HomeCompany ProfileWhat is CoinBase - The de-facto Platform for Digital Currency

What is CoinBase – The de-facto Platform for Digital Currency

If you are aware of Bitcoin trading, you will have a hint about what Coinbase is and what it does. However, if you are new to this field, we will tell you everything about Coinbase and the kind of functions it allows in the world of bitcoins. 

Coinbase started as a small company with a gigantic vision to smoothen operations in terms of bitcoin trading. They began their operations in 2012 and have been consistently committed to making bitcoin trading more accessible. 

Today, they have a loyal user base of more than 56 million people who use their hassle-free platform for seamless trading. Coinbase is widely renowned for its efficient platform that allows you to navigate in the most transparent way possible. That is another reason for their popularity and positive goodwill.

How Was Coinbase Launched – A Brief History

Coinbase goes back a long way to 2012. It was founded by a supremely skilled engineer from Airbnb called Brian Armstrong. After getting their funding from Y Combinator, they hired a trader from Goldman Sachs called Fred Ehrsam to run the one-stop store for bitcoins.

The craze for bitcoin was just picking up, and that is when both Brian and Fred put their mind to use. They started regular trading at the beginning and then turned the algorithm into an integrated store. Coinbase gained a thousand employees in the initial years of the business, and their operations panned out globally.

The company is currently valued at $75.9 billion and is working hard to give digital currency the pedestal it deserves.

The CoinBase Platform

As mentioned above, you can buy, sell and store your digital currency on Coinbase. However, this does not mark the end of what they have to offer. Coinbase provides its users with some extended benefits that are listed below.

  • They are committed to the security of your assets. They have a sound backup system in place so that you do not have to worry about anything. Once you are done listing your digital currency there, you can sleep without any fear.
  • Versatility is also an essential characteristic of Coinbase. It offers a single combined solution to all its stakeholders. You get to access your wallet, other merchant tools alongside the exchange that happens constantly.
  • They have access to their proprietary software, which is responsible for many applications throughout the platform. That offers easy integration and helps to enhance the overall customer journey.

Why Should You Choose Coinbase

The functions that you read above are incentive enough to join this platform and start trading. Here is a list of things that make Coinbase the best choice among all the available options.

  1. Multiple Choices

Coinbase stands tall when it comes to the number of options available for trading. It accounts for more than 25 registered digital currencies that can be used without any problems. This variety opens up several avenues for the growth of these currencies. 

It also opens up many blocked routes for people who operate with different choices of currencies.

  1. The Interface

Even after incorporating this wide array of currencies, the navigation of the algorithm is spotless. Anybody can use it without facing any troubles owing to the simple engineering behind the entire process. You will be required to create an account and then start trading, which will take a few minutes. If you are new to the process, there are many learning modules that can be used to understand the intricacies involved.

  1. High Liquidity

Coinbase has turned into a leading platform for digital exchanges that hosts a heavy quantum of trading every day. It skyrockets the liquidity levels on the platform, which allows a more open and fluid trade.

It also acts as a security net for the investors as they are protected against the highly dynamic environment of bitcoin trading.

Coinbase Business Model

Most of you might have this question regarding how Coinbase covers its costs and earns mammoth profits. Here is the business model of Coinbase that will highlight its revenue streams.

Coinbase allows its customers to trade in digital currency and also gives them accessibility to storage. They went one step ahead and started analytics that provides the customer with valuable insights derived after proper scrutiny.

The analysis and storage are available on a chargeable basis, and customers have to pay a monthly fee to access them. The company also charges a small trading fee of 0.5% on the net value of the order.

Another one of their prominent revenue streams is Coinbase pro which is a more advanced platform. The company also makes a decent chunk of its revenue through selling its own crypto assets. These assets, like all the other assets, derive commission as well. The company has plenty of miniature revenue streams which capitalize all the revenue that flows in. 

Since Coinbase is a financial company, its liquidity is exceptionally high. Their current revenue cash out was around $1.28 billion that was one of the highest recorded figures. The company went public in April 2021 and is expecting a high subscription. The most recent valuation predictions have stacked the company at a whopping $100 billion.

Final Words

Coinbase is much more than a trading platform owing to the stellar services it provides. You can experience the best trading environment in the plethora of digital currencies it operates in. Even with the economic slowdown, the company fared well, braving the rugged roads.

If you have not traded before, just go to Coinbase’s website and create an account. Apart from the ease in trade, you can also access the learning modules to grab a few ounces of basic knowledge. Bitcoin and other digital assets are the currency for the future. This is the time to shift!

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