Coinbase Review

Coinbase Review

Before we begin our Coinbase review, let’s first ensure you have an understanding of Cryptocurrency.  Cryptocurrency is an encrypted, decentralized digital currency transferred between peers and confirmed in a public ledger via a process known as mining. It uses encryption techniques to regulate the generation of currency and verify the transfer of funds while operating independently of a central bank. There is no intermediary. The world of cryptocurrency is on the rise, and so is its application! The future of currency seems to be in the form of cryptocurrency, and like every form of currency, it must be kept securely. This protection is provided by cryptocurrency wallets. To trade in digital currencies, users need a platform to trade on, and an intermediary to communicate with the network. These networks are called exchanges. A cryptocurrency exchange provides a surer path towards trade. It’s a game of extreme wit, and subtle luck when investing in the exchange market.

An exchange represents the easiest method to trade and invest in cryptocurrency. Every Exchange has a different operating environment. A user must authenticate his identity and link his bank account to the Exchange, after which the user can purchase a cryptocurrency. Users must open a new account, authenticate their email, choose a password and get started! If one means to store the cryptocurrency safely after purchase, the use of cryptocurrency wallets is recommended (as mentioned before!). Coinbase is one of the most popular cryptocurrency exchanges and serves customers in over 30 regions around the globe. While Coinbase is constantly referred to as an exchange, it is important to note that it operates more like a broker. It is the world’s largest Bitcoin broker (Bitcoin is the most popular cryptocurrency). It is a digital currency exchange for buying, selling, transferring, and storing cryptocurrency (it serves as a wallet as well). Coinbase has two core products. It has a Global Digital Asset Exchange (GDAX) for trading assets. It also has a user-facing retail broker for Bitcoin, Ethereum, Litecoin and Bitcoin Cash. Here is a comprehensive Coinbase review.

Coinbase Review

Buying And Selling Cryptocurrency

Coinbase allows the purchase of Bitcoin, Ethereum, Litecoin and Bitcoin Cash. It is the world’s largest Bitcoin broker and currently serves a total of 32 countries. Users must register at Coinbase. Coinbase requires users to verify their email address, their phone number and choose a valid password. In order to purchase cryptocurrencies, users need to link their bank account, credit card, or debit card to their Coinbase account. Coinbase charges fees ranging from 1.49% to 3.99%, depending on the payment method, with credit card transactions resulting in fees at the higher end of the scale.

Coinbase does not offer margin trading. It takes 2-4 days for a cryptocurrency purchase to show up in the wallet. When selling cryptocurrency, it takes 2-4 days for the sale amount to be deposited in the registered bank account. Business accounts can be opened as well. This allows clients to deposit money in the form of cryptocurrency, which can then be withdrawn to linked bank accounts. Coinbase offers high liquidity limits. Fully verified United States customers may buy up to $50,000 worth of bitcoin daily. European customers may have a maximum of €30,000 euro in their account at any time. Users are advised to store their cryptocurrency in cryptocurrency wallets despite Coinbase having a wallet of its own. Instantaneous transactions incur higher transaction fee rates.

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The link below serves as a guide to use Coinbase:

Using Coinbase

Pros And Cons

Pros:

Coinbase allows for online and mobile wallet services. It provides for a multi-signature security option to prevent unauthorised movement of funds from the account of a user. Coinbase allows a large array of fiat deposit and withdrawal options. High liquidity and purchasing limit are provided.  It has a Global Digital Asset Exchange (GDAX) for trading assets. It also has a user-facing retail broker for Bitcoin, Ethereum, Litecoin and Bitcoin Cash. It is the world’s largest Bitcoin broker. Transaction time is less. Coinbase also allows initiates instant transfers between Coinbase users.

Cons:

Coinbase may keep track of transactions as a safety measure. This may lead to an account being temporarily suspended if illegal activity is detected. Payment methods on Coinbase are limited. The fee charged for transactions is quite high (as mentioned before).

Coinbase Review of Security

To ensure safety of funds, 98% of customer funds are stored offline. This reduces the possibility of theft. The remaining 2% is insured. If hacked, these funds will be returned to users.  All fiat currency of a user is kept safely in custodial wallets. It is covered with FDIC insurance allowing amounts of up to 250,000 USD. Coinbase allows for online and mobile wallet services. It provides for a multi-signature security option to prevent unauthorised movement of funds from the account of a user. Bitcoin stored in a Vault account can be protected by multiple approvers. If a user adds two approvers to his vault, both must confirm that the withdrawal is valid before it processes. Users are advised to store their cryptocurrency in cryptocurrency wallets despite Coinbase having a wallet of its own.

coinbase wallet

Different Wallets

In order to use any cryptocurrency, you will need to use a cryptocurrency wallet. It is a software that allows you to easily store and manage your private keys (secure digital code known only to you and your wallet) and public keys (a public digital code associated to a certain amount of currency). Never store your ripple on an Exchange! Wallets are secure and prevent theft of cryptocurrency. Ledger Nano S, Trezor, Exodus and Jaxx are a few of many good wallets a user can trust. After purchasing any cryptocurrency on Coinbase, make sure to transfer the cryptocurrency to a secure wallet.

We hope you’ve enjoyed our Coinbase review!

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