About Coinbase
Founded in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase.com has emerged as one of the most trusted and widely-used cryptocurrency exchanges globally. Headquartered in San Francisco, California, the platform has revolutionized how people buy, sell, and store digital currencies, making cryptocurrency accessible to mainstream users worldwide.
Platform Overview
Coinbase operates as a digital currency exchange and wallet service, allowing users to trade various cryptocurrencies including Bitcoin, Ethereum, Litecoin, and hundreds of other digital assets. The platform serves over 100 million verified users across more than 100 countries, processing billions of dollars in cryptocurrency transactions annually.
Key Features and Services
Trading Platform
The Coinbase trading platform offers both basic and advanced trading interfaces. Coinbase Basic caters to beginners with its user-friendly design, while Coinbase Pro (now Coinbase Advanced Trade) provides professional traders with sophisticated charting tools, advanced order types, and lower fees.
Security Measures
Security remains Coinbase's top priority, implementing industry-leading protection measures:
- 98% of customer funds stored in offline cold storage
- Two-factor authentication (2FA) for all accounts
- Insurance coverage for digital assets stored online
- Regular security audits and compliance certifications
- Biometric authentication options
Coinbase Wallet
The Coinbase Wallet is a separate, self-custody wallet that gives users complete control over their private keys. This mobile application supports thousands of cryptocurrencies and tokens, enabling users to store, send, and receive digital assets independently.
Business Model and Revenue
Coinbase generates revenue primarily through transaction fees, ranging from 0.5% to 4.5% depending on the payment method and transaction size. Additional revenue streams include Coinbase Pro fees, custody services for institutional clients, and various subscription services.
Institutional Services
Beyond retail services, Coinbase Institutional offers comprehensive solutions for professional traders, hedge funds, and corporations. These services include prime brokerage, custody solutions, and over-the-counter (OTC) trading for large volume transactions.
Market Position and Impact
As a publicly-traded company on NASDAQ under the ticker COIN, Coinbase has established itself as a bridge between traditional finance and the cryptocurrency ecosystem. The platform's IPO in April 2021 marked a significant milestone for the cryptocurrency industry, bringing increased legitimacy and mainstream attention to digital assets.
Regulatory Compliance
Coinbase maintains strict compliance with financial regulations in all jurisdictions where it operates. The company works closely with regulators and holds various licenses, including a New York BitLicense and registration as a Money Services Business (MSB) with FinCEN.
The platform continues to expand its services and geographic reach, regularly adding new cryptocurrencies and features while maintaining its commitment to security, compliance, and user education. For the latest updates and services, visit www.coinbase.com.