What is Coinbase?
Coinbase is currently one of the biggest, most trusted, and most transparent cryptocurrency banks/brokers in the world. Perfectly designed for the new crypto and ICO investors, you can take advantage of this easy-to-use and hassle-free cryptocurrency exchange platform to buy, receive, and trade Bitcoin and other digital currencies and also understand easily about the best ICOs to invest.
Established in 2012 and supported by trusted investors, the platform is headquartered in San Francisco, California and facilitates the crypto exchange service in more than 30 countries with more than 10 million customers.
Unlike traditional cryptocurrency exchanges, this crypto exchange platform enables you to purchase cryptocurrency in exchange for fiat currencies such as USD, EUR, etc.
The platform consists of two core products; one is a broker exchange and other is a professional trading platform named GDAX. Both these products function differently and independently from each other.
Now the question, is who can use this platform?
Coinbase can be used by the following people:
First-time Bitcoin buyers: If you are a first-time crypto buyer, you can use this platform to make your purchases.
Those seeking a secure place to buy Bitcoin: If you are seeking a safe place that you can use to buy Bitcoin, this place is for you.
Those wanting to pay with a credit card or by bank transfer: If you wish to make payments for your purchases, then this platform is suitable.
Ready to provide identification details: If you are not afraid of handing over your identification details, then you can trust this platform.
Not using this platform to gamble online: Finally, yet importantly, the platform is not to be used for gambling purposes. If you are not looking to gamble online, then this is an ideal place for fair crypto selling, buying, and trading.
If the above-mentioned elements apply to you, then this is the right cryptocurrency platform for you.
How to set up an account with Coinbase?
Signing up with this platform is exceedingly simple and hassle-free in comparison with other crypto-exchange platforms that already exist in the crypto landscape. In order to create an account, you just need to follow and complete just a few key steps such as:
Go to its website, open its joining page and then enter the required details (see the image below for an example).
Once you have successfully completed the above process, the platform will send you an email asking you to verify it. As you click the account verification link contained in the email, it will redirect you to its website, where you can go ahead with your identity verification. When you have verified your identity, simply select the type of payment you wish to make via this platform.
How to buy cryptocurrency from Coinbase?
After the sign-up process, you need to choose a type of account. There are two types of account: individual and business. You need to choose between these two accounts. Once you have gone through this process, you can jump ahead to the next step (see the image for more information).
Verify your phone number
When you have successfully selected your account, it will ask you to enter your phone number for verification. The company uses this number as a form of 2-Factor Authentication, thus providing full security to your personal account. The below image will best illustrate it:
Set up your payment method
After your phone number has been verified, you need to set up your payment method (see image below).
It is to be noted that this crypto exchange platform accepts payment via bank transfer and credit card.
When you set up your bank account with this platform, you must make two small transactions and verify the amounts.
When you set up a credit card, the platform also asks you to upload an image of your credit card.
As with other crypto exchanges handling fiat currencies such as USD, EUR, etc, this crypto exchange platform mandates both these methods to abide by various government regulations.
Now it’s time to buy Bitcoin, Ethereum, and/or Litecoin
When you have completed the above process, you can start buying your cryptocurrency. This platform clearly states its fees and prices while you are placing your order (see below for the crypto purchasing step).
Your account will now show you the credited amount of cryptocurrency.
How safe and secure is Coinbase to use?
The safety and security of funds are what most concerns crypto buyers. Nobody wants to deposit his/her funds into a bank/exchange that does not guarantee security of funds. However, this platform is well-known for the safety, security, and transparency of its users’ funds. These key elements actually best define this crypto-exchange platform.
So, on the security front, this platform easily provides three layers of security to its users.
Complying with all necessary U.S. laws and regulations
Coinbase is a fully legitimate company, which complies with all necessary U.S. laws and regulations required to run a company in the United States, at both a state and federal level.
Some of the key legislations, regulations, and regulatory bodies this platform abides by are as follows:
- It complies with state money transmission laws and regulations.
- It is registered with FinCEN as a Money Services Business.
- It complies with the Bank Secrecy Act.
- It complies with the USA Patriot Act.
Abiding by all these legislations and regulations, this platform fulfils its responsibility to provide its users with a law-abiding and fully secure payment transactions service, as opposed to other crypto exchanges operating in many different countries. Apart from the United States, none of the countries from where this platform operates mandates licenses to run a cryptocurrency business. Besides, it is also important to note that cryptocurrency is supported by many trustworthy investors such as Alexis Ohanian (Reddit Co-Founder), Blockchain Capital, Bank of Tokyo, and Digital Currency Group.
Guarantee of funds security
Unlike other crypto exchanges, Coinbase keeps its customer funds segregated from the company’s operational funds. The company holds these funds in custodial bank accounts.This indicates that it won’t exploit your funds to run its business. Moreover, the company itself says that if ever it becomes insolvent, neither this platform nor its creditors can claim the funds held in the custodial bank accounts. The funds held in those accounts will be returned only to the Coinbase’s customers.
It is important to note that 98% of customers’ funds are held in secure offline cold storage. These funds are stored on various paper wallets and hardware wallets. The physical cryptocurrency wallets are later held in safety deposit boxes and vaults (a new feature that allows you to “share an account” with 2 or more users) throughout the globe. These measures help in securing customers’ funds from being hacked or stolen by hackers.
Personal account security
Apart from ensuring security for your cryptocurrency funds, this platform also secures your personal account with multiple 2-factor authentication (2FA) methods. One of the most basic methods that you can adopt is via SMS texts, but it is advisable to set up a third party 2FA app. You can choose from options such as Google Authenticator and Authy. In addition, the system also allows you to monitor all your account activities. It also notifies you when someone tries to maliciously access your account.
Coinbase’s customer support
This crypto platform though has an extensive FAQ section to answer general questions. If you face any technical issues while navigating the site, this platform offers 24/7 hours customer support service via email.
Countries serviced by Coinbase
Countries supported and serviced by Coinbase include: the United Kingdom, France, Greece, Norway, Poland, Sweden, Switzerland, Denmark, Finland, Monaco, the Netherlands, Slovenia, Spain, Cyprus, Czech Republic, Lichtenstein, Malta, San Marino, Slovakia, Bulgaria, Croatia, Italy, Latvia, Portugal, Romania, Austria, Belgium, Hungary, and Ireland.
Coinbase’s buying and selling limits
Buying and selling limits depend upon the type of payment method you choose, country you reside in, and your verification status.
For example, if you are a fully verified US customer, the weekly limits will be similar to the following:
- USD50 buy through a credit/debit card
- USD5,000 buy through a bank account
- USD50,000 sell
If these limits aren’t enough for your requirements, you can choose to apply for higher limits. It is notable that your limits for immediate purchases, as credit card purchases, must not go beyond the pre-decided limit. Interestingly if you are a European customer, you may get up to €30,000 in your account.
Send cryptocurrency from your crypto wallet to Coinbase
You can leverage the advantage of a Coinbase wallet to easily send, receive, and store cryptocurrency. All you need to do is complete a few simple steps (see below) before hitting the “Send Funds” button to send Bitcoin, Ethereum, and Litecoin from your wallet:
- Navigate to the Send tab of your account.
- Select the wallet you wish to send from, effectively opting for what cryptocurrency you are sending.
- Enter the amount you would like to send.
- Enter the address you wish to send funds to.
- Send funds.
Send cryptocurrency from Coinbase to your crypto wallet
Just as sending cryptocurrency from your crypto wallet to Coinbase is easily done, it is also very simple to receive cryptocurrency via this platform. All you need to do is:
- Navigate to your “Accounts” tab.
- Check the wallet where you would like to send the funds.
- Click the “Receive” button.
Now you can get your account’s wallet address and use it in the sent field of a transaction to receive cryptocurrency.
The fees structure of this platform continues to change, ranging from 0 to 200 basis points. However, you will be required to pay conversion charges when it comes to transferring from bank accounts or purchasing with credit/debit cards.
User warning while using Coinbase
This cryptocurrency exchange platform takes every possible measure to stop the misuse of its platform. It monitors its users every time cryptocurrency is sent and received via its platform and places restrictions if a user is found to be involved in the following activities:
- Sending cryptocurrency for darknet purchases.
- Sending cryptocurrency to gambling sites.
- Sending cryptocurrency to LocalBitcoins.
In case of closed accounts due to above activities, users will receive a refund to their bank accounts.
Is Coinbase a wallet?
Coinbase is not exactly a wallet, but it can be used as a wallet. The multi-utility platform also provides extra security for those wanting to store their funds for a longer term called “Vault.” This again raises the same question of whether it is a safe platform or not. The answer is yes, as it always prioritizes your funds and personal account security.
This is an amazing crypto exchange platform when it comes to sending, receiving, and trading (through GDAX) cryptocurrency. As opposed to other crypto exchanges, this platform is the most trusted, biggest, safest and most transparent cryptocurrency exchange. It is not just easy to use but also offers more payment methods, providing an outstanding crypto transferring and transacting experience to its users.
Although some believe it to be more of a wallet than a crypto exchange platform, it does allow you to create three types of wallets such as Coinbase Bitcoin wallet, Coinbase vault, Multisig vault.
Thus, this platform is an entry gate to the crypto market and lets you buy Bitcoin, Litecoin, Ethereum, and Bitcoin Cash which are the most common what comes to invest in ICO’s.