It is no secret that cryptocurrencies have been gaining popularity worldwide at an unprecedented rate. Many people are looking to invest in this new and exciting market, but the question remains – where is the best place to do so? One of the most popular exchanges is Coinbase, but is Coinbase legitimate? Let’s take a closer look.
Coinbase was founded in 2012 and is headquartered in San Francisco, California. It is one of the most well-known exchanges in operation today and has over 10 million users.
Coinbase allows you to buy and sell Bitcoin, Ethereum, Litecoin, and other cryptocurrencies. It also offers a wallet service for storing your coins.
Coinbase is one of the most popular exchanges because it is user-friendly and offers a high level of security. The website uses 2-factor authentication and stores 98% of customer funds offline in cold storage.
Coinbase also insures all customer funds against theft or loss.
Despite its popularity, Coinbase has faced its share of criticism. In 2017, the IRS ordered Coinbase to turn over information on 14,355 users who had made transactions worth $20,000 or more between 2013 and 2015.
The IRS was investigating possible tax evasion and money laundering. Coinbase complied with the order but many users were not happy about their personal information being shared.
Another issue that has been raised is that Coinbase has been known to freeze accounts without warning or explanation. In some cases, account holders have had their funds frozen for several weeks while waiting for a response from customer service.
This can be frustrating and cause financial hardship for those who rely on their account to pay bills or make other payments.
Coinbase has also been accused of insider trading prior to listing new coins on their exchange. In December 2017, it was revealed that Coinbase had purchased $75 million worth of Bitcoin Cash before announcing that it would be adding the coin to their platform.
This led to accusations that Coinbase employees had insider knowledge and were able to profit off of unsuspecting customers.
So, is Coinbase legitimate? Overall, Coinbase is a reputable and safe place to buy and sell cryptocurrencies. However, there have been some complaints about the company in the past.
If you are thinking about investing in cryptocurrencies, it is important to do your own research and decide if Coinbase is right for you.