Coinbase.com Sign Up – Bitcoin Account Exchange Review
Coinbase is a bitcoin exchange company with it’s headquarters at San Francisco, California. Coinbase.com deals with bitcoin exchange in 32 countries, and bitcoin transactions and storage in 190 countries across the globe.
HISTORY OF COINBASE.
Coinbase was started by Brian Armstrong and Fred Ehrsam in June 2012. It entered in the summer of 2012 with a Combinator startup incubator program. Coinbase.com started the services to buy and sell bitcoin via bank transfers by October 2012.
The company received a US$5 million Series in May 2013. An investment led by Fred Wilson from the venture capital firm Union Square Ventures.
Also in December 2013, the company received a US$25 million investment, from the venture capital firms Andreessen Horowitz, Union Square Ventures and Ribbit Capital.
The company expanded to one million users, in 2014. Acquired the blockchain explorer service Block and the web bookmarking company Kippt. It also secured insurance covering the value of bitcoin stored on their servers, and the vault system was launched inorder to have secure bitcoin storage. Throughout that year, the company also had partnerships with Overstock, Dell, Expedia, Dish Network, Time Inc., and Wikipedia to boost the acceptance of bitcoin payments. The company added bitcoin payment processing capabilities as well, to the traditional payment companies Stripe, Braintree, and PayPal.
In January 2015, a US$75 million investment was received by the company led by Draper Fisher Jurvetson, the New York Stock Exchange, USA, and several banks, making it the first time any traditional financial institution have taken direct stakes in a bitcoin enterprise.
A U.S.-based bitcoin exchange for professional traders called Coinbase Exchange was started by the company later in January
Coinbase started providing services in Canada in 2015, but it stopped offering those services in August after an announcement in July 2016 to that effect. This was after the wind up of their Canadian online payments service provider Vogogo.
A UK-based company Richtopia rated Coinbase 2nd in the list of 100 Most Influential Blockchain Organisations in March 2016.
In May 2016, the company’s name was changed from the Coinbase Exchange, to the Global Digital Asset Exchange (GDAX), providing Ether, the value token of Ethereum, to be used for trade on its professional trading exchange service.
In July 2016, their support was extended to their “Coinbase” retail exchange by adding Ether as the only second digital currency offered to retail customers.
There are basically two core products of Coinbase and they are: a Global Digital Asset Exchange (GDAX)which is used for trading different digital assets on its professional asset trading platform, and a user-facing retail exchange of bitcoin and Ether for fiat currency. This also provides an API for developers and merchants to build applications and receive payments in both digital currencies. As of the year 2014, the wallet was obtainable in 190 countries across the globe. However, the company offered buy/sell trading functionality in 25 Countries.
The transaction can be funded via a bank transfer or wire, and trades on the exchange have a maker/taker price model which enables traders to pay either a 0.25% fee (taker) or nothing (maker) in order to execute trades.
COINBASE VERIFICATION METHODS.
Inorder to send and receive Bitcoins through any coinbase account, that account must have a wallet. The requirements to open such an account includes full name, and verified email address then you go on to accept Coinbase’s user agreement. You also have to provide a valid bank account to enable bank transfers to coinbase. This is necessary to allow the purchase of bitcoins with coinbase.
LIMITS IN THE BUYING AND SELLING OF BITCOINS WITH COINBASE.COM
As soon as you have set up your Coinbase.com bitcoin account, you can only buy a small amount of Bitcoins until your limit is raised. For instance, US residents can buy up to $1000 worth of Bitcoins if they have their credit card on file in their Coinbase account as backup.
However to increase your limits on the purchase of Bitcoins you have to provide the following:
1) Identity verification
2) Credit card verification
3) Debit card verification
For fully verified US residents, the highest limit which is presently $50K worth of Bit coin a day can be attained. Another factor that determines Limits include the method of payment used to purchase the Bitcoins . For instance, ACH transfer has a higher limit when compared to buying Bitcoins with a credit card on Coinbase.
THE ACCEPTED PAYMENT METHODS FOR COINBASE.COM
Wire transfer is the primary payment method for coinbase. Your country determines if you can link your bank account directly to Coinbase or transfer money to a specific Coinbase bank account in order to fund your account.
Lately Coinbase allows people to buy Bitcoins through credit and debit card. This method however costs an extra % for processing. Nevertheless it is faster when compared to wire transfer. If you want to sell your Bitcoins on Coinbase you can also use Paypal as the receiving source of funds. But the use of Paypal is limited only to sellers and you cannot buy Bitcoins with Paypal on Coinbase.
COINBASE.COM TRANSACTIONS AND FEES.
Coinbase transaction times greatly depends on the payment method employed. A wire transfer for instance can take up to 5 days to be approved while buying with a credit card is instant. Once your account is funded you will receive the Bitcoins after placing your order (tutorial to follow). The fees that are charged for the transaction all depends on the payment method that was employed.
Most of the transactions hold a 1% transaction fee including as well, any fees related to the payment method you used.
There is a very extensive FAQ page and also a support forum for coinbase. A support ticket, would get a response within 48-72 hours. But most times the support team doesn’t dig deep into your issue on their first response, which is the reason for the “canned responses” that people normally get and which doesn’t address the problem properly. This has led a lot of people to believe that Coinbase is not really very support oriented and that often times issues aren’t explained to the customer’s satisfaction.
There is a lot of controversy as regards to Coinbase inside the Bitcoin community. These controversies include;
1) That Coinbase monitors how users spend their Bitcoins – Coinbase has the ability to monitor how Bitcoins are spent and not just that, they can also close or freeze your account if they believe you are dealing illegally and you are involved with some suspicious services such as, gambling, selling stuff on the darknet etc.
2) Isn’t consistent in Affiliate reward – Coinbase offers a referral program which is most time abused. It doesn’t always pay its partners according to what is stated and agreed on.
3) Taking a stand in Bitcoin debates – Coinbase has voiced it’s opinion on many “internal debates” inside the Bitcoin community. This is controversial because it is normally expected of a service to remain neutral in these kind of debates and follow the natural market movements and trends.
GUIDE ON HOW TO USE THE COINBASE WALLET.
The ways to open your Coinbase wallet account is quite easy. Firstly, go to Coinbase.com and click on “sign up”. Then go on and fill out the required details. It is very important that you verify your email address. Sometimes you may be prompted to add a 2FA protection to your account.
2FA requires an additional pin code sent to your mobile phone, every time you access your account. If you can’t use your mobile phone you can make use of the authy app to receive the pin.
When you’ve accessed your account, the following will be shown on the dashboard:
1) Coinbase dashboard. This enables you to
A) Buy and sell Bitcoins through various payment methods.
B) Transfer Bitcoins or receive Bitcoins from others
C) Know the balance of your various accounts (Bitcoin wallet, USD wallet and Vault).
D) Invite friends and also earn money for referring them.
You can be aware of your buying limits and it is quite easy. Just go to “buy/sell Bitcoins” then select “limits” on the top tab.
KNOWING YOUR BITCOIN ADDRESS ON COINBASE.
If you want to receive money from someone on Coinbase, that person can use your Coinbase user name or even your email. But if someone who is not on Coinbase wants to send you Bitcoins he will need to be aware of your public Noticing address.
To locate your public Bitcoin address go to “My wallet” on the left sidebar and then click on “Wallet address” on the top right.
ADDED SECURITY TO YOUR ACCOUNT THROUGH COINBASE VAULT.
Coinbase launched the Vault feature of recent. This vault feature enables you to “share an account” with two or more users. What this means is that each transaction of the account will have to be approved by all the users. Transactions have a 48 hour delay as well and this is for added protection to enable you know about an unauthorized transaction in time.
However, making use of the valut account does not mean you personally control your Bitcoin wallet. It is hosted on Coinbase and can still be monitored,closed or frozen as previously mentiomed. The vault feature is just another way of securing your account, peradventure someone someone hacks your password.
For total control of your wallet you can make use of a multisig vault. What a multisig vault implys is that your wallet will have 3 keys-one for you, one for Coinbase and one shared key. To conduct an action on the wallet successfully, you’ll need at least two out of the three keys. So if perchance Coinbase is down you can still move funds from your wallet using the shared and personal key.
The vault options can be found on the left sidebar directly under “My wallet”.
STORING USD WITH COINBASE’S USD WALLET.
Coinabse enables you to store USD on your account. So if you want to buy Bitcoins later on you will not have to wait for a bank transfer. The USD wallet can be found on the left sidebar below the BTC vault.
GETTING YOUR PRIVATE KEYS FROM COINBASE’S WALLET.
Coinbase is a hosted wallet which means that you don’t have access to your private keys. This doesn’t go down well with a lot of people because it is considered a risk as funds are basically in the hands of Coinbase. Nevertheless there are two ways to overcome this issue:
1. Coinbase should only be used to purchase Bitcoins and not to store funds.
2. The Coinbase’s multisig vault enables you to still have control over your coins.
A lot of people ask if Coinbase is a good broker/exchange. Well just like most ventures, it has it’s pros and cons. The primary benefit is the fact that it is simple and easy to use. Hence it can be used by anyone. But a major turnoff is the fact that you are not in complete control over your Bitcoins, your transactions are being monitored and your account can be freezed once there are suspicious transactions.
Nevertheless, services provided by Coinbase as regards bitcoin can be trusted, but when you buy your Bitcoins, you have to transfer them to a wallet that you can completely control. Such as GreenAddress, MyCelium or any other.
Coinbase.com Sign Up – Bitcoin Account Exchange Review