Quick Guide:Can You Lose Money on Coinbase? -

In a perfect world you’ve never have to worry about losing money on a crypto investment – or any investment, for that matter. The value would always go up.

Here in the real world, though, that’s not the way things shake out. Every time you buy crypto on Coinbase you run the risk of losing money. There are things to do to mitigate your risk with crypto markets, to be sure, but the risk isn’t ever going to disappear.

Below we are going to go over most of the things you need to know about how to better insulate yourself from losing money in the crypto markets while using Coinbase.

Sound good?

Coinbase – How It Works

For starters, just know that Coinbase is almost universally regarded as the best place for you to start your crypto journey.

The number one crypto platform in the United States (by a country mile, too), a lot of folks consider it Coinbase to be the ultimate crypto platform on the planet, too.

Easy to use, safe and secure, and with a beautifully designed mobile app experience it’s not hard to see why people flock to Coinbase, either.

On top of all of that, though, the availability to trade more than 100+ different cryptocurrencies on a single platform – and you much more than that, too – really makes Coinbase a game changer.

Even though there’s always going to be the potential to lose money in crypto markets while a member of Coinbase this is still probably where you’re going to want to set up your crypto “base of operations”.

Can You Lose Money on Coinbase?

Yes, as we highlighted a moment ago there’s always going to be the potential to lose money on Coinbase when you’re trading crypto.

While you have to do is look at the day-to-day volatility of this asset class to get a good idea of what your risks are going to be.

Sure, there are “stable coin” options that might not have the same kind of volatility as say bitcoin. But those lower volatility coins and crypto options also don’t have the profit potential higher volatility options offer, either.

None of this however is limited only to the Coinbase platform.

Every single crypto exchange is going to have the same risks, all because all of these crypto exchanges revolve around what’s happening in the crypto market at any one particular point in time.

In fact, it could be argued that a lot of other crypto exchanges (especially the smaller and less reputable exchanges) have even more risk. At least with Coinbase you know that this platform isn’t going to fold up its tent, steal your money, and disappear into the night.

No, Coinbase is a publicly traded company on the NASDAQ, fully licensed and regulated by the SEC, and abides by FINRA and other financial rules and regulations around the world.

You might lose money on Coinbase because of the crypto trades you make. But you’re not going to lose it because the platform is unethical or illegitimate.

Understanding Crypto Fees

Something else you might need to consider when it comes to “losing money” on Coinbase has to do with the higher fees you’re likely going to pay on this platform compared to other options.

Now, most folks are going to consider the fees you pay necessarily losing money. It’s just the cost of doing business and can be rolled into your return on investments.

Even still, in the spirit of full disclosure and total transparency, it’s a good idea to know that the kinds of fees charged by Coinbase are amongst the highest in the crypto industry.

On top of that, there are more fees charged by Coinbase for different things than most other exchanges as well.

It’s all something you want to calculate and figure out before you jump right in.

Smart Crypto Trading Tips

There are a couple of things you can do to improve your crypto trading experience, including (but not limited to):

Getting crystal clear about your goals – One of the reasons that so many people lose money in crypto (on Coinbase or anywhere else) is because they have “fuzzy” goals about what they hope to achieve, if they have crypto goals at all. Get clear and concrete about your goals before you start and you improve your odds of success.
Stick to one currency at a time – With 100+ different currencies available to pick and choose from the temptation is always going to be there to want to sort of bop around from crypto to crypto, chasing trends and skyrocketing green lines. Avoid that temptation at all costs. Focus on one crypto, get really good, and then jump to others after that.
Invest time and money into training – At the end of the day, crypto is still a brand-new and emerging technology. The landscape of crypto changes on a minute by minute basis. You have to have your finger on the pulse of crypto to make real money in it – and that means investing time, money, and energy into training and education.

Keep those things in mind when you create your Coinbase account and you’ll go a long way towards minimizing your losses and improving your profits at the same.

Closing Thoughts

Coinbase itself isn’t going to hold you back or limit your options in the crypto marketplace.

If anything, Coinbase is going to open up a world of opportunities and a world of investment options that you simply wouldn’t have had access to otherwise. Definitely not effortless access, that’s for sure.

Remember that Coinbase is nothing more than a tool and a marketplace, though.

It doesn’t care if you make money or lose money. It isn’t ever going to put its “thumb on the scale” to help your trades become winners or losers.

While it’s definitely possible to lose money on Coinbase, it’s just as possible that you’re going to make a mountain of money and square away your financial future forever.

It all comes down to you, the decisions you make, and the trades you execute.

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Quick Guide:Can You Lose Money on Coinbase?