Coinbase was incepted in San Francisco’s Silicon Valley in July of 2011 by two gentlemen named Brian Armstrong and Fred Ehrsam. This in itself, makes it one of the oldest cryptocurrency exchanges on the market today. In June of 2012, Armstrong and Ehrsam launched their platform, their declared their business objective was to offer a compltely digital crypto-currency E-wallet viable for both consumers and crypto merchants alike.
Coinbase had both more progress and results than any other Bitcoin start up company in early 2013. After that, it wasn’t long before they became the largest cryptocurrency exchange brokerage and wallet platform on the entire planet! I will go over more in depth, the variety of reasons why they became so popular and why the business model was so extremely efficient.
Is Coinbase Legitimate?
As any company that operates here in the USA, Coinbase is required to comply with both those laws and regulations, and at both a federal and state level, mind you.
Here are some of the laws, regulations, and regulatory bodies that Coinbase complies with:
- Registered as a Money Services Business with FinCEN.
- Complies with the Bank Secrecy Act.
- Complies with the USA Patriot Act.
- Complies with state money transmission laws and regulations.
These regulations and laws force Coinbase to be slightly more accountable then some of their offshore competitors in some countries with more lenient laws and regulations.
Aside from the United States, none of the other 31 countries, where Coinbase operates, require licenses to operate a cryptocurrency business.
It’s also worthy of taking note, Coinbase actually has several trustworthy investors backing them. These investors include Alexis Ohanian (Reddit Co-Founder), Bank Of Tokyo, Blockchain Capital, and Digital Currency Group just to name a few!
Can Coinbase keep my funds safe?
Coinbase does something that I really like and that is to segregate it’s customer funds from the company’s operational funding. The customer assets are actually kept in custodial bank accounts. This means they will not use your money to operate their own business. Coinbase also makes the following statement:
“Even if Coinbase were to becomes insolvent, the funds held in the custodial bank accounts could not be claimed by Coinbase or its creditors. The Funds held in those accounts would be returnable to Coinbase’s customers.”
About 98% of their customers’ cryptocurrency assets are kept securely in offline cold hard storage. That means the money (in the form of cryptocurrency) is divided over both several hardware wallets as well as paper wallets. These physical wallets are then locked in physical vaults and safety deposit boxes all around the planet. These may sound like extreme measures to protect customers’ funds from being lost or stolen by hackers, but I think it is well worth it and it gives me a lot more peace of mind.
United States residents who use Coinbase’s USD wallet are also covered by FDIC insurance, up to a maximum of $250,000. Yes, That is correct! You read that right!
It’s important to note that, despite all of this, customers are still liable if their personal accounts are compromised. This is why it’s typically recommended to store your cryptocurrencies in an offline cold storage wallet that you control. You can view our recommended wallets here.
Personal Account Security
Coinbase offers its users a variety of features to secure their personal accounts. You should also use a strong, unique password.
Multiple 2-factor authentication (2FA) methods are available to help secure your account. The most basic 2FA option is through SMS texts, but I recommend setting up a third party 2FA app. Options for this include Google Authenticator.
More Coinbase Features:
- Two types of wallets are available:
- 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).
- 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.
- Easier to use than a full blown cryptocurrency exchange like Binance
- You can buy cryptocurrencies faster than most exchanges.
- You can buy cryptocurrencies with Credit and Debit Cards (In addition to bank transfers).
- Well known trustworthy and regulated company with a long track record.
- Safely stores customer funds in hard cold storage to eliminate hacking.
- Any and all deposits are FDIC insured.
- 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.
- In 2016 the site made PayPal BTC sales available to US users. This will also soon be available to European users looking to sell their bitcoins for PayPal as well
- It is possible to link their debit 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.
- First site among all the exchanges out there to have opened up a very convenient and 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!
Buy and Sell Limits
Buy and sell limits can vary by user location, payment method, and verification status. You can view your limits at any time, by viewing your account’s limits page. As a verified U.S. customer, you likely will be able to get these weekly limits fairly easily:
- $5,000 Buy through Bank Account.
- $50 Buy through Credit/Debit Card
- $50,000 Sell
You can apply for higher limits, if these limits don’t meet your needs. Your limits for instant purchases, like credit card purchases, may not be able to be increased.
Getting started with Coinbase is quite easy. The operating system is very beginner friendly and proves to be an intuitive process.
Coinbase lets you buy bitcoins instantly with your card or bank account.
Here are some simple direcctions to help make this process go smoothly for you:
Using Coinbase To Purchase Cryptocurrencies….
1) Signup to the website, and then verify your E-mail address
The first step is to create an account. Initially you will only be asked for your name, email, password, and state.
2) Choose Your Account Type
After you confirm your email address, you will be taken through a 4 part process to buy.
Choose whether you want to create an individual or business account.
3) Verify Your Phone Number
You will then need to verify your phone number. This is used as a form of 2-Factor Authentication, helping to secure your account.
4) Set Up Payment Method
The next step is to set up a payment method.
5) Buy Bitcoin, Ethereum, and/or Litecoin
Last but certainly not least, it’s time to purchase your coins. Both the price as well as all fees are clearly stated at the time of placing your order so there is no surprises.
If you made your purchase via bank transfer, your cryptocurrency will arrive after your bank transfer has been processed.
Coinbase offers customer support through email. In our personal experiences, we’ve typically received responses from support within 24-72 hours. For general questions, they have an extensive FAQ.
Coinbase serves customers in the following countries:
Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Cyprus, Czech Republic, Denmark, Finland, Greece, Hungary, Ireland, Italy, Jersey, Latvia, Liechtenstein, Malta, Monaco, Netherlands, Norway, Poland, Portugal, San Marino, Singapore, Slovakia, Slovenia, Spain, Sweden, Switzerland, United Kingdom, United States
Coinbase Review Conclusions
In my opinion, Coinbase is a perfect beginner friendly option, especially for the novice Americans coin investor, looking to both start into the market, It is also great for purchasing Bitcoin, Bitcoin Cash, Ethereum, or Litecoin.
Initial plunges into Bitcoin, Ethereum, and Litecoin, should provide a solid crypto investment introduction and the Coinbase platform is extremely easy and intuitive to learn. Coinbase has grown a stellar relationship within the banking community and is also backed by several investors with funding in the millions. Coinbase is also heavily regulated because it is in the USA. This means you are provided with security and insurance from both breaches and hacking. As of now, Coinbase is one of the best USD to Bitcoin marketplaces available.
If you click the link below and open a new Coinbase account, you will receive an extra $10 worth of cypto after making a purchase of $100 or more!
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