Is Coinbase a Good Bitcoin Wallet?



Last Updated: January 9, 2019 at 5:12 PM EST

Coinbase is a cryptocurrency wallet with its headquarters in San Francisco, California. Coinbase also serves as a digital currency exchange and allows the purchase of cryptocurrencies like Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic and Litecoin with fiat currencies like the USD and Euro. The wallet is arguably the most popular in the world particularly because it is regarded as the most trusted in the US.

Coinbase was founded in 2012 and has never experienced any hacks or major intrusions into its security. The security record of Coinbase never getting hacked might sound ordinary to a crypto newbie, but to crypto enthusiasts, that record is quite solid.

Coinbase’s History

Coinbase has had quite a hassle-free history. It was launched in June 2012 and started services with the major cryptocurrency in circulation as at that period, Bitcoin. Four months later, the major wallet offered a service in which users would be able to buy crypto using bank transfer. Coinbase received $5 million in funding from a venture capital firm, Union Square Ventures, less than a year after its launch. In two years, Coinbase had grown its user base to one million users, and throughout the year 2014 made a series of key partnerships with established companies like Dell, Overstock and Time Inc., further pushing the Bitcoin price higher.

coinbase

Coinbase Bitcoin Wallet

Coinbase has proved to be a positive force in the digital currency space time and time again. First was the partnership with Dell which led to a rise in the price of Bitcoin. According to Statista, a renowned statistics company, users on Coinbase grew to 4.3 million users by December 2017, during the height of the Bitcoin and cryptocurrency buzz and price. At a point, Coinbase experienced an explosion in user registration, recording about 100,000 new users a day. Today, Coinbase boasts of approximately 20 million users, a number higher than the available supply of Bitcoins in the market.

Coinbase’s Influence On Cryptocurrency

During the rise of the Bitcoin in December 2017, a demonstration of Coinbase’s influence on the crypto space was demonstrated when a simple announcement of Bitcoin Cash’s impending listing on the exchange led to a price spike in BCH’s value. Bitcoin Cash, a fork of Bitcoin and relatively new cryptocurrency, experienced a tripled price increase to new levels (topping at $3,700) and an all-time high in its short 4-month history. Up till today, even though cryptocurrencies like Ripple and Ethereum have had higher market capitalization than Bitcoin Cash, none have come close to the Bitcoin fork’s price due to its relatively low supply. Litecoin’s listing on the exchange also drove the price of Litecoin up to new all-time highs in December 2017.

The Coinbase platform is very secure, with a history of trust by the public. The company has proved time and time over to contribute to leading Bitcoin and other altcoins on a bull run in the market. The wallet’s actions have portrayed intentions of goodwill towards Bitcoin and the crypto market in general. Coinbase as the exchange offers the most stable and trusted coins in the market. A wallet like Coinbase that serves doubly as an exchange and possesses these qualities should be correctly classified as a good wallet.