Coinbase: All the Nine Yards of Crypto Trading

Kavya  |  Oct 6, 2021

We all know cryptocurrency is a technology that enables secure online payments as it is based on cryptography, which is developed from the encryption techniques used to safeguard the network. The Bitcoin convention is based on blockchain, which is a more complex form of a database. 

Several development tools have allowed developers to take part in the continuous evolution of cryptocurrencies. These tools are used to manage wallets, track exchange rates, and retrieve historical data.

Coinbase Is the World’s Best Exchange for Bitcoin Beginners

In a short period, cryptocurrency has grown from a small alternative investment to one worth around $2 trillion. If you’re seeking to invest in cryptocurrency or use it as a means of payment, You’ve must have probably heard of Coinbase. After all, it is one of the most popular cryptocurrency exchanges with tens of millions of users. It is also one of the simplest methods to purchase Bitcoin, which has contributed to its remarkable rise in popularity. 

In short, Coinbase cryptocurrency exchange assists you in purchasing popular cryptocurrencies such as Bitcoin, Ethereum, Litecoin, etc., while securing the transaction and holding. Coinbase may not accept every currency, but it does support more than 90 distinct types of cryptocurrencies. 

Meanwhile, there are a hundred types of cryptocurrencies accessible throughout the world. Fortunately, Coinbase allows you to exchange the most common forms of cryptocurrency, so it serves the most needs.

All of this makes Coinbase an excellent location for beginner crypto investors to acquire and sell their preferred coins. But, Is Coinbase secure? What about the fees? and How Coinbase works?

The History of Coinbase

Brian Armstrong, a former Airbnb developer, established Coinbase in June 2012. Armstrong joined the Y Combinator incubation program, where he got a $150,000 financial boost. Later, as a co-founder, Fred Ehrsam, a former Goldman Sachs trader, joined Armstrong in this journey. Ben Reeves, a British programmer, founder of Blockchain.info, was scheduled to be the part of Coinbase founding team but parted company with Armstrong just before the Y Combinator fundraising event owing to their differing views on how the Coinbase wallet should work.

The company’s name is derived from Coinbase transactions, which are unique transactions that put Bitcoin into circulation in proof-of-work (PoW) cryptocurrencies. In October 2012, the firm began offering services to purchase and sell Bitcoin via bank transfers. 

Union Square Ventures invested $5 million in the company in May 2013, headed by Fred Wilson. The same year, the venture capital companies Andreessen Horowitz, Union Squares Venture (USV), and Ribbit Capital invested a total of $25 million in the company. The first employee was Olaf Carlson-Wee, a Vassar College graduate.

Later in 2014, the firm introduced Bitcoin payment processing capabilities to traditional payment providers Stripe, Braintree, and PayPal. It also obtained insurance to cover the value of Bitcoin kept on its servers and introduced the vault system for safe Bitcoin storage.

The hard work started paying off as the firm got a $75 million investment in January 2015, headed by Draper Fisher Jurvetson, the New York Stock Exchange, the USAA, and other numerous institutions. Later that month, the company established Coinbase Exchange, a Bitcoin exchange for professional traders headquartered in the United States. 

Coinbase launched its services in Canada in 2015. However, they ceased operations in August 2016 following the collapse of Canadian online payments service provider Vogogo. 

They enabled retail support for Ether in July 2016. The New York State Department of Financial Services granted them a BitLicense to trade Ether and Litecoin in March 2017. The US Internal Revenue Service required the firm in November 2017 to notify any users who had at least $20,000 in transactions in a year. In mid-June, Coinbase was the victim of a sophisticated hacking effort. 

This alleged assault included spear-phishing and social engineering techniques (such as sending phony emails from stolen email accounts and creating a landing page at the University of Cambridge) as well as two Firefox browser zero-day vulnerabilities. 

Coinbase halted all Ether trading in January 2019 owing to a suspected nefarious assault on the network. The firm in February 2019 acquired Neutrino, a blockchain intelligence platform, for an unknown sum. The assault was identified and stopped by Coinbase's security team; the network was not hacked, and no bitcoin was taken. 

During the Coronavirus worldwide pandemic in May 2020, the firm declared it was going "remote-first" and would no longer recognize a formal headquarters. In June, CEO Brian Armstrong refused to remark regarding Black Lives Matter, citing the company's download and Install your Coinbase apolitical ethos. Employees also complained about being treated unjustly because of their color or gender. 

Coinbase Global, Coinbase's parent company, went public in April 2021 at $328.28 per share, valuing the business at $47 billion. The firm recorded a nine-fold rise in first-quarter revenue to $1.8 billion, up from $190.6 million the prior year. 

In March 2021, the firm agreed to pay $6.5 million to resolve regulatory accusations that it misrepresented its trade volumes. It also announced ambitions to create an office and establish a footprint in India. 

Let’s Begin Using Coinbase 

A common question asked by many of us: how Coinbase works? Well, it’s simple to sign up, but it does request your information, such as your name as per documents, home address, date of birth, the last four digits of your Social Security number, and how you want to use Coinbase.

This is to ensure compliance with federal requirements. Here's how to get started.

  • Download and Install the Coinbase app on your iPhone or Android. 
  • Open the app, and press the ‘Get Started’ button to begin.
  • Create your account using your email address to get started
  • To verify your email, click the link attached to your email
  • Enter basic details to sign up. Name, date of birth, documents to prove you are 18+, phone number, and the last four digits of your Social Security. 
  • The next step is to choose the use of Coinbase, either for investing, online payments, online shopping, or other exchange investments.
  • Confirm your revenue source.
  • Select "Let's Go."
  • You will now begin to link your bank account. Look for your bank.
  • Log in to your bank account using the same username and password you usually use for banking.
  • Tap "Continue" after selecting the bank account you wish to link to Coinbase for purchases.
  • That's all. That’s how Coinbase works, where you can begin purchasing cryptocurrency.

    Coinbase Review: Key Features to Use Wallet Effectively

    • The wallet offers several high-performance characteristics, according to online Coinbase reviews. The wallet has strong security features and ensures that its status as a ‘hot wallet’ does not lead to hacking issues. 
    • The major function of the Coinbase wallet is to manage private keys and store customers’ Bitcoin holdings directly on their devices. It is utilized as a hot wallet that works with hardware wallets like KeepKey, Ledger and Trezor. The wallet is not a centralized brokerage or exchange, rather it is used to transmit and receive these transactions. 
    • Coinbase wallet is compatible with user-friendly bank accounts; the wallet also has several features that enable users to buy and sell cryptocurrencies at a profitable margin. The wallet also works with major fiat currencies like USD or US dollars.
    • The wallet has a high level of compliance, with specific KYC procedures applied by the company’s regulations. This wallet may not be appropriate for people with a poor credit history. Regardless, everyone would appreciate the wallet's innovative features and customer service.
    • Coinbase is a wallet that allows users to store, manage, and exchange non-fungible tokens (NFT). It enables customers to buy and sell non-fungible tokens over the internet. The wallet firmly protects both private keys and public keys. This restricts access to cryptocurrency and allows for a user-only entry. The wallet's optional cloud backups can also help you recover lost private keys and crypto-assets.
    • Is Coinbase Secure & Legit?

      Coinbase is a fully regulated and licensed cryptocurrency exchange that serves all states in the United States except Hawaii. 

      It provides a broad range of goods, including cryptocurrency investing, a sophisticated trading platform, institutional custodial accounts, and a wallet for regular investors. 

      Coinbase employs many security procedures for account holders. It is critical to recognize that any cryptocurrency on any exchange account is only as safe as the account holder makes it, and some users have reported being hacked. It is critical to use strong passwords and to make use of available security measures such as 2-step verification.

      Coinbase has two-factor authentication, biometric fingerprint logins, insurance if Coinbase is compromised (this insurance does not apply if your account is breached due to your lack of security measures), and it maintains 98% of customers' money in offline cold storage.

      Talking about its security, it is effective, but it is not resistant to hackers. So users should be aware while choosing complicated passwords to keep their accounts safe. Because digital money is not legal cash, it is not protected by SIPC or FDIC. 

      The idea behind cryptocurrency, especially Bitcoin, is to eliminate intermediaries as much as possible and to have complete control over your cash. While Coinbase makes it simple to get started with the Bitcoin investment, it is critical to understand cryptocurrency security and storage. Savvy traders might utilize Coinbase Pro to save money on fees before withdrawing their assets to their safe cold storage.  

      To Summarize

      Overall, the use of the Coinbase wallet is a fantastic choice. Soon, it is expected to advance to next-level security and crypto-transactional efficiency. Despite the wallet's limited support for digital currencies, it does support other wallets and fiat money. 

      It is simple to use and has the safest utility when compared to other wallets, making it one of the best online crypto wallets. The wallet has been well tested and is an excellent partner for Coinbase users. It may be utilized by both professionals and novices in the field of cryptocurrency.

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