Coinbase is one of the most popular and reliable cryptocurrency exchange platforms in the blockchain industry. founded it Brian Armstrong In 2012, Coinbase saw several exhilarating highs and desperate lows of cyclical cryptocurrency markets. Throughout its lifetime, the digital asset company has gone from strength to strength and is widely considered the most beginner-friendly crypto exchange.
What makes Coinbase.com so attractive to newcomers who are buying Bitcoin (BTC) And Ethereum (ETH) for the first time? What kind of features separate Coinbase from competitors like Binance?
To all appearances, Coinbase appears to be doing everything right. CEO Brian Armstrong remains more or less in line with regulators, and Coinbase shares are publicly traded on Wall Street. Is San Francisco-based Unicorn a reliable place to store crypto assets, or is Coinbase another FTX disaster waiting to happen?
What is Coinbase?
Coinbase is a crypto exchange where traders and investors buy and sell digital currencies such as Bitcoin and Ether. While Coinbase is known for its great streamlined interface, it also offers an advanced trading terminal. This allows seasoned traders to get involved in the higher risk, liquid derivatives and futures markets.
In addition to its accessibility, Coinbase is cautious. In an industry known for its fair share of scams, Coinbase goes above and beyond to ensure that it is in compliance with the law and that customer security is a priority. For example, all US dollar cash balances are insured up to a maximum of $250,000, and covered by the FDIC.
according to KoenjikoCoinbase is the cryptocurrency exchange with the second largest trading volume and average number of visitors per month. The exchange is available in over 100 countries and supports over 150 cryptocurrencies, including top altcoins such as Solana, Dogecoin, and Litecoin.
Coinbase history
Coinbase was originally founded in 2012 by Brian Armstrong. The Software Engineer came from a great background, with previous work experience at AirBnb, IBM and Deloitte. After reading Satoshi Nakamoto Bitcoin white paper Armstrong began coding his tools and software to buy and store cryptocurrency on weekends.
Armstrong’s early programs proved successful. He presented his findings to others and joined the start-up Y Combinator incubator, which kick-started his thriving business plan with a $150,000 grant. In search of a co-founder to share his vision, the CEO of Coinbase took to Reddit. After meeting with more than fifty potential presenters, Fred Ehrsam finally made the law and took the job.
Throughout 2013, Coinbase attracted a lot of investment interest. That started with a $5 million funding round led by Union Square Ventures and was augmented by a $25 million investment from venture capital firms like Andreessen Horowitz and Ribbit Capital. By 2014, Coinbase had already accumulated more than 1 million unique users.
Over the years, the company has continued to expand. The platform now supports over 110 million verified users and has launched a range of additional products on the exchange. Outside of Coinbase’s main exchange, the company created its own investment firm, Coinbase Ventures, in 2018.
Coinbase Products and Features
Like most cryptocurrency exchanges, Coinbase has built its flagship platform to offer a range of tools and features that go beyond simple cryptocurrency trading. Coinbase aims to create a one-stop-shop that provides its users with everything they need to get started with crypto.
Every feature under the Coinbase umbrella is also available on their mobile app, which supports both Android and IOS devices and has over 100 million downloads.
Coinbase Crypto Exchange
Coinbase provides a marketplace where users can buy and sell digital assets – from classics like BTC to altcoins and stablecoins like USDC. The platform offers a traditional professional trading interface with candlestick charts, order books and a very simplified conversion feature.
Coinbase wallet
For those who do not want to store their cryptocurrency on an exchange, Coinbase Wallet offers a self-custody solution. The wallet is basic and convenient and stores many crypto tokens and NFTs.
In addition, the Coinbase wallet connects to Web3 dApps such as UniSwap or open c. This introduces new crypto users to DeFi and NFT collecting and allows investors to monitor the value of their portfolio in real time.
earn
Coinbase Earn is a crypto storage platform available to verified accounts. By locking their tokens into staking contracts or DeFi incentives, such as providing liquidity, investors earn staking rewards that help them grow their investments organically.
Brian Armstrong is a staunch advocate of bonus betting. Coinbase’s CEO has spoken out against the SEC repression halted In early 2023.
learn
One of the most popular features of Coinbase among newcomers is the Learn section. With Learn, users watch a short video about a particular cryptocurrency that gives them a basic understanding of how it works. After correct answering a few questions, they will get a few dollars of that code for free.
This is a great way to stimulate learning and education in the blockchain industry. Crypto startups increase their owners and introduce their products to a wider audience, while users get small amounts of cryptocurrency for free.
resource center
Similar to Coinbase Learn, the platform provides a comprehensive resource center. These helpful guides answer many basic questions about blockchain and cryptocurrency in general and teach users how to protect themselves from scams in the Web 3 space.
Borrows
As the name suggests, Coinbase Borrow helps users secure instant liquidity by borrowing against their bitcoins. By collateralizing their cryptocurrency, account holders can enter new trades without selling bitcoin or breaking any existing positions.
While this can be beneficial for traders, there is still a risk. Significant drops in the price of Bitcoin may result in your collateral being liquidated. You should learn more about how lending and borrowing work in the cryptocurrency market before accessing these types of tools.
NFT market
In an effort to bring NFT culture and gather millions of users, Coinbase has launched its own NFT marketplace. The idea was to reduce NFT onboarding friction and give Coinbase users access to the excitement and opportunity of the NFT market within the convenience and knowledge of the Coinbase user experience.
However, Coinbase’s NFT market is somewhat of a mixed bag. Prior to launch, it was touted as a massive step towards NFT adoption. The launch failed, with only 150 users on its highly anticipated first day.
a base
The latest in Coinbase’s growing Web 3 empire is the unveiling and launch of the exchange’s Layer-2 blockchain network. Base is the company’s solution for scaling Ethereum that aims to provide Coinbase users with a full on-chain experience. The network was built using the Optimism Stack in collaboration with the Optimism Foundation, one of the leading Ethereum L2s.
What are the disadvantages of Coinbase?
At first glance, it seems as if Coinbase boasts an impressive set of features that make it a leader among cryptocurrency exchanges. However, many of these features are industry standards that almost all other exchanges provide. In some cases, competitors offer a full service.
For example, OKX offers its own crypto borrowing platform, OKX Loan. While Coinbase only allows users to collateralize Bitcoin, OKX supports dozens of digital currencies under its Loan feature.
Moreover, Coinbase is very expensive. While creating an account is free, the exchange charges some of the highest trading fees in the crypto market. Binance, the largest exchange in the industry, charges a 0.1% Maximum trading fees, compared to the initial Coinbase 0.4% an average.
Simplicity seems to come at a premium price.
Finally, Coinbase is one of the major cryptocurrency exchanges that does not offer public proof of reserves. In the aftermath of the FTX debacle, most exchanges have published verifiable balance sheets proving to clients that they are solvent enough and can handle mass withdrawals.
While Coinbase’s reserves are being audited for security, other exchanges like Binance have done theirs Proof of reserves Publicly available.
Coinbase Global Inc on the stock market
Coinbase Global Inc made history when it became the first publicly traded cryptocurrency exchange. On April 14, 2021, Coinbase stock was listed on NASDAQ.
The stock was given a reference price of $250 a share prior to its direct listing, with a valuation of approximately $65 billion. Coinbase’s stock value has dropped significantly since its inception, despite the company’s continued growth. Unfortunately for buyers, the stock does not pay a dividend to investors.
on the flip side
- Coinbase offers a wide range of additional and easy to use tools. However, the platform charges much higher fees than most other exchanges. In addition, competitors usually offer the same additional features, sometimes with even greater benefit.
Why should you bother
Coinbase is one of the largest and most extensive exchanges in the crypto industry. Its founder, Brian Armstrong, is a major figure in the space, helping to bring cryptocurrency and blockchain technology to the masses.
questions and answers
Is Coinbase good for beginners?
Coinbase is a good exchange for beginners as it has a straightforward interface and a lot of educational material about cryptocurrency and blockchain technology.
Why are Coinbase fees so high?
Coinbase is a US-based crypto exchange that is regulated by the Securities and Exchange Commission (SEC). These are usually a bit more stringent than some other countries, which means Coinbase may have higher compliance costs and overheads.
Who owns Coinbase?
Brian Armstrong originally founded Coinbase. In 2021, Coinbase started a publicly traded company after the direct listing of Coinbase shares on NASDAQ.
How do I get my money from Coinbase?
To get your money from Coinbase, you will need to verify your bank account and KYC details. Then sell your cryptocurrency in your local currency and request a withdrawal.
How does Coinbase make money?
Coinbase makes money by taking a percentage of the platform fees from users. The cryptocurrency exchange also makes money from advertising and listing fees from crypto projects.
