Finding a trustworthy trading floor is crucial when trading on the financial market, as it affects 50% of an investor’s chances of success. Coinbase is regarded as a trustworthy, secure, and competitive fee cryptocurrency exchange among many others. Please read the following article to get more information about Coinbase, transaction fees, and how to create an account on the exchange.
What is Coinbase?
Newbies joining the cryptocurrency market frequently wonder what Coinbase is and where it is based? In fact, this is considered one of the largest virtual currency (cryptocurrency) trading platforms in the world today. Since it offers many appealing and competitive features along with inexpensive transaction fees, Coinbase is far more popular among users than other exchanges.
However, many people still do not understand what Coinbase is or what its features are at this time.
Actually, Coinbase is a US-based exchange started in 2012 by Fred Ehrsam and Brian Armstrong. Despite its short period of founding, Coinbase has gained the trust of users. It is more commonly referred to as a digital wallet around the world.
Users can store and conduct all transactions involving popular virtual currencies (also known as digital currencies) like Bitcoin, Ethereum, Litecoin,… through Coinbase. It should be noted, however, that in Vietnam, this exchange does not support customers using trading functions.
After ten years of planning and development, Coinbase has expanded two additional representative offices in Tokyo and New York, enabling it to process transactions for over 12 million users across 35 nations and territories.
Investors can use bank cards to purchase and pay for cryptocurrency in 35 countries that are on Coinbase’s service list.
>>> Difference between Gemini and Coinbase. Should investors select Gemini or Coinbase?
Coinbase offerings
The Coinbase exchange provides a wide range of services, several specific offerings on the platform will be mentioned as follows:
Coinbase Pro
Coinbase Pro is an exchange dedicated to professional traders. This product gives users access to multiple order placement options, live price feeds, and continuously updated price charts.
Prominent features of Coinbase Pro
Multiple trading options: Coinbase Pro gives users access to plenty of trading options.
- Advanced Charts: Users may customize progressed chart views with Coinbase Pro. The standard view shows a candlestick chart for a specific timeframe. Furthermore, it is possible to add essential indicators into the chart, such as 26- and 12-day exponential moving averages (EMA).
- API keys: By providing access to their API keys, Coinbase Pro enables third-party applications to be integrated with your Coinbase account.
Coinbase Custody
Coinbase introduced Coinbase Custody, a cryptocurrency custody service, in November 2017 to cater to institutional investors, including pension funds, asset managers, hedge funds,… Coinbase Custody has grown to $122 billion since its launch until 2021.
Custody provides institutional investors with financial control and storage solutions for trading cryptocurrencies. The majority of widely used cryptocurrencies are supported by Custody. This service is aimed at large investors with a minimum balance of 500 thousand USD, with deployment fees up to 10 thousand USD.
Coinbase Wallet
Through the Coinbase Wallet mobile app, users can purchase, store, and transfer over 500 cryptocurrencies, NFTs,… Additionally, you can lend cryptocurrency assets with this app and get interest.
Coinbase Wallet aims to offer consumers more access to decentralized apps developed on various ecosystems, like Ethereum and Bitcoin.
Coinbase Prime
With the release of Coinbase Prime in September 2021, institutional investors are now able to purchase, store, and trade cryptocurrency on a large scale. In the last May, the platform’s beta version was launched with a number of advanced features.
Additionally, Coinbase Prime also has a smart order router. This proprietary technology routes trades to Coinbase Exchange and a network of partner exchanges in order to find the best prices for investors.
Coinbase Commerce
Companies can take payments in cryptocurrency by using the Coinbase Commerce platform.
Customers using the Commerce solution can make payments with USD Coin, Ethereum, Litecoin, DAI, Bitcoin, and Bitcoin Cash. Companies can select which cryptocurrencies to accept.
Companies that use popular eCommerce platforms for their storefront operations can incorporate Coinbase Commerce into their checkout procedure. Coinbase offers integration with 12 eCommerce services, including Shopify and Magento.
Once they receive cryptocurrency, merchants can withdraw it to their Coinbase account. The user then has the option to convert the cryptocurrency into USDC (a stablecoin with a value equal to one USD) or withdraw fiat money to their associated bank account.
Stablecoin
In 2018, USD Coin (USDC) was introduced by Coinbase and payments infrastructure company Circle. Currently, USDC is one of the most popular stablecoins in the cryptocurrency market.
As of August 3, 2023, at 3:00 p.m., the total capitalization of stablecoins was over 26 billion USD (source: Coingecko).
This stablecoin was depeg in March 2023 as a result of over $3 billion being trapped in Silicon Valley Bank. Nonetheless, USDC has steadily returned to its initial peg and has operated stably until now.
Coinbase NFT
Coinbase NFT is an NFT trading platform released by the Coinbase exchange. This site facilitates the trading of numerous well-known collections, including Bored Yatch Ape, Crypto Punks, Mutant Ape Yatch Club, …
With over 700 USD in trading volume, Coinbase NFT has a relatively modest trading volume when compared to major NFT exchanges like Opensea and Blur.
Coinbase NFT trading volume at 3:00 p.m. August 3, 2023 – Source: Dune Analytics
Layer 2 solution
Coinbase launched its own Layer 2 solution on February 23, 2023. Based on Optimism’s OP Stack technology, Base is an Ethereum scaling solution with features that are low-cost, safe, and developer-friendly. The goal of the project is to become one of the best places for developers to build on-chain.
After approximately 6 months of operation, the TVL of this Layer 2 platform is still quite modest, at around 15 million USD.
>>> Instructions for using Coinbase wallet
Advantages and disadvantages of Coinbase Exchange
This exchange is among the top two electronic services globally, along with Blockchain. While there are still a few drawbacks, overall, it has a lot of outstanding advantages that make many people trust and choose.
The advantages and disadvantages can be pointed out as follows:
Benefits of Coinbase exchange
- It has high liquidity as one of the most well-known and oldest cryptocurrency exchanges in the world.
- Simple to set up and operate, even for newcomers.
- Can be purchased immediately.
- Place buy orders and trade in real time.
- Secure and reliable.
- Both individuals and businesses can use Coinbase Commerce for free.
Drawbacks of Coinbase
- Payment methods are limited.
- Users’ accounts would easily be stalked as their information is stored in Coinbase’s information system
- Coinbase’s transaction confirmation time is longer than Blockchain’s.
- Few cryptocurrencies are supported.
- Customer service is not really good.
- Users in the United States cannot pay by credit card.
Transaction fees on Coinbase
Trading fees on Coinbase Exchange are calculated using a maker-taker fee model. The exchange charges trading fees that are determined by the order size. To better understand Coinbase’s transaction fees, consult the table below
>>> Instructions for opening a Coinbase Account
In short
One of the biggest cryptocurrency exchanges in the US, Coinbase is among the safest sites to trade or store cryptocurrencies, which offers a wide range of products.
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