Have you ever heard of Coinbase? Wondering what it is? This review will explain how it works and the advantages and disadvantages of using it.
What is Coinbase?
Coinbase is a cryptocurrency exchange founded in 2012. It’s the largest exchange in the U.S. according to trading volume. It provides two main products; a Global Digital Asset Exchange (GDAX) and an Application Programming Interface (API).
GDAX is for trading various cryptocurrencies on a professional trading platform using Bitcoin, Etherium, Litecoin and Bitcoin Cash. The API is for merchants to accept deposits, and developers to construct applications for cryptocurrencies.
Coinbase awards Bitcoins easily, which is what makes it user-friendly to first time traders. It also acts as a cryptocurrency wallet where you can buy and sell bitcoins. Coinbase provides a vault where you can store your bitcoins.
Coinbase stores funds offline for security. Its backups and drives get placed in vaults and deposit boxes to keep them safe. You create a personal password for your vault or choose to have a group vault shared with up to five other traders.
Pros and cons of Coinbase
Advantages
Coinbase offers a variety of cryptocurrency choices for staking, trading and investment purposes. It has a learning program that gives users Bitcoin to use while getting to know the markets. Another positive aspect of Coinbase is its high liquidity, protecting you as an investor against significant price movements.
It’s an excellent platform for beginners because it only offers cryptocurrencies that are established commodities and currencies. It doesn’t accept coins that could be equities or securities. The Coinbase interface is easy to navigate with a straightforward design and the relevant tools needed for beginner and experienced traders.
Coinbase also welcomes fiat and a vast diversity of payment options, including; bank transfers, PayPal, debit/credit cards, and SEPA transfers. It facilitates Instant Exchange, a free converting feature to transfer fiat to other users who receive it as Bitcoin. It has its very own debit card, the Shift Card, which you can use to spend your Bitcoin directly from your Coinbase wallet.
Traders can upgrade to GDAX, also called Coinbase Pro which has a wider variety in tradable cryptos. Coinbase is rated as one of the safest online wallets to store funds in as only 1% of its assets are available online. This makes it impossible for hackers to get hold of the 99% stored offline, and the 1% online is insured against losses.
Disadvantages
On Coinbase, you don’t control your wallet keys because it’s a centralised exchange. There are also only four altcoins available to traders and limits imposed on spending and transfers. It charges higher fees per transaction than its competitors. However, on Coinbase Pro, the costs are lower.
Coinbase tracks user transactions and can freeze your wallet if they believe yours are questionable. Finally, user anonymity is lacking because it’s compelled to report user info to its regulatory body. Therefore, you’ll have to pay taxes on your crypto assets.
Summary
According to our review, Coinbase is among the best broker exchanges available globally. It’s well trusted in the cryptocurrency industry and maybe one of the best learning platforms because it’s well-insured. With only a few downfalls compared to its many advantages. It remains prominent, and we recommend giving it a try.
For more info about cryptocurrency exchanges, visit Tradingbrowser.com.
