What is Coinbase?
Coinbase is a platform for the buying, selling, and storing of cryptocurrencies such as Bitcoin, Ethereum, Litecoin, etc. Founded by Brian Armstrong and Fred Ehrsam in 2012, it is the biggest Bitcoin exchange and broker in the world with investments of over $20 billion. The platform provides a safe and secure way to invest and transact in cryptocurrencies. Currently, you can buy and sell over 30 cryptocurrencies. Transactions differ based on the type of coins being traded, processing time, whether it can be bought with fiat currency (USD, EUR, GBP), and transaction fees.
Coinbase remains one of the most reliable, stable, and used platforms out there for those trying to buy cryptocurrencies with fiat currency. Its simple user interface makes it perfect for newbies looking to start trading cryptocurrencies. You simply have to open the website and log in (or sign up for newbies). You are then shown a dashboard of your portfolio. Above your portfolio is a “Buy Crypto” button. This button brings up the option of buying, selling, or even converting your crypto. Coinbase’s user interface is that simple.
In addition to being able to trade cryptocurrencies on Coinbase, you also have built-in wallets to hold your cryptocurrencies. For all supported cryptocurrencies, Coinbase has an optimized wallet. This means you don’t need a third-party wallet to store your cryptocurrency.
Security and Insurance
Coming to the question of how secure Coinbase is. While it is common knowledge that the crypto network is extremely difficult to hack, there are still questions about Coinbase’s safety. Coinbase is extremely secure. Despite being very popular and holding a lot of funds, Coinbase has never been hacked. Besides, it stores the vast majority of digital assets in safe offline storage and its insurance policy covers the cryptocurrency stored on its servers. Coinbase ensures maximum safety for its users. It even goes further to protect its users from scams that can happen off the platform by freezing its users’ accounts when it perceives any suspicious activity. Coinbase aces it when it comes to safety, but isn’t as great when it comes to privacy. To maintain this level of safety, Coinbase users have to give up a degree of privacy.
Contrary to most traditional trading platforms, Coinbase allows transactions to be made in fiat currency, ensuring ease of transaction. Coinbase has a lot of upsides, which is probably why it has a large customer base.
What's unique about Coinbase?Coinbase were the first to introduce the industry's most user friendly and secure wallet and exchange services. They have always excelled at making this often difficult to use and intimidating industry much more accessible to the mainstream.
How safe is Coinbase?
While Coinbase doesn't offer insured wallets, they do have one of the best reputations in the industry. They're yet to be successfully hacked and they offer institutional grade custody for very reputable clients.
Also, check out our Coinbase Review: What You Need to Know Before Using it