However one of those laws is that as a regulated financial service company CoinBase must ask all of its users for some sort of proof of identity before you can begin purchasing currency through their site. Before You Can Begin Buying Cryptocurrency…Īs I mentioned above CoinBase is located in the USA, which in my opinion is a good thing – this gives you some reassurance that the company must be operating legitimately as the USA has some very stringent laws when it comes to this sort of thing. The wallet you have at CoinBase has its own unique address which means you can send currency to it from elsewhere, or you can use CoinBase to send the currency from there to somewhere else. Once the currency is in your wallet you can then do whatever you like with it. Some other sites from what I’ve heard have a rather long waiting period between you making the purchase & the currency actually getting deposited. The good thing about CoinBase is that according to the majority of the users the currency you purchase is deposited into your wallet almost immediately. If you are frequently trading coins then rather than making individual purchases on your card each time you can actually create a US dollar wallet inside of CoinBase to store funds, but again I’d advise caution if you’re thinking about doing that because of potential security issues. Just like a normal currency exchange CoinBase basically keeps track of the current market value of the coins & allow you to purchase (or sell) them for real-life money using a credit or debit card. Unlike many of the other cryptocurrency marketplaces, CoinBase isn’t a peer to peer network which means you’re not buying the coins from somebody else, you’re buying them directly from CoinBase.
A better solution is apparently to store them in an offline hardware wallet instead.
You can buy/sell these through the site & you can also create a free wallet to store them in.įrom what I’ve heard it can be risky storing coins in online wallets & therefore if you’re planning on doing that then I’d advise doing it with caution. The site originally launched back in 2012 & the promising news is that they’re based in the USA.Īt the present moment in time, they only work with 3 cryptocurrencies in particular which are Bitcoin, Etherium, and LiteCoin. Whilst I don’t know the technical term for CoinBase (if there is one?) the best way I’d describe is as being a cryptocurrency marketplace.
What Is CoinBase? | How Does CoinBase Work? | Before You Buy Cryptocurrency | Is CoinBase Safe? | Is CoinBase a Scam? What Is CoinBase? Therefore I’ve decided to take a closer look myself, since I have a personal interest in using CoinBase & in this review, I’m going to uncovering everything you need to know which means if you’ve also been considering using CoinBase like me then you can rest assured that you’ve landed in the right place to find out if it’s a wise move. One thing I noticed was that there was a lot of CoinBase scam rumours circulating the web with people claiming all sorts of things like CoinBase not letting them withdraw, locking them out of their accounts & so on. Which brings me onto today’s blog post – in which I’m going to be putting together a review of CoinBase, which is a company that lets you buy, sell & store various cryptocurrencies. However, at the moment I’m trying to determine the safest & easiest way to invest. Whilst I haven’t yet invested in cryptocurrency it’s something I’ve been heavily considering, especially with the hype surrounding Bitcoin at the moment.