Coinbase Launches Instant Exchange to Eliminate Volatility Risk

Bitcoin Company Coinbase Launches Instant Exchange to Eliminate Volatility Risk

Bitcoin wallet service provider Coinbase today announced the launch of Instant Exchange, a feature that will enable users to transfer Bitcoin while eliminating the risks associated with price fluctuations.

In a blog post today, Coinbase said,

Coinbase has long offered merchants the ability to automatically convert received bitcoin into their local currency, and now Instant Exchange is available to anyone with a local currency wallet.

In this latest offering, the Bitcoin company will provide two new features:

  1. Instant Exchange Send

This option allows users to send Bitcoin and pay for the sent value in local currency from the same page. Upon receiving the request, Coinbase will execute an instant buy order in the background, and funds will be deducted from the user’s local currency wallet. The user will simply have to select his local currency wallet from the new send screen.

A pictorial representation of the method has been presented below:

  1. Instant Exchange Receive

A similar but an opposite procedure is followed when receiving Bitcoin. As the user initiates a receive Bitcoin query, Coinbase will execute an instant sell in the background. This background operation will credit funds to the user’s local currency wallet.

A user will have to click on the “Instant Exchange” link in his local currency wallet to receive Bitcoin. This action will bring forth his Bitcoin address, and any Bitcoin sent to this address is automatically sold and credited to the user’s local currency wallet.

Coinbase users with USD, EUR, and GBP wallets can begin using Instant Exchange today.

We’re excited to offer these simple tools which will allow Coinbase users to realize the fast, cheap and global nature of bitcoin payments without exposure to bitcoin price changes, said the post.

Readers are advised to visit the support page for more information about Instant Exchange and the Standard Conversion fee.

The company has also provided an easy demo of the entire process which can be viewed here.

Image: Coinbase

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