The Coinbase exchange
As the popularity of cryptocurrency surges, the need for safe and secure cryptocurrency exchanges is becoming increasingly important. Coinbase is currently the world’s largest Bitcoin broker. Founded in 2012, Coinbase exchange has proven itself as a vital player in the cryptocurrency space as well as the blockchain market. Coinbase is actually more than just an exchange as it also provides merchant and wallet services. The US-based bitcoin exchange and wallet platform allow users to buy Bitcoins, Bitcoin Cash, Ethereum, and Litecoins. Coinbase has operating licenses in all the districts of operation, hence, it is among the few regulated exchanges we have today. With over $100 million raised in funding, Coinbase has a solid capital foundation. It is reputed for its great security features coupled with FDIC insurance on deposits. Coinbase exchange outstrips its peers in terms of investor backing. It currently boasts just over 7.4 million users from 32 countries worldwide
Setting up an account with Coinbase exchange
Enter your personal details – Now click “Create Account”
Upon submission of your personal details, you will be redirected to a confirmation page. Navigate to your email messages and verify your email address. If you can’t see the verification email, check your junk folder.
Select your account type, either ‘Individual’ or ‘Business.’
Fill in your phone number and enter the verification code received. This is necessary because your phone acts as an extra layer of security when logging in and making transactions.
- Select a payment method
- Accepted payment methods
- Bank transfers
- Bank wires
- Credit cards
- Debit cards.
- SEPA deposits (for Eurozone customers)
Enter your identification details on the account profile form. Generally, coinbase collects a lot of information about its users. During the identification process, you will need to submit your passport, driving license and a photo ID through a webcam or mobile camera.
Fill in the details of your preferred payment method, and proceed to validate your account (‘Verify Charge Numbers’) by determining the last two digits of the charges billed under “Pending Transactions.”
You can now buy and sell either Bitcoins or Ether from Coinbase!
Is it safe to use the Coinbase exchange?
Coinbase is, undeniably, one of the safest exchange platforms out there. It employs the latest technology to secure its systems. Coinbase wallet users have very little to worry about their coins, though, this comes at a cost- the company has direct control of member’s Bitcoins. Various approvers registered to an account protect large sums of cryptocurrencies kept in the exchange’s vaults.
The Coinbase exchange has an instant buy feature which allows fully verified users to buy up to $1000 worth of cryptocurrency per week. However, level 2 users can only buy a maximum of $100 worth of Bitcoins weekly. When making a deposit, funds become available as soon as Coinbase receives the payment However, this may vary depending on user’s payment option and country of residence. European customers using SEPA transfer receives Bitcoin deposits after 1-3 days.
Buy and sell limits are applied to all Coinbase accounts. The limits are calculated based on the amount of user information available. The level of verification and past purchases also determine the limit imposed on a customer. Limits get adjusted upon uploading more verification details. Fully verified US customers can spend up to $50,000 on cryptocurrency purchases daily.
With Coinbase, users can create three types of wallets; a wallet, a vault or a multisig vault. The company has direct control on Bitcoins in a basic wallet, hence, a user has to trust that the exchange will store their coins securely.
Selected approvers protect the coins stored in a Coinbase vault. All approvers must confirm a withdrawal before it takes place. Normally, the processing of withdrawals from vaults take up to 48 hours .
For multisig vaults, users have more control over their funds. Multisig vaults feature three security keys. The account holder, the Coinbase exchange and a third party has one key each, though, two of the three keys authenticate a withdrawal.
GDAX is Coinbase’s advanced exchange. It is among the most famous cryptocurrency exchanges in the world today. GDAX is specially suitable for professional traders and more advanced users. It is a wonderful platform for Coinbase users seeking to expand their trading capabilities. Coinbase account holders can easily log into GDAX using similar account details and begin trading once they have transferred their funds. GDAX offers a wide selection of cryptocurrency trading pairs over fiat currency such as the US dollar and Euro.
Coinbase exchange does not charge a wallet fee. However, transferring coins to an external wallet attracts a network fee. All US users pay a 4% commission on any transaction made on the exchange. Credit card purchases attract 3.99% conversion fee while a US bank account conversion fee stands at 1.49% with a minimum fee locked at $0.15.
On the other hand, GDAX has far lower fees. No fees is levied on maker trades while taker fees is anywhere between 0.1% and 0.25% depending on the user’s volume.
1. Huge popularity hence high liquidity
2. User-friendly, thus excellent for beginners.
3. One stop shop for top cryptocurrency assets
1. Very limited payment options
2. User activity is always under surveillance, therefore, users’ privacy get reduced