In this post today, you will get everything you need to know about Coinbase. If you have been wandering in the new interesting world of cryptocurrency, you must have come about Coinbase. This is a company dedicated to but not limited to cryptocurrency.
I will start off by generally describing what it is before doing a Coinbase review. This is a limited company that focuses mainly on the digital asset ventures especially the cryptocurrencies. Coinbase majorly focuses on Bitcoin and its products but has in the recent years started incorporating the other altcoins such as Ethereum and Litecoin. Coinbase acts as a digital broker in the simplest explanation of its services. This company is also backed by the New York Stocks Exchange.
Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam who saw a middleman opportunity after Bitcoin started gaining market since its introduction in 2009. Coinbase first started off by buying and selling Bitcoins through Bank Transfers. It then extended its services to include the vault system for the Bitcoins. Over the years, it has grown in its users to about 7 million at the time of writing this article.
Coinbase has been the place to go especially if you are looking to purchase your first Bitcoin. This is because the company has invested heavily in making better algorithms and designing user-friendly interface that takes care of the extensive technicalities in owning any cryptocurrency. Also, they have partnered with many banks and offer payment services to over 32 countries worldwide.
What you need to know about Coinbase?
As was stated above, Coinbase has partnered with many banks around the world so as to enable the purchasing and selling of Bitcoins in the local currency. Also, people have many payment options ranging from EFT, SWIFT SEPA, and Ach. Also, they have introduced PayPal and Debit and Credit cards. Of course, these are Visa and MasterCard supported.
Coinbase mainly focuses on the purchases and sales of Bitcoins. However, it also performs an auxiliary function of storage. That is, they have wallets that you can rent out like a ware house to store your Bitcoin stash. You also store Ethereum and Litecoin. Your stash is safely kept and is guaranteed as they have purchases an insurance cover for their storage vaults.
How Coinbase works?
The most important thing to know is that Coinbase has a strong backing from the major financial industry movers including The New York Stocks Exchange. This means that the virtual currency business is fast becoming a major profitable activity in the financial industry. The business is licensed by the New York State Department of Financial Services to continue its operations. That plus the major banks that have invested more than the US $100 million into the company should be telling you that they have something here.
Coinbase operates more like a bank than a broker. This is so as the company was the first to receive the virtual currency operation license. This is also because of major integration with the major Banks it is operating with has resulted in the adoption of most Banking laws. For this reason, Coinbase requires one to fill out an extensive personal information and monitor the accounts to prevent money laundering. This should not water down your spirit as their services are secure and guaranteed which is hard to come by in virtual currency.
Is Coinbase safe?
Before venturing into Coinbase, you need to understand its inner working. Is Coinbase safe? This is the first question most people ask me. The answer is yes. Coinbase is very safe. As was mentioned in the above post, the company has invested heavily in insuring their vaults to minimize their losses. Also is the fact that the company is integrated with the major banking industries that also protect their investments.
Having received funds to the tune of US $ 75 million and above over the years since its conception, Coinbase goes, without doubt, one of the most secure virtual currency brokers in the world. This is also factoring in the investment they have received from the Japanese banks and securities exchange. As a rule of thumb, the most secure trader is often the most financed one in the market, and Coinbase is one.
How safe is Coinbase? Very safe. It has been received well in over 30 countries excluding China where it can operate freely without many hiccups. As was stated earlier and this should be in your head by now, Coinbase follows almost similar protocols with the banking industry. For this reason, any operation is well monitored to eliminate the possibilities of losses. This is also the reason why the company has been able to secure credits cards with ease.
Also, the company website has a user-friendly user interface that reduces the chances of making any errors while trading. I repeat again, this is the best place to go especially for the newcomers. The transfer fees are negligible and one can exchange Bitcoins to 159 different fiat currencies. The number of countries in the world. As you see, Coinbase is very safe.