Coinbase is one of the world's largest cryptocurrency exchanges. This allows individual investors and entities to trade cryptocurrencies online with relative ease, offering a number of crypto products and apps that make the process accessible and convenient. For individual users, 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 an important step if you want to start investing in cryptocurrencies as a business entity.
Before you start, understanding what the sign-up process involves will help you make sure you're ready. Learn about Coinbase Business Accounts, including an overview, pros and cons, sign-up requirements, and more.
A Coinbase business account is an account on the platform created in the name of a company rather than an individual. Businesses, just like individuals, can choose between Coinbase and Coinbase Pro account types for investing. Both accounts have the same features when it comes to security features that are essential to understand if you prioritize investing in secure cryptocurrencies. Both account types give you access to the same assets, but Coinbase Pro has more advanced trading options.
When it comes to fees, Coinbase Pro is actually cheaper. And since that is the case, it can be a wiser choice if your business operates with a large amount of capital for trading. However, keep in mind that it may take some time to understand the ins and outs of Coinbase Pro.
A Coinbase Business Account allows you to trade in your company's name and raise funds in a bank account associated with your company. One of the primary uses for this account type is institutional investing. This provides a way to differentiate between personal and professional activities. This plays an important role in things like proper reporting and financial tracking.
However, if you want to use the Coinbase Commerce platform to accept cryptocurrencies as payment for goods and services, you may also need a Coinbase Business Account. This makes it easier to track cryptocurrency payments and simplifies revenue tracking for your business thanks to its simple reporting. Additionally, you will have access to integrated features that you can place on your website to make it easier to manage your cryptocurrency checkout.
Coinbase Business Account Pros and Cons
Coinbase business accounts have several advantages. One of the main advantages is that personal and professional activities are separated. This approach not only simplifies the tracking of income and expenses, but also makes it easier for businesses to manage compliance and creates a clear space for cryptocurrency business transactions to take place.
Additionally, choosing a business account allows you to limit your personal liability. Prevent unnecessary crossover between business crypto elements and personal finance. A lack of separation can make it difficult to cope if the company faces some type of difficulty, such as litigation or bankruptcy.
The most notable drawback is the additional verification step required during the setup process. Approval for business accounts takes longer than for personal accounts, which can be frustrating if you were hoping to start investing or making cryptocurrency payments right away.
Otherwise, the accounts are functionally the same in many ways. Choosing one or the other does not necessarily give you more features or access to different assets. Additionally, whether you are a business or an individual, the costs associated with a Coinbase Pro account are low. While companies may have an easier time reaching standards for maximizing price reductions depending on their business objectives, individuals can do the same.
How to sign up for a Coinbase business account
Signing up for a Coinbase business account is a little more involved than signing up for a personal account. However, it's still pretty easy. Check out some of the main steps in the process.
First, you will need to provide certain company information. This includes at least the following:
- Corporate name
- Country and state of establishment
- Office
- Type of business
- Business content
- Number of employees worldwide
- Fund management assets
There are also some optional fields. For example, if you do business using a “Business Name”, you can list that name. However, only the fields listed above need to be filled out first.
As you move forward, you will need to select the product you are interested in. Several options are available, including Coinbase Prime, Coinbase Custody, Coinbase Exchange, and Coinbase Analytics. You should choose the option that suits your purpose for signing up. For the first two, you will also need to prove that you can meet the minimum balance requirements. It is not necessary for others.
Next, select the features you plan to take advantage of and provide a brief overview of how to use the product. It's best to be as detailed as possible in your description.
Finally, enter some contact details. This includes your first and last name, as well as an email address that is not currently associated with his Coinbase account of any kind. Also include your phone number and job title. You also have the option to provide additional contact details, such as your LinkedIn URL or other social media account details. However, these are not required. At this point, it's time to tackle the capture. Once that's done, click “Submit”. However, the process is not complete.
Finally, you need to take some additional steps. For example, it is a common requirement to verify the email address provided along with contact details. You will also need to provide proof of ownership and business registration documents. What else you need to provide will depend on the country in which you are registering and operating, but you will receive clear instructions outlining what is required.
Typically, you will begin working with a Coinbase representative at this later stage in the process. We'll help you understand what you need and submit it properly.
Once you have submitted all the correct documents, wait for your account to be approved. Exactly how long it will take depends on your situation, but once you've submitted all the necessary information, you'll likely receive an estimated schedule.
What you can do with your Coinbase business account
Once you get a Coinbase Business Account, what you can do with it will depend on the services and features you request when you apply. For example, if you have access to Coinbase Exchange, you can usually start trading right away using the tools provided.
You should check the features included in your chosen platform and features. By doing so, you will be able to fully understand what you can do with your particular Coinbase business account.
