In the past few days, we have already had the opportunity to talk about Coinbase and its arrival on Wall Street.
The listing of the platform on the American Stock Exchange certainly represents an epochal event and a turning point for the world of cryptocurrencies, also from the point of view of how public opinion perceives the latter.
But what is Coinbase? How does it work? And what are the opinions of those who have already used it? In this in-depth study, we will answer all these questions and many others.
What is Coinbase
Coinbase is a cryptocurrency exchange: translated, it is a platform where it is possible to buy and sell digital currencies, such as Bitcoin, Ethereum, Ripple, and other minor cryptocurrencies.
At the time of writing, Coinbase claims to have approximately 56 million registered users worldwide, with a market value of $ 85 billion on its debut day on the New York Stock Exchange.
The platform in question was born in 2012 in San Francisco and in the course of these 10 years, it has become a global leader in digital currency transactions. Coinbase was founded by Brian Armstrong and Fred Ehrsam, who already in October of the same year launched the services to buy and sell bitcoins via bank transfers.
In just two years it has reached one million subscribers. During that time, Coinbase acquired the blockchain explorer Blocker and the web bookmarking firm Kippt, as well as launched the safe system for the secure storage of bitcoin.
And that's not all: Coinbase has managed to forge partnerships with various entities, including Dell, Expedia, Dish Network, Time Inc. to accept payments with Bitcoin. It also almost immediately added the ability to process Bitcoin payments with companies like Stripe, PayPal, and Braintree.
In the following years, the rise of Coinbase has never stopped, both in terms of investments by third parties and in the number of users, up to the listing on the American stock exchange. The portal currently allows you to operate on digital assets with fiat currencies in 32 countries.
How Coinbase works
The main function of Coinbase is that of the "Stock Exchange": in this platform, it is possible to buy, sell and use cryptocurrencies. To operate within it you must register: The registration is completely free, and how to perfect it quick and easy.
Once done, you can create an account in the name of a natural person or company. To open the account you must fill in the required fields with your data and choose a password. Once this operation has been completed, the user receives a verification email to the mailbox provided during registration.
By following the instructions indicated in the email in question, a page will open with a box to fill in with your phone number. An SMS will be sent with a code to be entered in the appropriate section for cell phone verification. This is the last step because after that you will be redirected directly into the wallet. And it is precisely the wallet, a sort of wallet, the place where the cryptocurrency is kept.
Once you have completed your registration, you will be able to proceed with the verification of the documents. You must have a mobile phone, identity card, driving license, or passport. To carry out this step, just go to "Complete your account", an entry in the dashboard of the official Coinbase website. Once this is done, in the "Verify your identity" section you can choose from the available alternatives. At that point, it will be very easy to start trading.
Commissions
Coinbase's business is based precisely on transaction fees, which accounted for over 96% of the platform's net revenues during 2020. According to the company itself, bitcoin transactions represent 44% of the commissions.
You can invest in Coinbase shares on eToro, the leading platform in the sector designed for trading and the very powerful but also easy-to-use cryptocurrency exchange. Here on eToro non-leveraged Buy positions have 0% commissions. Therefore, when you buy or sell a cryptocurrency, or when you make a withdrawal or deposit, fees are applied.
If a credit card is used, the commissions rise to 3.99% of the total amount of the transaction. A truly remarkable increase. For example, by purchasing 100 euros in Bitcoin through a bank transfer, the commissions will be 1.49 euros, while it rises to 3.99 euros with payment by credit or debit card. A substantial difference, in short.
With reference instead to the commissions for withdrawals and deposits, they are equal to 0.15 euro cents for the former and free for the latter.
Is Coinbase Safe?
Absolutely yes. Although there are disruptions from time to time, Coinbase proves to be a safe platform. Some sites or forums read that it is a scam, but it is an incorrect statement: it is certainly expensive, but it does not scam anyone.
On the security side, it is possible to access your account from your desktop or mobile via a special app, through a secure authentication technology. Coinbase has also obtained the license to operate in 44 American jurisdictions, while in Italy the CONSOB has not expressed itself in the matter of cryptocurrencies, but it appears to be legal.
The money deposited in the account is kept safe from theft and hacker attacks and the money is insured if it is stolen. As for the Bitcoins purchased, Coinbase wallets are stored with AES-256 encrypted codes, i.e. military-grade encryption. Cryptocurrencies are also protected by a virtual backup.
Verify current account
To withdraw Fiat and exchange important figures, you need to add and verify your bank account: to do this, you just need to deposit to Coinbase, even a small one, via SEPA transfer. Once this simple operation has been performed, it will be necessary to wait a few days for the verification to materialize and become active.
The procedure in question does not have to be done if you choose SEPA credit transfers as the payment method: in fact, their account has already been verified. Once the account is verified, all you need to do is go to the accounts section and select the "withdrawal or withdrawal" item.
Once this is done, simply indicate the account from which to make the withdrawal and the amount, then click on "Continue": at this point, a code will be sent via SMS, as the last confirmation to be made. It must be inserted in the appropriate box, to complete the withdrawal. The latter is not immediate: it will take 4/5 days, as for a classic SEPA transfer.
As we have already had the opportunity to analyze previously, the alternative to buy cryptocurrencies on Coinbase is the use of credit cards, but the transferable amounts are small.
Coinbase o Coinbase Pro?
Many users who are about to register or have already registered on the portal are wondering whether Coinbase or Coinbase Pro is better. The latter is the "premium" version of the basic one: it has several additional features, especially aimed at experienced traders.
The latter will be able to count on charts, more complex instruments, and in general on more trading options. Therefore, Coinbase Pro is designed for professional traders and not for newbies.
Opinions
Beyond the idea that everyone can have on cryptocurrencies (it is a much-debated topic and on which economics enthusiasts are very often polarized), Coinbase is currently one of the undisputed leaders for their trading. Safe and reliable, this platform also gives emerging traders the opportunity to start operating within the market.
The negative opinions on Coinbase refer first of all to assistance, which is very cumbersome from Italy and in general from Europe since it is an American service, and above all to the costs of commissions, certainly high.
That said, it is certainly a recommended platform, as it is among the top in the world when it comes to cryptocurrencies, Bitcoin, and the like. Its main peculiarity is the solidity of the platform, very secure and chosen by millions of customers. With it, buying digital currency is simple and intuitive. The though alternatives are not lacking, either to purchase Bitcoin and crypto who to trade with criptovalute.
No comments:
Post a Comment