Coinbase is an online trading platform for Bitcoin. It also supports Ethereum and Litecoin which are the second and third most popular cryptocurrencies in the globe today. In addition to serving as an exchange, Coinbase is also a crypto wallet for the three top cryptocurrencies. Today, it has more than nine million users in 30 countries and comes with high-security standards that target helping to secure the system, stored crypto assets and clients’ info. In this post, we break down Coinbase and demonstrate why it is a great place for everyone getting into the crypto world.
Coinbase launch and rapid growth
Coinbase was established in 2012 by Ehrsam Fred and Brian Armstrong. At a time when little was known about cryptocurrencies, Coinbase got a lot of support from many Wall Street Companies. Its headquarters are in San Francisco, California. Today, the exchange has grown to become the largest cryptocurrency trading platform.
As the exchange continues to grow, so is the list of services it offers. When it was launched, it only traded Bitcoin. The supported cryptocurrencies have grown to include two more cryptocurrencies; Ethereum and Litecoin. Other services offered by the platform include advanced GDAX professional exchange and the highly demanded Toshi Messaging App.
When Coinbase started, its operations were mainly in the US. However, it has expanded to other parts of the globe. Today, the bulk of the trading volumes take place in Europe and Asia.
How does Coinbase operate?
To start using the exchange, the first thing is signing up for their exchange. This will give you access to the exchange dashboard that links back to the Bitcoin, Ethereum, or Litecoin assets. As a wallet and an exchange, it means there are two ways that one can use the platform.
One, you can opt to use the cryptocurrency for cryptocurrency exchanges only. This means that you will require a different crypto wallet. Coinbase will provide access to the wallet before starting to trade.
Two, you could use the platform as the exchange and a wallet for your cryptocurrencies. This means that every coin will always be ready for trading without reaching to third-party wallets. If you make Coinbase your wallet, you have to specify it in your mining account or payment address so that all your coins are funneled there.
As one of the most advanced cryptocurrency trading platforms, Coinbase has a very intuitive interface. It provides users with advanced metrics that show the latest price shifts for Bitcoin, Ethereum, and Litecoin. This allows users to follow the performance and make the right investment decisions.
The Coinbase online wallet
This digital wallet is probably the most secure in the crypto world today. The wallet is created using the latest technologies and comes with great security features to keep transactions private and private keys as secure as possible.
Notably, Coinbase wallet does not store the crypto coins in reality. To be precise, the definition of a crypto wallet as a store for crypto coins is a misnomer. What Coinbase and other wallets store are the private and public keys. The keys help the respective network such as Bitcoin to confirm that you have specific coins to spend.
Coinbase ensures that every user can rest assured of total safety for their keys. It is just like a traditional banking system where only you can get access to the stored resources. But Coinbase goes beyond that. There is nobody else apart from you and the wallet who knows about the keys and the stored crypto assets.
Coinbase, however, advises its clients to apply the best practices to ensure that their wallets are extra secure. You should particularly store the wallet offline, only access it from one computer, and keep all the systems updated.
Coinbase trading platform has a very engaging user interface. The designers placed a lot of emphasis on making the trading process as simple and attractive as possible to new users. Experienced traders also find the platform very straightforward. This means that you can easily follow different markets and make informed decisions on where to place their investments.
Coinbase created a sub-platform called GDAX that provides advanced traders (those handling large volumes) with specific trading tools. These include specific targeting, loss minimization, and analytics. Also, the platform is available for both Android and iOS as an app.
Security and insurance
In the world of cryptocurrencies, many people are always skeptical. The emphasis on anonymity makes even experienced crypto traders still carry their transactions with some level of skepticism. Because of these concerns, Coinbase ensures that its system is very secure by allocating ample budget and using a 2-factor authentication model.
To reduce the risk of getting compromised by third parties, Coinbase also provides users with cold storage solutions so that they can take their coins only when trading. This means that you can simply hit a button to get your coins offline. Even if the system gets compromised, your coins will not be touched.
Pros of using Coinbase
- It has some of the most advanced security features.
- It is available in apps for users who want to access it and trade when on the go.
- The charges of using the platform are very low. You only pay between 1.49% and 3.99% depending on the method of purchase or payment.
- The platform is very easy to use even for beginners.
- Unlike most companies associated with cryptocurrencies that insist on remaining fully anonymous, Coinbase has a central office in San Francisco. This makes it open, accessible, and very easy to associate with.
Cons of using Coinbase
The only disadvantage of using Coinbase is that it only handles a few cryptocurrencies. If you are interested in other cryptocurrencies other than Bitcoin, Ethereum, and Litecoin, this might not be your exchange.
The final take
To operate in the crypto world, you must get a stable, reliable, and vibrant wallet. These parameters are well captured in the Coinbase. Whether you are new or a veteran in the crypto world with interest in Bitcoin, Ethereum, and Litecoin, this is one great exchange to consider.