another wallet or exchange.
Countries affected by this are: Australia, and Singapore.
As Coinbase expands we hope to keep adding more payment methods so that customers in these countries will have access to the full range of payment options.
Hopefully Coinbase can resolve this selling restriction in Singapore soon.
Meanwhile, I ended up transferring my cryptocurrencies to Coinhako, which is Singapore based.
Note that network fees were charged to perform the transfer.
What are network fees?
To ensure that transactions are processed on cryptocurrency networks, outgoing transactions to external cryptocurrency addresses typically incur a “mining” or “network” fee. This fee is paid to cryptocurrency miners, which are the systems that process the transactions and secure the respective network.
Being new to crypto, I initially thought that the network fee was being paid to Coinbase.