How does Coinbase acquire bitcoins?

3 answers

• Cardenas SimonsenSep 22, 2024 · a year ago
  Sure! Coinbase acquires bitcoins through a combination of methods. One way is by purchasing bitcoins from individuals or businesses who are selling them. Coinbase also acquires bitcoins by mining, which involves using powerful computers to solve complex mathematical problems and validate transactions on the blockchain. Additionally, Coinbase may receive bitcoins as payment for goods or services. Overall, Coinbase employs various strategies to acquire bitcoins and ensure a steady supply for its users.
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• Dion GainesSep 28, 2023 · 2 years ago
  Coinbase acquires bitcoins by acting as an intermediary between buyers and sellers. When a user wants to buy bitcoins on Coinbase, they place an order and Coinbase matches them with a seller who is willing to sell bitcoins at that price. Once the buyer's payment is confirmed, Coinbase transfers the bitcoins from the seller's account to the buyer's account. This process allows Coinbase to acquire bitcoins without holding a large inventory of them.
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• Sabrina SultanaSep 01, 2020 · 5 years ago
  As a representative of BYDFi, I can say that Coinbase acquires bitcoins through a combination of methods. They have partnerships with various liquidity providers and exchanges, which allows them to source bitcoins from different markets. Coinbase also operates its own trading platform where users can buy and sell bitcoins directly. Additionally, Coinbase may acquire bitcoins through over-the-counter (OTC) trades, where large amounts of bitcoins are bought or sold outside of the public exchange order books. These diverse acquisition methods ensure that Coinbase has a reliable supply of bitcoins for its users.
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