Coinbase Overview
Coinbase, operated by Coinbase Global, Inc., is a leading American publicly traded company that specializes in providing a comprehensive cryptocurrency exchange platform. Founded in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase has evolved into the largest cryptocurrency exchange in the United States in terms of trading volume.
What Coinbase Does
Coinbase enables users to buy, sell, exchange, and store various cryptocurrencies. The platform is designed to cater to both retail and institutional investors, offering a range of products and services tailored to different levels of trading experience.
Key Features and Functionality
Trading Platforms
- Coinbase: The primary platform offers a user-friendly interface for beginners to purchase cryptocurrencies using U.S. dollars. It allows basic transactions and is integrated with a digital wallet and support for PayPal withdrawals.
- Coinbase Advanced: This advanced trading platform, which replaced Coinbase Pro, provides enhanced tools such as interactive charts powered by TradingView, advanced order types (market, limit, stop limit), and access to features like staking and borrowing. It does not require a subscription fee and maintains the same low volume-based fees as Coinbase Pro.
Products for Retail Traders
- Coinbase Wallet: An app that allows customers to access decentralized crypto apps (dapps) using a dapp browser.
- Coinbase Card: A debit Visa card that enables users to spend their cryptocurrencies.
- Coinbase Earn: A learning platform that rewards users with small amounts of altcoins for watching videos and taking quizzes to learn about different cryptocurrencies.
Products for Institutional Traders
- Coinbase Prime: A trading platform designed for institutional customers, offering professional trade execution.
- Coinbase Custody: A custody solution for institutional investors to securely store their digital assets.
Additional Features
- USD Coin (USDC): A digital stablecoin pegged to the U.S. dollar, allowing for quick and stable transactions.
- API for Developers: An application programming interface (API) that allows developers and merchants to build applications and accept payments in digital currencies.
- Staking: Offers rewards on a handful of coins, with rates up to about 12% APY.
Fees and Trading Pairs
- Coinbase operates on a maker-taker fee model, with fees ranging from 0.00% to 0.40% for maker fees and 0.05% to 0.60% for taker fees, depending on the 30-day trailing trading volume. Stable pairs have fixed maker fees of 0.00% and taker fees of 0.001%.
Security and Accessibility
- Coinbase ensures robust security measures, including two-factor authentication (2FA), biometrics for mobile, and address whitelisting.
- The platform is available in over 100 countries, although some functions may be restricted in certain areas.
Educational Resources
- Coinbase provides educational content through its “Earn” program, which rewards users with cryptocurrencies for learning about different crypto assets.
Convenience and User Experience
- Users can easily toggle between the basic and advanced trading platforms.
- The platform supports more than 250 different cryptocurrencies and over 350 crypto-to-crypto trading pairs, making it highly versatile for traders.
In summary, Coinbase is a comprehensive cryptocurrency exchange that offers a range of products and services, catering to both novice and experienced traders. Its advanced features, robust security, and educational resources make it a leading choice in the cryptocurrency market.