What is Coinbase?
Coinbase is perhaps the most known cryptocurrency exchange in the world. This platform is currently offering some of the most advanced trading solutions for crypto users. Individuals can buy, sell and hold digital assets using Coinbase; and everything in just a few steps. This is why we want to tell you what Coinbase is and how it works.
What is Coinbase?
As we mentioned before, Coinbase is one of the largest trading platforms for cryptocurrencies in the world. The platform was created back in 2012 and it has been offering services to users since then.
One of the main advantages of this platform is the interface it has. When we ask the question “What is Coinbase?” we always need to have in mind that this platform is very easy to use. That means that newcomers will be able to enjoy this platform from day one.
While other crypto exchanges have complicated menus with several sub-menus, this platform keeps it simple. Once you have access to this platform, you will be able to purchase a wide range of virtual currencies.
If you are a newcomer, this is among the best platforms to use in the world. At the same time, if you are an advanced user, you will get some of the best crypto-solutions currently available. For example, you will get access to the trading platform called Coinbase Pro.
It is also worth taking into consideration that this is one of the most regulated platforms in the world.
Evolution Over Time
While Coinbase started offering just a small number of cryptocurrencies, it now allows you to trade dozens of pairs. The cryptocurrencies that were accepted in the beginning were Bitcoin (BTC), Ethereum (ETH) and Litecoin (LTC). These were the only virtual currencies available until the end of 2017. Nowadays, there are many other digital assets available, including Loom Network (LOOM) or Decentraland (MANA), just to mention a few of them.
Furthermore, with the expansion of the crypto market, Coinbase decided to offer new solutions to users. For example, nowadays, it is possible to stake coins using a centralized platform such as Coinbase. If you hold Tezos (XTZ), you can stake them using Coinbase and participate from the rewards offered by the Tezos blockchain. This is only available for Proof-of-Stake (PoS) coins.
At the same time, Coinbase has been offering futures trading for more advanced users. Nonetheless, this feature is going to be dropped in the near future due to regulatory issues in the United States.
Services
- Spot Trading for every user
- Advanced Trading Using Coinbase Pro
- Futures Trading (Dropped in 2020)
- Staking Possibilities for some cryptocurrencies
- A wide range of trading pairs (even though, it has less than some other exchanges)
- Large liquidity for Bitcoin, Litecoin and Ethereum, among others
- Highly regulated platform compared to other exchanges
- Very simple user interface
- Wallet for users that want to keep custody of their coins
Some of the negative aspects of this platform include higher fees for users that do not use Coinbase Pro, or a small number of trading pairs compared to other crypto exchanges such as Binance or Poloniex.