Coinbase CEO Urges Clients to Invest Responsibly
The CEO of crypto exchange Coinbase has urged customers to become familiar with Bitcoin trading risks and has listed some methods for improving the trading experience. The move comes after several users complained about the exchange.
Brian Armstrong, CEO of Coinbase, has recommended that clients take note of the risks involved in Bitcoin trading. “Digital currencies are volatile and the prices can go up and down,” the co-founder of the largest crypto exchange in the US wrote in a blog post last week.
His message came amid a Bitcoin rally on Thursday and Friday, when the largest cryptocurrency hit a new record high by crossing $18,000. Armstrong said he was happy about the surge but warned investors that Coinbase could encounter issues during high trading volumes.
“Despite the sizable and ongoing increases in our technical infrastructure and engineering staff, we wanted to remind customers that access to Coinbase services may become degraded or unavailable during times of significant volatility or volume,” he wrote.
Previously, some Coinbase customers complained about delays, poor performance, and problems with signing into their accounts. Bitcoin started Wednesday at $12,000 but zoomed past $18,000 on Friday, which pushed trading volumes up.
Armstrong noted that customer service might delay some requests given the influx of clients.
He went on to add:
“Due to the rapidly changing price of digital currencies, some customers may not have sell limits that are sufficient relative to the value of total digital currency they are storing on Coinbase. Sell limits are one of the many measures Coinbase takes to protect client accounts and assets.”
The recommendation comes as an attempt to educate investors about Bitcoin volatility and trading limits set by the exchange.
At the end of the post, Armstrong suggests a few solutions to enhance the trading experience on Coinbase, among them enabling email notifications, making sure the two-factor authentication is functional, and learning the buy and sell limits.
In the last few months, Coinbase’s client roster has grown along with the price of Bitcoin. In November, we reported that the crypto exchange added over 100,000 customers in a single day, which was a record at that time.
The company, valued at $1.6 billion, got more recognition after climbing to the top of the App Store’s free applications list.