Coinbase is one of the most trusted companies when it comes to using digital currencies like bitcoins and ethereum. The company was founded in June 2012, 3 years after Satoshi Nakamoto created Bitcoin as the first virtual currency that utilizes peer to peer technology. It is a digital currency wallet provider that allows individuals and merchants to transact virtual currencies like Litecoin, ethereum and Bitcoin.
Currently based in San Francisco, California, it is renowned as the first unicorn in the digital currency market. This means that the company attained a valuation of $ 1 billion as a start-up. The founders have been able to raise over $177 million in funding from world leading investors like Andreessen Horowitz, USV, DFJ Growth, Y Combinator, Funders Club and IDG Ventures among others.
This has enabled Coinbase to develop better platforms (web and mobile) allowing the use of digital currencies like Bitcoin to be much easier.
Buying and Selling Digital Currencies
Coinbase has established itself as a trusted platform when it comes to cryptocurrencies. To ensure that individuals and merchants have access to different digital currencies, Coinbase has provided an easy to use web and mobile platform that allows one to purchase and sell digital currencies.
Individuals and merchants must have a digital wallet if they want to transact cryptocurrencies. This acts as a bank account. You will be provided with public and private keys after creating a wallet. The public key allows you to send and receive virtual currencies plus it allows you to make purchases from merchants who accept digital currencies. On the other hand, the private key is used to protect your digital wallet.
Coinbase allows you to create two types of wallets – hosted and software. The hosted wallet is available as a web platform. You can access it from any location around the world. Problem is Coinbase is currently providing support to 32 countries in the world when it comes to buying and selling of digital currencies. To sign up for a hosted wallet, click here. The software wallet is available as a mobile app. This allows you to make transactions, buy and sell virtual currencies from your smart device. To download Coinbase software wallet, you can check out their website.
Coinbase has created a Cryptocurrency trading platform, Gdax. The platform allows Cryptocurrency professionals and institutions to trade with a wide variety of virtual currencies for example Ethereum, Bitcoin and Litecoin among others.
To get started, you have to create an account. All you have to do is provide the following details – full name, email and password. Once you have verified your account, you can sign-in to your dashboard and begin trading. The interface is intuitive with real time order books, charting tools, trade history and a simple to order process.
Coinbase offers an industry leading API that allows you to access its web socket feed thus receiving real time market data. The API also allows developers and professionals to create secure trading bots. Developers can integrate Bitcoin, ethereum and Litecoin among other cryptocurrencies into existing and new applications.
The API has several capabilities. They include:
a. Ability to generate Cryptocurrency wallets for different digital currencies
b. Ability to buy/sell and send/receive cryptocurrencies
c. Provide secure storage for cryptocurrencies
d. Retrieve real time plus historical Cryptocurrency price information
e. Request and accept Cryptocurrency payments as a merchant
As a merchant running an eCommerce platform, you can finally accept digital currencies thanks to Coinbase merchant tools. The tools allow you to eliminate charge backs and fraud. Furthermore, you get to be paid quickly as one is able to receive funds in 2 to 3 business days. Merchants can issue refunds to Bitcoin customers when such cases arise. This is possible through a simple Coinbase API call.
Majority of products and services offered by Coinbase are free. For example signing up for hosted and software wallets, signing up for a Cryptocurrency trading account, storage of cryptocurrencies and access to the API. Transfer of cryptocurrencies from one wallet to another incurs network transaction fees like Bitcoin miner’s fees. The fees are disclosed to you during a transaction.
Buying and selling of cryptocurrencies via Coinbase Conversion service will incur the market rate of the digital currency via its GDAX platform plus a spread of up to 50 basis points. Conversion fees are charged for using the Conversion Service. For more details, check the pricing page.
What you need to know is that a base rate of 4% is charged on all transactions. Depositing funds via ACH transfer is free while wire transfer is priced at $10 and $25 for outgoing. Merchants can check out the following webpage for detailed pricing.
At the moment, Coinbase is riding on the success of cryptocurrencies like Bitcoin which has attained the $ 4000 mark for a single Bitcoin. From its founding days as a digital wallet service only, Coinbase has broadened its focus to offer brokerage services through its online exchange, GDax.
This has facilitated the trading of digital coins and tokens. Up to date, the GDax exchange has facilitated the exchange of $ 25 billion in digital currencies. As years go by, we will probably experience more applications and features at Coinbase.