Coinbase Exchange Review

coinbase bitcoin exchangeCoinbase is the new USA-based bitcoin exchange, which currently only serves American customers.

They gained in popularity for their bitcoin wallets before launching an exchange in San Francisco. While they have labelled it an exchange it is more a trading platform.

They have caused quite a stir since arriving on the scene and appear to be doing things by the book in a bid to help bitcoin cross into the mainstream. They declined the opportunity to provide a payment service for a marijuana business, even though the business was based in a state where cannabis was legal, because they were at risk of violating Federal law.

It’s this type of caution they hope will see them become the premier gateway for Americans to buy bitcoin, in a safe secure and regulated environment.

Sign-up process at Coinbase.com

Signing up at Coinbase.com just requires an email address, a name and a password. You need to put the correct name on your account so you can verify it at a later stage.

If you are a non-American you will be allowed to do this step without any notification that you can’t currently buy bitcoins, instead they take your email address and name, which is nothing if not a good marketing strategy.

From here you are required to click the verification link in your email address which then takes you back to the Coinbase website, where you can then purchase bitcoins.

How to buy bitcoin with Coinbase

To buy bitcoin you link a bank account to Coinbase and then send them money to buy bitcoin at the market price. This can take a couple of days with the regulations they are upholding.

Once you have completed a transaction at Coinbase they will allow you to link a credit card to your account, which then entitles you to buy up to 1BTC per day. The layout and display of Coinbase is first-rate.

There is a 1% fee on buying bitcoin with Coinbase, which is on the high side for this type of service, but there are extra running costs in being based out of America.
coinbase bitcoin exchange

Security & customer service

Coinbase is extremely security conscious with two-factor authentication one of the examples of the lengths they go to, to make sure the first bitcoin exchange in the USA is around for a while.

They have also learnt from the past with all of their bitcoins, barring around three per cent being kept in offline storage, which secures it from hackers.

While our USA-based friends have had no trouble when using Coinbase’s customer service, there are some horror stories getting around on the Web.

The verdict

While we don’t recommend using Coinbase as a trading platform because of the lengthy waits on purchasing your initial bitcoins and then caps on buying once you have verified your card, they are an exceptional service for USA citizens.

The security associated with Coinbase and the legitimacy it receives by being based in San Franciso means they are a worthy addition to the bitcoin space.

They seem like an ambitious young company and it is likely they will seek to push their business outside the refines of the USA at some point.

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