Definition
Coinbase is a centralized cryptocurrency exchange and financial services company that provides an online platform for trading and holding digital assets. It operates as a regulated business in multiple jurisdictions, offering accounts that connect to traditional payment methods like bank transfers and cards. As a custodial service, it typically holds users’ crypto on their behalf, managing private keys and security infrastructure.
The platform supports a wide range of cryptocurrencies, from major assets such as Bitcoin and Ethereum to many smaller tokens. Coinbase also offers related products, such as mobile and web wallets, institutional custody, and tools for developers and businesses. Because of its size, regulatory posture, and brand recognition, it is often one of the first entry points into crypto for new participants.
Context and Usage
In the broader blockchain ecosystem, Coinbase functions as a bridge between traditional finance and digital asset markets. It converts government-issued currencies into cryptocurrencies and back, enabling participation in on-chain activity without requiring users to interact directly with blockchain infrastructure. Its custodial model contrasts with self-custody, where individuals control their own wallets and private keys.
Coinbase is frequently referenced as an example of a centralized intermediary in a space that also includes decentralized exchanges and non-custodial tools. Market participants may look at Coinbase listings, trading volumes, and custody services as indicators of mainstream accessibility and liquidity for specific assets. As a concept, “Coinbase” often stands in for the idea of a regulated, user-friendly gateway into the crypto ecosystem.