Coinbase is one of the most popular cryptocurrency trading platforms where you can buy or sell virtual currencies. This platform provides many services to its users, which include investing in digital currencies, obtaining a personal wallet, trading, and other services. This platform was launched in 2012. Since Bitcoin was launched in 2009, the launch of Coinbase was never late. It holds a license for all US states except Hawaii. Initially, the Coinbase platform only allowed bitcoin trading, but it has quickly introduced other digital currencies such as Ethereum, Litecoin, Bitcoin Cash and XRP and is working to add more currencies as well.
Advantages of Coinbase
- Supports a wide range of digital currencies. Coinbase supports over 25 digital currencies in investing, trading, and betting as well.
- Simple user interface. Although many experts advise beginners to learn the basics of trading cryptocurrencies, Coinbase has a simple interface from which you can learn the basics of investing easily. For example, it is very easy to create a new account, and buy any digital currency in just a few minutes. But if you need more explanation, you can rely on the educational program that the platform offers you.
- High liquidity. Coinbase always rates highly liquid exchanges and this protects investors from price slippage in an already volatile market!
- Provides an app for smartphones. None of the cryptocurrency exchanges offers an app for smartphones or tablets, yet Coinbase does offer its users an app for Android phones as well as iPhones!
- High fees: Despite the great benefits Coinbase offers to its users, its fees are very high compared to its other competitors, however, the platform has solved this problem by introducing Coinbase Pro, which you can trade-in for a lower fee.
- You cannot transfer your cryptocurrencies outside of the Coinbase wallet. Users cannot transfer their cryptocurrencies outside the wallet. When you purchase a digital currency, it is stored in your Coinbase wallet. So, you do not have complete authority over your own coins! This is incompatible with the essence of cryptocurrencies, which should remain outside anybody authority. The user can avoid this problem by transferring coins to his personal wallet, however, he will incur some additional fees.
- A large variety of cryptocurrencies are not offered. Although cryptocurrency options will entice many novice investors, professional investors will not find in this platform the group they are looking for, however, Coinbase is planning to add more digital currencies soon.