In recent times, the scope of digital money use has extended to such an extent that a single standard, basic guidelines, and a regulated system became a must for the cryptocurrency market. Additionally, a high speed of transactions remains an important criterion for investors. Most trading platforms are unable to maintain it due to the complexity of hash checking algorithms and fluctuations in cryptocurrencies’ rates. Amid that, Coinbase has been created. It is an American cryptocurrency service that combines a wide variety of investment products, a modern trading platform, deposit accounts for legal persons, and wallets for individuals.

Coinbase history and review

What is Coinbase? It is the US biggest cryptocurrency exchange that was established in 2012 in San Francisco. Initially, Coinbase was a kind of wallet for digital money, but then it expanded to become one of the leading trading platforms popular with the cryptocurrency market participants. Nowadays, the number of active platform users amounts to 56 million. It makes the top 3 biggest crypto exchanges in terms of the trading volume.

As for Coinbase safety, one should have no concerns about it. The platform is fully licensed and regulated by relevant authorities. Coinbase operates in all American states except Hawaii. In February 2017, changes in the state’s legislation made it unclear whether the use of Coinbase was legal in Hawaii, so the platform’s management decided to suspend its service in this state.

Initially, Coinbase users could only buy and sell bitcoins. Later on, the platform functions and tools have been significantly expanded. More and more cryptocurrencies that meet the decentralization requirements have been introduced to Coinbase. Today, investors can trade not only bitcoins but also Ethereum, MKR, Litecoin, OXT, Bitcoin Cash, ZEC, XRP, and many other digital coins.

IMPORTANT! You can access one of the biggest cryptocurrency exchanges from both a stationary computer and a mobile device. The Coinbase app is available for Android and iOS.

Coinbase advantages and drawbacks

Any complete review should contain a description of both advantages and drawbacks. So here they are.

Advantages

  • A wide choice of altcoins for trading. The question most frequently asked by the platform users is “How to buy bitcoin”. However, the choice is not limited to bitcoins only. Coinbase provides over 25 digital assets for trading. Besides, a great variety of exchange options can help users get the most of investing in bitcoin or any other altcoin.
  • Easy and straightforward interface. Coinbase is deservedly considered one of the most convenient trading platforms for investing in virtual currencies. Apart from basic functions, here you can find answers to the most frequently asked questions of traders such as “How to get bitcoins”, “What to spend bitcoins on”, and other questions.

It is fairly simple to register on Coinbase and use it. Thus, if you are buying bitcoin or any other digital asset for the first time, you can do it in a matter of minutes thanks to a straightforward interface.

  • High liquidity. Coinbase is one of the most liquid of all cryptocurrency exchanges. Thanks to that, its users are less vulnerable to price collapses in the already volatile digital currency market.
  • Safety. Coinbase applies numerous safety measures to protect investors’ money. The platform features two-step authentication and uses a fingerprint biometric login program. Moreover, Coinbase users are eligible for insurance in case of hacking attacks. So, this platform can be a good choice for newbies who are looking to buy BTC as safely as possible.

Drawbacks

  • High commissions. Coinbase charges rather high fees compared to other major cryptocurrency exchanges.
  • Investors have no control over their wallet keys. After a user buys some cryptocurrency on the exchange, the digital assets are stored in a wallet that is controlled solely by Coinbase. Investors cannot control their own assets independently.
  • A poor choice of altcoins. The variety of altcoins offered by the exchange may seem quite abundant to the users who used to trading bitcoins mostly. Meanwhile, professional investors in altcoins may consider this choice quite limited.

IMPORTANT! You can find up-to-date information on innovations and changes on Coinbase in the analytical reviews section of InstaForex website.

To sum up

We hope our Coinbase review will help you understand how this cryptocurrency exchange works. Coinbase is a fairly simple and secure place to buy, sell, and manage cryptocurrencies. Even if you have no investment experience at all, the platform's simple algorithms will enable you to find answers to the two most popular questions for novice traders: "How to buy Bitcoin?" and "Where to buy Bitcoin?" Later on, step by step, you will find you safe way to the world of trading and investing.