Coinbase business model
Coinbase has two core products. The first is an exchange for trading the aforementioned cryptocurrencies – known as a Global Digital Asset Exchange (GDAX). The second is a user-facing platform for trading bitcoin, bitcoin cash, ether ripple, litecoin and others.
Coinbase offers accounts to potential clients for cryptocurrency trading. In total, the company offers over 25 cryptocurrencies to its users, some of which are niche opportunities referred to as ‘altcoins’ because they are not widely known in the cryptocurrency mainstream and don’t have the name recognition of bitcoin, litecoin, ether and ripple.
The company charges a commission fee for its users to use its platform and its users can trade with leverage. It has two accounts: regular and pro. The regular account charges higher commissions, while the company’s pro account has lower commission fees for users.
Bear in mind that from 6 January 2021, Financial Conduct Authority (FCA) rules mean cryptocurrency trading in the UK is only available to professional traders. But, retail traders can still speculate on the Coinbase share price rising or falling with spread bets and CFDs – once the company goes public.
