Coinbase At A Glance
So, what is Coinbase? This service was founded in 2012 in San Francisco (USA). At first, it only provided wallet services, but over time, the GDAX cryptocurrency exchange for professionals was created on its basis. There are now over 10 million registered customers on this marketplace (more than on any other exchanger).
As a full-fledged trading platform, it is available to residents of only 32 countries. The rest of the service can only be used as a bitcoin wallet. To date, more than 30 million users have used this opportunity, the amount of exchanged currency exceeds $20 billion.
The service works with three digital coins: Bitcoin, Litecoin and Ethereum, since the end of 2017, information has appeared that the exchange has started working with Bitcoin Cash, and this list is planned to be expanded in the future. The main difference from other exchangers is that users are encouraged to buy coins directly from the service at the current market price, and not trade on the market. This approach allows you to significantly speed up the purchase of digital coins and allows you to use, in addition to bank transfers, also credit cards. This service is not provided by all sites, although it is not unique.
Advantages and Disadvantages of the Service
Coinbase has a number of advantages thanks to which it is used by millions of people around the world. Let’s briefly dwell on the pros of the platform:
- Accelerated mode of transaction confirmation. Of course, instant transactions should not be expected based on the online transaction confirmation system, but Coinbase outperforms many of its competitors. After all, there is a difference whether there is an account of waiting for the transfer of funds or for days.
- Favorable commissions for transactions.
- Use of “cold storage” protocol for security purposes. Its essence is as follows: cryptocurrency, more precisely, its bulk, which is used relatively rarely, is stored on secure technical means disconnected from the network. And only a small part of the actively used money is hosted on the production server. This approach allows you to prevent hacking of the system and theft of significant amounts of cryptocurrency.
- The ability to sell and buy bitcoins without leaving your wallet, exchange them for fiat currencies (euros, dollars), and pay for purchases in some online stores. The first purchase of a crypt requires depositing traditional money into a Coinbase bank account and providing personal bank details. To withdraw funds to plastic, verification will be required from the client. However, verification is not required for a simple purchase and sale of coins.
In addition, the Coinbase wallet has a set of functions inherent in other similar e-purses:
- availability of mobile applications for Android and iOS;
- double authentication;
- availability of a secure payment gateway for settlements with online stores;
- storage of keys on the service.
Some users also point out the weaknesses of the wallet. The main complaint is that private keys are stored on an unsecured server, which reduces the level of anonymity on the network. In addition, the site is presented with claims regarding the similarity with standard banking organizations, i.e. the ability to track transactions, blocking accounts, freezing payments, cooperation with law enforcement agencies, and poor support. Use our cryptocurrency calculator.
From time to time, the service prohibits conducting transactions that arouse suspicions among the administration. This primarily concerns the transfer of funds to LocalBitcoin, gambling sites, and some online stores. This caution is due to the fact that the company complies with the requirements of the US law regarding the control of financial transactions aimed at preventing fraud and terrorist financing.