Exchanges

A beginner’s guide to Coinbase cryptocurrency exchange

Coinbase is a secure online platform that allows users to buy, sell, transfer and store cryptocurrencies. The crypto exchange has its headquarters in San Francisco, California. The platform currently offers to buy and sell services in 33 countries. However, its cryptocurrency wallet is available in over 190 nations.

The beginning of the company

Coinbase

It was launched in June of 2012 by Brian Armstrong and Fred Ehrsan. Also, Ben Reeves, the co-founder of Blockchain.info was also part of the team, however, left the project after differences arose between him and Amstrong on how the Coinbase wallet was supposed to operate.

In May of 2013, the company received a $5 million investment from Union Square Ventures. Also, In December of the same year, the exchange received a $25 million investment from Andreessen Horowitz, USV and Ribbit Capital.

The exchange began as a digital wallet where users would store their BTC online. Then, later on, it decided to venture into the brokerage space where users could buy and sell bitcoins.

As of 2018, the exchange is the largest broker of cryptocurrencies in the world.

Ease of use has made the exchange popular

Coinbase

The exchange also boasts over 20 million users around the globe. In March of 2018, the platform announced its intention of adding support for ERC20 tokens.

New users will find using Coinbase to be simple. Furthermore, to open an account, a new user needs to visit the website and open an account. Then they can choose their preferred mode of payment and start buying coins.

Also, users will find the 3.99% fee charged by the platform when using a credit or debit card to buy tokens to be favorable when compared to other exchanges.

Tokens supported on the exchange

The crypto exchange supports:

  • Bitcoin
  • Ethereum
  • Bitcoin Cash
  • Litecoin

The payments methods accepted include:

  • Credit cards
  • Debit cards
  • Bank transfers
  • Bank wires

Coinbase has two main products:

  1. GDAX (Global Digital Asset Exchange) – it records every transaction including the price levels and volumes of all crypto coins offered on the platform.
  2. API – a platform that helps developers build apps and merchants accept payments in cryptocurrency.

Some of the prominent features of Coinbase include:

  • Buying and selling of virtual currencies on the exchange is easy.
  • Applications on the exchange are built on API.
  • Facilitates free sending and receiving of crypto between merchants, online wallets and friends.
  • The exchange takes security and backups seriously.
  • It’s a one-stop shop wherein a single interface; the exchange offers an exchange, a wallet, and merchant tools.

Using Coinbase offers the following advantages:

  • Users can make insured Bitcoin deposits
  • There is an instant buy feature available.
  • Using for beginners is easy.
  • Being one of the most famous exchanges, it’s highly liquid.
  • Users have access to the top crypto coins including Bitcoin and Ethereum.

Disadvantages of using Coinbase include:

  • Limited modes of payment
  • The platform offers only five crypto coins.
  • Active monitoring of user accounts.
  • Because the exchange works in unison with financial regulators, users have to pay taxes on profits made.

Recent developments

Recently, Coinbase was given the green light by U.S watchdogs to list an additional five crypto coins. If the move comes to fruition, it will make the platform one of the first federally regulated exchanges to trade virtual currencies regulators see as securities.

The go-ahead comes after FIRA and the SEC approved the platform to purchase three asset management ventures. The three companies include Keystone Capital Corp, Venovate Marketplace Inc, and Digital Wealth LLC.

Consequently, since these businesses are under federal oversight, this decision will allow Coinbase to offer tokens that authorities see as securities.

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Basil has three years of freelance experience writing on disruptive technologies. He focuses on breaking news and education pieces; helping to spread the gospel of Blockchain. He hopes to have his own blockchain company one day; helping the world through its innovative ledger technology.

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