What is Coinbase?
Coinbase, the United States’ largest cryptocurrency trading platform, was created in San Francisco in 2012. Coinbase is a bitcoin, Ethereum, and Litecoin wallet and platform that allows merchants and users to exchange digital currencies.
Their vision is to build a global open financial system and to be the dominant global brand for converting digital currency into local currencies
How does it work?
Users can use Coinbase to buy, sell, and spend cryptocurrency. It also provides services for businesses, such as enabling them to accept bitcoin payments and cryptocurrency wallets for storing cryptocurrencies in a secure location.
Coinbase is strictly a currency exchange and custodian, unlike some other places where you can acquire cryptocurrencies. Stocks, options, and different sorts of investments are not available. It is the biggest cryptocurrency exchange in the United States, with an extensive range and valuable instructional tools for cryptocurrency investors and traders of all levels
Features
Cryptocurrencies offered
C.oinbase supports 56 cryptocurrencies for US users to trade, with 59 on Coinbase Pro, a more significant quantity than many other platforms.
Trading platform
Except for Hawaii, Coinbase is available in every state in the United States.
Users of Coinbase can trade on one of two platforms: the original Coinbase site, which allows users to buy cryptocurrencies with US dollars, and Coinbase Pro.
Coinbase Pro, formerly known as GDAX, offers extensive charting capabilities and the ability to perform crypto-to-crypto trades and place market, limit, and stop orders.
Crypto to crypto trading
Coinbase has over 60 crypto-to-crypto trading pairs, including more than 40 currencies that can be exchanged for bitcoin, seven currencies that can be traded for Ethereum, and 11 currencies that can be exchanged for USDC, and a stable coin.
Easy to use
For starters, it is pretty simple to use. It takes no time to sign up, and by uploading a state or federally issued piece of identification, you can receive a tiny sum of Bitcoin ($5) (If you want to join up for Coinbase Pro, you’ll need to do this).
Educational resources
Coinbase has a great library of instructional resources in addition to the “earn while you study” component. Do you want a simple but complete introduction to Bitcoin? Is there a guide to the tax implications of investing in cryptocurrencies? On these and other topics, Coinbase has you covered.
Mobile app
Coinbase is a highly functioning and user-friendly mobile app that allows users to purchase, sell, and manage their bitcoins from anywhere. It has a 4.7-star rating in the Apple App Store and a 4.4-star rating on the Google Play Store.
Great selection
Coinbase currently supports 43 cryptocurrencies, ranging from Bitcoin and other big coins to smaller and younger digital tokens. Among the finest cryptocurrency exchanges, this has one of the largest options.
How to opening an account
- Signing up for Coinbase is a simple and painless procedure.
- To begin, enter your name, email address, and desired password.
- After that, you’ll be asked to confirm your email address.
- After that, Coinbase will ask you to enter your phone number to receive a verification code, which you must then enter.
- Coinbase will issue 2-step verification codes to this phone number in the future. Following this, you will be asked to input your identity details.
- You must establish your identity with state identification, just as you would with any bank or investment account.
- A social security number will be required for users in the United States.
- Your Coinbase account will be created at this point. You will be able to enter your bank account, credit card, or debit card details to enable deposits and withdrawals, allowing you to begin trading or investing.
Fees overview
The Coinbase fee structure is a befuddling mix of elements that are based on two factors:
- Coinbase charges a spread of roughly 0.5 percent; prices may be higher or lower depending on market swings.
- Coinbase also charges a fee, which is either a flat price or a variable fee based on the amount purchased and payment method.
Cryptocurrency selection
On Coinbase’s platform, there are many cryptocurrencies available for trade. The following are the top six by total market capitalization:
- Bitcoin
- Bitcoin cash
- USD coin
- Aave
- Chainlink
- Litecoin
Is your cryptocurrency safe with Coinbase?
Coinbase has more than $90 billion in bitcoin on its network and has never been a victim of a cryptocurrency robbery. The majority of Coinbase’s customer assets are held in “cold storage,” which implies they aren’t housed on internet-connected devices. The corporation maintains what it calls the “industry’s top insurance policy” on any assets housed online, and it regularly submits to financial and security audits by third-party firms.
Any cash balances in clients’ Coinbase accounts, like assets maintained in a bank’s savings or checking account, are insured by FDIC insurance up to a limit of $250,000.
Coinbase is best for
- Traders of cryptocurrencies.
- Traders who want to exchange one cryptocurrency for another.
- You want a high-quality trading platform, a user-friendly mobile app, and the ability to purchase and sell a wide range of cryptocurrencies.
- You’re new to cryptocurrency and want a platform with a lot of teaching materials.
- You want to be able to spend cryptocurrency anywhere Visa is accepted using a debit card.
What could be improved?
For smaller transactions, it is too expensive.
Coinbase’s fee structure is not just complicated, but it may also be quite costly for tiny transactions. Coinbase, for example, imposes a $0.99 flat fee for bitcoin purchases and sales of $10 or less. So, if you buy $10 worth of Bitcoin, your charge will be approximately 10% of the total transaction value.
Complex fee structure
Coinbase has a complicated fee structure that includes a spread (a premium connected to the market exchange rate) and a transaction fee, as you’ll see in the fee section below.
Pros and cons
The bottom line
Coinbase has become a preferred gateway for cryptocurrency investors wishing to get started due to its transparent sign-up process, ease of use, and favorable security reputation.
Also, Read
FAQ
What is Coinbase?
Coinbase, the United States’ largest cryptocurrency trading platform, was created in San Francisco in 2012. Coinbase is a bitcoin, Ethereum, and Litecoin wallet and platform that allows merchants and users to exchange digital currencies.
When Coinbase was founded?
The company was founded in 2012 by Brian Armstrong and Fred Ehrsam.