These days, having an account on a cryptocurrency exchange has pretty much become a requirement for crypto trading. In addition, most reputable exchanges have KYC verification as a prerequisite before you start trading. Coinbase is one such exchange.
Coinbase is a platform where you can buy, sell and trade more than 100 cryptocurrencies including Bitcoin, Ethereum, and Litecoin. You need to sign up for it if you want to try the services that Coinbase offers. Creating an account on Coinbase is a fairly simple task and will not take much time if you follow the following steps.
What is Coinbase?
Coinbase is a cryptocurrency exchange created by Brian Armstrong and Fred Ehrsam in 2012. It was initially a platform for buying and selling only Bitcoin but now it hosts over 100 cryptocurrencies including ERC-20 tokens. Along with being a publicly traded company, Coinbase is also the second-largest cryptocurrency exchange with more than 108 million verified users and a quarterly trade volume of $159 billion.
What is KYC?
Know Your Customer(KYC) verification is meant to establish the customer’s identity. In other words, they confirm that a person is who they claim to be. KYC standards are meant to protect financial institutions from fraud, money laundering, tax offenses, and terror financing.
KYC generally involves ID verification and facial verification and biometric verification may also be undertaken in certain cases. It helps financial institutions comply with Anti-Money Laundering regulations and assess customer activities and the risks associated with them.
Why Create an Account on Coinbase?
Coinbase has certainly managed to distinguish itself from its peers since its inception. It is a great option for novice and seasoned crypto traders alike. But why should you sign up for Coinbase? Let’s discuss Coinbase’s defining features to help you find an answer to that question.
Publicly Traded Company
Coinbase is, in fact, the first major crypto business that went for a public listing. This essentially means that it has to maintain a certain level of financial transparency in its functioning. Coinbase is obligated to publish quarterly financial statements and get annual audits done by an independent third party.
Coinbase is one of the simplest exchanges out there. Its design is extremely user-friendly and you can comfortably complete trades on it. Even if you’re not a crypto newbie, it doesn’t mean Coinbase doesn’t have anything of value for you. Coinbase Pro has advanced features and lower fees for the more seasoned trader.
Opportunities for Earning Income
With Coinbase, you can grow your crypto assets by staking them or lending them on DeFi protocols. On Coinbase Earn, you can get as much as 5.75% APY on your crypto assets.
Coinbase keeps the majority of the cryptocurrency assets in offline cold storage. It has Federal Deposit Insurance Corporation(FDIC) insurance for USD balances and insurance in the event of a breach in the company’s system. It also employs 2-factor authentication for account security.
While Coinbase’s vulnerabilities have been exposed over the years, it has also never faced any major hacking incidents and has been quite a stable platform.
How to Register on Coinbase
You need to create an account to trade on Coinbase. For this, you need to be at least 18 years old and have a valid government-issued photo ID to verify your identity. Other than that, registering on Coinbase is not a complicated process and can be done in a few minutes.
Step 1: Go to the Coinbase website or download the Android or iOS app to get started. Click on the Get Started button at the top of the website or tap on Create Free Account on the App.
Step 3: Click on Create Free Account on the website or tap on Sign Up if using the app. Next, Coinbase will send you a verification email to the email address you registered.
Step 4: Make sure that the verification email you received came from a valid Coinbase email address. After that, click on Verify Email Address. You will be taken back to the Coinbase website.
Step 5: Sign back in using the email and password you just registered to complete the email verification process.
Step 6: Next, you will be prompted to verify your phone number. Select your country from the dropdown list and enter your mobile phone number. Click on Send Code on computer or tap Continue on mobile.
Step 7: Enter the seven-digit code sent to your phone number. Then click on Submit or tap Continue.
Step 8: Now, you have to add personal information such as your First Name, Last Name, Date of Birth, and Address. You will also have to answer questions about your source of funds, current occupation, and employer as well as the last 4 digits of your Social Security Number(SSN, for US residents only).
Step 9: If you wish to fill in these details later, you can click on Skip in the top-right corner and add your preferred payment method first.
Step 10: Check the payment methods available in your country before selecting one. For example, US customers have the option to choose between their Bank Account, Debit Card, Wire Transfer, PayPal, Apple Pay, and Google Pay while users in Canada only have the option of choosing between a Debit Card and PayPal.
How to Complete Identity Verification on Coinbase
Coinbase has made KYC mandatory in compliance with Anti-Money Laundering laws. Therefore, you have to complete your KYC verification before you can start trading on Coinbase.
Step 1: Sign in to your Coinbase account and click on the Document Verification Prompt. You will be asked to select your preferred ID type before continuing further.
Step 2: For US-based users, a State ID or Driver’s License is generally accepted while users outside the USA can upload either their Passport, National Identity Card, or another Government-issued Photo ID card. Ensure that your selected ID is valid and has not expired.
Step 3: After selecting your ID type, you have to choose an upload method. You can either upload a file from your computer, use your webcam or click a picture with your mobile phone.
Step 4: If you choose to use your phone camera, you will receive an SMS on your registered mobile number with a secure link. Open the link and take photos of the front and back of your ID.
Step 5: Ensure that you take the picture in a well-lit environment so that your ID is readable. Your whole ID should be in the frame and should not be cut off at the sides.
Step 6: Once your ID is uploaded, you will receive an email confirming whether your documents were verified or not.
How to Enable 2-Step Verification on Coinbase
2-Step Verification or 2-Factor Authentication(2FA) provides an additional layer of security to your Coinbase account besides your username and password. Most people use Google Authenticator or any other supported Authenticator app for 2FA.
As per Coinbase, any app that supports the Time-based One-Time Password(TOTP) protocol will work though it generally recommends Google Authenticator, Duo Mobile, and Microsoft Authenticator.
Step 1: Install Google Authenticator or any other authenticator app on your phone. Ensure that you have verified your phone number before starting the process. You have to use a web browser on your computer for this because the authenticator cannot be set up from the Coinbase mobile app.
Step 2: Sign in to your account and go to the Security Settings page. Here, navigate to the Other Options section and click on the Select button in the Authenticator App box.
Step 3: Enter the 2-step verification code sent to your registered mobile number and click on Confirm.
Step 4: You will see a QR code on the screen that you have to scan with the authenticator app installed on your phone. Next, enter the 2-step verification code and click on Enable.
Step 5: You will receive a notification confirming that the authenticator has been enabled on your account.
Coinbase is a cryptocurrency exchange where users can trade in different coins and tokens like traditional stocks. It is a NASDAQ-listed company and is quite transparent in its functioning. You can easily create an account for free on Coinbase and start trading.
It employs several measures including asking for Social Security Numbers and Photo ID proofs for verification of user identity. If you follow the above steps, you will be able to comfortably register on Coinbase without getting rejected at the ID verification stage.