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Is Coinbase Safe? – Platform Features and Business Legitimacy

Is Coinbase Safe? – Platform Features and Business Legitimacy

Introduction

Coinbase is definitely the go-to exchange for many new and seasoned cryptocurrency investors. It has a vast array of cryptocurrencies with a standout feature that users can earn free cryptocurrencies for merely learning about cryptocurrency investing.

Like other existing exchanges, Coinbase is an online crypto exchange that develops a platform allowing merchants, consumers, and traders to transact with digital currency. More so, it enables users to manage their own cryptocurrency wallets and start buying or selling cryptocurrency by connecting easily with their bank accounts.

The company provides a series of merchant payment processing systems and tools that support highly trafficked websites on the internet, along with its function as a crypto exchange.

By far, Coinbase is one of the largest crypto exchanges in the world, with more than 43 million verified users in over 100 countries. Also, it has more than $90 billion in Coinbase user accounts.

Now let’s discuss Coinbase further in this article so that at the end of this, we can answer the question: Is Coinbase Safe?

Coinbase General Information

Coinbase has a user-friendly and highly functional mobile app that lets users buy, sell, and manage their cryptocurrencies wherever they are. In fact, it has a rating of 4.7 out of 5 stars on the Apple App Store and 4.4 out of 5 on the Google Play Store.

The company launched in 2012 and has no physical headquarters since February as they moved to a remote-first environment. According to Coinbase,

“If you had asked us a year ago, the answer would have been San Francisco. But almost nine months into becoming a remote-first company, and now with 52% of our employees joined us in a post-office world, that answer no longer feels right.”

He further explained that remote-first has been working really well and it has helped them attract top talents to join the team.

Websitehttps://www.coinbase.com/
Mobile AppYes
WalletYes
Company LocationUnited States (New York, Portland, San Francisco, Wilmington, Redwood City), Philippines, Japan, London, Ireland, Singapore, Canada, India
Company LaunchOctober 2012
CEO and Co-FounderBrian Armstrong
Buy/Sell Transactions0.50% charge per buy/sell transaction plus a Coinbase Fee that ranges anywhere from $0.99 to $2.99.
Beginner FriendlyYes

Is Coinbase Safe?

Currently, Coinbase is one of only 4 exchanges to have a license in NY under the pilot BitLicense program. Whereas, it follows strict KYC (Know Your Customer) rules and stays as compliant as possible to regulations. It complies with the USA Patriot Act, and Bank Secrecy Act. Also, It is registered with FinCEN as a Money Services Business.

It’s also worth noting that Coinbase is backed by trusted investors. These investors include Digital Currency Group, Blockchain Capital, Bank of Tokyo, and Alexis Ohanian (Reddit Co-Founder). With over 13.3M active users as of writing, there are few exchanges that are as trusted and reliable as Coinbase.

Funds Safekeeping

It has over 40 licenses to operate in just the U.S. alone and is licensed to legally operate in the more than 30 countries that make its list. On top of that, Coinbase keeps its assets insured. Thus, you can’t lose any of your money by hacking and theft.

Information Security

Another thing that makes Coinbase so safe to use is the fact that it can’t be used anonymously. Due to the KYC rules, users must submit a government-issued piece of ID and, in some cases, address verification in order to use the platforms BUY and SELL features.

Business Legitimacy

The above features mentioned make the platform very legitimate to use, especially for honest users. More so, if anyone is trying to do anything shady or scammy, they won’t be able to get away on this exchange.

What Makes Coinbase Different: Features & Platform

Easy-to-Use Interface

Coinbase is such an easy-to-use interface with its beginner-friendly website and mobile application. Furthermore, it is clean and it does not have a complex design making it very easy to navigate.

Coinbase
coinbase platform screenshot

It Accepts Fiat

Unlike traditional crypto exchanges, Coinbase accepts a variety of fiat in exchange for the four digital currencies that it offers. The currencies it accepts are EUR, GBP, and USD. On top of that, it also offers a good variety of payment methods to help its customers get their fiat money onto the platform to buy crypto. These include bank transfers, debit/credit cards, PayPal, and even SEPA transfers for European citizens.

Trusted Cryptos

You can buy Bitcoin, Ether, Litecoin, and Bitcoin Cash if you want to use Coinbase as an entry point into the crypto market. More so, Coinbase only offers coins that are guaranteed currencies or commodities, and it does not open up to tokens that could potentially be equities or securities.

The Shift Card

If ever you are planning to spend Bitcoin in your Coinbase wallet, you can easily do that with the Shift Card. This is considered as the Coinbase debit card.  It is actually a Visa debit card available to users in selected states in the U.S. Whereas when a user transacts with the card, the equivalent value of Bitcoin will be debited from their online wallet. Unfortunately, the card is not available in any other country outside of the U.S as of writing.

Coinbase For Everyone

While Coinbase is an incredibly simple way to crypto investment for those who are just starting out, the Coinbase Pro version (also called GDAX) offers a far larger and more robust charting and trade experience. Here’s a table of the Coinbase Pro benefits to each category.

INDIVIDUAL BUSINESSES DEVELOPERS
Buy, sell and use crypto on web and mobilePrime brokerage platformCoinbase Cloud APIs
Wallet for secure self-storageAccept crypto as paymentsCoinbase Connect authentication
Coinbase Pro for advanced crypto tradingDirect access to the exchangeBison Trails infrastructure platform

Meanwhile, cryptocurrency conversion services are currently available to customers United States, United Kingdom, Singapore, and Canada. Coinbase also offers its services in the following European countries:

Andorra, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Gibraltar, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Italy, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Slovakia, Slovenia, Spain, Sweden, and Switzerland.

Coinbase: Platform Limitation

Account Limits

While Coinbase allows users to exchange fiat for the cryptocurrency, it limits how much they can spend and how often they can do it.

According to their website, the reason is “for security, regulatory compliance and fraud prevention”. The platform limits are based on several factors that include the payment method used, how old the account is, purchase history, and more. These limits are calculated automatically.

Luckily, there are a few ways to can increase account limits. Some of these steps are already mandatory to use the buy and sell features. Users can add a phone number, provide more personal details, submit a photo ID and create an established purchase history by buying and selling (trading) using the Coinbase platform.

Apart from this, the limits are different for each account that users link to their Coinbase wallet. For example, a user’s purchase limit for his credit card will be different and separate from the purchase limit for his linked bank account.

Cons of Coinbase

While Coinbase is by far one of the safest crypto platforms, it is not yet available to many countries. Also, compared to Binance, it has an expensive transaction fee. Also, for expert traders, Coinbase might not that be useful as it doesn’t have any advanced features on its platform. Lastly, some of the less-known coins aren’t supported.

Conclusion

Now, we can definitely answer the question ‘Is Coinbase Safe?’. The answer is simply yes! This is one of the most popular crypto platforms used to buy Bitcoin, Ethereum, and other coins. The best feature it has is that the company has invested heavily in making its funds insured to minimize its losses. In fact, the company is integrated with the major financial institutions which also protects their investments. Thus, it is definitely recommended for beginners and professional traders the are interested in trading, mining, and monitoring crypto.

Disclaimer: The views and opinions expressed in this article are solely the author’s and do not necessarily reflect the views of CoinQuora. No information in this article should be interpreted as investment advice. CoinQuora encourages all users to do their own research before investing in cryptocurrencies.

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Britney is a market analyst who covers stories about the cryptocurrency world. She holds a Business Administration Degree in Finance and aims to let the readers understand crypto from a beginner perspective.