Coinbase is reputed to be the world’s largest Bitcoin broker. In addition to direct sales of Bitcoin at, or close to, the current average market rate (plus 1% fee), Coinbase facilitates low fee (0.25% for takers) trading of both Bitcoin and Ethereum on its exchange platform, GDAX (the Global Digital Asset Exchange). Coinbase offers the following additional services and benefits:
- Instant purchase of up to $1000 worth of BTC per week for verified credit card holders
- Well-designed and intuitive user experience.
- Insured Bitcoin deposits. All deposits are insured. Now here is some serious security from Coinbase. That being said, if your password gets cracked or stolen then this would not be covered by their insurance policy. Always use a long and unique password.
- A debit card from Shift Payments linked to your Coinbase balance. It is possible to link a credit card, called Shift Card, to your account and then pay for daily purchases using your Coinbase balance. The system simply converts the coins into usd at the going rate at time of purchase. This feature is not yet available outside of the United States.
- Online and mobile wallet services, with multi-signature security option to prevent unauthorised movement of funds.
- A wide variety of fiat deposit and withdrawal option
- Instant transfers between Coinbase users.
- A well-documented API for developers
Coinbase is often recommended to newcomers as one of the easiest ways to acquire their first bitcoins. The company has invested a lot of time and money into making their user experience smooth and painless. Their extensive banking partnerships allow transactions to be made via EFT payment, ACH / SWIFT / SEPA transfer and, as a recent introduction, major credit cards and PayPal.
At Coinbase you can buy up to $150 or €150 of bitcoin per week instantly with a credit or debit card in:
- the United States
- United Kingdom
Coinbase harges a flat 3.99% fee on all purchases via credit or debit card, which is among the lowest for European and US customers.
A quick step-by-step guide on how to buy bitcoins with credit card on Coinbase:
- Create account. Open your account on Coinbase. Follow this link and sign up and buy or sell USD 100 of bitcoin or more and earn USD 10 of free bitcoin.
- Connect credit card. Add your credit card to your Coinbase profile
- Verify ID. Verify your ID with Coinbase.
- Buy bitcoins! Buy bitcoins using your credit card.
Two types of wallets are available:
The first is really simple and made so that beginners can store their coins with peace of mind (wallet key security is managed by Coinbase).
The second is called Multisig Vault and uses the “multi-signature” innovation which allows advanced users to self-manage security for their wallet keys. What does this mean? Well simply put: if Coinbase were to disappear then these users would still have control over their bitcoin. For those asking is Coinbase safe, this should partially answer your question.
- Easier to use than an exchange.
- Buy cryptocurrency faster than most exchanges.
- You can buy cryptocurrency with Credit and Debit Cards (In addition to bank transfers).
- Lower fees than “easy buy” competitors.
- Trustworthy and regulated company.
- Safely stores customer funds.
- Available in multiple currency zones, including the USA (dollar), Europe (euro), & Great Britain (GBP).
- Once your ID is verified you can buy up to 1000 usd worth of bitcoins each week using your credit card.
- It is also possible to buy Ethereum & BitcoinCash (alternative digital currencies).
- First site among all the exchanges out there to have opened up a direct customer support telephone line.
- Some of the largest Coinbase investors include BBVA, NYSE, and Andreessen Horowitz.
- Monitors how you spend your cryptocurrency. This could also be considered an advantage. There are reports suggesting your coins may be tracked after withdrawing from the exchange. What does this mean? Being part of the Blockchain Alliance, Coinbase actively fights to avoid the use of digital currency in illegal and unlicensed activity. In other words – if you’re using the coins to gamble or to purchase frowned-upon substances, then don’t use Coinbase.
- Wallets are less secure than a wallet you control yourself.
- Slightly higher fees than most exchanges.
- Suffering from its own popularity, waves of people flock to signup each time the price rises. Such events cause significant delays for vetting and approving new accounts. Note that all major crypto exchanges are experiencing such issues.
- The downside of running a super safe exchange is that some customers get flagged and subsequently accounts get temporarily frozen. Extra vetting fixes this issue, but as waiting is no-ones favourite hobby people generally take to complaining on forums including reddit. I would go as far as saying that some good PR work would be needed to reassure the community.
Open your account on Coinbase. Follow this link and sign up and buy or sell USD 100 of bitcoin or more and earn USD 10 of free bitcoin.
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