What Is Coinbase? Services And Features

If you have been in the cryptocurrency market for a while, you have probably heard of Coinbase. It is an exchange platform with also cryptocurrency 'wallet' functions and based in the United States. The company has been operating since 2012.

 

 Coinbase is the equivalent of a traditional bank but in the world of cryptocurrencies. On the websites of this company, it is possible to receive, send and store cryptocurrencies (even offline). It also allows you to trade through one of the platforms in its suite that we will also analyze in this article.

 

 
This important company in the crypto market also allows the purchase and sale of cryptocurrencies through different methods. The main ones would be bank transfer or purchase through credit card. The objective is that anyone in the world can have access to the purchase of cryptocurrencies . Another of the objectives of this company is to provide a platform where payments can be made easily .

The platform was founded in 2012 by two entrepreneurial people, Brian Armstrong and Fred Ehrsam. Since then, Coinbase has progressively become one of the most important exchanges. The company's headquarters take place in San Francisco, California. It currently has more than 50 million customers worldwide and operates in more than 100 countries.

How does the Coinbase exchange work?

Coinbase is a centrally operated exchange. Therefore, our funds are under the responsibility of the platform. When we deposit cryptocurrencies or fiat money in this company. What we will have is a promise to pay on our cryptos, but we will not have access to the private keys.

The good thing is that this cryptocurrency bank is regulated by the competent bodies in the United States, so we can be relatively calm that our funds are protected and insured by law, even if the crypto market itself is not regulated. This is mainly a concern for all those people who want to deposit and keep their savings over time. but also for institutions, which will not invest in cryptocurrencies if there is no legal platform that guarantees their funds in case of loss.

One of the main advantages of Coinbase is that it works like an online bank. The platform allows you to operate at any time of the day and carry out all the operations you need on it. You don't have to worry about the location or the schedule. We simply need an Internet connection and we will have access to all services.

Coinbase pro trading platform

Coinbase Pro is the name given to the platform of the company that is specifically designed for trading. It was previously known as GDAX, but changed its name last year. This exchange originated in 2015 and was intended for traders rather than ' holders ' or merchants. The name change would be mainly motivated to establish a direct relationship between both platforms and not confuse customers thinking that they are different companies.

Coinbase Pro, as we say, was created specifically to facilitate trading. Although it is not the exchange with the most volume or the most popular, it does have characteristics that no other exchange has, and that is that the funds are stored offline, for which gives it a very interesting security plus.

Another of the main features that it offers within its services are continuous security checks and reviews to ensure that the platform does not have failures or problems in terms of security. For the most demanding clients, the greatest advantage is that it also offers insurance (required because it is a legal platform) of up to 250 thousand dollars per client in case the company suffers a hack.

What is Coinbase Earn?

Coinbase Earn is another of the services that we can access on platforms related to Coinbase. Its objective is to teach people how the world of cryptocurrencies works at the same time that it grants rewards as an incentive for participating in the courses it offers. The good thing is that you can earn your first cryptos at the same time you learn. The bad thing is that it is very difficult to access because there are a large number of people who request it and places are limited.

It is expected that the number of cryptocurrencies included in this initiative will increase and that the number of rewards available will also increase. In this way, the acquisition of knowledge about certain projects can be further encouraged.

Deposits and withdrawals on this exchange

Coinbase is one of the best options for novice investors. If you are new to this market or new to the platform, you will have no problem performing these trades. The web is very intuitive so transactions can be done in a very comfortable way. To do this, you only have to press the 'operate' button and the purchase and sale options will appear , as well as the different assets, currencies and means of payment.

The main drawback of this platform is that it charges a high commission rate for both the sale and the purchase. This commission is not a percentage, but varies depending on the amount to buy. For this reason, for example, we will pay the same commission if we buy up to €26, but if we buy €27 in crypto, the commission will increase. A useful advice would be to try different amounts and see the preview of the operation to avoid falling into unnecessary commissions.

On the other hand, there is also another method to avoid commissions that is to operate through Coinbase Pro. The trading platform of this company that we have mentioned before offers much lower commissions . Our accounts are the same on one platform and another, but the wallets are different. However, we will be able to send funds from one platform to another for free. The best thing to do, then, is to migrate funds from one platform to another to avoid the greatest number of commissions but taking advantage of the features that this exchange offers us.

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