- Easy to use
- earn cryptocurrency
- a large number of cryptocurrencies
- high transaction fees
- Customer service issues
- No access to trade many altcoins
Coinbase Global Inc. is a publicly traded American company that runs a cryptocurrency exchangeplatform. Since Coinbase doesn’t have a physical headquarters, all of its employees work remotely. By trading volume, it ranks as the top cryptocurrency exchange in the US. The company was founded in 2012 by Brian Armstrong and Fred Ehrsam. As part of a wave of several significant tech companies closing their headquarters in the wake of the COVID-19 pandemic, Coinbase announced in May 2020 that it would close its San Francisco, California headquarters and transition to a remote-first business model.
Coinbase Founding Team
Coinbase was founded in June 2012 by former Airbnb engineer Brian Armstrong. Armstrong joined Y Combinator’s startup incubator program and received a US$150,000 cash infusion. Following the discovery of Armstrong’s posts on Reddit, former Goldman Sachs trader Fred Ehrsam joined as a co-founder. British programmer and Blockchain.info co-founder Ben Reeves was originally supposed to be part of the Coinbase founding team but parted ways with Armstrong just before the Y Combinator funding event due to their different stands on how the Coinbase wallet should operate. The company gets its name from coinbase transactions, which are special transactions that put cryptocurrency into circulation as proof of work cryptocurrencies.
The company introduced its services for buying and selling bitcoins through bank transfers in October 2012. In May 2013, the company received a US$5 million Series A investment led by Fred Wilson from the venture capital firm Union Square Ventures. The venture capital firms Andreessen Horowitz and Ribbit Capital invested US$25 million in the company in December of that same year. The company reached one million users in 2014, acquired the web bookmarking service Kippt and the blockchain explorer service Blockr, obtained insurance to cover the value of the bitcoin stored on their servers, and introduced the vault system for safe bitcoin storage. In 2014, the company also partnered with Overstock, Dell, Expedia, Dish Network, and Time Inc., allowing these companies to accept bitcoin payments. In the same year, company also added bitcoin payment processing capabilities to the traditional payment companies Stripe, Braintree, and PayPal.
Coinbase During the Pandemic
In May 2020, during the COVID-19 pandemic, the company announced that it would transition to full remote working and no longer recognize an official headquarters. In March 2021, the company came under scrutiny by the Office of Foreign Assets Control, citing concerns that the company may have provided its blockchain service to blacklisted individuals or companies, noting that the nature of blockchain technology makes it “technically unfeasible” prevents specific users from making transactions.
What Makes Coinbase a Good Option
Beginners should start with Coinbase because it’s simple to get started with just a $2 account minimum. With the help of the platform’s “earn while you learn” program, Coinbase encourages novice cryptocurrency traders to learn more about their investments. Beginners can gain more knowledge about different cryptocurrencies while earning rewards by completing a series of video classes and exams. the exchange offers crypto staking. Staking is when a cryptocurrency is locked up on an exchange—usually for proof-of-stake validation—that allows the crypto owner to earn a yield. Customer support is one of Coinbase’s best qualities. Live phone support, which is conspicuously absent from many cryptocurrency exchanges, is a feature that Coinbase offers in addition to an online help center and chat system. There are many ways for users to store their cryptographic keys in terms of storage. Actually, Coinbase provides three different cryptocurrency wallets to users. The Coinbase Wallet is the exchange’s hot wallet product and claims to support “hundreds of thousands” of crypto assets. The Coinbase dApp Wallet and storage offered by the Coinbase Exchange itself, which serves as the exchange’s “default wallet,” are the other two wallets. “.
One of the pillars of the cryptocurrency industry is Coinbase. The business went public in April 2021, and since then, it has remained a prominent platform in society. The platform of Coinbase is simple to use, but the fee structure is convoluted.
The fee structure for the core Coinbase platform is incredibly complicated. Instead of paying maker/taker or flat fees, you pay a spread fee that temporarily locks in the transaction’s price. When you are about to submit the trade, you can see the fee you will have to pay. Coinbases spread fees typically run around 0.5%. For Coinbase’s Advanced Trade users, the company charges a much simpler maker/taker fee on all transactions. On the majority of cryptocurrency exchanges, maker/taker fees are common. On a platform, a maker increases liquidity, whereas a taker decreases it. Users can only determine whether they are a maker or a taker after a transaction, which is the only drawback. As with most crypto exchanges, Advanced Trade’s maker/taker fees decrease as the user trades higher volumes of currency.
As part of its security procedures, Coinbase searches the dark web for user passwords, suggests using a third-party security key, and provides onsite security prompts. All US dollar deposits on the Coinbase site are held in FDIC-insured bank accounts. Cryptocurrency holdings are not hedged. Criminal insurance for Coinbase protects against site security breaches but excludes login credentials. Customer adherence to Coinbase’s strictest security recommendations is crucial for this reason. Between March 2021 and May 2021, coinbase was the target of several hacks. Over 6,000 customers had their accounts drained during this time.
Without a doubt, one of today’s most reputable cryptocurrency exchanges is Coinbase. It secures cash on FDIC-secured accounts, lets you securely connect and trade crypto via your bank account, and blocks suspicious accounts to ensure user safety. It offers a variety of services, with a focus on trading between cryptocurrencies and fiat currencies. The exchange provides services to 8,000 institutions and 56 million verified users worldwide. These are distributed in more than 100 nations worldwide. In favor of Coinbase’s reliability are more arguments than against. On many review websites, including TrustRadius and BitDegree.org, it has received numerous reviews and a high trust rating. Although there are low ratings on some websites, like TrustPilot, it appears to be due to poor customer care. Nevertheless, users are required to take responsibility when trading crypto on Coinbase. Always ensure the site and social media accounts to which you log in is legit.