Coinbase has grown to be one of the top bitcoin exchanges in the United States. Today Coinbase is making it easier for people to acquire the cryptocurrency by allowing American bank accounts to purchase the bitcoin.
Coinbase is allowing American bank account holders to use their banking funds to acquire bitcoins. A customer can order up to $25,000 in bitcoins and then get access to their funds almost instantly.
This in turn could bring on day trading activities within the bitcoin field. With people getting instant access to their funds just like with other trading investments, the field will become more active.
In addition to the bitcoin, Coinbase is also allowing people to buy and sell Ethereum and Litecoin currencies with their bank accounts. These two competing currencies are also traded on the Coinbase site.
The $25,000 limit was utilized to ensure that the bitcoin transaction process runs smoothly. This is also to prevent possible fraud and other criminal actions from occurring as the bitcoin moves around from one party to the next.
Easier to Acquire
Originally, people who would buy bitcoins with American bank accounts would have to wait several business days to get their currency. This was due to the extensive processing involved. The GDAX exchange that Coinbase owns could be used to trade bitcoins in real time but it uses a difficult to manage platform that is designed with larger trading groups in mind. It can take days for a bank to pre-fund an account with it as well, thus causing prospective investors to have to wait to get their currencies ready.
The procedure was also complicated for many banks to get into with some banks not knowing how to acquire bitcoins. By allowing a direct approach to buying bitcoins, it will be easier for investors to get the bitcoins that they want.
Potential Changes
The changes that could come about following this move to make bitcoin trading more viable are important to note. The digital currency industry could become more liquid as trading volume expands. This may cause the price of the bitcoin, which is already at around $5,000, to become even greater as time moves along. It may also increase the risk as the price becomes more volatile and likely to change at a moment’s notice. Potential investors will have to watch for the risks that come with this investment before they choose to utilize it.
More Profits
Coinbase is expected to become more profitable thanks to this new move. The company has already been raising large amounts of money off of the fees it charges to investors who want to utilize the service.
Earlier this year, Coinbase earned the unicorn status of being a private company with a value of $1 billion or more. This is the first company in the cryptocurrency industry to have reached this milestone.
With instant purchases available through American bank accounts, Coinbase will more than likely take in more trades and therefore more fees and commissions. This will expand upon the exchange’s position as being one of the top entities in the world of bitcoin investing.
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