Coinbase is a cryptocurrency trader that has been operating out of the San Francisco in the United States since 2012 and has a number of subsidiaries all across the globe. It is a digital currency platform that allows both merchants and consumers to transact through the use of new digital (crypto) currencies such as Bitcoin, Ethereum, and Litecoin. Coinbase comes armed with their mission to create an open financial system for the world. An open financial system that is not controlled by any one company or country, with the hope of helping to lift billions out of poverty, while at the same time, increasing the pace of innovation in a cryptocurrency world. This Coinbase review should provide you with a better understanding of what they do, and how they do it.
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Security and Fees
Hacking is one of the most important security breaches regarding cryptocurrencies, the Coinbase platform not yet having any major issues there, despite reports of incidents involving numerous individual’s accounts. Hackers passing the two-factor authentication security process which was believed to have been secure.
With Coinbase operating as a retail-oriented brand of the company, it has the ability to accept fiat currencies, and moreover, allows for the instant purchase of several coins types. The Coinbase fees have taken some necessary heat when compared to other cryptocurrency traders, going up to as high as 4% depending on the region of the world and type of payment made.
Earlier this year, Coinbase was able to acquire an e-money license from the Financial Conduct Authority (FCA), which would allow them to now provide payment services within the UK, as well as the right to issue e-money. With regards to their clients’ funds, Coinbase employs the strict separation of its operational and clients funds, holding client funds in other regulated financial institutions.
Instruments of Trade
Although Coinbase is home to only a few coins, they are the big names in the cryptocurrency game, Bitcoin, Ethereum, and Litecoin. Keep in mind, however, that Coinbase is an entry-level trading platform, and is primarily aimed at those individuals who are not too familiar with the world of cryptocurrencies and their trading.
Once you have verified your ID, e-mail, telephone, and credit card information, allowing you the ability to purchase coins, Coinbase will set your limit per week. This limit may vary depending on your location in the world. After some time, and once you have reached your maximum limit, your level can be adjusted. This is merely an additional level of security and is not something that is worth you getting frustrated about.
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Coinbase’s commission structure is a part of their practice that has come under much scrutiny and criticism lately. Their high commissions taking center stage in this argument. For example, although making a deposit via a credit card is going to allow you to buy your chosen coins directly, it does come with a hefty commission fee of up to 4%. Yes although this is rather convenient, the cost is something that needs to be noted. If you run into an accident and live in the state of Wyoming, your Coinbase funds can be used to hire a Wyoming Injury Attorney.
What Coinbase has to offer in terms of a trading platform, is more comparable to the interface of an online banking application than an actual trading platform. It’s relatively basic and simple to understand. The chart section in the top section of the interface allows you the freedom to switch between its 3 supported instruments and their multiple time frames. The bottom column plays host to a column of your wallets kept with the company, as well as featuring a transaction history column. It really does not get much simpler than that.
Coinbase has included a number of payment methods and options available to their users, including: bank transfers, debit or credit cards, and PayPal. The PayPal method of payment is restricted to citizens of the United States only. Taking Coinbase’s high fees into account, it is nice to know that no additional fees are charged to you when you for any cryptocurrency transfer to other exchanges, or to any of your wallets.
Coinbase is fast becoming, if it isn’t already, one of the world’s leading cryptocurrency players. Focused on new entrants to the crypto-game, with an easy to use interface and easier way of acquiring cryptocurrencies, Coinbase is ideal for first-time cryptocurrency buyers and traders.