What is Coinbase? Instructions for Creating Wallet and Withdrawing on Coinbase

Currently, there are many exchanges around the world such as Coinbase, Binance, Bittrex, … With many applications and utilities developed to serve investors and businesses in the Cryptocurrency market. In the following article, swiftblogging.com will introduce you to what the Coinbase platform is and how to register, create a wallet, deposit and withdraw money on Coinbase.

What is Coinbase?

Coinbase is a global crypto trading platform, a place to buy and sell crypto types, as well as send information about those transactions to the blocking network to verify those transactions. Coinbase is like a Bitcoin, Ethereum and Litecoin wallet, where crypto can be stored. The application helps exchange Bitcoin, Ethereum and Litecoin, as well as crypto other than legal currencies in 32 countries, and Bitcoin transactions in many other countries as well. According to Coinbase’s website, they have served more than 8.2 million customers and made exchanges worth more than 6 billion dollars crypto.

Basically, if you are interested in trading cryptocurrency types but don’t want to sink into technology, products like Coinbase are a way to start approaching a new form of speculation and investment. On Coinbase, you’re anonymous – your name is attached to your Coinbase account and bank account, so the transaction history is relatively easy to track.

Coinbase History

Coinbase was founded by Brian Armstrong and Fred Ehrsam in June 2012. The company is headquartered in San Francisco, California. The co-founder of Blockchain.info, Ben Reeves is part of the original founding group, but he later split up because of different thoughts on how Coinbase works.

  • In October 2012, the company launched services to buy and sell Bitcoin via bank transfer.
  • In May 2013, the company received an investment of $ 5 million from Series A from Fred Wilson, head of Union Square Ventures venture capital firm.
  • In December 2013, the company received about $ 25 million in investment from Andreessen Horowitz, Union Square Ventures (USV) and Ribbit Capital.
  • In 2014, Coinbase reached 1 million users.

During 2014, the company established partnerships with Overstock, Dell, Expedia, Dish Network, Time Inc to grant Bitcoin payment acceptance. They also added the ability to process Bitcoin payments to traditional payment companies like Paypal, Stripe, and Braintree.

In January 2015, the company received a $ 75 million investment from Draper Fisher Jurvetson, New York Stock Exchange, USAA and several other banks.

In late January, the company released an American Bitcoin trading platform for professional traders named Coinbase Exchange.

Coinbase began offering services in Canada in 2015, but on July 2016, Coinbase announced it was down in August because Vogogo’s online payment service provider closed.

  • May 5/2016, Coinbase Exchange changed the company name to Global Digital Asset Exchange (GDAX) and provide the aether, the value token of Ethereum for trading professionals.
  • In June 2016, the company added retail support for the Ether.
  • In January-March 2017, Coinbase received BitLicense and was granted a trading license for Ethereum and Litecoin from the Department of Financial Services in New York (DFS).
  • In December 2017, Coinbase was asked by the US revenue department to report users who have traded at least 000 USD in a year.
  • On 23 February 2018, Coinbase reported to 13,000 influential customers that the company would provide their ID, name, date of birth, address and transaction records from 2013-2015 to the IRS for 21 days.
  • On May 16, 2018, Coinbase Ventures announced its first investment in Compound Laps, a new step to build Ethereum ‘s smart contract as the money market.

Coinbase Products

Global Digital Asset Trading Floor (GDAX) is used to trade digital assets on a professional asset trading platform and retail brokers such as Bitcoin, Bitcoin Cash, Ether, and Litecoin for Fiat currency. This is also the place to provide API for developers and sellers to build applications and accept payments in both digital currencies.

In 2018, the company offers Sell ​​/ Buy functions for 32 countries, while e-wallets are available in 190 countries around the world. On March 26, 2018, Coinbase announced additional intent to support the ERC-20 code.

Complaints About Coinbase

In March 2018, according to a Quartz report, the number of customers complaining every month about Coinbase increased by more than 100% in January of the same year, with more than half of customers complaining about ” money not available as promised “.

Security and Insurance Coinbase

To ensure the security of electronic money assets purchased and stored in Coinbase, the platform will hold 98% of the capital of offline clients. Coinbase assures customers that “sensitive data will be stored on the server will be completely disconnected from the Internet”. The data will then be encrypted, transferred to USB drives and paper copies, and will eventually be distributed throughout safety safes worldwide.

Of the 2% of other client’s funds held online, it is hidden in the case of Coinbase ‘s online storage scope. Also, Coinbase keeps all customer fiat currencies in custodian bank accounts on their behalf. So, if there is a fiat currency in Coinbase, with the USD wallet, it will be paid by the FDIC insurance of $ 250,000 (as a “regular” bank). This will protect customers’ assets, even in the case of bankruptcy of Coinbase.

Which Electronic Currencies Does Coinbase Support?

Coinbase provides support for 5 electronic currencies: Bitcoin, Ethereum, Litecoin, Bitcoin Cash and Ethereum Classic. 

Coinbase currently supports 33 countries, including the United States. You can see the list of supported Coinbase countries

Click Here

Buy and Sell Cryptocurrency

To purchase crypto, Coinbase requires you to link your bank account, or credit or debit card, to your Coinbase account. Using a bank account allows higher transaction limits ($ 100 / transaction, $ 2,500 / week), but it takes more time to verify transactions, so you won’t see money in the Coinbase wallet for two to four days (depending on your bank). And when selling Bitcoin, once the sale is confirmed, it takes two to four days for the sale to show up in your bank account.

With a credit or debit card, you have a lower transaction limit ($ 200 / week), but you can buy crypto types by simply transferring money from that bank account to the website. For these transactions, Bitcoin appears in your Coinbase wallet immediately. You can also sell Bitcoin to your PayPal account, which can get cash immediately because your Bitcoin is exchanged with legal currency.

Despite the complex technology involved and necessary for investment, speculation, and ownership of cryptocurrency, Coinbase has created a machine that makes this process easy and familiar, almost like buying and selling the stock. promissory note. How to buy and sell Bitcoin at Coinbase is quite simple and similar to online banking.

Coinbase calculates transaction fees for both buying and selling crypto on their platform and their market. These prices vary in different countries, but the US base transaction fee is 4%, with different percentages added, depending on the payment method. In general, instant transactions pay a higher fee.

Which Method Does The Exchange Accept?

US customers have the right to use various payment methods to buy or send electronic money.

Include:

  • Bank transfer
  • Debit card
  • Bank Wire

* From February 2018, Coinbase no longer supports credit cards. Note that although existing credit cards can be supported by Coinbase, certain credit card issuers may block electronics-related transactions.

How Much Does It Cost To Use Coinbase?

Although Coinbase does not charge for the use of its wallet service, the transfer of electronic funds to an outside address may be charged. Fees are set by the Blockchain community.

For customers in the US, Coinbase charges a basic fee of 4% for all transactions. Here is the full cost analysis table:

Payment method for sale Effective conversion rate (after exemption)
US bank account 1.49% with a minimum of $ 0.15
USD Coinbase Wallet 1.49%
Debit card 3.99%
USD deposit method Fee
ACH transfer Free
Bank transfer $ 10 ($ 25 away)

How Long Does The Transaction Take?

In general, your money will be transferred to your account as soon as Coinbase receives payment. However, Coinbase warned that the timing of some payment service providers would be different.

Purchases made in USD or your credit card will be made immediately.

When using bank transfer, payments are usually processed within 3 to 5 days. After the banks process your transfer information, the money will be transferred to the Coinbase system and first entered into your account.

Does Coinbase Have A Transfer Limit?

Coinbase implements weekly buying and selling limits on all accounts. The company said it calculates limits based on your account information, including verification and successful purchases made on the account.

If you want to increase your weekly limit, you may need to verify your account by completing some of the following steps:

  • Verify your phone number
  • Provide your personal details
  • Provide photo ID
  • Set up purchase history by buying and selling through the trading platform

Is Coinbase Safe?

Coinbase is not only widely recognized as one of the world’s largest Bitcoin exchanges, but it is also considered one of the safest trading platforms. It is supported by reliable traders and uses the latest technology to secure its foundation.

Coinbase wallet is considered to be very safe, but there is a cost attached – the company controls your electronic money. Larger amounts of Bitcoin, Ethereum, Bitcoin Cash or Litecoin, Ethereum Classic can be stored on Coinbase Vault, strictly protected.

Coinbase collects a lot of information about its customers, including ID photos for those who want to increase their weekly limit. Photo ID is also required if you buy with a credit card.

Coinbase Customer Support

Coinbase has an active support team and a comprehensive online support center with a series of tutorials and answers to frequently asked questions.

However, it is rating of customer support is not high, because of its growing user base, with more than 20 million users on the platform.

Since then, Coinbase has implemented a real-time chat feature and gives users the option to send support requests, email or phone contacts to some customer services in the United States.

Evaluation of Pros And Cons of Coinbase

Advantages

  • One of the most famous electronic money exchanges in the world means high liquidity.
  • I can buy immediately.
  • Easy to use for most beginners.

Defect

  • Limited payment method.
  • Account monitored.
  • Customer service is not appreciated.
  • Support less electronic currencies
  • Credit cards are not accepted for users in the United States.

Guide for Creating Coinbase Wallet

When accessing Coinbase.com to set up an e-wallet, the screen will show where users can enter their name, email address, and password. Select the checkbox and click the Register box.

Once the wallet is created, there will be a few steps necessary for security purposes and linking bank accounts, Paypal, and credit/debit cards so that users can start exchanging money for Bitcoin, Ethereum, Litecoin.

  • Verify by phone
  • Payment account
  • Authentication identity

Verify By Phone

Verify phone numbers are necessary to serve as secondary authentication sources to protect user wallets. They will have to enter the phone number, then receive a text message with a verification code to enter on the site. Enter code and verify completed.

Add Payment Account

At this time, when the phone number has been confirmed, users need to link their bank account, credit card, debit card, or Paypal to transfer money to or into Coinbase e-wallet. If you choose Paypal (to fund your account) and bank account (to withdraw money), this allows users to receive money immediately when switching to the Coinbase wallet they used to purchase hash power at Genesis-Mining. com

In this part of the setup process, users should link bank accounts without ID verification.

Link Paypal Account

In this step or for credit/debit card, users are required to authenticate their ID. It will be easier to do if users install Coinbase on the phone.

If you do it on your computer, go to Settings -> Payment Methods -> Add Payment Methods (Add payment method).

Choose Paypal or credit card, debit and select ID link download. This will allow cameras and users to post IDs. Once the ID has been authenticated, the user will complete linking the account and may begin transferring funds.

Access Account Settings / Add Payment Method

Payment Methods Are Available

Confirm Identity

Users need to authenticate identity by filling out a user account profile template. When going to the account settings section, users will see a link below. Click on the link to bring up the identity verification form. After entering the information, the e-wallet will be active.

Identity Verification Template

Receive Bitcoin Funds

Once the Coinbase wallet is set up, the account will be linked for users to send and receive Bitcoin. To receive Bitcoin, users must provide the Bitcoin wallet address to the sender. To find the address for, select BTC Wallet, then Wallet Address (address wallet). The window will appear as shown below. Text and long numbers will be addresses for users’ wallets. Provide this address or email to Bitcoinsenders.

Send / Request Bitcoin Fees

Users can use Send / Request function for Bitcoin wallet to send BTC or ETH to others via email or their BTC / ETH wallet address as well as send cost requests.

E-wallet Completed

Now the fully functional electronic wallet has been set up and users can buy or sell Bitcoin, Bitcoin Cash, Ethereum, and Litecoin. Users can use this wallet to receive Bitcoin mining money from websites like Genesis-Mining.com

How To Withdraw Money From Coinbase

To do this, users need to verify their bank account by sending a fee. The money transferred will be in the wallet 2-3 days. Technically, users should confirm their bank account and can withdraw money.

Users need to create an account on Bitpanda, Then go to the verification section and complete the required steps. After confirming, go to the wallet address for the currency used (Bitcoin, Litecoin, Ethereum ..). Then return to Coinbase and send digital funds from the Coinbase wallet to the Bitpanda wallet address. Users will be charged for this step. When digital money is displayed on Bitpanda, click Sell.

Select Bank Transfer, users will review the amount you want to sell, then fill in the details – they will need an IBAN number from the bank account (usually on the statement) and make sure the name matches the name on the account bank. Finally, the digital money will be sold, and the cost will be sent directly to the user’s bank account.

Warning

If you sell your Bitcoin, but the purchase is not confirmed by the blockchain network, and the price of the currency changes, the sale will not process. You will have to sell your Bitcoin at a new rate (if you choose to sell). Also due to the reality of the blockchain, for other unspecified reasons, the Coinbase payment system can sometimes be unreliable.

There have been reports of delayed payment times, and losses making the website ineffective. The advice is: if you plan to invest or speculate on cryptocurrency, always be careful!

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