What Coinbase Is
Coinbase is a centralized cryptocurrency exchange. Centralized means the company holds your assets in a custodial account for you, in the same way a brokerage does: you log in, verify your identity, deposit money and trade, and the company handles the keys. It offers retail trading apps, Coinbase Advanced for more experienced traders, a self-custody wallet product, custody services and staking products.
Where It Came From
Coinbase was founded in June 2012 by Brian Armstrong, a former Airbnb engineer who went through Y Combinator, and Fred Ehrsam. It went public on April 14, 2021 through a direct listing on Nasdaq under the ticker COIN, and was added to the S&P 500 index on May 19, 2025. As of 2025 it operates remote-first with no formal headquarters, though it leases office space in San Francisco and Charlotte, North Carolina.
Base
Coinbase also operates Base, an Ethereum layer 2 network that launched in February 2023. Base is a separate blockchain product from the exchange; using one does not require the other.
Regulation
Being publicly listed and US-regulated means Coinbase's legal history is well documented. The US Securities and Exchange Commission sued the company in June 2023 over allegations about unregistered securities and staking services; that case was dismissed in February 2025. Separately, New York regulators fined Coinbase in 2023 over anti-money-laundering compliance. Which products are offered varies by country, so check availability where you live before signing up.
What to Weigh Before Using It
On any centralized exchange your assets are held by the company, so you rely on its security and solvency, and an account can be restricted or frozen under compliance rules. Fees and spreads differ between products, so compare the all-in cost of a trade before using the simplest buy button. Moving long-term holdings to a wallet you control reduces custody risk. Start small, read the project's current documentation for the exact product you plan to use, and only commit money you can afford to lose. This summary is educational and not financial advice.