New updates announced today could significantly change how individuals buy and sell cryptocurrencies on the Coinbase exchange. In particular, the new Coinbase update will allow users to begin trading quicker. Additionally, customers will now have much higher daily limits on how much cryptocurrency they can purchase.
New Coinbase Update: Two Big Changes
Coinbase announced the latest update today in a statement published on the company’s website. According to the release, the Coinbase update introduces two primary changes.
The first change has to do with daily trading limits. In the past, buyers were limited to $25,000 per week. But now, that limit has gone way up. The company’s new update will allow users to purchase up to $25,000 worth of crypto every day. Coinbase pointed out that this represents a seven times increase over earlier limits.
Raising the limit isn’t the only change introduced by the new Coinbase update. Along with higher limits, the company is also changing policies related to how users transfer funds onto the Coinbase platform.
In particular, customers can now begin purchasing crypto immediately after initiating a bank transfer. Previously, a person would usually have to wait a few days for funds to post before they could start buying crypto.
This was similar for customers trying to transfer funds to Coinbase directly from a bank account. In the past, if you transferred money from your bank account, you would have to wait as long as five days for funds actually to show up. In the meantime, you would not be able to buy currencies.
But now, the new Coinbase update is changing that. According to Coinbase’s statement, customers can immediately use funds transferred from a bank account to begin buying and selling cryptocurrency.
“When someone makes the decision to sign up, they don’t want to wait days before they can start buying cryptocurrency,” the release said. “With this update, customers will receive an immediate credit for the funds being sent from their bank account. They can then buy and sell crypto to and from their USD wallet right away.”
The changes introduced by the Coinbase update are currently only for the company’s U.S. customers. Further, the increased limits and changes to bank transfers will solely be available to customers who have completed Coinbase’s identity verification process.
Additionally, these changes are not immediately effective. Instead, the company said to expect these changes to roll out over the next month or so. In the meantime, anyone who hasn’t verified their identity can do so before the updates go live.
Further, the changes introduced by this new Coinbase update won’t apply equally to all forms of customer activity. For example, if you want to use your debit card to buy crypto, you’ll be limited to $7,500 per week. Coinbase’s new $25,000 daily limit applies to direct bank transfers. Meanwhile, there are no limits on wire transfers.
Coinbase also noted that there are some limitations for customers who transfer funds from a bank account. Although the new update will allow people doing this to begin buying crypto immediately, these customers won’t actually be allowed to send funds off the Coinbase platform. In order to begin buying crypto immediately, they will still have to wait until funds have fully cleared and the bank transfer is complete. This can typically take up to five business days.
Although the Coinbase update will first roll out to U.S. customers, the company said it also plans to bring similar changes to customers in other parts of the world. This new feature though powerful comes with excitement and risk. So many users on the platform have historically caused Coinbase to freeze for 12 hours.