Hello there Welcome to my Review of Coinbase Exchange 2020
Coinbase is Said to be the World’s Largest Broker with more than 30million users from over 100+ countries. As of 2020, coinbase is serving over 55 countries.
Can I trust Coinbase?
Yes, with regards to the legal setup, technical arrangements and widespread network you can trust coinbase for your trading needs. But make sure you are careful with storing high volument funds in wallets.
Did you know? If you are a US Resident, your Coinbase funds are insured with FDIC for up to $250,000
In this article, I will talk about everything you need to know about coinbase.
- What is Coinbase?
- Top Features of Coinbase
- Coinbase Services
- How Coinbase Works?
- How much money can I hold in my Coinbase account?
- Coinbase Trading
- Coinbase Fees
- Supported Currencies
- Coinbase Security
- Recent Updates
- Final verdict
What is Coinbase?
A San Francisco, CA, USA based cryptocurrency exchange that counts among the top 5 lists as of 2020. The exchange supports multiple cryptocurrencies, limited payment methods, and a high liquidity ratio.
Fred Ehrsam and Brian Armstrong started the company in the year 2012 when digital currency came into the limelight. Since then the company has got huge media coverage on various newspapers such as The Wall Street Journal, Bloomberg, The New York Times, TIME, etc.
Top Features of Coinbase
- Complete and friendly services available on Web and Mobile application
- Offers Insurance to your funds and other Compliance arrangements to process your transactions with legal effects
- Instant conversion of funds to your local currency ( if supporting your currency)
- Hugh recurring buys
Coinbase Trading Service –
The main service of Coinbase is to allow buying and selling cryptocurrencies on its platform. Coinbase is available to users in over 55 countries as of 2020.
CoinBase Pro –
Formerly known as GDAX, Coinbase Pro is a cryptocurrency trading platform that allows experienced users to trade efficiently on the platform.
CoinBase Wallet –
In 2018, the platform ventured into a wallet service which is now renowned globally. Coinbase introduced the wallet for iOS and Android users.
CoinBase Earn –
Coinbase Earn lets you earn cryptocurrencies while learning about them in a simple and engaging way. The platform introduced this feature for users to understand an asset and its underlying technology. The first token added to this feature is ZRX and it is invite-only. The platform added Orchid, tezos, Stellar Lumens, etc. Other tokens would be added in the future.
How Coinbase Works?
Coinbase has a Simple- user-friendly Interface that allows freshers as well as traders to have a plane to access all the features.
Get started with Creating and Verifying your account and Deposit funds in Coinbase Using a Credit card or Debit Card or using Bank transfer.
You can then use funds to buy bitcoin or other cryptocurrencies or go further trading activities.
“ A US Customer can also make Auto Purchase of $1000 worth btc /week , if a Visa or Mastercard credit is added to the account”
How much money can I hold in my Coinbase account?
Coinbase has a very high limit. A 100% verified US customer can buy up to $50,000 worth of BTC / day and a European customer can hold a max of €30,000 in an account. Although, the limit depends on the account verification status. Higher the status, the higher the limit.
A user can click on the “Buy/Sell” tab to order Bitcoin or sell them as per market pricing. Every time a transaction is made, the user can generate a new address. This address is essential to validate a transaction. To generate a new address, click on the “tools” option then click on “Create new address”.
The trader can also view all the recurring transactions that have occurred. There is also an option of history where a user can view all previous transactions.
An interesting feature is that a user can also send Bitcoins with the help of an address. Thus it can act as another payment option.
The Coinbase exchange roughly charges fees from 1.49% to 3.99%, depending on the user payment method, with credit card transactions resulting in fees at the higher end of the scale. Coinbase Fees are quite high but lower when compared to similar providers such as Coinmama or CEX.
For more details, check the Fees Structure on the Coinbase blog. https://help.coinbase.com/en/coinbase/trading-and-funding/pricing-and-fees/fees.html
Currently, the exchange platform only allows users to buy Bitcoin, Ethereum and Litecoin. Although it does have plans to add more currencies to the platform.
Coinbase provides different levels of support for different Digital Currencies.
Availability for buying, selling, depositing, and withdrawing supported Digital Currencies is different for each Digital Currency. Also, coinbase fees and availability depend on your country and payment method.
Digital Currencies or other tokens that are not listed in this table are not supported by this platform. The exchange will not process any transaction made using an unsupported Digital Currency.
Coinbase is a responsible exchange when it comes to security. The website servers have SSL encryption. Most of the currency is saved in offline mode to provide an additional layer of security to these wallets. The platform also has a multisig vault that manages all the private keys during the transactions.
Together wallets and keys are covered under AES-256 encryption. The currency is distributed geographically in wallets and vaults to make it more protective and less accessible. Users can enable two-step verification to add additional security.
Coinbase rolls out Bitcoin Batching
Coinbase platform announced it’s a new feature, Bitcoin Batching. Batching is a method used to place as many transactions as possible into the limited block space available on Bitcoin’s blockchain. It is important because combining multiple outputs and payments into a single operation is space and cost-efficient.
Coinbase Becomes a Visa Principal Member
The platform becomes the first cryptocurrency exchange to achieve Visa membership. This membership will enable us to further improve the customer experience, making it easier to spend cryptocurrency in everyday situations.
The exchange platform is unique as it allows you to complete transactions as soon after initiating it.
The UI is user-friendly and easy to navigate which is ideal for beginners. Furthermore, they have an excellent reputation all around the world. Being able to support a variety of payment methods is also a plus point to them. Overall, coinbase is a great trading platform.