Coinbase is a San Francisco-based cryptocurrency wallet and exchange founded in 2012. It has around 20 million clients in 32 countries, most based in the US, making it the largest exchange globally.
Brian Armstrong, Fred Ehrsam, and Ben Reeves founded Coinbase initially, but they parted ways due to differences in opinions on how the wallet should operate. Armstrong and Ehrsam joined the 2012 Y-Combinator Startup incubator program.
In 2012, Coinbase launched its platform for trading Bitcoin and fiat currency through bank transfers. The company received a Series A investment of USD 5 million, led by Fred Wilson of Union Square Ventures. Later, Ribbit Capital, Andreessen Horowitz, and Union Square Ventures invested $25 million.
Within a year, Coinbase had one million users and acquired other startups like Blockr and Kippt. The company also ensured that Bitcoins stored on its servers were insured and upgraded its storage system to make it more secure.
Coinbase has partnered with several centralized tech giants, payment processors, and retail stores like Dell, PayPal, Stripe, Braintree Dish Network, and Overstock to accept Bitcoin payments. Coinbase has grown exponentially and currently serves around 25 million users.
Unique Features Of Coinbase As A Leading Cryptocurrency Exchange
With an impressive trading volume and a massive user base of over 25 million, Coinbase has established itself as one of the top cryptocurrency exchanges globally. What sets Coinbase apart from other exchanges is its rare ability to accept fiat funding through bank transfers and debit cards.
Additionally, unlike many exchanges that offer market-based trading, Coinbase sets the price for each coin, making it a convenient and reliable option for quick transactions. Coinbase stands out as a middleman, allowing users to buy or sell cryptocurrencies quickly and efficiently.
Furthermore, Coinbase has introduced the option for US-based users to exchange their Bitcoins for PayPal funds, with plans to extend this feature to European nationals soon. Finally, Coinbase accepts debit cards, making it even more accessible for users to trade cryptocurrencies.
Steps For Creating And Registering A New Account On Coinbase
To register an account on Coinbase, go to their website and click the “Sign Up” button in the top right corner by clicking the dropdown menu.
To complete the verification process, please access your email and click the verification link. Afterward, select your country, enter your phone number, and continue with the verification.
You will be presented with a page where you can enter a seven-digit code that has been sent to your phone. Once you have inputted the code, you can proceed.
After inputting the code, you will be prompted to verify your ID. However, if you are not prompted, it signifies that the account setup is currently complete. Nevertheless, if you intend to buy cryptocurrency in the future, you will still need to go through the ID verification process.
Confirming Your Identity
Due to its location in the USA, Coinbase must comply with KYC/AML regulations. Such regulations mandate that companies confirm the identity of their clients or customers and are in place to deter illicit activities such as money laundering.
To use Coinbase, customers are required to provide a substantial amount of personal information, such as their photo ID and the last four digits of their SSN. If you haven’t been prompted to verify your identity after entering the SMS code, you can do so by going to the “Buy/Sell” tab and selecting the “Submit ID + Photo Verification” button.
After providing this information, you will be prompted to provide photo identification.
You can use a smartphone camera, a webcam, or a file to upload a clear image of both sides of your licence for driving or other photo ID.
The Act Of Including Additional Modes Of Payment
To purchase any cryptocurrency, you must furnish your payment method. The available payment methods include three options.
To add a payment method, choose the “Settings” tab at the center of the page’s top.
To link a new account, navigate to the “Linked Accounts” tab within the Settings page and choose the “Link a New Account” option.
Afterward, you can choose the payment method of your preference.
A debit card will be the most suitable choice if you need to purchase smaller sums quickly. With a debit card transaction, you can receive an immediate transfer of cryptocurrency straight into your account.
Other payment methods offer higher purchase limits than debit cards and financial institutions charge a substantial 4% fee for using them.
Furthermore, Coinbase’s payment processor based in the United Kingdom may apply foreign purchase fees depending on your card and location, even though Coinbase is headquartered in the USA when you use it.
To link your debit card, choose the “link debit card option” and provide your debit card details. Note that you cannot use credit cards for this process.
After you have entered your card information, Coinbase will send two pending charges to your account. You need to verify your card by entering the last two digits of the charges. These transactions are free of charge. If you receive three charges, disregard the one for $1.00.
Although debit cards offer faster transactions, significant transactions should prefer bank accounts. When purchasing using a bank account, you fix the price upon completing the transaction. However, crediting the cryptocurrency to your account takes approximately 4-5 business days.
If the currency you have purchased experiences an increase in value compared to fiat during this period, you stand to earn some additional profits. Conversely, if this is not the case, you may suffer losses. Furthermore, it is a drawback that you will not have access to the funds for 4-5 business days, which means that you cannot engage in any trades until this waiting period has elapsed.
On the other hand, using a bank account offers the important benefit of having significantly higher limits, beginning at $7,500 per week, along with lower fees of 1.5%.
Select the “bank account” to which you want to link from the possibilities in the payment method selection.
Once you choose your bank, input your user ID and password.
To initiate a wire transfer, please select the desired amount and follow the instructions. Including a reference code generated by Coinbase is important to ensure proper transfer identification.
This process typically finishes within 24 hours, but once completed, it will add the selected amount to your account precisely as specified.
To accomplish this task, you must access your dashboard and find the “BUY/SELL” tab in the upper left corner.
After clicking on this, you can specify the quantity of cryptocurrency you intend to purchase or sell.
Once you input the currency amount, you will see a dropdown menu listing various payment methods. From this menu, you can choose your card. After verifying the order details are correct, click the “Complete Buy” button to finalize the transaction.
Your chosen wallet will receive the intended quantity of cryptocurrency within minutes.
Dispensing Of Cryptocurrencies Is Equally Straightforward
Within the “BUY/SELL” Tab, you can select “SELL” and specify the wallet from which you wish to receive your coins.
Afterward, you must select the destination where you wish to have your coins placed.
Select a specific quantity and validate the transaction by clicking the underneath button.
Verifying The Amount In Your Account
To verify your balance on Coinbase, you can sign in to your Coinbase account, which is a straightforward process. Upon providing your log in details, they will direct you to the dashboard, where you can locate a segment labeled ‘Your Portfolio’ on the lower left-hand side of the screen.
Beneath the section displaying the list of cryptocurrencies on Coinbase, you’ll find information regarding the amount of each digital currency you possess. The field below the cryptocurrency list shows a USD balance total in addition. Moreover, you can navigate to the “Accounts” option next to the “BUY/SELL” tab to view your balance.
Deposits & Withdrawals
To finance your Coinbase account, you can transfer funds from a different exchange or wallet. To complete this process, you can adhere to the following guidelines:
- Open the trading view.
- Find the Deposit button located under Assets in the left-hand column
- Select the currency that you wish to deposit from the Currency Type drop-down menu
- Display the account address and copy it. This address will now associate your account and receive all digital currencies sent to it.
- Finally, go to your external wallet where you wish to take currency from. Please enter the unique address corresponding to a specific digital currency (BTC can only be sent to the BTC address, and the same goes for other coins), and then send.
- Open the trading view at Coinbase
- Select the Withdrawal option located under Assets
- Select the currency that you wish to withdraw from the Currency Type drop-down menu
- Enter the destination address in the Destination field
- Enter the amount you want to withdraw, and click on the Withdraw option