Investment and interest in cryptocurrencies over the years have increased the need for more safe and secure exchange, and this exchange is done on cryptocurrency exchange platforms. These platforms allow the purchase of digital money for regular currency (USD, EUR, GBP) or other digital currencies. Exchange platforms can be public, available to everyone, or private, being exclusive and functioning by invite only rule. They can be very flexible, but also there are some that are much harder to use.
How to pick your cryptocurrency exchange platform?
Everyone who wants to trade cryptocurrencies must take care of the following factors, in order to suit their needs:
• When choosing a certain exchange platform make sure you’ve got enough information about the fees ‘cause every platform will charge you for using theirs. But don’t get ripped off!
• Take a close look at security and verification requirements. Every platform requires some sort of a personal ID card before you start out an exchange. Be aware that the process of verification can sometimes be complex and tiresome, but these platforms are safer than others.
• Keep an eye on the exchange rates, and don’t overpay your exchanges or transactions.
• Although all exchange platforms have their own ups and downs, good exchanges generally have a good reputation and can be trusted. If the reviews are more positive than negative, you shouldn’t worry about your safety.
• It happens that some platforms support all South American countries, but they don’t support the Asian countries, for example. Make sure that the platform of your own choosing supports your own geographic region.
Once you’ve taken care of all these important factors, it’s time to choose one of the most reputable ones, and Coinbase is certainly one of them. Let’s discover some interesting facts about this popular exchange.
What is a digital exchange platform Coinbase?
Coinbase is considered to be one of the most trusted exchanges with a huge number of digital assets. It counts more than 12 million active users supporting 32 countries. Trading on this platform is allowed through regular bank accounts, PayPal, credit cards and other banking methods. Before one begins trading, the future user must set up a wallet for buying and selling digital money, and then connect to a valid bank account to get started. At this moment, up to 50 000 bitcoins are allowed per day for the US citizens, for example.
Coinbase is considered to be an exchange platform with an excellent reputation and charging only 1 % fee, it allows buying/selling a few digital currencies (Bitcoin, Litecoin, and Ethereum). If you want to convert them to other crypto money you have to use Changelly. In addition, if you register with Coinbase, you can also use the service of GDAX owned by the same company that enables their users with more advanced trading operations.
Coinbase wants to register as the first future crypto exchange
Coinbase has recently has started a partnership with the UK lender Barclays by opening a bank account, and this cooperation is explained as a desire to facilitate the use of its product to British customers. This is the first major partnership of this kind since lenders, in general, avoid being engaged with cryptocurrencies due to their bad reputation and supposedly illegal activities and frauds. Coinbase, however, with its 12 million users was granted a license by FCA and UK regulator, and adds support for FPS. This means that this deal will facilitate the process of filling up or withdrawing money since previously you had to wait for your transactions for a few days. This idea first will be tested with a small number of institutional users, and soon all UK customers will get access to this new faster, and safer bank transfers. Converting money before was a long, exhausting and expensive process, but with this kind of transfer, things will function much easier!
At the moment, Coinbase is worth $1.6 billion and due to the pace of innovation that is getting more and more accelerated, there is an entire range of exciting, upcoming projects built on the ground of digital currencies.
Coinbase to become ‘Google of currencies’
A few days ago, it was announced that Coinbase will launch the first Crypto index fund. To explain, GDAX, owned by Coinbase, will provide the accredited investors to purchase all digital assets on the Coinbase exchange, weighted by market capitalization. GDAX, as a part of Coinbase, enables more traditional stock-like options serving more than 13 million retail customers, and every day more and more investors are coming to the market. As on the Forex market, due to a broad range of assets, index funds enable their users to track the entire asset class and not only an individual one. This also means that potential investors will be allowed to invest in an entire blockchain-based asset. For the beginning, Coinbase Index Fund will be available only to the US investors, but they are working on to make it accessible to everyone.
Coinbase product manager Bramanathan says that there is a growing demand for the new product and that many of those high-net-worth and institutional investors can’t wait to dive into the market. However, they will need a lot of paperwork, to begin with, as well as to deal with a number of protection issues that need to be considered before these funds be offered to investors. This move is a slight departure from Coinbase’s major business, but the innovation will certainly be gate-crashing to other markets. Coinbase also added that there’s no need to come up with a new currency regulatory system and that the existing regulators’ authority is already efficient. However, the users must know where one regulation ends and another begins. Perhaps, what is needed is a better coordination between the federal regulators and not an entirely new system. Although there are still may infidels that suspect that cryptocurrency might be a scam, it gives investors many opportunities to diversify their digital currency holdings.