Coinbase (business)
Coinbase is a hosted web-based eWallet used for sending, receiving, and storing bitcoin. Users can also connect a U.S. based bank account to buy and sell cryptocurrency via bank transfer.
- Not to be confused with the coinbase parameter.
| Industry | eWallet, exchange |
| Founded | June 20, 2012 |
| Headquarters | San Francisco, CA, United States |
| Founder(s) | Brian Armstrong, Fred Ehrsam |
| Website | coinbase.com |
The service aims to be the easiest way to get started with digital currency, modeled to provide an experience familiar to those who are comfortable using PayPal.
Transactions
Buy Bitcoin
Coinbase allows users to purchase a digital currency by directly transferring money from a bank account. Although the exchange rate is locked in at the time of order placement, the digital currency is not released for four business days. Verified users are allowed to create instant-purchases, which credits the digital currency to their account before the bank transfer clears.
Linking a bank account can be done using Instant Account Verification (by providing your bank account credentials) or through a Challenge Deposit method which takes 2-3 business days to complete. The bank verification process is very similar to the relevant procedure at PayPal.
Sell Bitcoin
Proceeds from selling a digital currency are sent as a direct ACH transfer to a linked bank account. The price is locked upon executing the sell and the funds arrive in the bank account in 2-3 business days.
Send Money
This feature provides the ability to send a digital currency to both email and digital currency wallet addresses. The amount of cryptocurrency sent can be determined by entering a value in either USD (converted to a digital currency based on the current exchange rate) or the digital currency. If digital currency is sent to an email address not currently registered with Coinbase, an account will automatically be created and a message will be sent to that email address prompting the user to verify the account and claim the digital currency.
Request Money
This feature provides the ability to request funds (denominated in either USD or a digital currency) through an invoice which is sent by email.
Exchange
On January 26, 2015 Coinbase announced via a blog post [1] they were launching a United States based and US regulated bitcoin exchange. The exchange located at https://exchange.coinbase.com/ allows users from select US states and territories begin trading using an order book on the Coinbase website.
Merchant Tools
Payment buttons make it easy to accept bitcoin on any website by copying and pasting a few lines of code.
Payment pages allow merchants to accept bitcoin with a hosted checkout page on coinbase.com.
Callbacks allow for instant payment notifications to a merchant's website.
Payouts allow merchants to cash out bitcoin on a daily basis through a USD transfer to a linked bank account without exchange rate risk.
Coinbase also offers an API for custom applications or merchant integrations.
Fees
There are no fees for sending, receiving, or storing bitcoin.
The fee for buying or selling bitcoin with a bank transfer is a fixed 1% + $0.15. This fee is waived on automatic sell orders made using their merchant instant-exchange functionality.
History
The service was announced on June 29, 2012 and received seed funding from Paul Graham after going through the startup incubator Y-Combinator[2].
On October 26, 2012, the service launched its method to buy and sell bitcoins using a linked bank account[3].
On December 5, 2012, Coinbase launched its Merchant Tools[4].
On May 7, 2013, Coinbase announced that it had received five million dollars in funding led by the venture capital firm Union Square Ventures. It was the largest funding round to date for a bitcoin company[5].
On July 11, 2013, Coinbase launched instant buys for fully verified users[6].
On December 12, 2013, Coinbase announced Series B funding of $25 million dollars led by the venture capital firm Andreessen Horowitz. It is the largest round of funding received by a bitcoin company[7].
On February 27, 2014, Coinbase announced that 1 Million consumer wallet accounts have been opened on their platform [8].
On May 7, 2014, Coinbase announced that they acquired the content-sharing platform Kippt. [9]
On August 18, 2014, Coinbase announced that they acquired the block explorer company Blockr.io. [10]
On January 26, 2015, Coinbase launched Coinbase Exchange - First Regulated Bitcoin Exchange in the U.S. [11]
External Links
- Coinbase.com website
References
- Coinbase Launches First Regulated Bitcoin Exchange in the U.S.
- Coinbase - Funded by Paul Graham
- You Can Now Buy And Sell Bitcoin By Connecting Any U.S. Bank Account
- How To Accept Bitcoin On Your Website
- Coinbase Nabs $5M in Biggest Funding for Bitcoin Startup
- Instant Bitcoin Purchases at Coinbase
- Bitcoin's Biggest Investment
- 1 Million Consumer Wallets
- Coinbase Boosts Team with Acquisition of Kippt Developers
- Coinbase Acquires Blockchain Explorer Blockr.io
- Coinbase Is Opening The First Regulated Bitcoin Exchange In The U.S.