Coinbase is one of the most important crypto platforms that helps to settle transactions in crypto coins. It acts as a wallet and an exchange platform.
This platform helps to execute the trade and transactions in the most hassle-free manner. Coinbase has a user base with millions of token holders. Layered protocols protect it. Coinbase offers an easy interface to manage transactions.
This crypto platform is compatible with other wallets and can easily connect to offer a comprehensive exchange mechanism.
You can send, receive, and trade crypto coins and tokens on Coinbase. With Coinbase, you can add funds to your wallet and use this wallet to settle trades in a hassle-free manner.
However, have you ever wondered how your bank information, such as a bank account, can be linked with a crypto account? We will find this process and understand the total time taken for the execution of this process.
What Is The Purpose Of Adding Your Bank Account?
A Bank account establishes a link between the crypto wallet and the banking interface. Coinbase offers a wallet space where users can add funds from their bank accounts.
However, before the user directly transfers this fund from the bank to the crypto account, the user needs to confirm and verify the information, such as the bank account number, name of the holder of the bank account, and type of the account.
This verification helps to avoid speculative and unauthorized transactions. The verification helps to authenticate that the information is correct and on record.
The most important reason behind verification is to confirm that the holder of the crypto account is the same as the bank account holder.
A uniformity in transactions is maintained in this way. Coinbase lets the user add this information at the beginning of the transaction itself.
When Is There A Need To Add The Bank Information?
Once you have activated your crypto wallet, you will begin trading and exchanging the crypto tokens. These tokens have to be first bought and then resold to the other holders to reap the margin, which is the profit.
The crypto wallet is empty, to begin with, initially. Coinbase allows traders to add funds to this wallet. But first, you need to add the bank account details such as the bank’s name, bank account number, bank account type, and proof of holding.
Once you add this information, Coinbase does not immediately allow you to proceed with the transaction. Coinbase verifies the information first and then allows the traders to begin trading. It takes 24 hours to verify this information.
Sometimes, this time duration can be extended beyond 24 hours as well. This mostly happens when the servers are congested with burdensome transactions. Coinbase helps to fasten the verification speed by overcoming these hurdles.
What Does It Take To Verify The Transaction?
The process of verification involves further steps as well. Once the period of 24 hours has elapsed, you will receive a confirmation link on your registered email address and mobile number.
You have to click on this link to activate and access your crypto wallet on the coin base. Once you get access to the crypto wallet on CoinBase, you will have to undertake two small payments to the credit of your wallet as a prerequisite to trading.
This step involves the transfer of small amounts to the crypto wallet. These transactions are also referred to as verification transactions.
Once the bank account is verified, it will appear in the payments section in the settlement panel. To perform the verification transactions, you will have to follow the following steps:
Step 1: Open The Wallet
As a first step, you will need to open the wallet. This wallet will show zero funds for the moment. The left-hand side will provide an option of ‘Add Funds.’ Once you click on this option, a new menu will be prompted on the surface.
Step 2: Add Funds To The Wallet
You must enter a minimum amount in the ‘enter amount’ column. Enter the amount you need to transfer to this section.
You will get a list of methods to perform this transaction. You have to select a bank account. Your verified bank account will appear, and you must select this as a mode of settlement.
Step 3: Enter Your OTP
Once you perform the transaction through a bank account, the registered bank account will send an OTP to the registered mobile number and email address.
Enter this OTP in the wallet, and the funds will be debited from the bank account and then credited to the crypto wallet. But you cannot purchase any tokens on Coinbase until and unless you have executed another set of transactions in a similar way.
Once you have performed both of these transactions, your wallet will become eligible for trading.
Bank verification should be executed as early as possible. Users must confirm these transactions by downloading the online statement produced for every bank account.
If the user comes across any discrepancy, then the transaction must be reported immediately to the help center of every bank. Until formal communication and confirmation are not received from the bank, Coinbase does not proceed ahead with the transaction.
This is a very process to begin trading on Coinbase. Bank verification can be confirmed through official bank statements and online receipts.
The history of transactions of crypto wallets is also very important in this regard. These transactions help to prove the verification in case Coinbase still does not grant permission to trade.
This information is helpful for every beginner who is new to Coinbase. The ease of performing the transactions and settling the trade on Coinbase is an important reason for the recent growth that has been reported.
Coinbase helps to deliver quick and fast execution so that every trader can have access to short-term windfall gains. These gains are established over time and transferred to the bank account.
Harry Aston is a technology writer with a Master’s in Computer Science from MIT. He has over 5 years experience simplifying complex tech topics like AI. His writing makes emerging technologies accessible for mainstream readers. Harry aims to educate people on AI’s potential to improve society.