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What is Coinbase?

What is Coinbase?

The largest cryptocurrency exchange in the U.S. and one of the first globally, Coinbase offers services for storing and buying virtual assets and copyrighted products to private and professional traders, providing efficient and safe operation.

Full name of the company: Coinbase Global, Inc.

Foundation date: 2012

Founder: Brian Armstrong (USA)

Capitalization: more than $100 billion

Legal status: registration in the United States (San Francisco, California)

Market geography: more than 100 countries from all regions of the world such as North and South America, Africa, Europe, Asia, Oceania

Company products

The Coinbase cryptocurrency exchange is one of the largest trading platforms for virtual assets. There are 2 types of activities offered to clients, namely, buying and trading cryptocurrencies.

The main feature of the company is that it is conservative and follows the legal provisions and rules imposed by regulators. In many U.S. states, it has the appropriate licenses.

Today Coinbase offers its users a wide range of cryptocurrencies, while the trading platform itself includes several branches:

  • An app designed for buying, storing, and making transactions with crypto assets for private investors;
  • Coinbase Pro - a platform for professional traders;
  • Coinbase Prime - a platform that serves institutional investors and offers unique investment opportunities.

Trading features on the Coinbase crypto exchange:

  • over 40 cryptocurrencies;
  • referral program;
  • spread margin fee - up to 2%;
  • leverage up to 1:500;
  • cryptocurrency purchase limit - up to $10,000 per day;
  • a mobile app adapted for iOS and Android devices.

Coinbase Wallet is a cryptocurrency wallet created by the company and designed to store all the virtual coins that a customer buys on the exchange.

The main features of Coinbase Wallet for users:

  • cryptocurrency self-storage;
  • NFT storage with a guaranteed security and quick viewing of the entire token collection;
  • support for over 100,000 tokens and decentralized applications (DApps);
  • two versions of cryptocurrency wallet - browser and mobile versions.

A browser or web wallet is the most user-friendly option because all assets remain on the trading account of the user of Coinbase cryptocurrency.

Mobile Wallet is a special application installed on a smartphone running on Android or iOS designed to store cryptocurrencies such as BTC, ETH, BCH, LTC, ETC, and tokens of the ERC-20 standard.

Coinbase Card is a contactless Visa debit card, which provides synchronization with the Coinbase cryptocurrency customer account. Using such a card, the user can pay for goods and services not only online, but also use it in real stores, facilities, and institutions.

The product was originally designed for the British market, but today the card can only be used by U.S. residents, except for the state of Hawaii.

Coinbase Card features:

  • up to 4% cashback on every purchase;
  • use in any places where Visa cards are accepted;
  • receiving various rewards;
  • diversification of the cryptocurrency portfolio;
  • no transaction fees (cash withdrawals or cryptocurrency transfers).

Coinbase Commerce is a free product that provides simplified business transactions. This tool helps entrepreneurs quickly accept cryptocurrencies such as BTC, BCH, ETH, LTC, USDC, DAI.

Coinbase Commerce is similar to such payment systems as PayPal Stripe since first the user receives the main service, and over time differentiated sets of long-term use products are offered.

Features of using Coinbase Commerce for entrepreneurs:

  • opening a dual account linked to Coinbase Commerce infrastructure so that the user can have full control over the funds;
  • access to payment processing services to accept cryptocurrencies for settlement through integration with Coinbase Wallet;
  • receiving payments in cryptocurrency directly to your trading account and then converting or withdrawing money;
  • funds withdrawal to another account or use at your own discretion.

Who benefits from Coinbase Commerce:

  • startups that implement B2B software solutions;
  • small and medium-sized businesses to sell their products via e-commerce system;
  • online and offline service providers in every field of business;
  • software and app developers for mobile devices.

Coinbase Earn is a platform that offers to explore cryptocurrencies, complete educational tasks and get bonuses for it.

How Coinbase Earn works:

  • The user can watch video tutorials to gain new insights and information about cryptocurrencies;
  • completing a short quiz after each tutorial video;
  • for each successfully completed quiz you get a reward in the form of cryptocurrency credited to your Coinbase account;
  • funds received can be used for working on the exchange.

History

2012 – former Airbnb engineer, American entrepreneur and investor Brian Armstrong creates a cryptocurrency platform called Coinbase. The key mission of the project was to allow everyone to trade freely in Bitcoins and other digital currencies. Since Armstrong was a member of the startup incubator program called Y Combinator, he received a $150,000 investment for further development of the marketplace.

2013 – a funding round took place in the spring, with Coinbase receiving a $5 million investment from Union Square Ventures, and another $25 million round of funding from several major venture capital firms took place in the winter.

2014 – the number of users of the crypto exchange increased to 1 million, and the website was actively developing, buying the blockchain research service Blockr and the web bookmark company Kippt.

The company also arranged insurance coverage for the value of bitcoins placed on the servers, and then launched a storage system to securely store the cryptocurrency. It additionally established cooperation with various companies, including Dell, Time Inc., Overstock, Expedia, providing them with the ability to accept payments in Bitcoins.

Cryptopayment processing function was implemented for PayPal and Stripe payment systems.

2015 – At the beginning of the year, Coinbase immediately received a $75 million investment package from several leading U.S. banks and the New York Stock Exchange. A little later, the company launched a separate division of its Coinbase Exchange cryptocurrency exchange, focused on serving professional traders. Meanwhile, Coinbase's services were already being implemented in Singapore and Canada in the fall.

2016 – Coinbase Exchange was rebranded to GDAX, and in the summer, Ethereum was added to the list of trading tools.

2017 – the company received a license to trade in such cryptocurrencies as Litecoin and Ethereum, and it is also assigned a BitLicense (which denotes the total duration of activity with virtual assets).

2018 – Coinbase was valued at $8.1 billion following the funding round. In the spring, the platform added support for ERC-20 tokens and also announced the launch of the Coinbase Index Fund to display the financial performance of all GDAX assets. During the same period, the company opened its own venture fund to focus on investments in companies specializing in blockchain and cryptocurrencies. The first funding was granted to the Compound Labs project for the development of smart contracts based on Ethereum.

GDAX was renamed to Coinbase Pro, followed by the launch of another division, Coinbase Prime, designed to serve institutional clients.

2020 – with the COVID-19 pandemic spreading, the entire staff of the company has switched to remote work, and the remote model of operation is further supported. A new Coinbase Card product was announced in the fall. At the end of the year, the company applied to the SEC for a stock listing.

2021 – On April 14, Coinbase became a public company through a successful listing on the NASDAQ exchange. Its capital was already estimated at 47 billion dollars.

Crypto exchange purchased Indian support platform Agara, based on artificial intelligence. The transaction amounted to about 50 million dollars.

All company activities were conducted remotely with the promise of full decentralization of the platform, free from the headquarters.

2022 – in the face of the Russian invasion of Ukraine crypto-exchange stopped its activities on the territory of Russia; 25 thousand addresses of cryptocurrency wallets of Russian users were blocked.

Coinbase started a partnership with MasterCard to simplify the NFT purchase procedure

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