Is Coinbase Regulated? Coinbase Licensing and Regulation
“Coinbase is not under direct regulation by any authority or agency, but this is not considered unusual in the cryptocurrency market. Coinbase May Register To Be SEC-Regulated Brokerage in the near future. North America’s largest cryptocurrency exchange Coinbase is in talks with the Securities and Exchange Commission (SEC) to register as a licensed brokerage.”
Coinbase – Is It Truly the Best Cryptocurrency Exchange Today?
If you are someone looking for cryptocurrency exchanges on the internet, you will come across Coinbase. In fact, on most of the lists, you will find it on top. There is no doubt that a lot of people around the world call and consider it the number one cryptocurrency exchange of the world. But is it really that amazing of an exchange? What makes it better than many other crypto exchanges out there? Not to forget the fact that more and more cryptocurrency exchanges are emerging with time. In such a tough environment, Coinbase must do something special to be considered the best. Let’s find out in this Coinbase review.
Coinbase as a Safe Company
The first thing that any crypto trader wants to know about any online exchange is its safety. It won’ t be wrong to call Coinbase one of the safest online crypto exchanges. Based in the US, it follows some of the strictest regulatory laws of the country. In fact, it has to comply with more laws than any other exchange that’s based in some other country than the US. Some of the acts that it complies with include FinCEN, USA Patriot Act, and Bank Secrecy Act. One of the biggest reasons why so many crypto traders around the world prefer Coinbase over other exchanges is the reliability of its backers.
Some of the backers of this exchange include Blockchain Capital, Bank of Tokyo, etc. When it comes to trading Bitcoin on an exchange, there is no exchange bigger than Coinbase. It is currently providing its services in more than 30 countries. At the time of writing this, more than $150 billion of trades have already taken place through this exchange. The customer base of the exchange is increasing with time and is currently over 20 million.
Coinbase and Safety of Your Information
In addition to the money you deposit in your account, you need Coinbase to protect your information as well. The exchange does a great job in this area as well. It promises to put the most sensitive data you provide on devices that are not connected to the internet. Furthermore, all the information you enter on the website is encrypted with the latest industry standards. Not to mention, the company keeps an offline backup of your data as well. This offline backup is usually on USB drives. Last but not least, any information that Coinbase stores for safety is split and sent to many locations in the world only for the safety of the traders.
The exchange has tried to make the login process safe too. Just like accessing any account, you access the one on Coinbase by entering your username and password. However, you also have to enter an additional password that’s sent on your phone every time you sign in. One of the biggest indicators of the commitment of Coinbase team is the bug bounty team i.e. people who find bugs to receive bounties. This means the platform is getting safer with time.
Trading Experience with Coinbase
So, how easy is it for you to trade cryptocurrencies with Coinbase? The first thing you have to know here is the currencies that you can trade when you are on the Coinbase trading platform. At the moment, you have five cryptocurrencies that you can buy from the exchange. These currencies include Ethereum, Ethereum Classic, Litecoin, Bitcoin Cash, and Bitcoin. When you are ready to trade cryptocurrencies using one of the safest online platforms, the first thing you will have to decide is the type of account you will open. There are different accounts types designed for individual professionals and institutions.
The account for professionals is called Coinbase Pro. On the other hand, the platform for institutions is called Coinbase Prime. You will love the fact that Coinbase has simplified the fees you have to pay on your trades. The fee structure is the same for Prime and Pro accounts. It applies to your trades in three increments. Trade anywhere from $0m to $10m and you will have to pay a fee of 0.30% on your trades. The fee is 0.20% when your trades are between $10m to $100m. Anything that goes above the $100m mark has a fee of only 0.1% on it. This fee structure remains the same for Pro and Prime accounts.
An important thing to know here is the maker and taker concept. You could avoid any fees at all for trading if you are a maker. A maker is a person who “makes” an order that someone else on the platform fills. What that mean is that when you place your order, there is no other trader whose order gets filled instantly because of you. On the other hand, if there is already an order that gets filled as soon as you place your order, you are considered a taker. The trading fees apply only on takers.
Coinbase Customer Support
One of the things you have to love about this exchange is the customer support. With many other online cryptocurrency exchanges, you don’t have any phone number where you can contact. You just have an FAQs section and online community for your help. Even Coinbase has an online website specifically designed for support, but you have a phone number as well. Call this phone number to get help from a human operator who will listen to you and reply to you accordingly rather than giving you canned responses. In addition to an international and UK number, email can also be used to reach out to the company.
The only thing that you might have some issue with as a trader on Coinbase is the fees you have to pay on your trades. However, in an emerging market that cryptocurrency is, you should not mind paying a little extra for the added safety. Do not forget the many exchanges that completely disappeared in the past with the money of the traders. There is no doubt that Coinbase has emerged as the best bitcoin exchange on the internet and maintained that position through compliance. In addition to trading with money, you trade with the peace of mind when you are on Coinbase.
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