What is Coinbase

Coinbase is the largest cryptocurrency exchange in the United States by trading volume and the first major crypto exchange to go public, listing on NASDAQ under the ticker COIN in April 2021. Founded in 2012 by Brian Armstrong and Fred Ehrsam in San Francisco, Coinbase serves as the primary entry point into crypto for millions of Americans and institutional investors prioritizing regulatory compliance.

CORE PRODUCTS

Coinbase Simple (Retail): User-friendly interface for buying and selling 250+ cryptocurrencies. Optimized for new users with order book, charting tools, limit and stop orders, and lower maker/taker fees (0.00%–0.40% based on volume). Formerly called Coinbase Pro.
Coinbase Prime: Institutional-grade services for hedge funds, corporations, and family offices a, and EVM networks for DeFi, NFTs, and Web3. Coinbase One: Premium subscription ($29.99/month) offering zero trading fees, boosted staking rewards, and priority customer support.

BASE BLOCKCHAIN

In 2023, Coinbase launched Base an Ethereum Layer 2 blockchain built using Optimism's OP Stack. Base is one of the fastest-growing L2 networks, hosting thousands of dApps, DeFi protocols, and memecoins. Coinbase earns a portion of Base sequencer fees.

FEE STRUCTURE

The simple buy/sell interface charges 0.5%–2%+ per transaction. Advanced Trade fees start at 0.40% taker / 0.20% maker, decreasing with volume. Many users switch to Advanced Trade immediately to reduce costs.

COINBASE AND REGULATION

Coinbase is registered with FinCEN as an MSB, licensed in 49 US states, and regulated in multiple international jurisdictions. Its compliance-first approach makes it the preferred platform for institutional investors and users in regulated markets.

Terms in addition to the Coinbase

Blockchain

A blockchain is a subset of a distributed database. The Bitcoin inventors originally prototyped the system in 2008. This modern database is made up of separate blocks that are connected together in a chronological chain. Blockchains may be used to store a wide range of data types. It has mostly been utilized as a public ledger for bitcoin transactions to date. A peer-to-peer network comprised of independent nodes uses a consensus process to ensure the blockchain's security and legitimacy. Each node in the network keeps a public and immutable copy of the data.

2 Factor Authentication (2FA)

2 Factor Authentication is a security measure with two layers. It is used by the majority of cryptocurrency exchanges. To log in, you must provide not only a password, but also a code obtained, for example, from the Google authenticator.

Airdrop

An airdrop is a method of distributing coins. End users can typically obtain coins for free or in exchange for doing a small task, such as subscribing to a newsletter, sending a tweet, or inviting others via a personal affiliate link. Cryptocurrency airdrops — the act of depositing cryptocurrency into public crypto wallets — are utilized as a marketing, liquidity creation, and network bootstrapping technique for many different types of blockchain initiatives.

Altcoin

Altcoin - "alternative coin" - is any kind of digital currency other than Bitcoin. Since the launch of Bitcoin, the world's first digital currency, many altcoins (as well as supporting blockchains) have been created. Altcoin digital currencies share many similarities to Bitcoin, but consistently and have significant differences. There are about 20,000 altcoins, and this number is expected to grow significantly in the coming years. Altcoins often develop Bitcoin features. Ethereum, currently the most widely used blockchain, supports digital contracts and separate applications where Bitcoin does not. Altcoins are also often created to cater to the needs of different users. The Litecoin blockchain, for example, can process payments quarterly for the duration of Bitcoin.

Cold Storage

Cold storage is the way to store cryptocurrency offline. The word refers to the use of offline wallets that are not connected to the internet. Cold storage is the most secure way to keep cryptocurrencies since an offline currency becomes less likely to be hacked and stolen. Paper wallets, printed renditions of private keys, and offline hardware and software wallets are all examples of cold storage.