What is Coinbase (Exchange)?

Coinbase is one of the largest and most popular cryptocurrency exchanges in the world. It was founded in 2012 and is based in San Francisco, California. The platform allows users to buy, sell, and store various cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and others.

Coinbase offers a user-friendly interface and a range of features designed to make it easy for both beginners and experienced traders to use the platform. The company also places a strong emphasis on security, using a variety of measures to protect users' funds and personal information.

To use Coinbase, users must first sign up for an account and complete a verification process, which typically involves providing some personal information and a form of government-issued identification. Once the account is set up and verified, users can deposit funds into their Coinbase account using a bank transfer, credit card, or other payment method.

Once the funds are in their account, users can then use the Coinbase platform to buy and sell various cryptocurrencies, with prices based on market conditions and other factors. Coinbase also offers a range of trading tools and features, including limit and stop orders, as well as real-time price tracking and analysis.

In addition to its trading features, Coinbase also offers a range of other services and products. These include a cryptocurrency wallet, which can be used to store and manage various cryptocurrencies, as well as a range of educational resources and guides designed to help users learn more about cryptocurrency and how to use the platform effectively.

Overall, Coinbase is a widely respected and trusted platform for buying, selling, and storing cryptocurrencies. It offers a range of features and tools designed to make trading and managing digital assets as easy and convenient as possible, while also placing a strong emphasis on security and user protection.

Simplified Example

Coinbase is a popular platform where people can buy and sell cryptocurrencies like Bitcoin, Ethereum, and others. It's like a digital currency store where you can trade your regular money for digital money. Just like how you would go to a store to buy things like groceries or clothes, you can go to Coinbase to buy cryptocurrency. You can also sell your cryptocurrency on Coinbase and get regular money in return. Coinbase is like a digital wallet for your cryptocurrencies, where you can keep them safe and use them to buy things online or store them as an investment.

Who Invented Coinbase?

Brian Armstrong and Fred Ehrsam co-founded Coinbase in 2012, driven by a shared vision to simplify access to cryptocurrencies and bridge the gap between traditional finance and the burgeoning world of digital assets. Brian Armstrong, Coinbase's CEO, brought technical expertise honed through his background in computer science and previous roles at Airbnb and Deloitte. His passion for decentralized technologies and belief in democratizing access to cryptocurrencies fueled the platform's inception. Fred Ehrsam, Coinbase's former president, brought financial acumen garnered from his experience as a trader at Goldman Sachs. Together, they sought to create a secure, user-friendly exchange that focused on compliance, trust, and accessibility.

Under Armstrong and Ehrsam's guidance, the platform became a cornerstone in 2013 by becoming the first major Bitcoin startup to secure venture capital funding, receiving $5 million in Series A funding from Union Square Ventures. This injection of capital facilitated Coinbase's expansion and technological advancements. Subsequent years, especially 2017, marked significant milestones for Coinbase as the platform surpassed 10 million users, experiencing exponential growth amid the cryptocurrency market boom. Throughout their tenure, Armstrong and Ehrsam's leadership propelled Coinbase's evolution into a trusted and user-centric exchange, contributing significantly to the mainstream adoption and integration of cryptocurrencies into the global financial landscape.


Coinbase Exchange: Coinbase Exchange is a cryptocurrency exchange platform operated by Coinbase. It allows users to buy and sell a range of cryptocurrencies, including Bitcoin, Ethereum, and Litecoin. The platform offers a user-friendly interface, competitive fees, and high liquidity.

Coinbase Wallet: Coinbase Wallet is a non-custodial cryptocurrency wallet offered by Coinbase. It allows users to securely store their private keys and manage their cryptocurrency holdings. The wallet supports a range of cryptocurrencies, including Bitcoin, Ethereum, and ERC-20 tokens.

Coinbase Pro: Coinbase Pro is a more advanced trading platform offered by Coinbase. It is designed for professional traders and offers advanced trading features, including limit orders, stop orders, and margin trading. The platform also offers lower fees than Coinbase Exchange.

  • Exchange: Exchanges are the platform for trading cryptocurrency, allowing users to buy and sell different digital assets.

  • Centralized Exchange: Centralized Exchanges are cryptocurrency marketplaces where trading is facilitated between users by an order book maintained by aggregated order systems where the custody of deposited funds on the exchange is taken over by the company.