In a major boost to its users, popular cryptocurrency exchange Coinbase has introduced important changes to allow instant trading and enable higher purchase limits for its US clients. As one would expect, the instant transaction feature and other improvements will be limited to customers who have completed the identity verification process.
The US largest crypto exchange and wallet platform has increased the purchase limit from $25,000 a week to the same figure per day. Raising the threshold, which is a seven-fold increase over prior limits, would allow US customers to avoid multiple layers of approval and delays when acquiring cryptocurrencies.
Coinbase will also cancel limits to how much a client can buy or sell at a time as soon as his funds reach the startup’s wallets. After all, buying cryptocurrencies should be more convenient, rather than cumbersome.
For security and regulatory compliance, there have been limits to how much cryptocurrencies can be bought and sold via Coinbase accounts. These limits vary based on the payment method used, the account age, purchase history, and other factors.
Unfortunately, these restrictions have made transactions in many cases a very tedious and time-consuming process. For example, purchases via direct debits from a bank account can take days to appear.
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Restrictions become lighter
Also effective Tuesday, the exchange allows users to trade cryptocurrency immediately after making their purchase without having to wait five days for funds to settle.
Throughout 2017, demand for the six-year-old company’s services has soared exponentially along with the price of cryptocurrencies themselves. Coinbase had 12 million users as of November 2017. At one point, the digital currency venue added 100,000 users in just 24 hours, continuing a record spurt lasting since CME Group announced plans to launch Bitcoin futures.
Although many crypto exchanges offer similar services, Coinbase has been the go-to shop as it allows users to connect their bank accounts and thus use fiat money for transacting cryptocurrencies.
The San Francisco-based $1.6 billion digital currency exchange further explains: “With this update, customers will receive an immediate credit for the funds being sent from their bank account. They can then buy and sell crypto to and from their USD wallet right away, but cannot send their funds off the Coinbase platform until the funds coming from their bank have settled.”
The statement continued: “We’ve begun making these updates available and are now beginning to roll them out more broadly. They will be available over the next month to US customers who have completed the identity verification process with Coinbase. Customers who have not yet completed this process will be required to do so before having access to instant purchases, new trading limits and the ability to withdraw or send coins off-platform. We’ll also be working hard to bring these same improvements to our customers around the world.”