Financial Information Platform

Coinbase: Everything you should know about the Exchange Platform

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One of the oldest and most important exchange today is Coinbase. This exchange platform is characterized by being very easy to use and allowing the purchase of cryptocurrencies with fiat. In this article, you’ll learn everything you should know about this centralized exchange.

 

What is Coinbase

 

It is a regulated cryptocurrency exchange based in the United States with a simple and user-friendly interface that allows the buying, selling and storage of cryptocurrencies. Coinbase offers a very simple user interface designed for users who are just starting out in this segment.

 

We must point out that Coinbase is one of the exchanges with the highest commissions , something that we will talk about in more detail later. In addition, the platform, being based on US regulations , can track movements and transfer information to the US treasury and to that of other countries or states where it operates.

 

Coinbase currently has more than 65 million users and according to the CoinMarketCap ranking it is among the 15 exchanges with the highest daily volume. It has a volume of about 4,000 million dollars daily, has more than 250 markets and currently supports 85 cryptocurrencies and tokens with which to operate. This exchange supports fiat currencies: USD, EUR and GBP.

 

History

 

Founded in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase has since grown from been the company with the simple intention of offering a platform that would allow the purchase and sale of Bitcoin through bank transfer to been sought after for offering a high degree of security for users.

 

This idea, so simple today, was then a great leap in accessibility to buying and selling Bitcoin. Before this, Bitcoin purchases required significant technical knowledge and the use of complex payment systems. For example, making bank transfers from abroad or the use of financial intermediaries, something that was (and still is) risky, since you must place your trust in a third party.

One of the biggest changes of the Coinbase exchange occurred in 2014. It was when the company expanded operations with Bitcoin when it began working with the main service providers so that they would accept this cryptocurrency as a direct payment method. It started in 2014 to work with platforms like Stripe and Dish to allow payments with Bitcoin.

 

Additionally, in 2015, it obtained the first Bitcoin exchange license licensed in the United States. Coinbase thus became the first cryptocurrency exchange approved by regulatory authorities.

 

 

Brian Armstrong, CEO of Coinbase

 

Characteristics

 

This exchange is intended for users who want to invest in cryptocurrencies and transact with them . Above all, Coinbase focuses on new users with limited knowledge in the field of cryptocurrencies and/or trading. The user interface (GUI) is intended to be accessible and simple to use , making it more accessible to users.

The exchange is characterized in addition to offering the purchase and/or sale of cryptocurrencies, other possibilities. It allows cryptocurrencies to be transacted, conversion between cryptocurrencies, the platform’s custodian of our cryptocurrencies and other interesting proposals.

Coinbase has also shown its support for Ethereum 2.0 that’ll allow the switch of proof-of-work consensus to proof-of-stake consensus. Since the beginning of 2021, the platform allows to leverage ether thinking about the change to the new version of the platform. Thus, users will be able to “trade” Ethereum 2.0 and Ethereum with the rest of the supported cryptocurrencies.

 

What is Coinbase Pro?

 

It is an advanced version of the exchange reserved for specialized traders and investors. Coinbase Pro has advanced features for trading and futures, with a somewhat more complex interface. This platform offers lower commissions for use than its simple version. It is also FDIC insured up to US$250,000.

 

Coinbase Pro allows users to buy and/or sell cryptocurrencies, as well as withdraw and/or deposit their assets to an independent wallet or to another exchange. It offers the advanced stop order, limit order, and time-limited order features, items not available on Coinbase . Additionally, they offer access to a private API key that allows users to easily integrate with third-party applications such as HyperTrader.

 

Coinbase also have adopted the Global Digital Asset Exchange (GDAX) that was founded in 2016. After the acquisition, it was renamed and “left” as a solution for professionals.

 

Difference Between Coinbase And Coinbase Pro

 

Characteristics

Coinbase:

 

  • Simple interface
  • Buy, sell and exchange cryptocurrency
  • Price quoted in USD

 

Coinbase Pro:

 

  • Professional trading interface
  • Multiple Order Types
  • Lower transaction fees

 

Fees

 

Coinbase:

  • 0.50% per trade
  • Additional 1.49% for purchases with bank account or Coinbase Wallet
  • Additional 3.99% for credit card purchases

 

 

Coinbase Pro:

 

  • 0% – 0.50% purchase and exchange commissions
  • $10 bank transfer deposit fee
  • $25 wire transfer withdrawal fee

 

Security Features 

Coinbase:

  • 2FA via SMS or the Google Authenticator app
  • Cold storage and multi-signature wallets
  • USD balances are FDIC insured (up to $250k)

 

Coinbase Pro:

  • 2FA via SMS or the Google Authenticator app
  • Cold storage and multi-signature wallets
  • USD balances are FDIC insured (up to $250k)
  • Pre-approved addresses on the “white list”

 

 

Types of Transaction

 

Coinbase:

  • Buy
  • Sell
  • Exchange
  • Send
  • To receive

 

Coinbase Pro:

  • Buy
  • Sell
  • Negotiate
  • Deposit
  • Remove
  • stop command
  • limit order
  • Validity Order Policies

 

What is Coinbase Prime

 

Solution developed specifically for institutions, where operations desk for banks and asset management are offered. Coinbase Prime is intended for asset managers, private companies, hedge funds, private wealth managers, etc. It is an institutional-type solution for companies that want to aggregate and manage cryptocurrencies as part of their corporate treasury strategy.

 

Through the Coinbase Prime platform, institutional investors have access to pools of diversified liquidity. Offered here are OTC trading, algorithmic orders, margin financing, and an advanced market data product.

 

Coinbase Prime allows a development-stage company to outsource its stake in order to increase its funding. The rest of the companies and investors can acquire the shares depending on the reputation of the company. OTC block trading and the buying and selling of shares on the stock market are also allowed.

 

As this article is focused on general users, we are not going to comment much more about Coinbase Pro and Coinbase Prime, but we do think that it might be interesting to know that they exist and get to know them a little.

 

What can we do in Coinbase

 

We are now going to see all the possibilities that the platform offers us with respect to home users.

 

1. Buying and selling of cryptocurrency

 

The origin of Coinbase is precisely in the purchase and/or sale of Bitcoin that has been extended to other cryptocurrencies. We just have to log in and go to the “buy/sell” section. In addition, we can buy and/or sell cryptocurrencies on the page of the currency that we want or by looking at the wallet within the platform of the cryptocurrency that interests us.

 

Currently this centralized exchange offers us up to 85 cryptocurrencies and tokens to buy and/or sell. We should note that some may not be available in your country, as availability varies by country. We can also carry out purchase and/or sale actions from the Coinbase applications for Android and iOS.

 

We can acquire cryptocurrencies with a credit/debit card and bank transfer using fiat currency (they only accept US dollars, euros and British pounds). Also, we can do it from cryptocurrency to cryptocurrency, no problem.

 

2. Cryptocurrency transactions

 

It offers users different methods of use for the cryptocurrencies that we have in our possession . We may conduct transactions such as the purchase of physical goods, digital goods, gift cards, donations and gifts. Most of these transactions use third-party software, but acquire certain data from Coinbase to confirm identity.

 

As usual, the exchange allows manual payments from their wallets. This also allows direct transfers using the addresses of the cryptocurrency in question.

 

Cryptocurrency to cryptocurrency conversion
Logically, the centralized exchange offers us the possibility of converting between different cryptocurrencies and tokens . If we have bitcoins and want ether, we make the change within the platform quickly and easily. Although we make conversions between different cryptocurrencies, the platform will always show us the price in fiat money, so that we have it easier.

 

Note that all conversions are instantaneous and the price of cryptocurrencies will always be market. The price is constantly adapted according to the operations that are carried out.

 

3. Cryptocurrency storage

 

Coinbase security is very high and very strict to prevent users from losing their cryptocurrencies. If anyone wants even more security, Coinbase offers a “vault” feature that acts as a highly secure wallet . Cryptocurrencies and tokens in this case are stored in a cold wallet whose security is provided by the exchange.

 

This vault integrates several additional layers of security. It allows the creation of a system of multiple signatures through email and also adds a waiting period of 48 hours before making the withdrawal. Withdrawal of funds can be stopped at any time.

 

We can send the assets in the vault to our main account or to another wallet as we wish.

 

Coinbase Card

 

Those users who want can choose to purchase a Coinbase debit card. This card allows you to pay in millions of businesses around the world with our cryptocurrencies, making the conversion instantly. The Coinbase card is issued by Visa and offers a “contactless” function.

This debit card can be easily managed and tracked using the Coinbase Card app which is available for Android and iOS. Since the launch of this card at the beginning of 2019, more than 1 million dollars have already been spent with this card.

 

What cryptocurrencies are available on Coinbase

 

We have compiled the cryptocurrencies and tokens currently supported by Coinbase. We leave you the page where the company publishes the list and we also recommend you follow them on Twitter, since they also communicate there if they add or unlist new cryptocurrencies or tokens.

 

0x Dash Origin Token
1inch Dogecoin Standard Paxos
Aave Enjin Coin playdapp
alchemy pay enzyme Polkadot
Alagorand eos polymath
Amp ethereum polygonal
ampleforth EthereumClassic Quant
Ankh Harvest Finance Rai Reflex Index
Aragon Fetch.ai Rally
Augur filecoin Ren
balancer gitcoin SKALE
Bancor Network Token iExec RLC Solarium
Band Protocol internet-computer Stellar Lumens
BarnBridge Keep Network STORJ
Basic Attention Token Kyber Network SushiSwap
Bitcoin livepeer Synthetix Network Token
BitcoinCash litecoin Tellor
Cardano loom network Tether
Cartesi looping texts
Zeal Mask Network TheGraph
chilli MirrorProtocol AMU
CloverFinance mkn uniswap
compound NuCypher USD Coin
Cosmos Mimeraire wrapped bitcoin
Curve DAO token OMG Network Yearn.finance
ICD orchid zcash

 

 

How to open a Coinbase account

 

The process of creating a user account is simple, as in the rest of the platforms. But, while others allow us to operate without verifying our identity (passing the KYC-AML processes) , here it is necessary to verify our identity to operate.

The exchange asks us, first, to put our name and surname, an email address and accept the terms and conditions. After passing this process, we will be asked to put our legal jurisdiction , come on, to put in which country we reside. If you make the account for a company, right next to it you have the tab to create the company account, with small changes in the form.

Once we have filled in the fields and hit “send”, we will receive an email in our email to verify the email address. This is a common process in the vast majority of platforms, to prevent third parties from registering with our email.

After confirming the email address, a two-step identification process will begin . A phone number is required in which we will receive a random code that we must enter to verify ownership. Thus our account will be validated, to go to the verification point of our identity. In order to deposit funds into the account and be able to make transactions, we will have to complete this step.

We will be asked for our physical address and the typical images of a state identification document (DNI, driver’s license, passport, etc.) . Additionally, an easy recognition will be requested.

Later we will be asked to add a payment method, if we want. We have the option to choose between bank account, debit/credit card or through PayPal.

 

 

Coinbase Fees

 

Within the Coinbase exchange we find different types of commissions depending on the operations. Operating within the platform, buying and withdrawing our cryptocurrencies and/or tokens has a cost.

 

Buy and sell fees

 

The fees that this centralized exchange buys in the purchase and sale operations are a bit of a mess. For starters, there is an entry margin in all cases of 0.5% set by the exchange . This is the market rate for any cryptocurrency, although it can vary depending on market circumstances.

 

Additionally, the exchange charges a so-called “Coinbase fee” on all transactions. It is a flat rate or a percentage rate depending on our country of residence and the type of payment.

 

This flat-rate “Coinbase fee” applies only to users with less than $200 in account. A fee of 1.49% per transaction and 3.99% for credit and debit cards is normally applied.

 

Cryptocurrency conversion

 

It allows to exchange between cryptocurrencies and tokens within the platform. Coinbase in this case charges a commission of 1% , which can vary a bit depending on the state of the network.

 

 

Deposits and withdrawals

 

We are now going to talk about the commissions that the exchange will charge us according to the country in which we are; 

 

United States users

 

Any deposit or withdrawal made via bank transfer may be delayed by 1-3 days . Deposits or withdrawals in bank accounts (ACH) can be delayed between 4-5 days. For both cases, only business days are taken into account, something that we must take into account.

 

Europe Users

 

It allows deposits and withdrawals by SEPA transfer that can be delayed between 1-3 business days.

 

UK Users

 

Bank transfer deposits and withdrawals in Pounds Sterling are typically completed within 1 business day. Withdrawals in euros via SEPA transfer may be delayed by 1-3 business days.

 

Canadian and Australian users

 

Unfortunately Coinbase does not have support for Canadian dollars and Australian dollars . But users from Australia and Canada can sell their crypto and transfer it using PayPal. The funds will go directly to the users’ PayPal accounts, with Coinbase not holding the funds.

 

Buy and sell through Pay Pal

 

Coinbase currently allows users in Europe, the United States, Canada, the United Kingdom, and Australia to withdraw funds via PayPal seamlessly.

Summary of commissions by country

 

 

Buy cryptocurrencies sell cryptocurrencies Deposits withdrawals PayPal
USES Fees as low as 1.49% Commission: 1.49% Free (ACH) or $10 (wire transfer) Free (ACH) or $25 (wire transfer) Free withdrawals (USD)
Europe Fees as low as 1.49% Commission: 1.49% Free (SEPA) €0.15 (SEPA) Free withdrawals (EUR)
United Kingdom Fees as low as 1.49% Commission: 1.49% Free (bank transfer) £1 (bank transfer) Free withdrawals (GBP + EUR)
Canada Fee: 3.99% (credit/debit card) No CAD wallet (PayPal only) No No Sell ​​cryptocurrencies to CAD
Australia Fee: 3.99% (credit/debit card) No AUD wallet (PayPal only) No No Sell ​​cryptocurrencies to AUD

 

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