In case you did not notice, there is this relatively new cryptocurrency on the market; it is called Bitcoin. With the invention of Bitcoin came the need for users to convert it into their nation’s currency also known as FIAT. To do so meant the need for websites like Coinbase. But many have concerns about linking their banking information to Coinbase.
- Things to Consider Before Buying from Coinbase
- What is Coinbase
- Features and benefits of Coinbase
- Social proof about Coinbase
- What are alternatives to Coinbase?
This is no financial advise, all the content and the ideas present in this page and all the other pages of the website do not guarantee financial success and may lead to a loss of your money. You should always do your own due diligence before trading or seek professional advise.
Some of the links available in this page may generate a commission for the author.
Things to Consider Before Buying from Coinbase
Coinbase FeesCoinbase charges a fee every time one purchases currency. The cost is usually between 1.49% and 3.99%.
Coinbase LimitsLike many exchanges, Coinbase is Know Your Customer (KYC) and Anti-Money Laundering (AML) compliant. Every customer will have daily, weekly, and monthly limits placed on their account. These limits are small, at first. To raise the limits, you need to comply with KYC and AML rules and regulations. These rules are simple to comply with; if you are a United States customer and abide by the three levels of verification, you will reach the highest limit. The three levels of verification you need for your account are to provide a phone number and verify it. Provide your home address, and have it approved, submit your government-issued photo identification.
Countries supported by CoinbaseCurrently, Coinbase offers its services to over 100 countries. Some of the countries include the United States, the United Kingdom, Canada, and many more. When you set up your account with Coinbase, the site will detect your Internet Protocol (IP) Address. A protocol is a guideline that follows a specific order. Every country starts with a different set of numbers to its IP addresses. Websites can detect which country the user is in by assessing the IP address used to access the site. If you are not in a supported nation, Coinbase will let you know, and you will not be able to create an account.
What is Coinbase?
- Offers a Variety of Cryptocurrency for Sale.
- Complies With all Local Jurisdictions.
- It is Easy to Use.
- Not All Payment Methods are Accepted in Every Nation.
- Delivery Time for a Bank Wire is up to 8 Days.
What Is Coinbase?
Features and Benefits of Coinbase
How Coinbase Protects User’s Bank Accounts?Coinbase goes through extensive lengths to protect your bank account data. The routing and account numbers are stored on the Coinbase server using bank-level encryption. Accountholders in the US can immediately verify their bank. If you are in the US you merely need to log into your account using your credentials as you usually would. The process is not different than logging into PayPal and verifying your account. Coinbase does not store your credentials on its servers. If you don’t want to login to your bank account through Coinbase. It is understandable, there is an alternative. If you are not in the US you will need to wait for the three to five days to verify your bank account. The same is true if you are a US customer who don’t want to share your login details with Coinbase. The verification consists in receiving two small deposits from Coinbase. Once you do, go back to Coinbase and type the deposit amounts into the verification form.
The Security Team At CoinbaseNowadays it is not uncommon being concerned about the institution holding your money having their system hacked. These are worries of Coinbase, as well. They have taken measures to watch their investor’s money every moment, of every day, of every year. The head of cybersecurity at Coinbase is Philip Martin. He has a long list of credentials that qualify him for the position. These include a counterintelligence agent for the US Army. As head of the security team at Coinbase, Martin oversees an elite team to ensure there is never a hack of Coinbase’s server.
Has Coinbase Suffered A Breach Of Security?Like many online institutions, Coinbase has suffered some breaches in their security. These have not been catastrophic enough to warrant a panic from investors. In early 2019, Coinbase experienced a panic from many on Twitter. These were investors who were concerned by the way Coinbase had acquired links to government hacking systems. As the Coinbase community cried out, Coinbase and its public relations (PR) team worked behind the scene to clean it up. During the clean-up process, Coinbase replaced the affected employees. The site has taken strict measures to ensure staff members do not get information like this again. Coinbase puts its staff under scrutiny when they are hiring. During the hiring process, every employee goes through a rigorous background check, including their criminal history.
What About Coinbase Customer Service?Some people stated to have been locked out of their Coinbase accounts or worse. There is not a need to worry. If you are a Coinbase customer storing your crypto on the site, you will get the best service possible when you run into an issue with being locked out. Many have had to encounter the Coinbase customer service center. Their customer service team took a little longer to resolve an issue than some of its competitors. But the turnaround time is usually three to four days. Coinbase offers its customers an email address and phone number for support. There is also a form one can fill out from the link provided on the website.
What Types Of Accounts Does Coinbase Offer?There are four types of Coinbase accounts offered to customers. These accounts include Coinbase Pro, Coinbase Prime, and Coinbase Commerce. Personal accounts are the primary accounts you as a user will have. The company has a different site for all its memberships. Becoming a Coinbase Pro account holder is as easy as going to the Coinbase Pro website and creating an account.
How Fast Is My Coinbase Account Credited With Bitcoin?How fast your account will be credited will vary. It will depend on the type of payment method you used when purchasing the Bitcoin. For instance, if you used a credit or debit card while making the purchase, you will find the Bitcoin in your wallet almost immediately. It only takes as long as it takes for the transaction to be authorized. On the other hand, if you use a bank wire transfer, it can take up to eight days for the Bitcoin to appear in your account. It takes up to four days for Coinbase to send the transaction. It also takes up to four days for your bank to send the purchase. The second scenario is usually not ideal as you would not have control over the price of Bitcoin during the wait.
Features and Benefits of Coinbase
- The routing and account numbers of Coinbase customers are stored using bank-level encryption.
- If you cannot or don’t want to login to your online bank through Coinbase you need to wait for up to 5 working days in order to have your bank account connected, as you need to log two small transactions performed by Coinbase into your bank account.
- Philip Martin is the head of cybersecurity at Coinbase. He’s been a counterintelligence agent for the US Army.
- Coinbase, like all the big organizations, have suffered security breaches, but none of them were catastrophic.
- Coinbase customer service may be slightly slower than some other competitors which are more agile and small, but they always assist customers and have a phone support line as well.
What Are Alternatives To Coinbase?
BinanceThis site is comparable to Coinbase in that you can purchase with a credit or debit card and a bank transfer. It differs from Coinbase in how a user registers and how a user becomes verified. Binance allows users to earn more crypto than Coinbase. It has more trading options on its standard market than Coinbase
- Coinbase has one exchange compared to Binance.
- There are more ways to earn at Binance than Coinbase.
- There are more options of crypto at Binance.
LocalBitcoinsThis site allows users many options for purchasing Bitcoin. Once the buyer creates a purchase order, the Bitcoin is in escrow for ninety minutes. Once the buyer completes the requirements of the purchase, the Bitcoin is released immediately. Unlike Coinbase, LocalBitcoins only offers the purchase of Bitcoin. Users can purchase Bitcoin using Altcoin but cannot purchase Altcoin. There are bank transfers allowed on LocalBitcoins; they are usually handled within ninety minutes as well.
- LocalBitcoins sellers offer deposit into their accounts for bank transfers.
- Bitcoin is the only option LocalBitcoins users have.
- Coinbase users cannot utilize PayPal to make the purchase.
ChangellyThis is a crypto site offering purchases of Bitcoin, Ethereum, and Ripple. Like Coinbase, users can choose to purchase with a credit or debit card. Like Coinbase, the Changelly site offers many languages to view its site.
- Coinbase users, like Changelly users, have the option of downloading an app on their iOS or Android.
- Users of both sites have a multitude of currencies in which to trade.
- Coinbase Offers more cryptocurrencies for sale.
It appears Coinbase is no more unsafe than any other cryptocurrency exchange on the web. They have taken extraordinary measures to combat cyberattacks.
Users of Coinbase can buy with confidence that their transaction is secure. With the bank-level security measures used by Coinbase, your purchase is not any worse off than with Amazon, PayPal, or any other site.
If you still have reservations about the security of Coinbase, check out their list of articles regarding safety and the concerns users might have with their transactions.