Nowadays, avoiding information about cryptocurrencies seems to be a more challenging task than actively searching for them. With tons of articles on Bitcoin waiting for us in the depths of the internet, we can learn more about it and other digital currencies in a matter of seconds. Nevertheless, to fully understand the crypto market, one must ask more specific questions, such as ‘What is Coinbase?’.
If you are among those who are wondering what Coinbase is and how it works, you came to the right place. Below, we will explain the role of this online platform and why it is a crucial part of the crypto world. Ready to deepen your knowledge about digital currencies? If you need to know how to buy Bitcoin in Brazil or any of the other 100+ countries, Coinbase supports, read on.
The history of Coinbase
The initial idea of creating Coinbase was born in San Francisco, California. The company was created by Brian Armstrong and Fred Ehrsam, members of the first team of engineers at Airbnb. In 2012, the two of them launched their project as a Bitcoin wallet service. However, they did not set up a proper exchange platform until 2013.
How did they make the decision? It all started in January 2013 when they received $5 million from the venture capital firms Union Square Ventures (USV) and Andreessen Horowitz. Since then, Coinbase has continued to grow exponentially.
Nowadays, it is one of the leading platforms for buying and selling cryptocurrencies, offering services to more than 56 million users.
Features of Coinbase
In addition to being an exchange platform, Coinbase also offers its users a few other interesting features:
Coinbase Custody is a service designed for institutional clients and wealthy people who want to trade digital currencies but don’t want to deal with a crypto exchange.
Coinbase Commerce – one can use this feature to accept payments for goods and services in several cryptocurrencies.
GDAX – this is an advanced cryptocurrency trading platform that allows users to trade at low fees.
Coinbase Wallet – this feature enables users to store their digital currencies offline on a mobile or web application. It also includes a Vault feature which enables users to keep their digital assets protected by storing them offline. Moreover, Coinbase Wallet supports Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), and other ERC20 tokens.
Coinbase Pro – this feature enables users to trade cryptocurrencies on GDAX at a lower fee.
The Security of Your Funds on Coinbase
When it comes to security, Coinbase is probably one of the most secure platforms around. Here are some of its security features:
2-step verification: this is a process that requires you to use a 2nd authentication factor after entering your password ( 1st authentication factor). This ensures that you are the only person who can access your account. This feature is integrated with Google Authenticator or Authy applications. The system will generate an app-specific password for every app that you use with your Coinbase account. You can also set it up manually using a code generator or by providing your own password. You can find more info on 2-step verification here.
Coinbase vault: this is a cold storage feature that enables you to store your crypto assets offline. The vault safeguards your private keys and ensures that they are safe from hacking attempts. To use this feature, you need to set up two-factor authentication, and any time you wish to send money from your vault, you will need to confirm your transaction via email or text message.
Authentication process: when you try to log in to your account on Coinbase, you will be required to provide another form of id – i.e., mobile phone number or bank account number. If you fail to provide the correct information, your login attempt will be rejected, and the account will remain frozen for 48 hours. After that period passes, you will be able to log into your account again. For additional security, you can also enable two-factor authentication on your account.
How to Use Coinbase?
Using Coinbase is relatively easy. First of all, you need to register an account by providing your email address and phone number. After that, you will be required to verify your account by providing your name, legal identification, phone number, and proof of address. When you are registered and verified, you can proceed to the next step, which is adding funds.
Once you have added some funds, you can proceed to buy digital currencies such as Bitcoin (BTC), Ether (ETH), or Litecoin (LTC). To do so, you need to click on Buy/Sell and choose the currency you wish to purchase.
Then, you need to add your payment method and type in the amount of digital currency you wish to buy.
Wait for a few seconds until your order goes through, and voila! You have successfully purchased coins on Coinbase.
Coinbase is one of the world’s most popular and secure exchanges to buy, sell, and store cryptocurrency. If you are new to the world of cryptocurrencies, its user-friendly platform makes it a great place to start.