Coinbase, a leading digital currency exchange based in San Francisco, announced today the addition of instant bitcoin, ethereum, and Litecoin purchases available immediately on their digital exchange platform.
Prior to today’s announcement, Coinbase users were required to wait 3-5 business days in order for cryptocurrency purchases made by connected bank accounts to clear. Due to the volatile nature of cryptocurrencies prices often fluctuate up to 20 to 30 percent during the mandatory waiting period.
The addition of instant purchasing should relieve Coinbase customers who’ve been clamoring for the new feature,
“Reducing the time to receive digital currency has been a highly requested feature and we are pleased to provide this improved experience for our customers”
according to Coinbase Director of Communications, David Farmer.
The release of the new feature comes at a time when interest in and prices of Bitcoin are at an all-time high. Today the cryptocurrency soared past $5,000 setting a record price at cryptocurrency exchanges like Coinbase.
According to the company announcement, the new feature will not be immediately available to all users, but will be rolled out gradually over time.
“Instant bank purchases are now live for many of our customers in the US, and we will expand availability over the coming months. You will receive an email when instant purchases become available for your account.”
As of the time of writing, this feature was not available on my own personal account, but we will continue to update you on the availability.
Increasingly, instant purchases are a must-have feature for any modern cryptocurrency exchange. Gemini was one of the the first U.S. exchanges to offer instant cryptocurrency funding, however, they still require a mandatory waiting period before you are able to withdraw funds completely from the platform.
Coinbase's move to allow instant purchases is a testament to their confidence in the security and liquidity of the platform. Exchanges play a key role in advancing the adoption of digital currency by making it easier for average consumers to purchase and invest. Ironically, exchanges like Coinbase, have been heavily critiqued for high fees and mandatory waiting periods, two disadvantages commonly associated with fiat money and centralized banking.