However, this ease of use comes at the cost of sophistication. Coinbase offers educational resources and articles to help traders learn the market. This market also comes with significant and valuable resources for investors to learn how to work in cryptocurrency overall. This can quickly lead to highly complicated markets, and Coinbase’s ease of use is particularly worthwhile. This is a particularly valuable design element given that cryptocurrency, like all currency marketplaces, allows users to swap any given currency in an investor’s portfolio. Investors can easily find pricing, volume and other relevant data, and executing trades is very straightforward. However, investors will also not be exposed to the kind of risk that comes with the fraud and loose legality that often comes from the cryptocurrency market.Ĭoinbase is oriented toward the retail market, and it shows in the product’s design. As a result, sophisticated traders may not find the kind of new and emergent assets that the broader market has not yet discovered. Between fraud and legal issues, fringe cryptocurrency assets can pose an enormous risk for investors.Ĭoinbase offers a limited set of assets that have generally been vetted, and it imposes KYC (Know Your Customer) protocols that help reduce incidents of fraud. Many others exist in an area that is legally dubious at best, putting investors at risk of losing their money if the Securities and Exchange Commission or other regulatory agencies crack down on any given cryptocurrency asset. By some measures, more than one in three new tokens introduced are scams (typically fraudulent operations built to steal investors’ money by offering a non-existent product). One of the definitional problems of the cryptocurrency world is the degree of fraud and mismanagement in digital assets. For most investors, this is generally a good thing. While it has all of the tokens that most mainstream investors will trade, Coinbase only offers a very small portion out of the thousands of cryptocurrency assets on the market today. The selection of tokens for trade is simultaneously Coinbase’s biggest strength and one of its biggest weaknesses. At time of writing it offered more than 50 different currencies to trade, including all of the major cryptocurrencies such as Bitcoin, Ethereum and XRP. Coinbase is a U.S.-based crptyocurrency trading platform.
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