What Is Coinbase?

Featured

What is Coinbase?

Coinbase is a digital currency exchange that provides a platform for traders to buy and sell bitcoin with fiat money. In addition to its primary operation as a broker, Coinbase is also a bitcoin exchange and wallet provider.

The cryptocurrency exchange Coinbase was founded by Brian Armstrong and Fred Ehrsam in 2012 and has its headquarters in San Francisco, California. The platform was first launched as a digital wallet for users to store their bitcoins online, before venturing into the brokerage space where users can buy and sell bitcoins. As of 2017, Coinbase is the largest bitcoin broker in the world and serves users in 33 countries

Coinbase is a Bitcoin company that does 3 key things

  • Consumer – Online wallet for Bitcoin users to make it easy to spend, send, receive Bitcoin on any internet devices. The goal is to remove the complexity of private key management and cold storing for the end users.
  • Merchants – Payment gateway for online and brick-mortar merchants to accept Bitcoin for their goods and services.
  • Developer: Complete suite API for developers to integrate Coinbase payment into every web service.

If you are based in the US and have a bank account in the US, Coinbase is the easiest way to buy Bitcoin.

How does Coinbase work?

To use Coinbase, you must have an account which means you need to register. Click here, to register. Enter your e-mail address and choose a password. After you have confirmed your e-mail address, you will be redirected to the home page of your user, which contains a quick reference guide. This will help you to buy your first Bitcoin and learn to accept Bitcoin payments. On this homepage, you can also quickly see your account activity, the current balance as well as the ability to send and request money.

To add Bitcoins to your Coinbase wallet, you need to connect it to a bank account. You can also connect it to a credit card (suppoeted by Visa only) and you also need to confirm your email as well. The amount of bitcoins you can buy every day depends on your “level”:

  • Level 1: Check your e-mail address and phone number and link your bank account. This gives you the opportunity to buy up to 10 Bitcoins per day and sell up to 50 per day.
  • Level 2: Make a purchase and confirm your identity. Then you can buy and sell up to 50 bitcoins per day.

When buying bitcoins, Coinbase offers two options: regular purchases and instant purchases. Regular purchases will take four to seven business days, while instant buys will allow you to get your bitcoins in seconds. Once Bitcoins have been added to your account, Coinbase will safely store them and allow you to send them as needed, whether you are investing, paying friends or shopping online.

Coinbase also allows online merchants to accept bitcoins, as a whole section of their website is reserved for creating a payment button. Here you can choose your method of payment (buy now, donation or subscription), button style and name, amount and description of the item. Once you’ve completed this information, Coinbase will generate the appropriate code so the button can be added to your website.

Coinbase has a lot of features to keep your Bitcoins safe and have them secured, including AES-256 and SSL encryption along with two-factor authentication.

download
Coinbase.com

Buy / Sell limits of Coinbase

Once your Coinbase account is set up then you can move on to buy a small amount of Bitcoins till you can increase your limit. To increase your limits on buying bitcoins, you must provide the following:

  • Identity check
  • Credit card verification
  • Check the debit card

If you’re a fully verified US resident, you can reach the maximum limit that Bitcoin currently has per day at $ 50,000. The limits can also be sent by the payment method you use to buy bitcoins. For example, the transmission of ACH has higher limits than the purchase of Bitcoins with a credit card in Coinbase.

Which countries does Coinbase support?

Coinbase supports the purchase of Bitcoin and other currencies in 32 countries, including the United States. The sale of cryptocurrencies, however, is only allowed in 30 countries including the US.

Transactions and courses of Coinbase

A transaction is based on payment method. Take for instance a bank transfer can take up to 7 days to get approved but a credit card purchase is always instance. Once you’ve funded your account, you will receive the bitcoins after ordering . Different fees may apply to the transaction but it always come down to payment methods. Most transactions have a transaction fee of 1% plus any fees for the payment method you use.

Advantages of the Coinbase

  • You can buy, send and receive bitcoins quickly and easily.
  • It can always be used by online merchant and also by individuals.
  • Numerous and wonderful security features which will ensure that you never have to worry about theft.
  • Register for free and only 1% fee for all transactions.
  • Supported by several major venture capital firms based on the US dollar.

Coinbase Customer Service

Coinbase has a knowledge base and support via e-mail. Coinbase “Community” can be used to ask questions and get help. For the specific compatibility of the account, users can use their online support chat service and also submit detailed requests for urgent issues such as security vulnerabilities and login issues.

download
Coinbase.com

Summary

Coinbase is by far the fastest and easiest way to buy Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. It is known worldwide as the go to platform for beginners and experts. For new users, Coinbase gives $10 worth of Bitcoin when you deposit your first $100. Visit coinbase.com today to start your cryptocurrency journey.

How To Buy Bitcoin, Ethereum, Litecoin, and Bitcoin Cash With Coinbase

As stated in my last blog post, Coinbase is one of the largest online virtual currency exchanges in operation since 2012. Since its inception, Coinbase has exchanged around $400 million in digital currency and continues to grow and evolve. They offer exchanges in 33 different currencies and can buy and sell digital currencies.

Bitcoin is the main product that Coinbase has to offer its users. Potential customers can purchase Bitcoin from Coinbase through their credit card or checking account, or they can change and send Bitcoin, which they already have in one of the 33 supported currencies, to their account.

Benefits of Buying Bitcoins with Coinbase

With bitcoin mining becoming increasingly competitive, many people are looking for an easy way to get hold of this new digital currency. Buying bitcoins is not as difficult as you think. In fact, Coinbase makes the whole process very easy. One of the main reasons so many people like to use Coinbase is because they are a US-based company. Most of the other Bitcoin exchanges are located in foreign countries, which creates a challenge in transferring funds. Many banks have high fees for international wire transfers and some simply don’t offer them at all. Coinbase also offers very reasonable fees, they charge 1% plus a .15 cent bank fee for Bitcoin purchases using USD. Coinbase does not charge any fees for BTC to BTC transfers. Click here to get registered and started.

download
Coinbase.com

How to Purchase Bitcoin on Coinbase

  • Creating a Coinbase Account

In order to use the Coinbase service you will need to create an account. Creating an account is free and is very simple to do. To get started enter your email address, and select a password to use with your account. It is recommend using a strong password to prevent potential hackers from gaining access to your account. Coinbase will send an email to the address you supplied to confirm it is valid. Click on the verification link inside the message to complete the creation of your account.

  • Enabling Two Factor Authentication

For additional security, configuring two factor authentication for your account is important. When this feature is enabled it requires the use of both a password, and an authentication code from your phone to sign into your account.

This feature works best if you have a Android or Apple smartphone that can run the Google Authenticator application. This is the best application to use for two factor authentication and it is also free. WE LOVE FREE STUFF! If you do not have a smartphone, you can receive authentication codes via text messages. To enable this feature, log into your Coinbase account and click the account configuration link in the general section. Click the “Verify my phone” link at the bottom of the account configuration page. Once the app is downloaded, hit the plus button on your app and scan the QR code that is on the website. Once scanned, it will generate a random number that is needed in order to get into your Coinbase account. When ever this is offered in cryptocurrency, use it. You are now safe and secure.

STEP 1

Screen Shot 2018-03-20 at 1.53.55 PM

STEP 2

Screen Shot 2018-03-20 at 1.54.53 PM

STEP 3

Screen Shot 2018-03-20 at 1.56.00 PM

  • Linking a bank account

Now that you’ve backed up your Coinbase account, you can link a bank account. By linking a bank account with Coinbase, you can transfer fiduciary currency into or out of your account. Coinbase currently supports the use of a bank account for checks, savings or commercial checks. To start the link process, click on “Buy / Sell Bitcoin” in the general area. Then click the link ” Add a New Account”‘. Linking an account requires the bank account number, and routing number for the bank. This information can either be located at the bottom of a check, or by logging into your bank account online.

After you enter your bank details, Coinbase makes two small deposits (less than a dollar each) in your account to verify the information. If the deposits are successful, Coinbase will make a single withdrawal for the total amount of both deposits after a few days. After you have received the deposits on your account, you must re-register with Coinbase and enter the amount of each deposit. This will confirm that you are the holder of the bank account and validate the account number and routing information. After the deposit amounts have been confirmed the bank account will be listed uder payment methods with a status of verified. Coinbase allows users to link more than one bank account if needed by using the same process as before.

STEP 1

Screen Shot 2018-03-20 at 2.11.26 PM

STEP 2

Screen Shot 2018-03-20 at 2.13.17 PM

 

STEP 3

Screen Shot 2018-03-20 at 2.15.10 PM

  • Buy bitcoins

Once you’ve linked your bank account to your Coinbase account, the next step is for you to start buying bitcoin. The daily shopping limit for Level 1 is 10 Bitcoins per day. Bitcoins will be delivered 4 business days after purchase to Level 1. Thirty days after your first purchase of Bitcoin, you can take additional identification verification steps to upgrade your account to Level 2. Level 2 accounts can instantly buy up to 50 bitcoins. These limits are subject to change at anytime and can differ depending on the account. To complete a purchase of Bitcoin, click on the link Buy / Sell Bitcoin in the general area. Enter the number of Bitcoins you want to buy into the purchase quantity field, select the bank account you want to use to finance the transaction, and then click the Buy Bitcoin button. The current market price of BTC can be seen on the right side of the purchase amount table. Coinbase charges a commission of 1% (plus a 0.15 cent bank fee) to complete a transaction. Their fees are very reasonable considering the service they provide.

download
Coinbase.com
  • Confirm the purchase of Bitcoin

Before you make your purchase, you will receive a confirmation of purchase confirming the details of the transaction. New users with Tier 1 accounts can also see the day the coins are transferred to their account. This date is 4 working days from the current date. After reviewing the details of the transaction, click the confirmation button to submit the Bitcoin order. Coinbase will send you an e-mail as soon as the coins are available in your account.

The status of pending purchases can be viewed by clicking Transactions in the General section. On this page, you can also view completed transactions. When you click on a transaction, the details of each transaction are displayed and you also receive the date and time that bitcoins were delivered to your account.

 Ledger Nano S - The secure hardware wallet

Summary

As you can see, it is very easy to set up your Coinbase account to buy bitcoin. It is fast, easy, and very convienient to buy bitcoin. This can be done for Litecoin, Ethereum, and Bitcoin cash on Coinbase. Instead of using Bitcoin, you just purchase whatever cryptocurrency that you want to use. For any other information visit Coinbase.com to get started.