Coinbase

reviewURL: www.coinbase.com

Coinbase launched in San Francisco in 2012, Coinbase operates in 32 countries and has served over 12 million customers to exchange over $40 billion in digital currencies. By 2013, Coinbase was the highest funded Bitcoin startup as well as the largest exchange of cryptocurrency in the world. Unlike other exchanges that require users to trade on a market, Coinbase allows users to trade their cryptocurrency at a set price that is based on their market value, which allows users to purchase their cryptocurrencies faster than other exchanges. Coinbase is also one of the few cryptocurrency exchanges that accepts credit cards (in addition to bank transfers).

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Score
9.6
Mobile app Score
iOS: 8.1
Android: 8.1
Coinbase
Coinbase
Coinbase
Score - 9.6Score9.6
Score Android - 8.1Score Android8.1
Score iPhone - 8.1Score iPhone8.1
Location - San Francisco, USALocationSan Francisco, USA
Currencies - USD, GBP, EURCurrenciesUSD, GBP, EUR
Languages - ENLanguagesEN
Buy with - bank transfer, cardBuy withbank transfer, card
Fees - Fees
Altcoins - Altcoins
Margin trading
Trust score - ATrust scoreA
Beginner friendly - YesBeginner friendlyYes (Exchange is simple for beginners)
Stability - 4. VeryStability4. Very (Exchange is very stable)
Fiat - YesFiatYes (The Exchange supports Fiat currency as USD, EUR, etc.)
Support speed
Safety - ASafetyA (Very secure)
API - YesAPIYes (API is available for public to use)
Rest API - YesRest APIYes (The Exchange has Rest API support)
Websocket - YesWebsocketYes (The Exchange has Websocket support)
Mobile app - YesMobile appYes (Exchange has a mobile app)
Credit card - YesCredit cardYes (Credit card support)
Referral - YesReferralYes (Exchange offers an affiliate program)
Two factor authentification - YesTwo factor authentificationYes (The Exchange supports two factor authentication)
Withdrawal limit
Verification time
Lending
Stop limit
US licence - YesUS licenceYes (Exchange have US licence for Money transmitter)
PGP support

Interview with Brian Armstrong

Founder of Coinbase

The advantages

  • Two types of wallets are available:
    1. The first is really simple and made so that beginners can store their coins with peace of mind (wallet key security is managed by Coinbase).
    2. The second is called Multisig Vault and uses the "multi-signature" innovation which allows advanced users to self-manage security for their wallet keys. What does this mean? Well simply put: if Coinbase were to disappear then these users would still have control over their bitcoin. For those asking is Coinbase safe, this should partially answer your question.
  • All deposits are insured. Now here is some serious security from Coinbase. That being said, if your password gets cracked or stolen then this would not be covered by their insurance policy. Always use a long and unique password.
  • Many positive Coinbase reviews mention that sending cryptocurrency to other users (who also have wallets on the platform) is really easy and fast. I strongly agree with this. With all the recent backlog on the actual bitcoin network, the fact that Coinbase allows users to do off-chain transactions is a pretty sweet feature. No more idle waiting times while you worry about confirmations.
  • In 2016 the site made PayPal BTC sales available to US users. This feature will soon be available to European users looking to sell their bitcoins for PayPal.
  • It is possible to link a credit card, called Shift Card, to your account and then pay for daily purchases using your Coinbase balance. The system simply converts the coins into usd at the going rate at time of purchase. This feature is not yet available outside of the United States.
  • First site among all the exchanges out there to have opened up a direct customer support telephone line.
  • It's true that we often read reviews about Coinbase stating that it's one of the best places for new users and beginners wanting to get their first bitcoins. In this area the company receives so many recommendations owing to the fact that large investments were made to guarantee an impeccable user interface (UI) and experience (UX). Everything works right out of the box on all devices. There is even a smartphone app for android and iOS.
  • In my opinion the lack of friction on-ramping from the existing financial infrastructure is thanks to strong partnerships with the latter. For example, some of the largest Coinbase investors include BBVA, NYSE, and Andreessen Horowitz.
  • With our link you can get 10$ of free Bitcoin on Coinbase when you buy 100$ or more. Here's the invite. Enjoy!

 

The Disadvantages

  • Only available in three currency zones, the USA (dollar), Europe (euro), & Great Britain (GBP).
  • They have a cap on how much cryptocurrency you can buy each week. Lots of investors are now looking to invest in large quantities of cryptocurrency, with a cap of $1,000 a week, they may well look to go elsewhere. For those looking to buy large amounts of cryptocurrencies try CryptoGo.
  • You can only buy 4 cryptocurrencies; Bitcoin, Bitcoin Cash, Ethereum and Litecoin. Those that are looking for a more diversified portfolio will have to look at different exchanges.
  • Suffering from its own popularity, waves of people flock to signup each time the price rises. Such events cause significant delays for vetting and approving new accounts. Note that all major crypto exchanges are experiencing such issues.
  • The downside of running a super safe exchange is that some customers get flagged and subsequently accounts get temporarily frozen. Extra vetting fixes this issue, but as waiting is no-ones favourite hobby people generally take to complaining on forums including reddit. I would go as far as saying that some good PR work would be needed to reassure the community.
  • Picking up on my last point, Coinbase support really needs to be more present on reddit. I'm talking about r/bitcoin and r/Coinbase - where some customer issues have gone un-answered for over 24hours. Tweeting @CoinbaseSupport (on twitter) usually gets an answer within the hour, but still - reddit... it's the front page of the internet.
  • Some reviews complain that Coinbase care more about their investors than it does about their users. This point would need further clarification but interesting nonetheless.
  • There are reports suggesting your coins may be tracked after withdrawing from the exchange. What does this mean? Being part of the Blockchain Alliance, Coinbase actively fights to avoid the use of digital currency in illegal and unlicensed activity. In other words - if you're using the coins to gamble or to purchase frowned-upon substances, then don't use Coinbase.
  • Some sections of the bitcoin community resent Coinbase's involvement in the current block size debate, or even the patenting of so-called inventions such as a bitcoin exchange or btc tip buttons. Yes - slightly excessive. Nevertheless actions like these will not have much of an impact for those looking to buy and sell btc, but feel free to look it up further if you are into the politics side of bitcoin.
  • One issue we are seeing crop up a lot is the high fees Coinbase charges. Often up to 4.5% on a transaction, which is considerably more expensive than many other exchanges.

Manuals for Coinbase

By following the below step by step guide, you will be able to buy cryptocurrency through Coinbase.

  1. Signing up – To create an account on Coinbase, all you need is your name, email address and password.
  2. Account Type – Upon request, you will be asked to confirm your email address. Once completed, you will be redirected to the startup page, where you will be first requested to confirm whether you want to create an individual or business account.
  3. Verify your Phone Number – The next step is verifying your phone number. The reason for this is to create a form of 2-factor identification in order to ensure that your account remains secure. Other 2-factor identification methods are also available, as set out below.
  4. Set up Payment Method – As stated above, Coinbase allows customers to choose from two payment methods – bank transfer and credit card. For bank transfers, Coinbase will often set up one or two small transactions to and from your account, in order to verify your account. For credit cards, a screenshot of the credit card is necessary. Bank transfers in the US can take up to 4 to 5 days to complete, or 1-3 days by SEPA transfers in the EU, while credit and debit card transactions are instant. Coinbase also allows for users to link their Paypal account to the platform, but this can be used for proceeds made from selling cryptocurrency only.
  5. Buy Cryptocurrency – Once you have funds in your account you can buy currency. It’s important to make sure that you are on the right tab of your account to purchase the correct currency. Before confirming the transaction, Coinbase provides you with details of the service fee and the amount of cryptocurrency being purchased in the transaction. Once confirmed, the amount of cryptocurrency that you have purchased will be credited to the relevant Coinbase wallet.

Security rating of Coinbase

Coinbase is considered to be one of the most secure platforms currently available. First of all, Coinbase is US based and is therefore required to comply with US State and Federal law. This can be contrasted with some of their competitors that operate in countries that may have lighter regulations when it comes to such platforms. Coinbase has actively pursued discussions with regulators in order to ensure that they were providing an open and innovative financial system and the regulation of Coinbase is considered by some to have restored confidence in cryptocurrencies following the Mt Gox collapsed (although other commentators have complained that Coinbase operates more like a bank, which, within the community, is against the fundamental nature of a decentralised cryptocurrency). In addition, Coinbase has received investment from a number of high-profile backers, including the Bank of Tokyo and BBVA, which boosts its legitimacy

When it comes to storage of funds, Coinbase is transparent about its methods. Coinbase segregates customer funds from company operational funds, with Coinbase stating on their website that any funds held on behalf of customers are stored in custodial bank accounts and, in the event of insolvency, neither Coinbase nor its creditors would have any rights or entitlements to such customer funds. In terms of its cryptocurrency storage, Coinbase states that 98% of customers’ cryptocurrency funds and stored offline, through hardware wallets and paper wallets that are stored in vaults and safety deposit boxes worldwide. In addition, Coinbase states that the remaining portion of cryptocurrency that is stored online is insured, and that in the event of a hack, customers will be entitled to receive any funds lost through this insurance policy.

Coinbase offers customers a 2-factor authentication method, which can be through SMS to your phone, or through third party apps such as Google Authenticator or Duo. In addition, Coinbase notifies users if a new device or IP address attempts to access your customer account. However, despite this, if customer accounts are compromised, Coinbase does not accept any liability for funds being lost. For that reason, it is typically recommended that once you have purchased any cryptocurrency on the Coinbase exchange, you store this cryptocurrency offline in a wallet that you control.

Review of Coinbase

Although it’s not perfect, Coinbase offers customers (and especially newcomers to cryptocurrency) a practical and easy-to-use service for buying and selling cryptocurrency. However, as with any online exchange, despite the security levels outlined above, the recommendation will always be that any cryptocurrency purchased through Coinbase should be transferred to personal wallets allowing you to have full access to the private key to your cryptocurrency.

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1CoinbaseYesAYesYesSan Francisco, USAENbank transfer, card
(1256 Votes)
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