Coinbase, founded in 2012, has become one of the world’s largest digital currency exchanges. Previously, the platform only supported Bitcoin as a digital currency, but it has since expanded its list to accept other known digital assets. It is a fully registered and regulated cryptocurrency exchange broker in over 100 countries worldwide. This guide will briefly explain how Coinbase works and everything you need to know about the platform’s verification process.
Intermediate Traders and Investors
The renowned U.S. firm now serves more than 56 million clients globally with more than 1,700 employees and is regarded as one of the most accessible platforms to buy and trade Bitcoin. The exchange manages more than $223 billion in assets and handled more than $335 billion in trades in the first quarter of 2021.
Coinbase has three main products: Coinbase crypto brokerage services, a professional trading platform called Coinbase Pro, and the recently launched Coinbase Prime for institutions.
It is worth noting that Coinbase is a centralized exchange platform that must adhere to worldwide financial rules, including KYC (Know Your Customer) and AML (Anti-Money Laundering) legislation. Moreover, Coinbase reserves the right to deny access to the platform or limit the number of accounts a user can set up. Therefore, customers must undergo a rigorous verification process.
We will show you how to authenticate your identity on Coinbase in this short guide. In addition, if you want to learn more about the exchange, read our in-depth Coinbase review.
- The Coinbase verification process is straightforward. It often takes only up to 15 minutes to submit all the required documents and information;
- Allow about 2-3 minutes for the verification procedure to finish;
- Coinbase Pro is a separate service provided by Coinbase that requires two forms of ID verification;
- In some specific cases, the verification can take longer than usual.
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The benefits of completing full ID verification on Coinbase
- Enhanced account security. Coinbase uses KYC as it is a method of identifying and verifying that a customer is who they claim to be. It is a multi-step procedure that aids in the prevention of the creation and use of fraudulent accounts. Thus customers feel secure when using the platform.
- Unrestricted buying and selling of digital assets. Coinbase offers three levels of verification with varying restrictions and privileges.
- Level 1, which is achieved by simply verifying your phone number and photo ID, allows you to make weekly purchases and sales across all of the payment methods, however with imposed limitations;
- Level 2, on the other hand, requires you to confirm your personal information, such as proof of your residential address, in order to unlock unlimited investments and enable wire transfers in and out of the account;
- Level 3, (the highest possible level) can be achieved by fully verifying a valid government ID, which subsequently allows the user to send and receive Cryptocurrencies on the blockchain.
- Global financial regulations compliance. Coinbase now demands every new Coinbase client and any existing Coinbase user who has never confirmed their identity in the past to enter in the identification details to continue using Coinbase. Mandatory ID verification is one way in which the platform ensures it adheres to international rules and regulations.
Additionally, ID verification can improve the security of your account by restricting who can access and alter your personal information. Important credentials, such as your withdrawing bank account information, cannot be changed once you have gone through ID verification. If you add a withdrawal method, the information must match what is currently in your account.
2-factor authentication (2FA) options
In order to enhance the security of your account, Coinbase strongly recommends setting up second-factor authentication (2FA).
Upon enabling the 2-step verification on your account, you will be required to enter a unique verification code sent to your phone in addition to your username and password. From here, the user can choose three methods to secure the account. Each 2FA offers varying levels of protection:
Security Key – very secure
A security key is a piece of physical hardware used to identify oneself by generating a one-time password. This is the most secure 2FA method since it involves the actual possession of a device. An attacker would need physical access to both your 2-step verification key and your digital information.
Duo and Google Authenticator (TOTP) – secure
These are apps that create a one-time code based on two factors: 1. Your phone’s current date and time, and 2. The secret key is known only to you and Coinbase.
Coinbase displays a QR code that symbolizes the private key, which you must then scan with an Authenticator app on your phone.
SMS/Text – moderately secure
SMS/Text authentication is a type of phone app or text-based authentication. SMS is connected to a phone number; thus, it makes you vulnerable to phone number porting attacks.
How to complete identity verification (step-by-step)
Registering for a new Coinbase account is the first step in the Coinbase Verification Process. Having done so prior, log in to your account and click the settings button in the bottom right corner of the home page.
Then select Limits and Features from the account settings menu (as shown in the picture below).
After you enter, you will be able to choose between two feature upgrades, either verifying a photo ID or confirming your personal information. However, as mentioned above, different verification levels have a varying degree of functionality.
Photo ID verification step-by-step guide
Step 1 To begin the Photo ID verification first, ensure that your ID is valid and has not expired and that it is free of any hole punches or alterations. It is critical that you do not redact, watermark, or conceal any portion of your ID. Then, click start and follow instructions. Below is the video showing the Coinbase ID verification procedure.
Step 2 Next, ensure that your ID is evident and in focus, with your first and last name, date of birth, and ID number visible. To display this more clearly, place the ID on a table or flat surface with a plain background. Then, proceed to validate your picture ID by clicking continue.
Step 3 When you get to the ID verification stage, select the sort of ID you have. After you’ve chosen your ID type, you must upload a photo of your ID. Next, pick one of the Coinbase document verification options to select your document type.
Bear in mind before beginning ID verification, Coinbase can only accept the following documents:
- State-issued IDs such as a Driver License or Identification Card
Outside of US
- Government-issued photo ID
- National Identity Card
Step 4 Then, to submit your ID document, follow the on-screen instructions. The photo must show your entire ID, with no corners or sides cut off. It’s best to snap the shot in a well-lit, glare-free setting. If possible, take the picture in natural light for the best results. Check these things once again to confirm that the photo on your ID is acceptable.
Step 4 Coinbase app is the easiest method to create a Coinbase account. Using your smartphone camera, follow the steps to submit the front and back of your ID.
Step 5 Coinbase will send a text message to your confirmed phone number. Click the link in the message and follow the prompts to use your smartphone camera to submit the front and back of your ID.
Step 6 Once you have completed the procedures, the Coinbase identity verification process is complete, and you may begin trading cryptocurrency on Coinbase.
Ultimately, Coinbase’s objective is to make the ID verification procedure as simple as possible for you so that you can start using Coinbase right away. Remember, if you have any issues when trying to complete your photo ID verification, you can contact the customer support team at support.coinbase.com.
In short, for iOS and Android devices:
- Select Settings in the bottom right;
- Tap Limits and Features;
- Choose Enable send and receive at the top. If the option is not available, go to the Coinbase document verification page;
- Select your document type;
- Follow the prompts to upload your ID document. Once all the stages are completed, the identity verification process is complete.
Intermediate Traders and Investors
Verify Personal Information step-by-step guide
Step 1 When you select the Coinbase document verification page, it takes 5 minutes to validate your identifying information, as seen in the image earlier. Coinbase requires some information, such as your legal name, home address, and DOB, and how you, the user, will use Coinbase to help protect you from fraud and identity theft and comply with federal laws.
Step 2 If you choose to proceed, you will be sent to an Enter your personal information page, where you must provide your legal first and last name, date of birth, country of residence, and identification number.
Step 3 You will be required to provide your primary residence address at this time. Once you’ve entered your house number, street name, city or town, and postcode, click proceed.
Step 4 Then you’ll be asked, under federal regulations, what you will use Coinbase for, and what is your job status?
Step 5 After you’ve completed this step, wait patiently for Coinbase to validate your identity.
Coinbase suggests using their Coinbase mobile app if you’re experiencing difficulties authenticating your ID. Any ID verification performed on your Coinbase account will also apply to your Pro account if you have one. 90% of users are able to overcome ID verification difficulties by using the Coinbase mobile app and their phone’s camera. After installing the app, navigate to Settings > Identity Verification.
Identity verification ensures that Coinbase remains in compliance with KYC/AML requirements in the jurisdictions in which it operates. Verification is critical for both Coinbase and you as a Coinbase user. It guarantees that Coinbase’s platform conforms with worldwide standards, and it increases the security and safety of your account.
As already mentioned, the operation is quick and simple, usually requiring no more than 10-15 minutes to complete. Take the time to verify your identity and address so that you can take advantage of all of the benefits that come with a fully verified account.