The technicalities of Coinbase

As interest and investment in cryptocurrencies have grown in recent years, the need for safe and secure exchanges to facilitate cryptocurrency purchases has become increasingly important. One of the most popular exchanges available today is Coinbase. Launched in San Francisco in 2012, they operates in 32 countries and has served over 12 million customers in trading over $40 billion in digital currency.

Unlike other exchanges that require users to trade on a marketplace, Coinbase allows users to trade cryptocurrencies at a pre-determined rate based on market capitalization, allowing them to buy cryptocurrencies much faster than other exchanges. It is one of the easiest means to buy Bitcoin and other fiat cryptocurrencies through bank transfer, debit card, credit card, and even PayPal.

Coinbase charges around 1.49% to 3.99%, depending on your payment method, with credit card fees being on the high end. Coinbase’s fees are generally lower than competitors with a comparable business model, such as CEX or Coinmama. Coinbase allows users to buy Ethereum, Bitcoin, Doge, and other cryptocurrencies, with more being added all the time.

Getting into Coinbase

Getting into Coinbase

This step-by-step guide below will be able to purchase cryptocurrencies through the app. To create an account, all you need is your name, email address, and password. Upon request, you will be asked to validate your email address. Once you have completed this, you will be redirected to the home page, where you will first be asked to validate whether you wish to create a specific or professional account.

You will be asked to create a two-factor login authenticator to ensure your account’s security. As mentioned above, Coinbase allows customers to choose between two payment methods: bank transfer and credit card.

Credit cards require a screenshot of the debit card. US bank transfers can be completed in 4-5 days or 1-3 days using EU SEPA wire transfers. On the other hand, credit and debit card transactions are instant. They also allows users to connect their Paypal account to the platform, but this can only be used for proceeds made from offering cryptocurrencies.

Coinbase and Funds

It is essential to ensure that you are in the correct tab of your account when buying coins. Before validating the transaction, Coinbase provides details of the service fee and the number of cryptocurrencies purchased during the transaction. Once confirmed, the amount of cryptocurrency you purchased will be credited to the appropriate Coinbase wallet.

And while it’s fair to say that there have been concerns about cryptocurrency exchanges in the past, Coinbase is considered one of the most secure platforms available today. First, Coinbase is headquartered in the United States and therefore must comply with US federal and state laws.

Coinbase has actively sought talks with regulators to ensure it offers an open and innovative monetary system. Some believe that Coinbase regulation restored confidence in cryptocurrencies. Additionally, Coinbase has received financial investments from several prominent sponsors, including the Bank of Tokyo and BBVA, bolstering its legitimacy. When it comes to storing funds, Coinbase is transparent about its approaches.

Coinbase Security

Coinbase security

Coinbase reports that 98% of consumer cryptocurrency funds are stored offline through hardware and cold wallets. Additionally, Coinbase claims that the remaining portion of cryptocurrency held online is guaranteed and that in the event of a hack, their customers will be entitled to receive lost funds through this insurance coverage.

Additionally, Coinbase notifies users if a new device or IP address attempts to access their consumer account. However, if customer accounts are compromised, Coinbase will not be responsible for any loss of funds. It is recommended that after purchasing cryptocurrency on Coinbase, you store that cryptocurrency offline in a wallet that you manage.

Waiting times for customer support can vary, and the huge increase in demand for the service over the past few months has caused delays. However, typical waiting times tend to be 24-72 hours. 

Coinbase Limits

You can view your limits via a link on the account limits page. Coinbase also allows users to earn higher limits, although these applications are generally not applicable to credit card transactions (Coinbase 14 Day Hold). For larger limitations, you will need to validate your identity, and fully validated US owners can trade up to $50,000 per week, while confirmed European customers can have up to $30,000 in their accounts at any one time.

It’s easy to buy, send, and receive cryptocurrency through Coinbase. To send or hold cryptocurrency, simply go to the sent tab in your account, select the wallet from whom you want to send coins, enter the amount and the public to a general secret address of the recipient and click on send.

After clicking Get, you will receive your account’s wallet address, which the sender can transfer your cryptocurrency. 

Pro Account

All Coinbase customers immediately have a Pro account. All they need do is log in with the same credentials as you would on the Coinbase Site. The Pro account is created to appeal to more sophisticated traders who need to learn about the basics of market changes related to cryptocurrency pools. You can easily transfer cryptocurrency from your Coinbase account to you Coinbase pro account.

Also, the Pro interface is very intuitive, allowing traders to start using the platform immediately. Coinbase has been known to keep track of where its customers send their cryptocurrencies and may prohibit users from securing transfers (e.g., for transactions with gambling sites or darknet purchases). 

Increased Usage

This seems to be a general problem, with some exchanges suffering the most from increased usage. This is largely due to new people wanting to get involved with cryptocurrencies. Coinbase seems to have this issue under control right now, but we’ll have to wait and see when the next optimistic run comes if it added enough capacity to handle the tasks.

While the program is still in its early stages, they already have their first client. Escrow services are a way for large financial organizations to securely transfer their ownership. The first of its kind, this service could lead to more institutional adoption of cryptocurrencies in general.

This is great news for its consumers. Any wallet to be included in this list should significantly increase the direct exposure of these properties. Coinbase recently launched instant purchases from current accounts in the UK. This means you can now connect to any UK bank and enjoy near-instant purchases of accepted currencies.