The focus of our attention is the cryptocurrency exchange Coinbase.
Cryptocurrency exchanges are a key component of the modern cryptoindustry and today we will tell about the trading platform, which is one of the most reliable and reputable.
About Us
Coinbase was launched in the summer of 2012, when only a few knew about cryptocurrency, and the price of Bitcoin was only 10 dollars. The co-founder and CEO of the exchange is American businessman Brian Armstrong, who in 2017 entered the top 10 of the most influential businessmen in the world younger than 40 years according to the Fortune edition.
To date, Coinbase deservedly enter the list of leading cryptocurrency exchanges. The number of users exceeds 20 millions of people, and cryptocurrency trading is available to residents of 33 countries. Coinbase’s mission, as stated on their official website, is to create an open financial system for the whole world.
Structure
Coinbase has a broad structure, which in addition to the exchange itself includes various subsidiary companies, including investment and charitable foundations.
There are three main structural divisions of Coinbase. The first is a cryptocurrency trading platform where transactions with cryptocurrencies and fiat money are available.
The second is a crypto wallet that anyone can use without restrictions on citizenship. It is enough to go through a quick registration by entering your email.
The third is a separate exchange for professional traders Coinbase Pro, previously it was called GDAX.
Working conditions
Coinbase is the most conservative and regulated exchange. The company relies on work exclusively in the legal field, therefore it only offers Bitcoin, Ethereum, Litecoin and Bitcoin Cash. According to official information, Ethereum Classic may soon become the fifth cryptocurrency on Coinbase. The fiat currency is supported by the US dollar, the euro and the British pound.
As we have already noted, transactions are available to residents of 33 countries of the world. Unfortunately, Russia, Ukraine and Belarus are not on the list of supported countries, perhaps this will change in the future. Trading operations are available only to verified clients, and the size of the commission platform depends on the level of identification, that is, the number of personal data transferred to the site.
In exchange for such strict trading rules, Coinbase offers deposit insurance, and 98% of users' funds are kept in offline hardware wallets.
Scandals
Coinbase also has a dark side. So many users regularly complain about the extremely slow and incompetent work of the support service. The US Securities and Exchange Commission has already accumulated these complaints on the 134 pages.
Not without a lawsuit. Coinbase is accused of insider trading while listing Bitcoin Cash, when its price jumped in a few hours to record 4300 dollars. And the clients of Cryptsy, a bankrupt bitcoin exchange, have evidence that the 8,3 million dollars stolen from them have been laundered through Coinbase.
There are also many dissatisfied with the very close cooperation of Coinbase and the authorities. So the exchange officially transferred to the US tax service the personal data of 13 of thousands of customers, the amount of transactions of which during the year exceeded 20 of thousands of dollars. And later, Coinbase reminded all users to pay taxes and even launched an online calculator to calculate them.
Future coinbase
The plans of Coinbase clearly show through the desire to become a cryptographic number one. Firstly, the company is actively buying various blockchain services to integrate them into its structure; from the recent acquisitions, we can distinguish the decentralized Paradex exchange.
Secondly, work is underway to enter the Asian market. Singapore has already been added to the list of countries with trade support and a branch has been opened in Japan, which deals with issuing permits for trading in cryptocurrencies.
Thirdly, Coinbase plans to obtain banking and brokerage licenses in the United States, which will allow the exchange not to depend on other financial institutions. In addition, active work is underway to attract large institutional investors to the site.