AN OVERVIEW OF COINBASE

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Coinbase is a platform that makes it easy for users to send, receive, trade, and store a wide variety of cryptocurrencies. In this article, we examine Coinbase's features and appreciate why it is ranked as one of the biggest crypto-broker exchanges in the world.

TL; DR

  • A large assortment of cryptocurrencies, an intuitive interface, and useful teaching materials are all features of Coinbase. It also provides cutting-edge trading tools for more seasoned cryptocurrency investors.
  • The mobile application and browser extension for Coinbase Wallet both support Ethereum and any EVM-compatible networks. Anyone can manually add more EVM-compatible networks in addition to those that are already enabled in Coinbase Wallet.
  • To assist its consumers in getting their fiat money into the site to acquire cryptocurrency, Coinbase also provides a good selection of payment options. In addition to SEPA transactions for European nationals, they also include bank transfers, debit and credit cards, and even PayPal.

WHAT IS COINBASE?

Source: Coinbase

Coinbase is a popular online cryptocurrency trading and investment platform that enables its users to buy, sell and hold thousands of tradable crypto assets including  Bitcoin, Ethereum, BNB Litecoin, Ripple, Cardano, and Dogecoin.

Source: Coinbase

To enable anyone to buy, trade, spend, save, and earn cryptocurrencies, Coinbase yearns to establish itself as the most dependable and user-friendly supplier of financial products in the cryptosphere.

Its goal is to create a more equitable, decentralized, and transparent financial system while lowering the barriers to entry into the crypto economy.

OVERVIEW AND HISTORY OF COINBASE

Coinbase was established by a former technical product manager at Airbnb, Brian Armstrong in June 2012. Armstrong was given a $150,000 financial injection when he signed up for the Y Combinator startup development program. Later on, a veteran trader for Goldman Sachs named Fred Ehrsam joined as a co-founder.

When Bitcoin was still in its infancy, Armstrong took a front-row seat and was determined to address the issues that were hindering mass acceptance. Back then, it required a wallet, which was clunky and challenging to operate. It was also very difficult to acquire Bitcoin and individuals often had to purchase them from proxies who occasionally turned out to be swindlers. Also, because the currency was so new, few businesses were willing to accept it as a means of payment thus, making it difficult to spend.

Brian Armstrong (source: Fortune)

Armstrong understood that a user-friendly wallet was the key to gaining mass support for bitcoin and he was determined to make that a reality. Armstrong crossed paths with a British programmer named Ben Reeves, who maintained the 'Blockchain.info' website for tracking bitcoin transactions and had even created a wallet that 10,000 users had tested out. Reeves shared the same views with Armstrong and was initially intended to be a member of the Coinbase founding team but broke up his relationship with Armstrong soon before the Y Combinator financing event owing to their divergent opinions on how the Coinbase wallet should function.

The launch of Coinbase's services was announced on October 8, 2012. The business concentrated on making it easier to buy and sell bitcoin through bank transactions. Coinbase introduced Coinbase Exchange, a bitcoin exchange for experienced traders, in January 2015. Then, in May of the following year, it was relaunched as Global Digital Asset Exchange (GDAX), and then, in 2018, as Coinbase Pro. Institutional clients are catered to by Coinbase Prime, another division of the company's cryptocurrency trading platform which was introduced in May 2019. By September of that year, the business had teamed up with Circle and Bitmain to develop USDCoin, a stable currency tied to the US dollar.

In May 2020, at the zenith of the Covid-19 outbreak, Coinbase changed its business model and as a result, it was among the first set of businesses to adopt a completely remote work structure void of a central operations center. Coinbase introduced a Visa Debit card program in October 2020. The corporation claimed a nine-fold growth in first-quarter sales in 2021 despite certain regulatory obstacles faced during that period and went on to become a publicly traded cryptocurrency corporation on April 14, 2021, when its shares were listed on the Nasdaq market.  

Recently, Coinbase's shares have been performing rather poorly. As at the time of writing,  Coinbase stock sold for $71.97, and according to Forbes, it is down about 77% this year.

WHAT MAKES COINBASE UNIQUE?

The main reason for Coinbase's fame is that it operates an exchange for digital assets. Users like Coinbase for  its user-friendly design, instructional resources, and robust security measures.

According to Coinbase, 98% of client cryptocurrency is kept in cold, offline repositories and the remaining 2% is utilized to enhance trade volume. Additionally, the platform has insurance to safeguard its cryptocurrency assets.

Source: Coinbase

However, in addition to trading cryptocurrency, the firm also serves as a platform for developing cryptocurrency apps, a decentralized financial network, and an investment vehicle.

With a variety of solutions suited to both novice and experienced users, Coinbase has the remarkable chance to compete in a sizable and quickly expanding industry. In addition to Coinbase, Coinbase Wallet, and USDcoins, Coinbase also provides goods for private consumers. In addition, it offers developer services like Coinbase Cloud, Coinbase Connect, and WalletLInk as well as business-focused platforms like Coinbase Prime and Commerce.

One of Coinbase's key focuses is its Coinbase Wallet which was released in 2017 and currently has millions of users, making it one of the most downloaded cryptocurrency applications.

WHAT IS COINBASE WALLET?

Unlike Coinbase, which is centralized, Coinbase Wallet is a decentralized and non-custodial wallet that enables users to easily buy, store, and exchange cryptocurrencies, NFTs, and other digital assets. Crypto-asset lending and other innovative features are also made possible through the Coinbase wallet.

Source: Coinbase

Note: Coinbase's offering for anyone wishing to purchase or trade cryptocurrencies is the Coinbase app which is available for both iOS and Android devices, and also accessible via coinbase.com Users may save or manage their cryptocurrencies, and use the dApp browser to surf the decentralized web using the Coinbase Wallet, which is a distinct, stand-alone software that is also available for both iOS and Android devices and as an extension in the chrome web store.

With the help of Coinbase Wallet, users can access a variety of decentralized innovations, including the ability to buy and store ERC-20 tokens, take part in airdrops and ICOs, collect rare digital artwork and other collectibles, browse decentralized apps (dApps), shop at merchants that accept cryptocurrencies, and send cryptocurrency to anyone in the world.

IS COINBASE WALLET SAFE?

Coinbase has a respectable track record and strong security procedures in place to safeguard the funds users deposit with them. Thus it is renowned for its ironclad security as it has never been hacked or experienced a data breach.

Support for Ledger hardware wallets is available through the Coinbase Wallet browser plugin. Since you need your actual wallet to approve transactions, this optional feature adds an extra degree of protection.

Utilizing Coinbase Wallet is risk-free, and the firm's industry-leading security measures safeguard your digital assets. When configuring your wallet, you have the choice of utilizing a password or biometric authentication. Hence, the security of your devices, passcodes, and recovery phrases all play a significant role in ensuring the security of your funds since you are in charge of your Coinbase Wallet.

HOW TO GET STARTED WITH COINBASE WALLET

To get started with the Coinbase wallet, you need to download and install the mobile application on your iOS or Android devices, or set up the chrome extension on your PC.

The next step is to establish a new wallet, which can be done quickly owing to the Coinbase wallet's ease of use. You will be prompted to "create a new wallet" or import an existing one when you use the app for the first time. Since we are just getting started, we will select the "create a new wallet" button.

Source: Coinbase wallet

Note: Using a 12-word recovery phrase, you may import an existing wallet from a different wallet provider, such as MetaMask, Trust Wallet, or even a different Coinbase Wallet. All you need to do is click on the "I already have a wallet" button.

After clicking on the 'create new wallet' button, you will be prompted to select a username with which you will use to interact with other users. If you want other users to be able to search for your username, simply select the check box right before you submit.

Source: Coinbase wallet

Next, you will be asked to back up your wallet. This is a very important step as your recovery phrase holds the key to your wallet.

Note: Your recovery phrase must be safeguarded at all costs as anyone with your recovery funds can gain access to your funds. Also if you lose your recovery phrase you will not be able to gain access to your wallet and Coinbase cannot recover it for you.

Coinbase has a feature that lets you backup your recovery phrases to your iCloud or Google Drive depending on the operating system of your mobile device. We highly recommend that you utilize this feature by clicking on the "backup to iCloud" button or the "backup on Google Drive" button depending on your device.

You can also choose to back up your recovery phrase manually. To do this simply click on the "backup annually" button and copy out the recovery phase and save it in a secure place.

Source: Coinbase wallet

Next, you'll need to agree to the terms and privacy policy by clicking on the checkbox, then proceed to add an extra layer of security to your wallet. You can choose between biometrics and passcode as your chosen security approach.

Source: Coinbase wallet

Now your Coinbase wallet is ready to use, you can then proceed to fund it with any digital asset it supports.

HOW TO FUND COINBASE  WALLET

There are two ways to fund your Coinbase wallet, either you buy crypto from Coinbase and transfer it to your wallet, or you transfer or receive it from another wallet.

Let's take a look at these methods in detail:

  • Buying or transferring from Coinbase

If you have a Coinbase account, you may buy cryptocurrencies there and have them sent to your wallet. Nevertheless, if you don't have an account you can easily create one in easy steps.

To get started, click on the "add crypto" button or click on the "buy" button in the top left corner.

Source: Coinbase wallet

Next, you will be prompted to connect to your coinbase account. If you already have an account, click on the "connect my coinbase account" button, and follow the prompt.

Source: Coinbase wallet

If you do not have a Coinbase account, click on the "Sign up for Coinbase" button and follow the prompts to create a new account.

Click on  "Buy or transfer" from the success prompt you will receive once your Coinbase account has been connected to your Wallet application. Then decide which asset you want to acquire or transfer, and then input the amount you want to transfer.

Source: Coinbase wallet

To complete your purchase, choose an existing payment method, or click "Add debit or credit card"

If you already have some crypto in your Coinbase account you can simply transfer them to your wallet without having to make another purchase.

  • Transferring or receiving funds from another wallet

This method is similar to the process for funding the most popular wallets. To begin, click on the “Receive” button on the top section of your wallet home screen.

Source: Coinbase wallet

Next, choose the network or asset you want to get. It is important to mention that any ERC-20-compliant tokens and EVM-compliant chain tokens, including Avalanche, Polygon, BNB Chain, etc., may be received using your Ethereum address.

Source: Coinbase wallet

Now input your receive address into the wallet you want to send the cryptocurrencies from using the QR code or by copying and pasting it.

Source: Coinbase wallet

Following the completion of the usual transaction confirmations, your assets will be visible in your wallet.

HOW TO CONNECT TO DAPPS ON COINBASE WALLET

Coinbase is home to a world of decentralized applications (dApps), It's simple to browse and bookmark your preferred decentralized applications using Coinbase Wallet.

By selecting the Browser tab in your Wallet app, you can find the best dApps in categories including DeFi, Social, Gaming, and NFTs.

Source: Coinbase wallet

If you have a particular dApp in mind, you can easily discover the website in the search results, just enter the dApp's URL or name in the address bar.

Source: Coinbase wallet

Via its dApp browser, the Coinbase Wallet makes it simple to keep track of your holdings while exploring and accessing the world of decentralized finance (DeFi).

HOW DOES COINBASE COMPARE TO METAMASK?

Both MetaMask and the Coinbase Wallet were intended to be simple to use. These two cryptocurrency wallets are great for new users that want a simple method to connect with decentralized applications using the simplest self-custody wallet.

MetaMask and Coinbase both support all EVM compartiple networks. Thus, users have options for the kinds of assets they may store and the number of blockchains they can communicate with thanks to this.

Additionally, despite Coinbase Wallet's connectivity with several blockchains, it is still unable to match MetaMask's ability to link with every decentralized application in the Ethereum ecosystem.

Given that both MetaMask and Coinbase wallet offer distinctive features, the final decision will be based on a user's preferences and unique demands.

FINAL THOUGHTS

In conclusion, if you're searching for a solution to safely keep your crypto assets, ease and accessibility are two of the most crucial things to take into account when choosing any wallet.

If you want to seamlessly send and receive tokens, explore decentralized applications and enjoy the power of the safest and most scalable layer one  blockchain (Aptos), then you definitely should try out the Pontem Wallet. Aptos is still in devnet, but you can already install Pontem Wallet from the Chrome Web Store.

Aptos is perfect for cryptocurrency transfers and decentralized finance since it can complete up to 160,000 transactions in one second, has sub-second finality, and incurs almost no fees.

The gateway to the Aptos ecosystem and the rest of web3 is the Pontem wallet, and it is available as a browser extension, which you can easily install by clicking on this link.

ABOUT PONTEM

Pontem is a product development platform that enables global financial inclusion through blockchain technology. As a result of its partnership with Aptos, Pontem can create the foundational dApps, EVMs, AMMs, and other infrastructure needed to adopt its layer one blockchain.

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