Table of Contents
- 1 Important information on Coinbase
In this 2020 review of coinbase, you will receive all the information you need on Coinbase. If the fascinating world of cryptocurrency is something you have been exploring, then you must have run across Coinbase. This company is dedicated to cryptocurrency although not limited to it.
Before getting into the review of Coinbase, I will first start out with a general description. It is a limited company that mainly focuses on digital asset ventures, and cryptocurrencies in particular. The major focus of Coinbase is Bitcoin along with its products. However, in recent years it has begun to incorporate other altcoins like Litecoin and Ethereum. The simplest explanation for the services that Coinbase provides is that it acts as a digital broker. The New York Stock Exchange backs the company.
Coinbase was founded by Fred Ehrsam and Brian Aarmstrong in 2012. They saw an opportunity for a middleman after Bitcoin has start to gain market share since 2009 when it was first introduced. Coinbase first began by purchasing selling Bitcoins via Bank Transfers. Next it extended its services and included a vault system to be used for Bitcoins. It has grown its user base over the years to around 7 million to date.
Coinbase has been the go to place, particularly if you are wanting to buy your first Bitcoin. That is due to the fact that the company has made large investments into designing a user-friendly interface and making better algorithms to handle the extensive technicalities that are associated with owning cryptocurrency. They have also partnered with numerous banks and provide more than 32 countries all over the world with payment services.
Important information on Coinbase
As previously stated, Coinbase has partnered with numerous banks all over the world to allow for the purchasing and sale of Bitcoins in local currencies. People have also made numerous payment options that range from ACH, SEPA, SWIFT and EFT. They have also introduction PayPal as well as Credit and Debit cards. Those are of course MasterCard and Visa support.
The main focus of Coinbase is on buying and selling Bitcoins. However, storage is also an auxiliary function that it performs. They have wallets you can rent out similar to a warehouse for storing your Bitcoins in. You can store Litecoin and Ethereum as well. Your stash is kept safely and is guaranteed since an insurance cover is purchased for all of their storage vaults.
How does Coinbase work?
When it comes to Coinbase, the most important thing you need to know is that enjoys strong backing from major players in the financial industry including the New York Stock Exchange. What that means is the virtual currency business is quickly developing into a major profitable activity within the financial industry. The business has a license from the New York State Department of Financial Service for continuing its operation. In addition, over $100 million have been invested by major banks into the company, which shows that they do have something.
Coinbase is operated more like a bank than it is a broker. The reason for that is hte company was the first that received the virtual currency operation license. It is also due to the fact that it has been integrated in with major Banks with its operations which has resulted in it adopting most Banking laws. That is why Coinbase requires you to provide extensive personal information and accounts are monitored in order for money laundering to be prevented. However, their services are guaranteed and secure which for virtual currency is difficult to find.
Is Coinbase Legit?
Before you venture into Coinbase, it is important for you understand the inner workings of it. Is Coinbase safe to use? For most people, that's the first question they ask. Yes, it is. Coinbase is quite safe. As previously mentioned, the company has heavily invested in insuring its vaults in order to minimize losses. The company is also integrated in with major banks that provides protection for its investments as well.
Over the years since it was first established, Coinbase has received US $75 million in funds, so it is definitely one of the world's most secure virtual currency brokers. That also factors in the investment they company has received from the Japanese securities exchange and banks. In general, the most secure trader is frequently the most financed in the market as well, and this is true of Coinbase.
Is Coinbase Safe?
Extremely safe. It is operated in more than 30 countries including China where it it able to operate freely without major hiccups. As previously stated, Coinbase follows protocols that are similar to those used in the banking industry. That is why its operations are all monitored will in order to eliminate the potential of losses. That is also the reason why this company is able to easily secure credit cards.
The company website also has a user-friendly interface to reduce changes of errors being made while trading. For newcomers, this is definitely the best place for them to go. They have negligible transfer fees and Bitcoins can be exchanged into 159 different fiat currencies. And yes, Coinbase is used in countries all over the world and is very safe.
A Look At Coinbase
If you have ever visited Bitcoin forums, then you know there are many negative opinions about Coinbase, and one of the reasons why is because of how it operates. Coinbase is licensed by the Department of Financial services in New York and it acts like a broker. It has to follow the laws of New York state.The bad rapport comes from a number of fields and some of these will be discussed.
To start with, let's go into banking laws, which all banking laws in most countries are against money laundering. The United States' banking laws are no different. Coinbase required a person to disclose all personal information about themselves before they can open an account, and many people don't like this. This is especially the case with people who want to buy Bitcoins.
Bitcoins are known for setting the standards for anonymity. This is in part so transactions can't be traced back to the original owner. Bitcoin stands for decentralization of money or currency.
Coinbase And Controversies
Coinbase controls your stash and monitors it. When you buy Bitcoins, the company keeps private keys and you get the public keys. This means that Coinbase monitors your purchases and if you do any wrong thing, then the company will freeze your account and they may close it.
Your money might also return your money to your bank account. However, Coinbase doesn't obey the general rule of decentralization, even though they do return your money. This means no financial institution should be in full control of cash. By keeping your private keys, Coinbase can actually devalue your Bitcoin, especially if you buy something considered illegal or material or services that are adult themed.
Also, it appears that the founders of Coinbase have a single position when it comes to the debate surrounding Bitcoin, and this has not gone over too well with many who own Bitcoins in the company. This is especially the case with marketing Ethereum, which is the main competitor to Bitcoin. This has also resulted in a debate about the future of the company.
Let's also point out that the company's branch in Canada has closed down, which has raised more questions about the company's future. Furthermore, Vogogo, which is a payment service provider in Canada, is going to close down due to not generating enough revenue. This has raised questions about whether or not Coinbase ran into the same problem and if that's why they closed down their branch in Canada.
Usability Review Coinbase Site
Unlike other monetary transactions, bitcoins are a peer-to-peer transaction.
When you use Coinbase on your web browser, it will appear similar to this:
If you're already a member of you already have a Coinbase account, it will look similar to this once you've signed in.
Naturally, the amounts and the Bitcoin values will be different than these.
If you wish to buy or sell bitcoins or other cryptocurrencies such as Ethereum or Litecoin, you'll need to do the following:
- Sign up and create your secure digital money wallet
- From the dashboard, you'll navigate to buy and sell.
- Enter the dollar amount in USD and it will show you how many Bitcoins you can purchase.
- You are able to choose your payment method from here such as using your Bank Account, Coinbase etc.
The Coinbase account is very user-friendly and easy to use. You'll be able to see easily what is going on. You can readily navigate yourself around the site without any hassle. You can also do this with Bitcoin. All you have to do is familiarize yourself with the tabs of buy and sell and navigate to do so.
Coinbase: Customer Reviews
Here are some customer reviews on Coinbase.
There are customers who have found erroneous debits on their accounts that took a bit of time before they were reconciled. It took a lot of time and effort on their part to get their accounts straightened out. Coinbase takes their time in answering complaints and emails.
Some customers found that their accounts were frozen and that they were written off when trading large sums of money. This was after they tried to exchange Bitcoins for Fiat and they gained value on their LocalBitcoins or LBC. These individuals were considered to be high risk.
Are there any pros and cons to Coinbase?
After you've read through the various reviews on the Internet, you'll have an excellent grasp of Coinbase and how it works. It is wise to review the pros and cons and make your best-educated decision on the information at hand.
There are many great advantages over other brokers. Here are some of the more definitive.
- Coinbase is secure with your money. This is because they have an impressive set of security measures and algorithms. They have insurance the bitcoins in safes so that they are safe from hackers as well and the potential loss of cryptocurrency.
- Coinbase is available in 30 countries, this supports their bitcoin payments as well as services and transactions. You can exchange Bitcoins to 159 various fiat currencies.
- Coinbase has been backed by major banks and this includes New York Securities Exchange so it's extra secure with these partners involved.
- They are financed as well as licensed and that makes them one of the best brokers for virtual currencies in the world.
- They've also incorporated credit cards, these transactions are instant when you buy bitcoins.
Of course, just as with any company, there have to be a few cons. These are part of the issues that have fallen short on what people expect and anticipate with cryptocurrency.
- The company will monitor your trades and they have the ability to freeze and even close accounts if they feel that you're involved in any illegal activity.
- When you're trading large sums on a daily basis, you're going to be considered to be high risk and they may close your account or closely monitor it and then close it.
- When you buy bitcoins, you're not actually the owner of the company has the private keys. All you're doing is telling them who to give them to, and when. Regardless, this can mean that you wind up losing money within the company if anyone decides to take the money and run.
- When you use fiat money, it can take up to a week for your bitcoins to process.
- You must also divulge all of your personal information which can go against everything regarding cryptocurrency.
Our Take On Coinbase
Coinbase is a great company. As a pioneer in the world of virtual money, specifically bitcoin, it's a secure way to move money around. Suggestions are that the beginner learns first how to properly trade on Coinbase. This will give you the knowledge of how the virtual trading works. They've introduced Global Digital Asset Exchange or GDAX as a means for others to exchange bitcoins.
It's not advised to start here if you would like to keep your purchases anonymous. Remember, they're going to monitor all of your activity as well as the transactions. You'll find that this goes completely against the decentralization concept that Bitcoin has tried to enforce. This information is similar to giving out your DNA, most don't require it, those who do will find that potential customers balk at the process. You'll also find that they can close your account on a whim without any explanation. This will remove your ability to purchase what you want with Bitcoins and you'll not be able to access it again for an unspecified amount of time.