Coinbase is the biggest crypto exchange in the United States, beating the likes of Kraken and Binance US. But does being the leading exchange make Coinbase the right trading platform for you? You will find out in this guide. Keep reading to learn more about Coinbase.
Coinbase is a San Fransico-based crypto exchange founded by Fred Ehrsam and Brain Armstrong. The former is currently the company’s CEO. Coinbase started expanding its presence to other territories in 2014 when it began offering its services to users in several European countries.
In 2021, the crypto exchange became the first to be traded publicly after listing its shares on NASDAQ as COIN. This year, Coinbase launched its Ethereum scaling solution, Base. Let’s learn more about this network in the section below.
The Base Blockchain
Following the collapse of crypto exchange FTX last year, many users began shifting to decentralized trading platforms. To fulfill the demand, Coinbase created Base, a blockchain that provides developers with tools for building decentralized apps (dApps).
As an Ethereum later-2 network, Base allows users to easily bridge their cryptocurrencies from the Ethereum blockchain and vice versa.
Exploring the Coinbase Numbers
Being the second-most trusted crypto exchange after Binance, Coinbase has attracted millions of crypto users. As of September 2023, it has 108.9 million registered users.
Since the start of the year, the platform has been averaging $653 million in daily trading volume, with ETH/USD, BTC/USD, XRP/USD, and USDT/USD being the most traded pairs.
Coinbase Regulatory Status
Coinbase holds several licenses from United States regulators. It is licensed by Finance Crimes Enforcement Network as a Money Services Business and registered as a Futures Commission Merchant with the US Commodities Futures Trading Commission.
It is worth mentioning that the Securities and Exchange Commission has been forcing Coinbase to register as a securities exchange, arguing that most of the tokens traded on the platform a securities. Whether Coinbase will heed the commission’s calls remains to be seen.
How to Get Started With Coinbase
Coinbase has been a go-to crypto exchange for newbies due to its easy-to-navigate user interface. To get started, download and install the Coinbase app on the App Store or Google Store. After that, open it and click “Sign Up,” then key in your email and verify it. Next, you will be required to enter your name and submit the Know Your Customer documents to complete the account creation process.
After your Coinbase trading account is created, if you are a beginner, go to “Coinbase Learn” to access educational materials. If you are an experienced trader, switch the user interface to Coinbase Advanced or Coinbase Pro to enhance your trading experience.
This is the Coinbase earn program that allows users to stake their digital currencies for good yields. You can start staking as low as $1.
One of the Coinbase’s coolest features is its debit cards. All verified users can access these cards, which are easy to fund. Note that every transaction you make with your Coinbase debit card attracts a cryptocurrency reward, giving you an easy way to accumulate free digital currencies.
Choice of Crypto Wallets
As a verified Coinbase customer, you have the option of choosing which crypto wallet you wish to use. You can opt for its self-custody wallet or custodial wallet. With the former, you control the private keys, while with the latter, Coinbase maintains the private keys of your wallet.
The good part of having the Coinbase self-custody wallet is that you can use it to access the decentralized finance space to explore investment opportunities.
Coinbase isn’t a mere crypto trading platform. It allows users to trade non-fungible tokens (NFTs) through its NFT marketplace. Moreover, you can mint and list your own NFTs.
As a regulated crypto exchange, Coinbase is an ideal exchange for traders who want to explore the crypto ecosystem without the fear of losing their funds to fraudsters. The platform is also perfect for beginners since it offers educational materials to help them better understand the world of cryptocurrencies before committing funds.
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