Coinbase is one of the most popular exchanges that can be used to facilitate cryptocurrency trading. With an increasing interest in cryptocurrencies and blockchain technology, it’s no surprise that many people want to know the best Bitcoin trading platform available. Coinbase is one of the best.
What Is Coinbase?
Coinbase is an exchange that was launched in 2012 in San Francisco. It has served more than 12 million customers who have exchanged over $40bn in digital currency in thirty-two countries.
As at 2013, the exchange was the highest funded startup for Bitcoin and the largest cryptocurrency platform in the world.
How It Works
Other cryptocurrency trading platforms require that traders trade on the market, but Coinbase allows traders to trade at a price determined by the market value of the cryptocurrency at the time of the trade. This enables faster purchases on Coinbase when compared to other exchanges. The exchange is one of the few in the world that accept credit cards.
Like with many other exchanges getting started requires signing up and longing in. The fees on the platform fall within the ranges of 1.49%-3.99%. It typically depends on the payment method you choose. If you use a credit card, your fees may be higher than that of a person who makes a regular deposit. However, the fees are lower than many exchanges of this level.
Users will are allowed to buy Ethereum, Litecoin and Bitcoin on the platform. The exchange is making plans to add more cryptocurrencies in the future. Hard forks like Bitcoin Cash are also supported on the platform.
Coinbase depends on the GDAX exchange, and this type of trading is suitable mainly for professional traders. Regarding risks, Coinbase has proven itself one of the safest, if not the best Bitcoin trading platform. It complies with the State and Federal laws in the United States. The fund storage method is transparent as well.
Coinbase Opens DAI Stablecoin Trading to Retail Customers
Crypto exchange Coinbase will now let its retail customers buy or trade the DAI stablecoin, so long as they don’t live in New York.
The exchange announced Thursday that it was adding DAI on its website, as well as its Android and iOS apps, letting customers buy, sell, convert, trade or store the stablecoin.
Customers in every jurisdiction – except New York initially – can now access the cryptocurrency, which runs on top of the ethereum blockchain.
Although Coinbase did not explain why the token is not yet available in New York, it may be waiting on approval from the state’s Department of Financial Services, which in the past has reserved the right to approve tokens before they are listed on exchanges.
Unlike other stablecoins, DAI is backed by collateral on the MakerDAO platform, but still seeks to maintain a peg to the U.S. dollar, the exchange noted, adding:
“The relevant whitepapers explain that MKR and DAI tokens form a paired set of assets in which MKR provides governance, and DAI is a decentralized, collateral-backed stablecoin.”
Other stablecoins, such as the Gemini Dollar or the Paxos Standard, are backed on a 1:1 basis by dollar holdings.
The stablecoin has notably had difficulty maintaining its peg in the past, with MKR token holders voting repeatedly to increase the so-called “stability fee” in an effort to ensure that DAI continues to hold its peg.
Borrowers pledge ether as collateral to take out DAI; when they want to get their ether back, they have to return their DAI, plus the stability fee, payable in MKR or DAI. Hence, increasing the stability fee incentivizes borrowers to return their DAI, reducing the supply on the market and theoretically driving their price back up to $1.
More recently, token holders voted to decrease the fee, but this decrease failed to activate due to a lack of voter turnout. As of press time, the fee remains at 19.5 percent.
DAI became available to Coinbase Pro, the exchange’s platform for day traders, in December, but now even entry-level users can buy it too.
It is the latest token Coinbase has listed in recent months, having just recently opened up XRP trading to New York residents.
Coinbase Commerce enables businesses to accept USD Coin [USDC] for payments
The platform announced on Twitter,“Starting today, businesses using Coinbase Commerce can now accept payments in USD Coin (USDC), a US dollar-backed stablecoin. Our merchants can now take advantage of the many benefits of accepting cryptocurrency but at a stable price.”
Further, the blog post stated that acceptance of the stablecoin would be as seamless as acceptance of cash for businesses. Additionally, this payment mode would not encounter the problems faced by credit card payments, considering it enables merchants to accept payments from customers anywhere in the world within minutes and without transaction fees.
Eliyahu Switzer, a Twitter user, said,“What are the benefits of accepting a centralized “cryptocurrency?”
That apart, CEO of Coinbase Custody, Sam McIngvale, revealed that Coinbase Custody was baking with delegated client funds since cycle 105. He stated that the firm had produced “over 100 blocks and captured a few steals too” so far, adding that their efficiency was more than a hundred percent.
Our staking infrastructure is off to a good start 👌 pic.twitter.com/wVnURFfCI6
— Brian Armstrong (@brian_armstrong) May 20, 2019
@Stevenut, another Twitter user, commented,“Congratulations on making money with
#tezos @CoinbaseCustody perhaps you might like to give something back and list #tezos so rest of us can benefit”
The announcement of Coinbase Custody providing institutional support for Tezos [XTZ] baking was made in March 2019. Offline staking support was extended to Tezos by the platform mainly because of its Delegated Proof-of-Stake architecture, along with high demand from the customers’ side.
Worldwide crypto acceptance is within reach thanks to Coinbase Commerce’s USDC stablecoin integration
Crypto as a method of payment has just gotten easier. Coinbase Commerce has expanded to include USD Coin as a settlement option, allowing merchants to accept crypto without transaction fees, chargebacks, or price volatility.
Coinbase Commerce, an app launched last year to facilitate merchant payments, now accepts Coinbase’s native USD Coin(USDC). The stablecoin was the result of a partnership between Circle and Coinbase in October of 2018.
The update represents a stride for crypto as a medium-of-exchange. Bitcoin, as the pioneer cryptocurrency, has relatively high fees and long transaction confirmation times. Meanwhile, the fiat-backed USD Coin allows merchants to get the benefits of crypto without the drawbacks.
Additionally, payments conducted in USD Coin have zero transactions fees and do not expose merchants to costly chargebacks. Unlike credit cards, merchants can accept USDC without a traditional bank account anywhere in the world.
Vendors have full custody over these funds and can accept payments directly to a wallet they control.
USDC is directly integrated into Coinbase and Coinbase Pro, allowing users to instantly convert between fiat and USD Coin. Coinbase Commerce is also integrated with other popular e-commerce platforms, such as Spotify and WooCommerce, making implementation within reach of hundreds of thousands of online merchants.
The move is another milestone for crypto as a method of payment. Previously, the cost or lack of interest caused merchants such as Steam and Twitch to reverse their decisions on accepting crypto.
However, the technology around payments improved drastically and projects such as Ethereum, Litecoin, Bitcoin Cash, and XRP are able to transmit payments via blockchain with much lower fees. As crypto as a mechanism of payment improves it is expected that adoption will follow.