Coinbase bitcoin vs blockchain bitcoin: The key differences explained!

Do you own Bitcoin? Where did bought it from? Do you keep your Bitcoins in a private Bitcoin wallet? These questions are common in the Bitcoin eco-system or potentially in every digital currency system. The one who reads this blog either owns Bitcoin or else you want to buy Bitcoin. And you have checked on the internet – "How to buy Bitcoin?" Here in this article, we’ll provide you with details on,

• The difference between coinbase Bitcoin with that of regular blockchain Bitcoin.
• How to buy Bitcoin and where to buy it?
• What’s the future of Bitcoin?

Let’s see it one after the other.

Bitcoin – Coinbase & normal blockchain platform!

Coinbase is an exchange platform (People also refer to it as a hybrid wallet) where you can buy, sell, or 3exchange Bitcoins. Basically, it is considered the best exchange platform in the digital industry with a good circulation of Bitcoins. Let’s differentiate Coinbase with that of a normal blockchain,

• Coinbase owns the private key of the Bitcoin whereas, in the blockchain, it’s you who owns the Bitcoin private key.
• Well, a private key is a vital element to initiate and complete a Bitcoin transaction.
• Bitcoins transactions in coinbase wallet are made via Coinbase platform and in the blockchain, you make it directly.
• No third party involvement will be there in a blockchain but there is such involvement in the exchange platform as they make the transaction on your behalf.
• Regulations will be there in coinbase and not in the

blockchain.

There are certain differences between the two. Coinbase owns everyone’s private keys. Usually, when you buy a Bitcoin, your Bitcoins will be stored inside a digital wallet. A digital wallet is a software element where Bitcoin is sent and received securely.

The entire process is actually working through this wallet, and a private key lets this transaction work. This key is owned only by the Bitcoin owner and in the case of coinbase, it’s the exchange authority who owns your private key. Every transaction you make in the system is done actually by the exchange team, you can literally say the Bitcoin belongs to them!

The entire reserve, storage, etc. are managed by this party. As it is centralized, any violation of the regulations can lock down your account. A point of trust is the initial stage before buying the Bitcoins.

In a normal blockchain, the Bitcoins you own is directly controlled by you and only you. No external interference can be made as the private key is with you. That’s why experts advise you not to share the private key details with anyone and keep it as secret. For each transaction, a new private key is generated and make every transaction safe and secure. If an intruder gets your private key, then they can transfer or make payment using your available Bitcoins. You might have owned these Bitcoins via mining and as there are no regulations, you can make the transaction at your own risk.

The downside of blockchain with that of an exchange platform is that you’re the only person responsible for any security breakage and there is no one to blame for. And an exchange platform kind of working literally in opposite norms of blockchain i.e., blockchain offers a decentralized platform whereas the exchange platform is centralized. It’s more like – "it’s there but not there" instance.

And you obviously need an exchange platform to sell it or make a trade for other digital coins.

So, you can buy Bitcoin from coinbase and the complete security risk belongs to them. If any issues or hacking in the concerned account occur then, there is a team to question for and get back your Bitcoins.

How to buy Bitcoin using Coinbase?

In three simple steps, you can buy Bitcoins for fiat money or other cryptocurrencies.

1. Sign up as an individual or business group with the necessary details. In business type registration, you can either sign up as business investing or else as a payment module. Verify your email address, the phone number to process further.
2. Make payments via bank account or credit/debit card and provide identity proof.
3. You’re in now, just buy Bitcoins from the dashboard itself and later on, you can use the same option to sell it.

That’s how you buy Bitcoins using Coinbase.

Bitcoin and the future!

Back in December two years ago, we have seen the surge of Bitcoin price and every investor who invested in Bitcoin became millionaires. However, some predicted it as the right time to sell it and the others as the best investment time. Like a bubble, it got busted and sudden fall was seen in the market price. Later in February, two months after the surge, the prices fell down and gradually it limb back but still hasn’t recovered the surge status.

With many options and altcoins, Bitcoin is now facing high pressure, and competition is too stiff. By adopting the same technology on other altcoins, they’ve climbed up the ladders and foresee a good future. So we say,

• Check the current market value of Bitcoin
• Analyze the conditions and study it keenly
• Make predictions with facts and then make the right investment
• Use a secure and genuine platform like Coinbase to make the investment and never fall for scams
• Sell your Bitcoins once your predictions go south and believe in your instincts
• Keep yourself updated and understand the latest trends in the cryptocurrency field

I hope you’ve got a good understanding of the difference between Coinbase Bitcoin and blockchain Bitcoin. And we’ve also learned how to buy and sell Bitcoins using this platform as well as the future of Bitcoin. Voila, keep waiting for such great articles!

Dhanesh Haridas is a passionate business person having more than 10 years of experience in software development. He is the technical head (CTO) of Epixel MLM Software, a leading MLM software development company.