Introduction and Evaluation of Cryptocurrency Exchange Coinbase
Article last updated: January 14, 2022
I've been a Coinbase user and can say a lot about how good or bad the company is. In this introduction, you'll be provided with a full summary so you can assess for yourself whether it's trustworthy.
Introduction to Coinbase
Coinbase is one of the largest cryptocurrency companies in the world, providing support for more than 100 countries/regions, including Hong Kong and Taiwan, users can register and buy and sell cryptocurrencies on this cryptocurrency exchange, and it has more than 30 million customers worldwide. Coinbase offers a wide range of services, but their main service allows users to buy and sell cryptocurrencies (virtual currencies including Bitcoin, Ethereum…) via bank accounts, credit cards. Generally speaking, the trading prices you get on Coinbase are reasonable.
1. Coinbase Overview
Founded in 2012 by Brian Armstrong and Fred Ehrsam as part of Ycombinator, Coinbase is one of the oldest exchanges in the world. Coinbase started as a Bitcoin brokerage service (selling Bitcoin directly to customers) but has added other services along the way. Coinbase is fully regulated and licensed. The company has raised $540 million from major investors including Andreessen Horowitz, Rabbit Capital, and the NYSE.
2. Coinbase Services
Coinbase Brokerage Services
The main service provided by Coinbase is a brokerage service for buying and selling cryptocurrencies. Due to the company's reputation, marketing, and relatively easy user interface, new cryptocurrency users often buy their first bitcoin through Coinbase. On the downside, the main complaint users have with Coinbase is the lack of control users have over their funds. When you open a Coinbase account, you will not have direct access to your coins, nor will you get any private key or seed phrase. Coinbase stores coins for you – the equivalent of putting cash in a bank, and you don’t own the cash, the bank does.
Coinbase Pro, formerly known as GDAX, is a cryptocurrency trading platform. Contrary to traditional Coinbase brokerage services that simplify buying cryptocurrencies at high prices, Coinbase pro is aimed at experienced users. Coinbase pro allows users to trade several cryptocurrencies including BTC, ETH, LTC, BCH, and ZRX. Fees are significantly lower than other brokerage services, and there are also advanced trading options.
Coinbase Wallet (wallet)
In 2018, Coinbase launched a standalone mobile wallet for iOS and Android. Wallets store private keys on the user's device and only they can access the funds. Coinbase started as a wallet and later transitioned to an exchange (claiming they were not wallets), which gave Coinbase a full service, and now they have a wallet service.
Merchant Solutions
Coinbase enables online merchants to accept cryptocurrencies on their website through a dedicated plugin. The plugin is supported by some of the biggest CMS (Content Management Systems) such as Shopify, Magento, and WooCommerce.
other projects
In addition to the above, Coinbase offers other services such as USD Coin (USDC) - a stablecoin (stable cryptocurrency) built by Coinbase. Coinbase Index – Tracks the financial performance of all Coinbase-listed assets. Custody Services – Safeguarding cryptocurrencies for institutional investors. Earn.com – A service acquired by Coindesk for filtering spam. Paradex – a platform for trading directly from user wallets Coinbase Ventures – invests in companies building open financial systems.
3. Coinbase Currency and Payment Methods Coinbase supports the following coins:
– Bitcoin (BTC) – Ethereum (ETH) – Ripple (XRP) – Litecoin (LTC) – Bitcoin Cash (BCH) – EOS (EOS) – and other cryptocurrencies
Coinbase accepts the following payment methods:
– Wire transfers – Credit cards – Cryptocurrency deposits and withdrawals – Paypal (withdrawals only)
5. Purchase Restrictions
Once you set up your Coinbase account, you can buy small amounts of Bitcoin until you increase your limit. To increase the limit, you will need to do the following: – Provide and verify your phone number – Provide and verify your personal information – Provide and verify your photo ID
6. Coinbase Customer Support and Reviews
Coinbase has a very extensive knowledge base. Most of the client's trading questions are answered on the website. If you seek support via email, they will respond within 48-72 hours (based on personal experience). Coinbase also operates a phone support line. As for the quality of support, the overall impression is negative, which is their downside. Most of the time, the support team won't delve into your issue, and it's common to receive "canned responses" that don't resolve the issue. Many people complained that Coinbase does not support oriented and many times the problem is not explained to customers.
7. Conclusion – Is Coinbase Safe to Use?
Coinbase is simple and easy to use for users. The company has invested a lot of time and money to make its user experience smooth and painless. However, you have no control over the coin and keep track of transactions. I think Coinbase is currently focused on growth rather than satisfying its existing customer base. However, if you don't run into any issues, the deal is very competitively priced. Buy cryptocurrencies with Coinbase, the service is reliable. Once you buy cryptocurrency, you can ship it from Coinbase to a cryptocurrency wallet that is completely under your control. Again, this does not imply that any cryptocurrency can be purchased at will. Research and risk assessment should be carried out before investing or trading.