By Research Team
Bitcoin exchange Coinbase has announced the addition of instant purchases for transactions made with a U.S. bank account, enabling investors to buy bitcoin, ethereum, and litecoin instantly without having to wait for the bank transfer to clear.
Coinbase: The Crypto On-Ramp
Coinbase was the first crypto firm to earn a $1 billion valuation and remains one of the most convenient places to buy and sell cryptocurrency. For a small transaction fee, customers can buy and sell bitcoin, ethereum, and litecoin — three of the most popular cryptocurrencies — using conventional payment options such as credit cards and bank drafts. Consequently, this bitcoin exchange serves as the on-ramp for many investors into the crypto economy.
Credit card payments have higher transaction fees and a $500 purchase limit, so most investors elect to pay directly from their bank accounts. Unfortunately, customers have had to wait for the transaction to clear before they could receive access to their BTC, ETH, or LTC, a process which could take as long as a week.
Not only was this delay frustrating but it could also cost investors the opportunity to invest in an initial coin offering (ICO) since most of these events require contributors to pay with ether or bitcoin. Many new Coinbase users do not initially realize there will be a waiting period before they can obtain their crypto assets, so more than a few investors have missed an ICO because they did not place their Coinbase orders in time.
Coinbase Adds Instant Cryptocurrency Purchases
Now, however, that will no longer be a problem, because Coinbase announced on Thursday that it is beginning to roll out the ability to buy bitcoin, ether, and litecoin instantly, noting on their blog that this “has been a highly requested feature”. The bitcoin exchange will gradually expand this feature to customers with U.S. bank accounts, enabling them to place orders of up to $25,000 once they have completed all verification requirements.
This will be a welcome addition for all cryptocurrency investors, but it will also provide amateur traders with the opportunity to dabble in small-scale day trading in a less intimidating environment than a full-service order-book exchange designed for professional traders.
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Featured Image from Coinbase