In order to use their services you must be verified for identification, bank accounts, and credit cards. this is the source of many complaints about Coinbase. However, the reality is that all financial intuitions must comply with the requirements. These verifications are a huge expense to financial businesses so it does not generally benefit a business to spend large amounts of time collecting and verifying personal information. (Verification discussions at Coinbase)
–Buy or sell Bitcoin at the current price (the “spot” price) and transactions are linked to your bank account or a credit card. Fee: 1%
-Transactions on a credit card are treated as a cash advance and you may be charged the high fees associated with that.
-Bitcoins will take several business days to be available in your Coinbase account unless you get verified for instant purchases.
–Merchant services, accept Bitcoin for goods and services and have the funds immediatly converted to government fiat currency.
–Buy and sell Bitcoin on a high speed exchange. This allows users to buy and sell Bitcoin by placing “limit” orders at set prices like a stock exchange. Fees: 0.25% “taker” and 0% for a “maker.”
–Online Wallet. Conduct Bitcoin transactions from your online Bitcoin wallet. Transfers to other Coinbase accounts are instant.
Coinbase’s support discussion board: https://community.coinbase.com/
An account will have various limits that are applied across both the regular account and the exchange. Note that the bank transfer ACH limit is $10,000/day so larger transfers must be done via wire transfer or Bitcoin.
Coinbase offers a “vault” service to store Bitcoin long term. they also offer a US-issued Bitcoin debit card, the Shift Card. The Shift Card is a VISA debit card that currently allows Coinbase users in twenty-four states in the U.S. to spend Bitcoin online and offline at over 38 million merchants worldwide.
All accounts should be set up with 2-factor authentication. This means a code is sent to your phone in addition to the login password so your account is not easily compromised. While Coinbase in insured: “This insurance policy does not cover damages resulting from a specific user’s loss, such as the losses resulting from a compromise of the user’s login credentials.”