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Cryptocurrency Exchange Review: Coinbase

June 5, 2018
Cryptocurrency Review: Is Coinbase the right exchange for you?

REVIEW of Coinbase: There’s no denying that cryptocurrency is fast becoming a popular investment option, but how do you actually get involved? Finding a cryptocurrency exchange that’s safe and reputable where you can buy, sell, and trade can be quite challenging. If you’ve been thinking about checking out Coinbase, we’ve taken the time to review it for your benefit. You may find it’s the very platform you require to get your new investment portfolio off the ground.

What is Coinbase?

Coinbase is both a wallet for your cryptocurrency and a platform, in existence since 2012. On this exchange, you can buy, sell, trade and store cryptocurrency of your choosing. The most popular coins, however, are Bitcoin, Litecoin, and Ethereum. It’s also based in San Francisco, California, boasts a user base of over 20 million people, and has traded cryptocurrency to the tune of over $150 billion.

How Coinbase Works

Coinbase works in three different ways. If you mine Bitcoin and need to hold it somewhere, you can use this platform. You can send your Bitcoin to your account, sell it, then what you sold it for is then converted into US dollars, or your local currency, for you to spend. You can cash it out, buy more cryptocurrency, or transfer it to your bank account.

However, Coinbase is also a popular option for those who know they want to invest but don’t want to get too involved in the intricacies of blockchain networks and other techno terms. You have a Coinbase account which is attached to your bank account – thus giving up your anonymity, and you can then buy, sell, and trade coins as you please.

You can also use Coinbase as a means in which to store your cryptocurrency. As it’s an intermediary, you have to be able to trust that Coinbase can keep your investment safe and secure.

Is Coinbase Safe?

Any investment comes with a bit of risk attached to it, but the difference with cryptocurrency is both the investment and where you keep it can both be a cause for concern. Those who have been following cryptocurrency news for some time now will be aware of the many breaches, hacks, and losses that have occurred since 2009. However, those who are considering using Coinbase can rest assured that it’s supposed to be one of the safest platforms available.

As it’s based in the United States, there are several laws which it must comply with – including both State and Federal law. If you were to use an exchange based in another country, the regulations might not be as strict. Therefore, the platform may not be as safe.

Coinbase prides itself on being an innovative and open financial system involved in continuous discussions with regulators. As a result, and because of the number of high-profile backers invested in it, it continues to be one of the safest platforms around.

Is Coinbase Secure?

When you store your physical cash somewhere, you like to know that it’s safe. You may hide it away, save it in the hollowed out center of a book or even put it in a safe with a combination. You put these steps in place to secure your funds, so it’s only fair that you would expect a reputable exchange to do the same for your coins.

Coinbase is considered to be one of, if not the most, secure exchanges in the United States and has been nothing but transparent about how it stores your cryptocurrency. It separates customer, operational, and company funds, and any funds it holds on behalf of a customer is stored in a custodial bank account.

As a result of this setup, if Coinbase found itself insolvent, creditors and Coinbase operators would not have legal rights to the funds of its customers. When it stores your funds, it also ensures they are safe from hackers. While this is never 100 percent guaranteed, they operate a secure system for your peace of mind. Around 98 percent of all customer funds are not stored online. Instead, they are stored offline in paper and hardware wallets in secure deposit boxes and vaults globally.

The two percent of cryptocurrency that is stored online is insured. Therefore, if Coinbase were hacked, all customers would be reimbursed for their losses.

Is Coinbase Legit?

Not only is it one of the largest cryptocurrency exchanges in the United States, if not the largest, but they put their investors and platform users first. They run a tight ship when it comes to terms of service, privacy, and regulations, and provide a seamless service no matter what you’re doing. You can buy, sell, trade, and withdraw your funds knowing that you’re using one of the most legitimate, secure, and safe platforms in the United States.

If you’ve decided that the time has come to dabble in a little cryptocurrency investment, you should have no qualms about using Coinbase to do so. It’s US-based, trusted and backed by millions of people, and even has big-name players supporting it as well. There’s every reason to consider making an account and starting your portfolio today.