If you’ve spent any time in the cryptocurrency sector, you’ve probably heard of Coinbase. Coinbase is one of the most popular crypto exchanges. The company is based in America and primarily operates within the country, although the website is accessible in over 100 countries globally.
The platform is now working on a case with the Securities and Exchange Commission (SEC), which accused it of wrongdoing earlier this year. The cryptocurrency network has gained a lot of traction online and is widely regarded as one of the most powerful. In this essay, we will go deeper into Coinbase’s origins and current state.
What is Coinbase?
Coinbase is one of the most well-known cryptocurrency platforms. Beginners and experts alike can use the platform to trade cryptocurrencies and purchase Non Fungible-Tokens (NFTs). The platform has a number of features that make it superior to other websites. Furthermore, the platform’s friendly user interface and long history make it appealing to new users. The company has a reputation for providing excellent services.
Officially, the exchange is available in over 100 countries. It has amassed a massive user base of hundreds of millions. In the following article, we will look at Coinbase’s pros and cons as well as its history.
The Beginnings of Coinbase
Coinbase was founded in 2012 by Brian Armstrong, who is now a prominent figure and influencer in the cryptocurrency community. As a co-founder, he collaborated with another experienced trader named Fred Ehrsam. The platform’s growth was primarily aided by a funding event in which the company received a $150,000 investment.
Following this event, the members began preparing to launch the platform, which they did in October 2012. The company launched services for buying and selling cryptocurrencies, primarily Bitcoin, via bank transfers. The company also received a $5 million investment from venture capital firm Union Square Ventures in 2013.
Another venture capital firm immediately followed it with a US$25 million investment the following year. Shortly after that year, the company had one million users and was gaining traction online. During the same year, the company invested heavily in new blockchain technology.
The company has also partnered with a number of well-known companies, including Dell and Time Inc, to allow them to accept Bitcoin payments. This increased the company’s trustworthiness and helped them become even more popular among users worldwide.
Coinbase opening Canadian office. Source: TechTalent
After a few years, the company grew even larger and underwent some additional investments. In 2016, the company rebranded and added Ethereum support. Following that year, they attempted to obtain BitLicense in order to legally trade Ethereum and Litecoin. The Internal Revenue Service soon ordered Coinbase to report any users who had at least US$20,000 in transactions in a year.
One controversy involving Coinbase occurred in 2018 when the company informed approximately 13,000 of its users that their entire data would be shared with the IRS. This sparked a lot of discussion online. Nonetheless, they put in a lot of effort that year to add support for ERC-20 tokens. They also introduced Prime for customers and a blockchain intelligence platform.
Recent Years
2020 was a fantastic year for cryptocurrency platforms. The Covid-19 pandemic has prompted more people to investigate the benefits of blockchain technology. During that year, the company was successful in launching a Visa debit card program. On the negative side, The New York Times reported gender and race pay disparities among employees. This sparked widespread outrage online, and the company received widespread criticism from users.
Coinbase faced concerns in 2021 about its blockchain service potentially supporting blacklisted individuals or businesses. Furthermore, there were concerns that the company was misrepresenting its total trading volume.
On the bright side, the company was able to expand into India and become a public company in 2021. It reported a significant increase in revenue as the price of Bitcoin rose.
They blocked digital currency wallet addresses associated with Russia after the invasion of Ukraine in the new year. The company encountered some financial challenges. This resulted in a large number of layoffs, and they later partnered with BlackRock to allow clients to manage their exposure to Bitcoin.
Later that year, they partnered with Google Cloud Platform, allowing customers to pay for cloud services using cryptocurrency. Following the failure of the FTX exchange, the company announced additional layoffs and restructuring costs.
Coinbase’s Features
Coinbase Wallet
Coinbase Wallet is a key feature of the platform, and it is ideal for both new and experienced traders. This is a good option for users who prefer a faster and more interactive platform. Because the wallet is not custodial, you must keep an eye on your login information and ensure that it is not leaked. If you don’t, you run the risk of losing all of your cryptocurrency. If you still want to use Coinbase features but the trading website isn’t available in your country, the Coinbase wallet is a great way to do so.
Advanced Trade
Coinbase’s simple appearance may fool you at first, but the platform is quite professional. On the native platform, the platform also offers Advanced Trade, which allows users to use more advanced tools for trades. This is a significant improvement over Coinbase Pro. The previous version was ineffective, whereas the new version has more market paris. It has a good integration with TradingView and offers better staking rewards to users who use the feature.
NFTs
Non-fungible tokens (NFTs) have exploded in popularity in recent years. As a result, they are in high demand. As a result, Coinbase devised the idea of incorporating an entire NFT marketplace within its website. This section of the page features some of the most popular NFT collections available. You can easily use this to check out or even buy NFTs that interest you. According to Coinabase, you can get your favorite NFTs for the lowest price.
Coinbase NFT shop. Source: TechCrunch
Payment Options
For customers residing in the United States, the platform provides a wide range of payment options. These options include traditional wire transfers, PayPal, Google Pay, and even Apple Pay. This may not appear to be a big deal at first, but it is a fantastic idea to make it easier for new investors to invest.
A good tip to remember is that before you buy cryptocurrency, make sure you have enough money to cover the estimated fees. The fees you may receive are entirely dependent on your payment method, the blockchain you use, and trading fees and spreads. Furthermore, some payment methods, such as wire transfers, take a few days, whereas others are instant.
Security
One of the most important features of the platform is unquestionably its security. People cannot overstate the importance of security, especially if they are willing to invest large sums of money in cryptocurrency. When it comes to security, Coinbase is as good as it gets.
To begin with, the platform provides numerous ways to keep yourself safe. One of them is the well-known two-factor authentication (2FA), which is required for anyone investing. Cold wallets and multiparty computation are used by the company to secure personal assets. Some crypto remains liquidated outside of cold storage, whereas the majority of personal assets are stored in cold storage. Nonetheless, ultimately, the best way to protect your money is to protect yourself.
Customer Satisfaction
Coinbase has a solid reputation for being a user-friendly platform. However, there has been much discussion about their poor customer service. Nonetheless, customers are extremely pleased with the platform and its direction.
Even better, the platform has earned a positive reputation among regulatory bodies. The platform tries to stay ahead of any regulatory changes and ensures that they are followed. They make every effort to maintain a positive public image while abiding by the law.
The Pros and Cons of Coinbase
As with many other excellent cryptocurrency exchanges, some features may make or break the website for you. As a result, we’ve decided to list some of the benefits and drawbacks of using the platform. Based on the information we will provide, you will be able to form your own opinion about the platform.
The Pros of Coinbase
The easy user interface for beginners is one of the first things anyone notices when they begin using the platform. This makes it extremely simple for newcomers to the cryptocurrency scene to get started. The website is interactive, making it simple for users to sign up and browse the site’s various features.
Another significant advantage of using the platform is the variety of crypto assets available on the exchange. The platform supports over 10,000 assets for trading. Of course, the platform supports major cryptocurrencies like Bitcoin, Ethereum, and Ripple.
Another significant advantage provided by the platform is the ability to earn passive income. Many influencers talk about the possibility of making a lot of money through passive income, and Coinbase is ready to provide that. You can earn annual interest on any cryptocurrency that is eligible. Furthermore, you can earn rewards that provide great bonuses from time to time.
The Cons of Coinbase
Let us now look at some of the disadvantages of using the platform. Many traders have noticed that the fees on the market are relatively higher. Coinbase charges higher fees than some competing cryptocurrency exchanges. This has the potential to discourage many new users from using the platform.
Another major issue that has recently been reported is that the platform provides poor customer service. The exchange is slow to respond to issues, which usually results in a large number of customer complaints online. You can simply read some of the reviews to see what other people think about it.
One of the main reasons that many seasoned traders dislike Coinbase is that it controls the users’ private keys. Your private keys are essentially your wallet’s secret passcode. This means that the website has complete control over your cryptocurrency without your knowledge. This could become a major issue, similar to the FTX collapse, in which the exchange dipped into users’ funds.
Coinbase and The SEC
It would be a good idea to devote a small paragraph to the recent issues that Coinbase has had with the SEC. Earlier this year, the Securities and Exchange Commission (SEC) issued a wells notice to Coinbase. Coinbase refused to comply, stating that it will continue to operate as usual. Coinbase sued the SEC a month later, requesting a response to a rulemaking petition it filed last year.
Following this, the SEC began suing Coinbase, alleging that the company was acting as an unregistered broker. They requested that the platform be shut down and cease operations within the United States. They also mentioned a few issues with Coinbase’s staking mechanism. The investigation is still ongoing as of now.
Coinbase is striving to set an industry standard for safety and compliance in crypto. Pick up a copy of today’s @washingtonpost to learn more about our commitment to customers. pic.twitter.com/GG2xwPZlVD
— Coinbase 🛡️ (@coinbase) July 20, 2023
Frequently Asked Questions (FAQ)
Is Coinbase Safe?
Despite the fact that the cryptocurrency exchange has had a few security breaches in the past, the platform is unquestionably secure. It makes the platform suitable for daily crypto trading. You must take care not to reveal your personal information and never share your verification codes.
Is Coinbase Good for Beginners?
For newcomers, Coinbase is an excellent choice. It provides one of the simplest and most user-friendly ways to trade cryptocurrencies. You can easily navigate their website and mobile app. Furthermore, it provides a wide range of cryptocurrencies, giving beginners a wide range of options.
Can I Trust Coinbase?
This is not a difficult question to answer; simply looking at the company’s history shows that they are serious about their work. They have a proven track record and adhere to as many regulatory trends as possible. Furthermore, the platform has millions of active users who willingly put their trust in it.
Takeaways
- Coinabase is based in America and primarily operates within the country, although the website is accessible in over 100 countries globally.
- The platform is now working on a case with the Securities and Exchange Commission (SEC), which accused it of wrongdoing earlier this year.
- The fees you receive are entirely dependent on your payment method, the blockchain you use, and trading fees and spreads.
- Coinbase also offers their own NFT marketplace, that section of the page features some of the most popular NFT collections available right now.
- Coinbase’s simple appearance may fool you at first, but the platform is quite professional, it offers advanced tools for seasoned traders to use.
- Because the wallet offered by the platform is not custodial, you must keep an eye on your login information and ensure that it is not leaked to be safe.
- Coinbase makes sure that security is their number one priority, they offer a lot of security features that keep their user base safe and sound.
