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Coinbase is one of the biggest names in the crypto industry. Founded in 2011 by former Airbnb engineer Brian Armstrong, Coinbase is a leading crypto exchange platform, with it operating in more than 100 countries and offering 21 different blockchain-related products. As a publicly traded company, Coinbase was valued at $86 billion last year, making it a key choice of investment for those who want to put their money in crypto companies.
Coinbase’s growth is indicative of the confidence crypto enthusiasts have in the company. In addition, it has also been able to maintain its dominance in the Bitcoin trading market by holding more than 50 percent of the share in all Bitcoin transactions.
Cryptocurrencies are quickly gaining traction across the world — and crypto exchange platforms like Coinbase have definitely helped usher this financial revolution. FXCM highlights how most trading platforms today make it extremely easy to access cryptocurrencies — all a user needs to do to start trading is to complete an online application, log in to the portal, and deposit funds. Coinbase utilizes the same straightforward onboarding process and elevates it by securely verifying the user.
Before being able to trade cryptocurrencies, a person needs to input a valid government-issued photo ID, answer a series of security questions, as well as verify their identity and link their bank account. Furthermore, Coinbase employs a two-step verification method that prevents unauthorized account access. The aforementioned security features have been pivotal to the success of Coinbase, since the company exists in a high-stakes industry that is often targeted by malicious cybercriminals.
Aside from catering to crypto traders, Coinbase has also tapped into institutional investors like hedge funds, asset managers, and pension funds. Coinbase’s “Custody” product has allowed institutional investors to trade crypto-assets such Litecoin, FTX token, and Polkadot.
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Coinbase’s dedication to compliance has also been a key driver of its success. The company has been able to stand out amongst other exchanges by spending significantly on licenses and compliance — so much so that it has complied with state-by-state money transmission laws and is one of the few companies that has acquired a New York Virtual Currency license. Moreover, Coinbase has strived to work together with law enforcement. Apart from employing stringent identity verification procedures, Coinbase also observes regulations such as AML (anti-money laundering) and KYC (know your customer). It also monitors the crypto assets that go through the platform.
Strong security, ease-of-use, regulatory compliance, and emphasizing investment have established Coinbase as a superior crypto company. In order to further outrun competitors like Binance and Bitforex, Coinbase continues to explore relevant opportunities and expand its core businesses. The company plans to add more assets to the platform and strengthen its wallet feature, which has been a key driver of customer growth and retention. Aside from supporting coins, Coinbase’s wallet will soon support NFTs and decentralized apps, making it a great entry point for users who are interested in other crypto projects.
It’s not enough for crypto companies to only focus on putting out innovative products. Crypto companies and start-ups that want to dominate the industry should try to mirror Coinbase’s strategy and give more attention to compliance, security, and user experience. Doing so may even enable them to make a strong debut on Wall Street down the line.
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