Coinbase is a reputable marketplace with high trading volume and capitalization. The crypto exchange allows authorized users to receive income from the exchange or trading operations. Also, the Coinbase online wallet is available to everyone, using which you can safely store cryptocurrencies, observing all the terms and conditions of the service.
Coinbase History
Coinbase is a company that is headquartered in San Francisco. It owns many cryptocurrency services. The Coinbase platform was founded in 2012 by two Americans, F. Ashram and B. Armstrong. Three years later, the staff of the sales service consisted of over 28 employees. Today a group of different specialists, numbering 108 people, is working on the project. About 22+ million active users are registered on the platform. The capitalization of the exchange exceeds 8 billion US dollars. The annual profit can reach 1.3 billion. The operation and development of Coinbase are supported by some large investment organizations like IDG Ventures, Andreessen Horowitz, and DFJ Growth.
For traders and cryptocurrency speculators, the Coinbase exchange is very convenient due to its many features. A well-optimized interface delights professional investors with its simplicity and obviousness. The developers have streamlined the trading process and conversion procedure as much as possible, making it understandable and comfortable.
The main guarantee of the prospects and success of the Coinbase cryptocurrency exchange is absolute legitimacy, the availability of the necessary licenses, and active interaction with US government agencies.
Throughout its existence, the Coinbase exchange platform has been constantly improving. Developers optimize opportunities for crypto traders and add new options to the functionality. Initially, Coinbase was a highly specialized service where users worked exclusively with bitcoin. However, today you can store in an online wallet, convert and use in trading: Ethereum Classic, Litecoin, Ethereum, Bitcoin Cash, 0x, Basic Attention Token, and token tied to fiat – USDC.
Features of the crypto exchange Coinbase
For the most part, modern cryptocurrency exchanges are more likely to cause disappointment among professional speculators, but Coinbase is not one of such analogs. The developers of the trading platform have worked very seriously in the past, and also successfully continue to improve it now. Some of the features of the Coinbase exchange are noted above. However, other significant characteristics should be indicated:
- High trading volume. In the virtual world of cryptocurrency trading, the Coinbase project is well known and very popular. It determines quite acceptable commissions, and also allows you to keep profitable quotes for registered traders.
- The main fiat currencies on Coinbase are the US dollar and the euro. The British pound was also added in 2018.
- Many exchanges provide crypto traders with averaged or fixed quotes according to an incomprehensible scheme. However, Coinbase here resorted to a different method of forming prices for virtual currencies. They are calculated according to market patterns, taking into account the current offers for sale/demand from speculators. Quotes always reflect the actual value of digital coins.
- The Coinbase cryptocurrency wallet is used by over 32 million people, and this figure does not include traders or speculators.
- Strictly limited volumes of deposits, determined by three parameters. The user is assigned a specific status on the trading platform, based on the selected payment methods, country of residence, and the level of verification passed. For example, European clients who have fully verified their identity can weekly withdraw up to € 30,000 from Coinbase. For the same users in the US, the withdrawal amount is limited in a different way: up to $ 50 using a credit card; a maximum of $ 5,000 if the transaction goes to a bank account; no more than $ 50,000 for cryptocurrency wallets and electronic payment systems.
- Coinbase offers a Shift Card for verified American users. It is a special Visa card for the Bitcoin cryptocurrency. It is accepted for payment by a limited number of places where settlement with BTC coins is practiced. Such a debit card costs $ 10, but the owner then does not lose money on commissions for transactions and bitcoin conversions.
- On the Coinbase exchange platform, in addition to the ability to exchange digital coins or earn on the exchange rate difference of cryptocurrency assets, you can save coins in an online wallet. It is easy to use funds from it in any financial transaction, including settlement actions.
- The exchange is unattractive to a significant audience of crypto traders, speculators, or investors due to the absolute transparency of digital money flows and the emphasized focus on legitimacy. At all stages of verification, the system collects virtually a complete set of information about the client.
Positive aspects of Coinbase
Most of the previously mentioned features are undoubted advantages of the Coinbase trading platform. Some other advantages of this project should also be noted:
- Site reputation. No break-ins were recorded during the operation.
- Fast executing transactions. Users note the speed of transferring coins to other clients to cryptocurrency wallets.
- Compulsory deposit insurance is officially registered by the supervisory authorities. The loss of coins due to exchange hacking will be fully compensated by the reserve fund.
- You can sell bitcoins through PayPal.
- 98% of all cryptocurrency is stored in cold wallets autonomously and securely stored.
- Vault Wallet is available. For security reasons, the withdrawal permission can be individual or group. The first option provides for confirmation of operations with two passwords sent to 2 different user emails.
- All cryptocurrencies that traders and speculators can work with on Coinbase are very volatile and always in demand. If you correctly apply a well-developed trading strategy, even day trading will bring a high profit.
- There is a specialized trading platform – Coinbase Pro.
- For some countries, it is possible to work with fiat: through debit cards or bank accounts for American clients; SEPA transfer, and debit cards with 3-D Secure – for Europeans.
The Coinbase exchange has an impressive set of great qualities and positive features. But, we must not forget about the disadvantages, which are also present.
Disadvantages of the Coinbase crypto exchange
In addition to a lot of pluses, the trading platform has a few negative aspects. It is these flaws that block Coinbase’s entry into the TOP ratings of cryptocurrency exchanges. Disadvantages of the Coinbase service:
- Significant restrictive criteria that limit the deposit and the amount of withdrawal;
- A limited selection of virtual currency pairs;
- There is no possibility of anonymous trading or large conversions; Complex verification with the need to disclose almost all personal data, starting from the place of work and position, ending with very high-quality scans of documents;
- Frequent disappearances of communication with technical support in problem situations. Cases of ignoring complaints and claims incurred a lot;
- Irrevocable blocking of crypto-money lying on a trading deposit or in wallets, if a transaction of digital coins is declared to the accounts of gambling sites, online stores, or a competitive exchange LocalBitcoins;
- Tracking cryptocurrency flows on user accounts and blocking funds when applied by government agencies. It is even possible to lose absolutely all virtual currency on Coinbase upon the birth of some unfounded suspicion of money laundering, illegal transactions, gambling, etc. In this case, the account is deleted, and crypto coins are seized without proof of guilt and the possibility of acquittal proceedings.
Registration on the Coinbase exchange
If you decide to work with Coinbase, start by registering on the site. The process of creating an account on the Coinbase crypto exchange is simple and quick if you use the email address at gmail.com.
Step-by-step instructions for registration are as follows:
- To register an account on Coinbase, enter your email address in the window on the start page and click the Get started button.
- In the next window, enter your last name, first name, and email address, and come up with a password to enter and confirm your agreement with the terms of the exchange.
- Then click the Create Account button.
- This is followed by the standard procedure for activating an account via email. The system will send you a letter with a link to enter your account. Follow the link indicated in the letter to activate your account.
- The last stage of registration is confirmation of the phone number. Coinbase will ask your mobile to send a verification code to it. Follow the prompts in the pictures below to complete the registration.
Verification procedure for Coinbase
The usual creation of a user account on Coinbase only allows you to use an online crypto wallet. To make conversions engage in trading, and earning on the price difference of exchange-traded assets, you need to be verified in the system. In other words, it is required to enter contact information with the documentary confirmation. This feature is not available for all countries.
Verification instructions:
- Go to the Coinbase website. After entering the password and current email, you should click on the Sign-in button.
- In the next window, enter the 7-digit code sent in the window and click the Verify button.
- Go to the opened account in the Settings tab.
- Fill in the fields of your profile (country, city, address, date of birth, etc.).
- Specify the payment method – MasterCard, bank account (for US residents), or Visa.
- Carry out 2-3 verification transactions, checking the receipt of funds.
This procedure completes the verification process for Coinbase.
Security setting
Setting up account security is one of the important stages of working with the exchange. The Coinbase exchange takes care of the safety of its client’s assets. Therefore, two-factor identification (2FA) is connected by default to each new account, which works through SMS codes. If necessary, this option can be disabled or personalized through the system security settings.
To configure 2FA, go to the Settings section of your account and select the Security section.
The exchange offers users 3 options for connecting 2FA:
- Text Message (set by default) – low-security level;
- Authenticator application – medium level of protection;
- Security keys – high level of protection.
To connect 2FA, you need to click Select opposite to the option you need and save the changes.
Also, a separate 2FA setting for withdrawal operations is available on the site, which can be set depending on the number of transactions:
- To withdraw any amount;
- Limit 1.2000 BTC per day.
Deposit and withdrawal of funds
Deposits and withdrawals to Coinbase are made through the Accounts menu, which is located in the top bar of the site.
In the window that opens, on the left, we see a list of available cryptocurrencies for deposits and withdrawals. Select the required asset for replenishment and click the Receive button.
For each cryptocurrency, the system generates a unique wallet address and QR code. To deposit, use the address indicated by the system or scan the QR code if you use special mobile applications.
When choosing an account for replenishment, please note that it is intended exclusively for the specified cryptocurrency. Sending another digital asset to a bitcoin address will result in a loss of funds.
Withdrawals are made in the same way. In the Accounts menu, select the required crypto-asset and click the Send button.
Next, you must indicate in the appropriate cells the amount of withdrawal, and the address of the wallet for transferring funds and click the Transfer button. To confirm the transaction, the system will ask you for a 2FA code, and only after that, you can transfer funds by clicking the Send button.
You can also deposit and withdraw fiat on the Coinbase exchange. To do this, you need to create a wallet in your local currency (EUR, USD, or GBP). This option is again only available to customers from selected countries that have been verified. Each country has its conditions and set of payment solutions. But in general, Coinbase supports bank transfers (including ACH in the US and SEPA in the EU), credit and debit cards, some payment systems, and PayPal (for withdrawals only). Detailed information on the availability of payment solutions for the countries of the European Union is shown in the table below.
How quickly are funds credited and withdrawn? Depending on the selected deposit method, funds are credited almost instantly, but it can also take up to 5 business days if using a bank transfer. Withdrawal operations are also performed quite quickly and are more dependent on the network load. Withdrawal of assets to a bank account takes up to 2 business days.
Commissions for depositing and withdrawing funds depend on the type of wallet, country of residence, and currency. Transfers between Coinbase clients within the exchange are commission-free.
Limits
The Coinbase exchange, like many other cryptocurrency trading platforms, has certain restrictions on foreign exchange transactions, which depend on the user’s account level. But it should be noted that there are no universal account levels; they are individual for each trader.
How can you level up your Coinbase account? The answer is simple enough. To do this, you need to specify your phone number in the account settings, fill in personal information about yourself, and also go through personal identification.
To check your account level and find out your maximum allowable balance for performing currency transactions, go to the profile settings menu and go the Limits tab.
Commissions on Coinbase
As for commissions for trading operations, the mechanism for calculating them on Coinbase is quite complex and has several components. So, for the purchase and sale of cryptocurrency, Coinbase adds a spread of 0.5% to the market rate on Coinbase Pro. In addition to calculating the spread, you must pay one of two types of commission: fixed or variable.
The size of the fixed commission is presented below:
- Transaction amount ≤ $ 10, commission is $ 0.99;
- Transaction amount> $ 10, but ≤ $ 25, commission is $ 1.49;
- Transaction amount> $ 25 but ≤ $ 50, commission is $ 1.99;
- Transaction amount> $ 50 but ≤ $ 200, fee is $ 2.99.
The size of the variable commission depends on the user’s country and the method of buying/selling cryptocurrency.
Аdditional services
Coinbase has a broad structure, which, in addition to the exchange itself, includes various subsidiaries, including investment and charitable foundations.
There are three main structural divisions of the exchange:
Coinbase
Coinbase is a cryptocurrency trading platform where transactions with cryptocurrencies and fiat money are available.
Coinbase Wallet
Coinbase Wallet is a mobile crypto wallet that anyone can use without restrictions on citizenship. It is enough to go through a quick registration by entering your email. Coinbase Wallet is available for IOS and Android users. The wallet works with private keys that are stored directly on your device, not on an exchange. It allows users to control their funds. The wallet provides an expanded set of functions and allows not only storing cryptocurrency but also performing trade transactions, monitoring the rate of cryptocurrencies, as well as earning small bonuses for completing mini-tasks, participating in bounty projects, etc.
Coinbase Pro
Coinbase Pro (formerly GDAX) is a standalone exchange for professional traders who understand how to work with advanced trading techniques. In addition to a wide range of functionality and various tools that help traders monitor the market and make decisions about transactions, working with Coinbase Pro will cost you much less than Coinbase. The maximum commission on Coinbase Pro is only 0.25%.
