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Cryptocurrencies, nowadays, are huge. They are discussed everywhere and by everyone. This interest goes as far as people start purchasing and using this revolutionary digital money. The core platform for cryptocurrency exchange is the cryptocurrency exchange websites. Today we will be reviewing one of the most popular online exchange platforms – Coinbase and try to find answers to rather common questions, such as “Can I trust Coinbase?”, “Is Coinbase Legit?” and many more.
What is Coinbase?
Established in 2012, Coinbase is one of the most famous cryptocurrency exchanges in the world. It was started to be a bitcoin buying site where users could purchase bitcoins with cash. Over the years, Coinbase has grown to become something bigger than just a Bitcoin exchange. Apart from facilitating the trading of bitcoins alone, Coinbase also allows members to purchase Bitcoin Cash, Litecoin, and Ethereum. The famous trading site accepts credit card payments and bank transfers in 32 different countries.
In addition to that, Coinbase has an additional trading site, GDAX, where the main crypto to crypto and fiat to crypto trading services happen. GDAX is the 7th largest exchanges in the world based on 24-hour trading volumes. Every day, more than 76,400 bitcoins ($673,000) worth of trading happen on the exchange. Trading on GDAX involves the usually supported coins on the exchange: Bitcoin, Litecoin, Ethereum and Bitcoin cash. Trading pairs on GDAX include USD, EUR, BTC, and GBP.
Coinbase also offers a cryptocurrency wallet where your coins are deposited immediately after you pay for them. But like most exchanges, Coinbase holds the private keys needed to withdraw your coins. For businesses willing to accept bitcoin payments, Coinbase offers a solution. Coinbase’s merchant service allows any business to accept bitcoin, Litecoin or ethereum payments easily. It operates in the form of a plugin or a software program with checkout section, balances, and settings well-designed. Additionally, services offered by the exchange include Toshi, a browser that helps you search anything on the Ethereum network and Coinbase API. Coinbase’ API service allows developers to integrate important services offered by the exchange with their own applications and websites.
What Countries Coinbase Support?
Coinbase is supported in the following countries:
Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Finland, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Malta, Monaco, Netherlands, Norway, Poland, Portugal, San Marino, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom, and United States.
Buying and selling limits vary depending on which payment method used; your account’s age and several other factors. On the lower end, you can buy a maximum of $150 using a credit card and $500 via bank transfer. By adding verification details like your phone number, personal details, and ID, your Coinbase buying limits could be increased to $50,000 (€30,000) per day. Coinbase does not have an exact buying and selling limitation. Your limits may vary from that of your friend even when you have gone through the same verification process.
A coinbase user with a long trading history on the exchange, for example, will have a higher trading limit compared to a new customer. If you are a merchant who has integrated the Coinbase merchant service into your business, your buying and selling limits on Coinbase could be increased by up to $100,000.
Funding your Coinbase account is free of charge. However, Coinbase applies a transaction fee for every purchase you make. In the US, every transaction via bank transfer attracts a fee of 1.49%. The fee is applied on top of the money worth of coins you choose to pay. If you want bitcoins worth $100, Coinbase will add 1.49% so that you actually pay $101.49. It cost 3.99% to buy coins on Coinbase using a credit/debit card irrespective of which country you come from. Payments made via wire transfers attract a 1.49% in all supported countries. SEPA payments when buying coins on Coinbase are free while withdrawals attract a fee of €0.15. Compared to most bitcoin exchanges, Coinbase has industry standard or slightly high transaction fees. Competing for bitcoin exchange charge between 1% and 10% for credit card payments and free or 1% for wire payments. People who use the Coinbase Wallet service do not incur any charges for the user services.
Coinbase has a tier-based verification process. Every member must provide personal identification documents as part of Coinbase’s KYC rules. After creating an account, you will be prompted to verify your account by providing a clear copy of your ID and a selfie. The ID photograph should be valid, zoomed and properly visible. The selfie is your personal photo which you can take using a mobile camera. The first tier verification process allows you to buy coins worth $150 using a credit card or $1000 using wire transfer. To increase your trading limit, the exchange asks for additional personal details. You will be prompted to enter your date of birth, place of residence and verify your address. For GDAX registrations, users must provide their social security numbers.
Coinbase Special Features
Coinbase has several features unique only to them. The Coinbase merchant feature, for example, is a payment tool that allows businesses to accept payments in bitcoins. The service is already integrated with Shopify for Shopify sellers. The trading website also offers a trading platform for coders who would like to build decentralized applications. In addition to that, Coinbase has a service, Toshi, which allows users to search anything on the Ethereum network. Other special features on Coinbase include zero fees for market makers, a secure and top-rated digital wallet and charts for different cryptocurrencies. Coinbase also features Android and iPhone apps.
Coinbase exchange accepts bank transfers and credit/debit card payments albeit with limitations. In the US, buying any coin on Coinbase takes 5-7 days to complete since every user must be verified. Credit cards are also accepted for US users but the pairing is done through Euros.
Coinbase supports more than 20 European nations. The exchange accepts SEPA payments for European users and credit/debit card for UK users. In Australia, the easiest way to trade on the exchange is by use of credit/debit card payments. In Singapore, users buy and sell coins on Coinbase through wire transfer.
Selling of digital currency can be done using Debit card, Credit Card, and Bank Transfer.
Payment Methods and Transaction Fees
The following are the payment methods supported by coin base and the transaction fees.
|Payment Method||Countries||Currency||Fees||Funds Availability|
|Bank Transfer||USA||USD||1.49%||5-7 days|
|SEPA Transfer||Europe||EUR||1.49%||1-3 days|
BREAKING NEWS: Coinbase will Support the Bitcoin Fork Withdrawal
April 14th, 2018: The well-known cryptocurrency exchange platform Coinbase has announced that it is going to allow the withdrawal of assets related to Bitcoin forks starting from May 2018. It is worth mentioning that Coinbase is not aiming to support new forked assets or any other kind of assets. Instead, Coinbase plans to create an infrastructure that will support the Bitcoin fork withdrawals in the long run.
Hard forks are created through the forks of Blockchain, and it involves the process of sharing the transaction history within a certain time frame. Some of the most common Bitcoin forks are Bitcoin Cash, and Bitcoin Gold.
BREAKING NEWS: Coinbase is Collaborating with Cipher Browser
April 16th, 2018: Coinbase, one of the most outstanding cryptocurrency exchange platforms, has confirmed the news that it is getting the Cipher Browser Ethereum mobile wallet. The great thing about the Cipher Browser is that it offers Web 3 DApp (decentralized app) browser and it is merging various features with the decentralized mobile browser Toshi. Peter Kim, who is the founder of the Cipher browser and the future head of engineering at Toshi, has confirmed the fact that the two apps are integrating their features to build the best Web 3.
Is Coinbase safe?
This is a question that many people often ask.
The brief answer is – “Yes, Coinbase is safe”. It is a registered exchange endorsed by reputable and trusted investors. It is also the largest Bitcoin exchange in the world.
Community Trust- are they Reputable?
Coinbase used to be the most reputable fiat to crypto exchange in the world. But of late, the exchange has been experiencing extremely low reviews online. From complaints about being suspended to coins disappearing, Coinbase’s reputation is not what it used to be. On the popular Bitcoin forum trustpilot.com and bittrust.org, Coinbase averages a rating of just 1.4 out 10 and 1.6 out of 10 respectively. 80% of reviews on popular bitcoin forums are negative. Coinbase allegedly tracks how you spend your coins after buying them on the exchange. They follow strict KYC rules and could suspend your account for any reason including, gambling or getting involved with adult content. Despite the poor ratings, however, Coinbase is still a popular exchange. Their GDAX trading account is the 7th biggest based on daily trading volumes. This shows that despite poor reviews and deteriorating community trust, there are still people who believe in the exchange.
Security- Encryption, HTTPS
Coinbase is in its 6th year in business, and there have been no successful hacking attempts. That’s a great achievement given that nearly half of the top 20 biggest cryptocurrency exchanges have been hacked at one time. The exchange uses state of the art security for their website, HTTPS encryption and multi-signature for their wallets. 98% of funds are stored in cold wallets and separated by vaults for added security. To make your account secure, the exchange asks every customer to create an account with a password and 2-factor authentication. Coinbase also utilizes several policies with their employees to secure everything related to user’s funds. Every employee must pass a background check. They must encrypt their hard drives and lock their monitors whenever they are not using them.
Perhaps due to an overwhelming number of customers who use their platform, Coinbase is not able to reply to customer request as fast as some exchanges do. However, their customer services are active. The trading website provides a phone number an email and a knowledge base where you can troubleshoot certain issues. You can also contact Coinbase through a ticket system. However, Coinbase’s community on Reddit and other forums repeatedly say that the exchange rarely replies to customer requests. Where you get a reply, the customer agents only promise to look into the issue and it could take weeks before your issue is addressed. Coinbase has thousands of requests sent to them on a daily basis, and they only reply to a few hundred.
Coinbase generally takes several minutes, several hours or days to complete your payment. Since the exchange follows strict KYC rules, you can’t make any transaction on the exchange immediately after creating your account. You must provide your personal details and an ID to make your first deposit on the exchange. The verification process is usually fast, but it can take longer for some people. For most people, the basic verification process takes 45 minutes. Coinbase accepts deposits using fiat. When using a credit/debit card, the funds are deposited into your Coinbase account immediately. When using bank transfer, it takes 3-5 business days. SEPA payments take 2-3 days to complete while Singapore users have all their deposits completed instantly. With funds in your Coinbase account, buying crypto is completed instantly. Trading on the GDAX engine is also fast and transactions are done instantly. It’s only when withdrawing our coins into a personal wallet that the process can take a while. Each crypto transaction has to be verified on the blockchain, and this can take up to several hours.
How to use Coinbase
Step 1: Create an Account
Opening an account with Coinbase is easy and fast. Visit Coinbase.com and open an account. Coinbase allows you to create an account even if they don’t enable trading in your country. They require that you enter basic personal details like your name and create login details. Once you log in, enable 2-factor authentication to further secure your account
Step 2: Get Verified
Coinbase takes you through the verification process immediately you log in. You will be asked to provide clear photos of your ID and your image. The exchange uses technology to verify you, and sometimes it fails. If this happens you have to try again.
Step 3: Make a Deposit
Click on the Buy icon and select the coin you wish to buy. Specify the amount you want to buy and provide a wallet. Choose a payment method and confirm the transaction. If you choose Coinbase’s wallets, you get your coins instantly. If you select a personal wallet, the coins have to be verified through the blockchain and it can take a while.
To Sum it UP
Despite a ballooning number of vocal, unsatisfied customers, Coinbase is still the go-to place for buying cryptocurrencies with fiat. However, the many complaints directed at the exchange makes it important to exercise caution when trading with them. Coinbase is increasingly suspending accounts of people ‘they don’t like.’ Reports indicate the exchange track how you spend coins after buying them, and they may use the reports to close your account. With such behaviors, Coinbase is only a great place to purchase coins with cash. And once you buy the coins, transfer them to a different exchange for trading.
Overall, the exchange is still reputable and anyone who wants to use large amounts of coins using cash can try their services. Coinbase is continually improving its services and features to ensure its users can buy and sell digital currency without any hassles or delays. It has streamlined its transaction process to increase efficiency and speed. As you found the answers throughout the article, you may see that Coinbase is a trustworthy company with a high reputation worldwide. It is good to use both for beginners and for cryptocurrency experts.
Thank you for reading, we hope it was helpful to you, please make sure to read more article on our website and become a cryptocurrency guru!