Review: Coinbase

What you get asked

1. What is the honest tradeoff of starting on Coinbase?

   Coinbase trades some control for convenience. Easy funding and oversight are real, but custody means a company holds your keys. That is the tradeoff to keep in mind.

2. For account security, use an authenticator app rather than ___ codes for 2FA.

   SMS codes are vulnerable to SIM-swap attacks. An app generates codes on your device, so there is nothing to intercept over the phone network.

3. You buy €500 of crypto at a 0.6% fee. Roughly how many euros is the fee?

   0.6% of €500 is 500 x 0.006 = €3. Advanced Trade charges much less than the simple Buy button, and those savings repeat on every trade.

4. Why does DCA tend to beat market timing for beginners?

   DCA replaces guessing with a rule. Buying the same amount on schedule means low prices buy more, and you never freeze in fear or chase excitement.

5. Match each concept from this chapter to its meaning

   These four ideas run through the whole chapter: verify safely, pay less in fees, own your keys, and move coins carefully.

6. When should you move coins off Coinbase into self-custody?

   Small active balances can stay on the exchange for convenience. Long-term or large holdings belong in a wallet whose keys only you control. Not your keys, not your coins. 🐜

The rest of this chapter

Buy your first crypto safely, understand fees, and know when to self-custody.

• Why start on Coinbase
• Open and secure your account
• Buying your first crypto
• Recurring buys and DCA
• Not your keys, moving to self-custody