Coinbase is one of the largest cryptocurrency exchanges in the world. It enables individual investors and companies to trade cryptocurrencies online with relative ease, and offers a range of cryptocurrency products and applications that make the process accessible and convenient. If you’re an individual user, setting up a personal account is usually a simple process, but creating an account for a business is a little more complicated. Still, this is a crucial step if you want to start investing in cryptocurrencies as a business.
Before you begin, it’s helpful to understand what’s involved in the registration process so you can make sure you’re prepared. Check out Coinbase business accounts, including their pros and cons, registration requirements, and more.
What is a Coinbase business account?
A Coinbase business account is simply an account held on the platform in the name of a company, not an individual. Like individuals, companies can choose between Coinbase and Coinbase Pro account types to invest. When it comes to security features, both accounts have the same features if you prioritize safe crypto investments. Although Coinbase Pro has advanced trading options, you can also access the same assets in both account types.
In terms of fees, Coinbase Pro actually costs less. Because of this, if your business has a lot of money to trade, this may be a wiser choice. However, it may take longer to understand the ins and outs of Coinbase Pro, so keep that in mind.
A Coinbase business account allows you to conduct business as a company and fund it using a company-owned bank account. One of the main uses for this account type is institutional investing. It enables you to differentiate between your personal and professional activities, which is essential for proper reporting, financial tracking, and more.
However, if you wish to accept cryptocurrency as payment for goods or services through the Coinbase Commerce platform, you may also need a Coinbase Merchant account. It makes it easier for you to track crypto payments, making it easier for your business to track revenue thanks to hassle-free reporting. It also gives you access to integrations on your website to manage cryptocurrency payments more easily.
Pros and Cons of a Coinbase Business Account
A Coinbase business account offers many advantages. One of its main advantages is that it separates your personal and professional activities. In addition to simplifying the recording of income and expenses, this approach makes it easier to manage compliance across the organization and provides a clear space for crypto business transactions to take place.
Additionally, choosing a business account may limit your personal liability. It removes unnecessary overlap between the cryptographic elements of your business and your personal finances. Without proper separation, this can be difficult to manage if your business encounters certain types of trouble, such as a court case or bankruptcy.
Speaking of downsides, the most notable is the extra verification step required during setup. Business accounts take longer to get approved than personal accounts, which can be frustrating if you’re looking to get started investing or making crypto payments quickly.
Otherwise, these accounts function the same in many ways. By choosing one, you don’t necessarily get more functionality or access to different assets. Plus, you get the lower costs associated with a Coinbase Pro account whether you’re a company or an individual. While it’s easier for a business to hit the threshold of getting the best discount, depending on their business purpose, you as an individual also have the opportunity to do so.
How to Sign Up for a Coinbase Business Account
Signing up for a Coinbase business account requires more effort than signing up for a personal account. However, it’s still easy. Check out some key steps in the process.
First, you must provide certain company information. This includes at least:
- Official company name
- Country and state of registration
- Place
- Type of company
- Business description
- Number of employees worldwide
- Funds under management
There are also some optional fields. For example, you can provide your “business name” if you operate in it. However, the fields above are all you need to fill out initially.
Moving on, you need to select the product you are interested in. There are several options, including Coinbase Prime, Coinbase Custody, Coinbase Exchange, and Coinbase Analytics. You must select the option that matches your login purpose. The first two also require you to demonstrate that you can meet the minimum balance requirements. This is not necessary for others.
Then, you choose the features you want to use and give a brief overview of how you want to use the products. When describing, it is best to be as detailed as possible.
Finally, enter some contact details. This includes your first and last name and an email address not currently associated with any Coinbase account of any kind. They will also list phone numbers and job titles. You may also choose to provide additional contact information such as B. LinkedIn URL or other social media account details. However, these are not required. At this point you solved the captcha. When done, you can click Submit. However, the process is not yet complete.
You need to do some extra steps to get things done. For example, verifying the email address you provide and your contact information is a common request. You must also provide proof of ownership and business registration documents. Exactly what else you need to provide depends on the country in which you are registered and where you do business, although you will receive clear instructions outlining what is required.
Typically, at a later stage in the process, you will begin working with a Coinbase representative. They help ensure you understand what you need and submit it correctly.
After providing all the correct documents, wait for the account to be approved. How long this takes can vary, but once you have submitted all the necessary information, you may get an estimated timeline.
What you can do with a Coinbase business account
What you can do with a Coinbase business account depends on the services and features you request when you apply. For example, once you gain access to the Coinbase exchange, you can usually start trading immediately using the tools provided.
You should review what’s included in your platform of choice and features. This way you can fully understand what you can do with your specific Coinbase merchant account.
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