Coinbase, one of the premier bitcoin wallet services in the world, launched their new website design today so I am taking the opportunity to review their service and tell everybody that I think it is time to open a bitcoin wallet.
I say this not only because I opened my own, but because while the majority are still analyzing if bitcoin will be a valid currency or not, I say it is a store of value, an exchange mechanism, and a unit of account, therefore it is already a currency.
The question then is where to open a bitcoin wallet. There are many services based in many countries, but Coinbase is a very appealing alternative for the regular consumer who needs a smart and practical solution.
Coinbase is a bitcoin wallet, a place where you can buy, sell, send, and receive bitcoins, and a solution for merchants to get paid in bitcoins.
This is a description of the Coinbase bitcoin service features:
It is compliant: The company is based in San Francisco in the US and they are compliant with state and national regulations regarding financial markets and money transfer rules. This is very good in an environment where some services are struggling with regulations and some others are plain shady.
It is connected to the US dollar financial system: Coinbase makes a point of providing an easy way to handle, buy, sell, and pay with bitcoins. Their wallet account can be linked to your regular bank account and this makes it easy and secure to exchange bitcoins with dollars and vice versa and thus to transfer money between your bank account and your Coinbase wallet.
It is backed by the best VC’s and investors: The Coinbase founder team is brilliant and you can watch my interview with Fred Ehrsam here, but they also count with very strong backing of sophisticated investors like Fred Wilson’s Union Square Ventures, Y Combinator, IDG Ventures, and FundersClub. They have all expressed the reason for investing in Coinbase was the smart strategy and potential of the company and bitcoin in general.
The CoinBase Wallet:
The wallet is like an account. You have an address for the wallet that works like an email address where you can send and receive bitcoins instead of emails. As you can see in the image above, on the wallet you can buy and sell, receive and send bitcoins, track your activity and account balance, and establish recurring payments. It basically provides all the services of a regular bank account, but with the access and benefits of bitcoin and the bitcoin global network
Limits and verifications: Because Coinbase is compliant with normal banking regulations they have account limits and verification steps for you to store, buy, and sell bitcoins. When you open a wallet you can’t buy and sell bitcoins unless you verify your email, phone number, and link a bank account. Once you do this you are in level 1 which lets you buy up to 10 bitcoins and sell up to 50 per day with a 4 day settlement period. When you verify your identity and complete the first transaction, your wallet will pass to level 2 after a 30 day waiting period. In this level you will be able to buy and sell 50 bitcoins per day and the trades will settle immediately.
Sell and get paid with bitcoins:
The merchant service is as easy to use as the wallet. It works just like the PayPal buttons and merchant payment service. As you can see in the image above, the cost to get paid is 1% of the value of the transaction in dollars. If you sell merchandise or services and get paid in your wallet with bitcoins the service is free. Coinbase only charges 1% for the amounts you actually withdraw to your dollar based bank account.
We are all curious about bitcoin, how it works and its safety. For this Coinbase is the perfect solution to open your first bitcoin wallet to buy and sell, send and receive, and even get paid when you sell products and services online or offline.
Demo: The Bitcoin Wallet, Buy And Sell Bitcoins, And Get Paid With CoinBase By Co-founder Fred Ehrsam