Coinbase: safe haven or just another blah blah…
Last Updated: 20 April 2018
I don’t think everyone had a chance to become familiar with a Coinbase review that completely evaluates the company's business philosophy and practices. You probably arrived here with a certain degree of uncertainty about reliability and safety of the world’s biggest bitcoin exchange. My intention is to deliver enough information to build a self-evaluation of Coinbase exchange. When you finish reading this review of mine, you should be able to clearly decide whether coinbase deserves to receive your cash in exchange for the world’s most wanted cryptocurrency.
Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam. Its reputation is spread across 32 countries, especially in the US, UK, Brazil, which makes it their largest customer base.
Did you know? Vitaliy Butrerin was approached by Coinbase in 2013. Their conversation was short, because Vitaliy denied the position on the tea party, and a short few years later an Ethereum was born.
What are the advantages?
- The exchange operates in multiple currency zones, including the US, Great Britain and Europe.
- After successfully passing the multiple stages of verification, buying up to 1000 bitcoins per day with your credit card becomes super easy and fun thing to do.
- Ethereum, BitcoinCash, Litecoin could also be easily purchased at Coinbase.
There are two types of wallets:
- The beginner's choice: just as the name suggests, it was made for simple coin storing purposes with strong security in mind.
- The Multisig Vault utilizes the “multi-signature” technology which was made to assist advanced users with flexibility, while providing extra layer of security via multiple signature control. To put this in simple perception: if Coinbase were to decide to go underground, your coin would remain safe and sound. So, is Coinbase considered safe? Well, this should’ve partially answered the question.
- Insured deposits. Safety and piece of mind of insured deposits is what makes Coinbase stand out among its competitors. However, If your account gets compromised, your coin would not be covered by the policy.
- Transfering coin between Coinbase wallets is always fast and free! This great feature from the popular exchange operators makes things float smoothly even when the Bitcoin network was clogged, delaying transfers for hours and sometimes even days.
- A beautiful feature called a Shift Card is available to the United States residents. The Shift benefits allows users to link credit to your Coinbase account for making regular daily purchases with available balance.
- It is one the first exchanges that offers support over the telephone. Many folks are really excited to be able to dial a toll free number and speak to a live operator instead of submitting support tickets via the web. To many beginners it makes things a lot easier to explain a situation over the telephone and immediately receive a solution without having to wait days for a reply to come via the web service.
- I think the lack of friction on-ramping from the existing financial infrastructure is due to strong partnership with the big dogs like NYSE, BBVA and Andreessen Horowitz.
- Because of its mega popularity, many people struggle to sign up every time the prices rise. These type of events make significant delays for screening & approving brand new accounts. Many major crypto exchanges are experiencing similar problems.
- The biggest disadvantage of operating an exchange with safety features on, the screening process is not as straightforward as with many other exchanges. An extra layer of security screening is performed each time someone signs up for a new account. As result, a pandora box has made its way up to the surface and brought along all kinds of negative implications. Lots of folks were found to be complaining on social channels including Reddit about the company’s inability to maintain proper screening process. When people get rejected for one reason or another, a wave of anger is sent in the direction of the popular exchange, ultimately creating many negative reviews. Some speculate that as result of company’s growth, its corporate clients tend to receive VIP treatment over regular users.
Coinbase has been experiencing substantial growth in 2017. Monthly traffic have been on the rise especially the last 3 months of the year. It has felt a 70% increase in overall traffic. The current monthly traffic figure stands at 65 million. Much of it is due to substantial market growth and the demand for the cryptocurrency. Almost half of Coinbase’s visitors are from the United States, another 9% from brazil and an additional 4% from United Kingdom.
In addition, 75,000 merchants utilize the popular platform as payment processor, and 15,000 apps has been developed using Coinbase’s API.
I’ve attached an interview of CEO Brian Armstrong:
In conclusion, I would like to stress the importance of making every effort not to keep your coin in hot wallets even if the deposits are insured. Coinbase appears to be one of the safer exchange for buying and selling cryptocurrency, but always keep in mind the downside of any web based wallets.Twitter status