What is Coinbase?
Coinbase is a cryptocurrency platform that allows people to buy, sell and store cryptocurrencies such as bitcoin. The company believes cryptocurrency is ‘the future of money and a catalyst for creating an open financial system around the world’ and wants to allow everyone to be able to participate in the cryptocurrency space.
Coinbase has over 43 million registered users in over 100 countries. It has facilitated over $455 billion worth of trades since it was founded and holds over $90 billion worth of assets on its platform.
How does Coinbase make money?
Coinbase has several income streams. Its primary revenue comes from the commission it charges each time somebody buys or sells a cryptocurrency and from margin fees. It also generates income by allowing other companies and partners to use its software.
The Coinbase platform is at the heart of the business, and this is complimented by Coinbase Pro, a distinct app targeting more advanced traders. It’s Wallet service stores cryptocurrencies for retail traders free of charge.
It also offers a Prime service that provides a turnkey solution for brokerages, exchanges and fintech companies that enables them to easily embrace cryptocurrencies, while its Custody service provides a way for them to store their cryptocurrencies in a ringfenced and independently-capitalised business. It is also empowering businesses by giving them the tech needed for them to accept cryptocurrencies as payment.
The company continues to expand into all areas of the wider cryptocurrency space in an effort to become