Coinbase, Exchanges

Does Coinbase Provide Liquidity?

Coinbase is a digital asset exchange company headquartered in San Francisco, California. It operates exchanges of bitcoin, Ethereum and other digital assets with fiat currencies in 32 countries, and bitcoin transactions and storage in 190 countries worldwide.

Coinbase is a leading exchange, along with Bitstamp and Bitfinex. The company has also developed an iOS and Android wallet app.

Coinbase was founded in June 2012 by Brian Armstrong and Fred Ehrsam. Armstrong is a former software engineer at Airbnb and Ehrsam is a former trader at Goldman Sachs.

NOTE: WARNING: Coinbase does not provide liquidity in the traditional sense. Coinbase provides liquidity only in the form of trading pairs and order books, which are mostly used by traders and not investors. Coinbase also does not offer margin trading or derivatives, so it is important to be aware of these limitations before investing on the platform.

The company has raised over $217 million in funding from Andreessen Horowitz, Union Square Ventures (USV), DFJ Growth, Accel Partners, Ribbit Capital, Digital Currency Group, Greylock Partners and others.

In May 2013, the company launched the US-based bitcoin exchange for professional traders called Coinbase Exchange. Coinbase began to offer services in Canada in 2015, but left the market in January 2018 after the Canadian government passed new regulations requiring cryptocurrency exchanges to follow anti-money laundering and anti-terrorist financing lAWS.

In December 2018, Coinbase announced it would list assets on its platform such as Ethereum Classic (ETC), Zcash (ZEC) and 0x (ZRX). The following month it was announced that Coinbase Custody would add support for Stellar Lumens (XLM).

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