Centralized cryptocurrency platforms are one of the most important elements in the crypto world. This is because they play a very important role in providing liquidity to investors.
But recently, after the collapse of the centralized FTX exchange, investors lost confidence in many centralized platforms.
Consequently, this resulted in the exit of liquidity and capital from these platforms. This is why it has become important to look for reliable, centralized platforms that can be trusted.
For this reason, today we will talk about the Coinbase platform, which is considered one of the most important and famous licensed platforms in the world!
What is the Coinbase platform?
The Coinbase exchange is considered one of the most famous global platforms in the world of cryptocurrencies.
This platform was founded in May 2012 and is considered one of the oldest platforms in the crypto world.
This platform is distinguished from other platforms in that it is always trusted by investors.
This is because the platform is licensed and started in the United States. The platform’s purpose from the beginning was to provide a way for investors to easily buy and invest in Bitcoin.
The platform began selling Bitcoin to investors in 2012.
The platform has grown over the years until it has become one of the most famous and largest central platforms in the crypto world.
This means that the platform is licensed and you must also create an account to use it.
The platform is currently considered one of the best platforms in the world of crypto, and its direct competitors are the Kraken platform and the Binance.
For a long time, the platform only operated in the United States. But recently the platform started expanding around the world and started working in different regions as well.
For this reason, we recommend this platform to those who can use it in their country, where we know more about it.
Cryptocurrencies that can be traded on Coinbase platform
Although the Coinbase platform originally began to buy, sell, and trade Bitcoin, it has also diversified over the years.
Now more than 248 different currencies can be traded on the platform. There are also three different currencies on the platform, like the euro, the dollar, and others, and finally, there are different currency pairs.
But the most famous pair, of course, is the USDC/BTC pair, through which Bitcoin can be easily bought and sold.
Of course, many popular currencies can also be traded on the platform.
Ethereum, which is the largest ecosystem in the world, is also available on the platform and can be traded through the USDC/ETH pair.
Solana can also be traded on the platform, which is considered one of the largest and most famous projects in crypto.
In addition to Cardano (ADA), Binance Coin (BNB) can also be purchased through the Coinbase wallet.
Finally, you should know that the platform has a strong partnership with Circle, the USDC currency issuer.
This is because Circle is regulated and licensed in the United States.
Therefore, the currency is issued from within the United States, which is why the Coinbase platform prefers to deal with it instead of its counterpart, which is USDT, which is affiliated with Tether.
USDT is also available on the platform but liquidity and pairs are more abundant for USDC.
Countries supported in Coinbase 2024
It is very important when using a centralized platform that you know where it can be used. It is possible that the platform is suitable for you but is not available in your country.
As we said, the Coinbase platform was only available in the United States, but after the 2021 bull market, the platform became available in more than one different country.
Currently, the platform is available in about 100 countries around the world, but so far it is still not available in Arab countries.
However, it is expected that the platform will soon be available in the UAE since the platform was considering the decision to move the company to the UAE.
Therefore, the Coinbase platform will be more suitable for those who live in the United States or Europe.
Steps to create an account on Coinbase
We said that the Coinbase platform is a centralized platform and therefore you must create an account on it to use the platform.
To do this, you must log in to the platform and then create an account, either by email or phone number. After this, you will confirm the account.
Because Coinbase is a licensed platform, it always requires KYC procedures to use the platform.
Therefore, you will need to verify your identity on the platform to use it. Once these procedures are completed, you will be able to use your account on the platform with great ease.
You can deposit and withdraw cash as well as cryptocurrencies.
Deposit money on Coinbase
Funds can be easily deposited on the Coinbase platform. You can deposit funds via bank deposit or by purchasing directly with a Visa card.
Bank deposit is cheaper but slower and will cost 1.5% of the purchase value.
As for direct purchases, there are fees estimated at approximately 4%, but the purchase is made immediately.
The other way is by depositing cryptocurrencies on the platform, whether in the form of Bitcoin, USDT, or others.
But of course, make sure you are using the correct address and the correct network as well. The platform supports many different blockchain networks.
You can also trade many currencies that are not listed on the platform through their decentralized wallet.
Through the Coinbase wallet, it can easily be connected to the platform, then loaded with cryptocurrencies and traded through it very easily.
Base Network
Recently, the platform’s Base network was launched, through which trading can be done with very low gas fees.
This network on Ethereum is considered a Layer 2 (L2) network, the purpose of which is to reduce fees and speed up the process of completing various operations.
The network is still being updated and new, so you must be careful when using it.
Trading on Coinbase platform
Of course, cryptocurrencies can be easily traded on the Coinbase platform. There are different types of trading that you should get to know:
- Spot market: Through this market, cryptocurrencies are bought and sold. Note that through this market you own the currencies that you purchase and therefore you can transfer them to a special wallet.
- Futures market: It is the second type on the platform, you can speculate. This means betting on the direction of currencies, whether rising or falling. But here you do not own the currency itself. You enter into a deal based on the price direction only.
Coinbase Trading Fees
You can learn about the trading fees in Coinbase through the image below.
Note the difference between Taker and Maker fees and you will always find Maker fees lower.
This is because you are supplying liquidity to the order book, you place a buy order, and only when the price falls to this point is the order executed.
But through Taker, you withdraw liquidity from the market and your purchase order is placed immediately, thus paying more fees.
Coinbase problems with the US government
We said that the Coinbase platform is licensed and this is true. The company that owns the platform also has shares listed on the American Stock Exchange.
But despite this, in June 2023, something unexpected happened.
The SEC filed a case against the platform, claiming that unlicensed securities are being traded on it, and what is meant here is crypto.
This was a surprise to those in charge of the platform, as the platform has been licensed and operating in the United States for many years.
But the platform decided to sue the SEC in court, and so far there are still many problems raised about the issue and no final solution has been reached.
But another surprise occurred at the end of June, which was that BlackRock, the American investment giant, decided to launch a Bitcoin investment fund.
The surprise here was that BlackRock chose Coinbase as a platform to manage its investment fund.
This means that BlackRock has great confidence in Coinbase’s ability and legitimacy as well.
For this reason, Coinbase’s share price rose a lot and the platform gained a lot of trust in the United States.
It is expected that the platform will win its case before the SEC, and do not forget to follow our website to find out the latest news regarding this topic!
But we must mention that the Coinbase platform is one of the safest platforms in the crypto world. Proof of the platform’s reserve can also be viewed here.
Is the platform better than others?
The Coinbase platform is considered one of the most famous platforms in the cryptocurrency market. However, it is not one of the most used platforms outside the United States.
Within the United States, the platform is undisputedly the most popular.
But outside the United States, there are other better alternatives than this platform, like the Binance platform, the OKX platform, for example, and other platforms.
This is due to the low trading fees and the ease of dealing with the platform, withdrawing and depositing on it, and these platforms are licensed in many more countries than Coinbase.
But this does not mean at all that the platform is bad. It is considered one of the most trusted platforms around the world.
But you should also pay attention to the outcome of the case filed against the platform by the SEC and its results because they will undoubtedly greatly affect the future and direction of the platform.
