Date
17 November 2017
Coinbase has been developing an anti-deception system, which gauges which users have a good transaction record, and whether his or her account has sufficient funds to complete the transaction. Photo: Coinbase
Coinbase has been developing an anti-deception system, which gauges which users have a good transaction record, and whether his or her account has sufficient funds to complete the transaction. Photo: Coinbase

Coinbase launches real-time trading of virtual currency

Bitcoin has been surging recently, topping US$5,700. Following the fad, US trading platform Coinbase rolled out real-time trading, which allows users holding American bank accounts to buy real-time Bitcoin, Ethereum and Litecoin.

If the amount does not exceed US$25,000, they can obtain the digital currency at once. The trading scheme is expected to benefit 15,000 users, the Hong Kong Economic Journal reports.

Coinbase’s new head of product, Zach Abrams, said his company has been developing an anti-deception system for five years. The system gauges which users have a good transaction record, and whether his or her account has sufficient funds to complete the transaction so as to determine which group can use real-time trading.

Gemini, a trading platform operated by the Winklevoss twins, allows real-time trading of virtual currency but the maximum trading each day is US$500. Selling Bitcoin is not allowed before the payment is settled.

In the past, users would have to pass verification by depositing a small sum of money two separate times in order to buy virtual currency via Coinbase. Since Coinbase did not hold any virtual currency, before doing any trading, users had to ensure they had the ability to settle the payment.

In view of the recent fluctuation of the price of Bitcoin, the price difference can be as high as 20 percent, starting from the date of placing an order to the date of delivery. 

Coinbase earlier launched a real-time trading function – users can receive their virtual currency immediately if they pay by credit card.

Users have to pay an additional handling fee of 4 percent, making the buying cost higher than the 1.5 percent charged for a bank account.

This article appeared in the Hong Kong Economic Journal on Oct. 17

Translation by Jonathan Chong

[Chinese version 中文版]

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