If you’re looking to get started in the cryptocurrency industry or are already working in the space and want to build a brand for yourself, a business account at Coinbase is a must. In this article, we’ll cover the basics of setting up a Coinbase business account and what features are available.
Here’s everything you need to know about using a Coinbase business account:
What is a Coinbase business account?
When it comes to cryptocurrency, the exchanges are the gatekeepers. They’re responsible for allowing customers to buy and sell cryptocurrencies, and they act as a sort of financial middleman between cryptocurrency holders and the cryptocurrency markets.
Coinbase is one of the largest cryptocurrency exchanges in the world, and it’s also an exchange service provider (ESP). The company provides its customers with a platform where they can buy and sell cryptocurrencies with fiat currency (i.e. traditional currency such as USD, GBP, and JPY), and it also allows its customers to trade cryptocurrencies using its proprietary platform (such as Bitcoin, Ethereum, and Litecoin).
A Coinbase business account enables you to accept cryptocurrency as payment, process transactions, and access advanced features like the Coinbase Pro platform. You can use a Coinbase business account to run your entire cryptocurrency-related business, from small side projects to full-fledged ventures.
Most people use a Coinbase business account to accept cryptocurrency as payment and process transactions, but some people use them to run their entire cryptocurrency-related business. This includes people who want to build a brand for themselves, launch their own cryptocurrency project, or provide cryptocurrency-related services to their customers.
The pros and cons of a Coinbase business account
Benefits of a Coinbase business account
There are several advantages to using a Coinbase business account.
- First, you can manage your business’s finances in one place, without having to deal with multiple accounts. This is especially helpful if you’re trying to keep track of your company’s money and you’re also trying to keep track of personal expenses like taxes.
- You’ll also be able to get access to additional features that are only available on the business account, such as direct deposit and automatic payments.
- Finally, you’ll be able to use a single email address for all correspondence with Coinbase. This allows for easier communication between the business owner and their managers or employees, which is especially important when it comes time for them to sign up for an account too!
Drawbacks of a Coinbase business account
However, commerce accounts have several drawbacks as well.
- The transaction fees are prohibitively high, especially if you’re dealing with large amounts of money.
- If you’re trying to use Coinbase as an escrow service or for other purposes that require keeping funds on deposit, a business account is going to be more expensive than an individual account.
- It’s not easy to transfer funds between accounts—especially if you’re trying to make automated transactions, like depositing money into an employee’s Coinbase wallet or withdrawing from their paycheck.
- The company has been known to freeze accounts without warning or explanation, which can be damaging to your business.
- While Coinbase does provide security measures such as two-factor authentication and an email address verification process, it’s still not as secure as dealing directly with a broker.
How to open a Coinbase business account
Signing up for a Coinbase business account is easy. Here’s how to do it: go to the Coinbase website, click on the “Account” menu item at the top of the page, and choose “Get Started” to get started. On the “Account” page, choose “Business” from the drop-down menu and click the “Continue” button. On the next page, fill out the “Business Account Information” form and choose a bank account from the “Account Type” drop-down menu.
1. Legal Entity Name: Enter the full name of your company as it appears on your business registration documents. If you do not know the exact legal entity name, enter the first three letters of your company’s name and use this as your company name.
2. Country and State of Incorporation: Select the country or state where you incorporated your business. You can choose from over 40 different countries around the world, so select from one of those options to ensure that your account is in the correct country for tax purposes and other services provided by Coinbase.
3. Place of Operation: Enter the city or town nearest to where your business operates from. This information will help us determine which tax rate applies to you—if you’re located outside of the United States, we’ll charge you less for our services than if you’re located in another country (such as Canada).
4. Business Type: We recommend selecting Sole Proprietorship in this section. This is the business structure that most closely matches your needs. In particular, it’s more flexible and easier to manage than a partnership (where both partners are liable for business debts).
5. Business Description: You’ll need to provide a brief description of your company’s mission statement and goals. This should include information about its geographic location (if applicable), its products or services offered, its customers (if applicable), and whether or not it has employees.
6. Number of Employees Globally: This question is about how many people work for your company globally. You can estimate this number by looking at similar companies in your industry and asking around; however, if there isn’t a way to get reliable numbers on demand, we recommend leaving this field blank.
7. Fund Assets Under Management: You’ll need to provide an amount of money that you have under management with Coinbase itself—the total value of all funds held by Coinbase users worldwide—in order to open an account
The Coinbase business account is the best account for small businesses to use when they want to accept crypto payments. It has low fees and minimal restrictions, so you can focus on growing your business without spending too much time worrying about day-to-day transactions.
The fact that they have an account for the sole purpose of allowing you to purchase bitcoins with fiat money is evidence that they are thinking long-term about their customer base, and how to keep them happy.
I hope this article has helped you gain an understanding of how to use a Coinbase business account.