COINBASE is a US-based cryptocurrency broker/exchange in which users can buy and sell cryptocurrencies. The exchanges headquarters are located in San Francisco and is known as the largest cryptocurrency exchange in the world. This is largely due to the brokers easy to use and convenient interface. The exchange is perfect for beginner investors looking to get into trading or acquiring cryptocurrencies. The exchange was first established in 2012 by Brian Armstrong and Fred Ehrsam and has since grown to accept traders from 32 countries across the world.
Coinbase primarily deals in three cryptocurrencies being Bitcoin, Ethereum, and Litecoin, with Bitcoin holding the greatest amount of volume. Other cryptocurrencies available on the exchange include Bitcoin Cash and Ethereum Classic. Coinbase has plans to accept more cryptocurrencies in the future, and they are sure to skyrocket when they do.
Coinbase Deposit and Withdrawal Options
Coinbase customers have various options for depositing and withdrawing funds to purchase and sell cryptocurrencies. These options may vary slightly from country to country, but most deposit and withdrawal options are offered across the board, including for the United States. See the available deposit and withdrawal methods below.
Deposit & Withdrawal Methods:
- Bank Account (ACH)- This deposit/withdrawal method is best for large and small amounts and takes between 4-5 business days.
- Wire Transfer-This deposit/withdrawal method is best for large amounts and takes 1-3 business days.
- Cryptocurrencies- Traders can buy/sell, and deposit/withdraw Bitcoin, Bitcoin Cash, Ethereum, and Litecoin with Coinbase.
Sell Methods:
An additional method for receiving sold funds from cryptocurrency is through PayPal. Coinbase users can sell their cryptocurrency and have the money go directly into their PayPal account.
Buy Methods:
An additional method for buying cryptocurrencies without depositing funds into your Coinbase account is to purchase the cryptocurrency directly through your debit/credit card.
Supported Countries
Coinbase accepts users and traders from various countries around the world. They currently support traders from over 30 countries including:
- Austria
- Belgium
- Bulgaria
- Croatia
- Cyprus
- The Czech Republic
- Denmark
- Finland
- Greece
- Hungary
- Ireland
- Italy
- Latvia
- Liechtenstein
- Malta
- Monaco
- The Netherlands
- Norway
- Poland
- Portugal
- San Marino
- Slovakia
- Slovenia
- Spain
- Sweden
- Switzerland
Coinbase Fees and Charges
Coinbase does not charge any fees for depositing funds into your account but rather charges a 1.49% fee upon purchasing cryptocurrencies. However, although Coinbase does not charge a deposit fee, your financial institution will. These fees vary from country to country but are most commonly 3.99% for Debit/Credit Cards and 1.49% for Bank Transfers. Coinbase fees are not ideal for cryptocurrency day traders as they are higher than many other popular exchanges.
In addition to these fees, traders will also have to pay virtual currency transfer fees which include the network transaction fees and minor fees. Also, users will incur an exchange rate fee which is dependent on the spread and will incur a conversion fee as well. The fees are always stated and shown to the user as they make their transactions.
Limits and Liquidity
Coinbase customers are blessed with very high limits if their accounts are fully verified. Accounts with less verification information are limited to how much they can buy and sell on the exchange. For US customers who are fully verified may buy up to $50,000worth of Bitcoin daily. As for European customers, they may obtain up to €30,000 euro worth of Bitcoin at any time.
Coinbase Privacy
Coinbase requires a lot of personal information from their users for identity verification because they are a regulated financial services company within the United States. Users cannot be anonymous like with some other cryptocurrency exchanges. Therefore, users are required to send in their banking information for direct deposits, as well as identity verification with a government issue ID such as drivers license or passport. Coinbase securely stores and protects this information and does not share it with any third parties.
Security and Verification Levels
Coinbase stores 98% of their users’ cryptocurrency funds offline in a cold-storage wallet to ensure its security from theft or loss. The cold-storage wallets are kept in safety deposit boxes and vaults around the world. The Coinbase website traffic runs over fully encrypted SSl (https), and user’s wallets are stored using AES-256 encryption. In other words, Coinbase is very secure. As well, in addition to Coinbases security, users can make their accounts even more secure with two-factor authentication, email verification, and other security measures.
Coinbase Customer Support
Coinbase features an extensive customer support page with various articles and FAQ pages for traders and new users to refer to if they have any questions or problems. As well, users can open a support ticket which is answered as fast as they can. The response time can be quite delayed at times, as the exchange has seen a lot of new users recently. However, the support page is very informative and organized, complete with topics and a search bar.
Pros and Cons
Pros
- Safe & Secure cryptocurrency exchange
- Easy and intuitive interface
- Impressive limits and liquidity
- Accepted in over 30 countries
Cons
- Fees may be higher than some other exchanges
- Limited cryptocurrency assets available
FAQ
Where is Coinbase based at?
Their headquarters are located in San Francisco, California.
How do I fund my account at Coinbase?
Through cryptocurrencies (Bitcoin, Ethereum, Litecoin, Bitcoin Cash), and Credit & Debit Card, Bank Wire, Bank Account (ACH).
How long does a withdrawal normally take at Coinbase?
As low as 1-3 business days.
How safe is Coinbase?
Coinbase is very safe as they use top of the line security measures and store 98% of their cryptocurrency in a cold-storage wallet.
Is Coinbase a scam?
No, Coinbase is a regulated financial services company in the United States.
Coinbase Conclusion
Buying and selling cryptocurrencies is a new and exciting endeavor, but also very risky and technologically advanced. Coinbase does a very good job at providing their users with a simple and easy method for buy and selling cryptocurrencies. The exchange may not be best for more experienced cryptocurrency traders, as the fees can be quite high, and the cryptocurrency assets are limited. However, though, this exchange is probably the safest, most secure, and easiest cryptocurrency exchange for buying and selling Bitcoin and a few other popular cryptocurrencies.
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