Created in 2002 by Brian Armstrong and Fred Ehrsan, Coinbase is a world-famous trading platform that has built a credible reputation for itself and has an estimated 10 million users spread across 32 different countries. However, recently, with the introduction of Bitcoin Cash (BCH), the exchange has run into a few speed bumps, namely being accused of insider trading. There have also been a number of their users reporting errors as they try to register or log into their accounts.
The problem with Coinbase is that they only a limited number of cryptocurrencies. This often leaves the platform neglected by potential investors, since other platform offer access to more diverse trading opportunities.
The good news is that they are currently working on changes to their system which could make them the reference point for other exchange platforms. Sometimes compared to a Trojan Horse strategy, this could forever revolutionize the way that brokers serve their clients.
In only three steps, Coinbase could easily become the market leader when it comes to trading and investing with cryptocurrency.
Step 1: Become the Reference Point of Acquisition
Being an exchange that is easy to use and has guides for beginners, certainly makes it a good place for new investors to get started with cryptocurrency. In just the last few weeks, an estimated 100,000 new user accounts have been created.
With their US investors alone, Coinbase comes within inches from reaching their goal.
Coinbase also offers access to the GDAX trading platform, which is a version of its exchange dedicated to industry professionals. And, according to rumors, they will soon offer access to other cryptocurrencies such as the Monero, the Ripple and the Dash.
Slowly, Coinbase will start to become more reliable and diverse, which will eventually win the trust of traders.
Step 2: Become a Synonym of Trust
At a time where there are constantly new cryptocurrencies being released, it can be hard to win the trust of professional traders and future investors. By addressing reliability and other issues concerning the way the exchange is managed, Coinbase will be well on its way to becoming a trusted name in the world of cryptocurrency.
Unfortunately, they are still not at this point and regular breakdowns, site maintenance and long registration times are a few problems that are continue to plague Coinbase.
Step 3: Take Advantage of Security Expertise and Integrate Tradition Assets
Every exchange offers their expertise to their customers. However, for their expertise to have any weight, they must first prove themselves as reliable and trusted. Only then will customers believe in them.
In a future, where Blockchain technology is used for most of or all financial transactions, the exchange platforms with the most experience and best expertise will be the ones who dominate the markets. Coinbase is no exception, since they already have a head start in the industry.
Coinbase already has 5 years of experience in knowledge, education and private key management. And compared to traditional brokerage firms, they plan to offer more reliable services at lower costs.
Also, to help ensure their number one spot on the charts, Coinbase plans to launch a network for online mobile payments similar to Venmo, Fidelity, E-trade or Paypal. Therefore, even if traditional brokers pass on the idea of using the blockchain, Coinbase will still have an advantage.
Despite a few recent problems, the company continues to make any improvements which could help place them at number on the world stage.
Currently, the California based company is seeing its competitors in China and South Korea suffer under the weight of stricter regulations from their governments. This leaves Coinbase with an open road in front of them and a seemingly bright future.
Coinbase revealed that it recorded turnover of $1 billion last year, an amazing $2.74 million a day.
Finally, useful proof of work.
In this case, the energy used by the network is recycled. That is, it will be used for other jobs requiring high computing power. For example for medical research or other. This is what GridCoin and FoldingCoin are already doing.
It is in the interest of Bitcoin and other crypto currencies to quickly look into this problem and find solutions. There is the future of cryptocurrencies and incidentally of our planet!