- Coinbase supports more than 50 cryptocurrencies.
- The exchange is equipped with theft insurance coverage and stores the bulk of its digital assets offline.
- More experienced investors can upgrade to Coinbase Pro.
Coinbase is the largest popular cryptocurrency exchange in the United States. It became the first cryptocurrency exchange to go public on the Nasdaq in 2021. It offers a broad range of services, including cryptocurrency investing, and institutional custodial accounts. The company has its own U.S. dollar stablecoin, as well as a wallet for regular investors.
Inside this review
What is Coinbase?
Coinbase was created in 2012 and is now a fully regulated and licensed cryptocurrency exchange that accepts customers from every state in the United States except Hawaii. It started with Bitcoin, but soon expanded to include other cryptocurrencies that met its decentralized requirements. Despite its popularity, Coinbase's fees are quite expensive compared to other exchanges, eroding any profits you might have made.
Is Coinbase trustworthy/safe?
Yes. Coinbase stores your cryptocurrency in its free wallet service, but you may also store it in a third-party wallet. To sign into your account, you'll need to use two-factor authentication. Biometric fingerprints and AES-256 encryption on private keys are also included.
Coinbase Inc. (NASDAQ: COIN) listed on the stock market in 2021 with one of the most successful IPOs of the year. As a publicly traded company, Coinbase must report to the market on a regular basis, providing additional transparency into the business and its operations. Coinbase is registered as a Money Services Business with FinCEN and have been advocating for the creation of a new regulatory to oversee the crypto exchange industry in the USA.
However, the Better Business Bureau has given Coinbase an "F" rating after the business failed to respond to more than 1,500 complaints.
Who is Coinbase aimed at?
Coinbase is a great platform for beginners and long term investors because of its simple interface, educational resources, and robust security measures. Coinbase and Coinbase Pro cater to different user types, with features appropriate for novice investors and active traders respectively.
Stop orders, limit orders, and margin orders are among the advanced features available on Coinbase Pro. If you're only seeking to invest a little more money in Bitcoin, simply purchase your coins, store them on Coinbase, and monitor their value over time. Coinbase and Coinbase Pro have different fee structures, with the former being more expensive and hard to understand while the latter has a maker-taker approach.
Like any exchange, Coinbase makes money by charging fees. However, unlike other exchanges, Coinbase's fee schedule can best be described as exorbitant. Investors are charged a spread and a Coinbase fee when they conduct a cryptocurrency transaction via Coinbase, such as buying Bitcoin or converting Ethereum back into US dollars.
Transactions on Coinbase are subject to a variety of fees, including margin or spread fees, as well as the Coinbase Fee. Here's a breakdown of each type:
- Margin or spread fees: Coinbase defines a margin (or spread) as a service charge of up to 2.00% added to the exchange rate on Coinbase Pro. The Coinbase-owned exchange that handles all transactions is known as spread.
- Coinbase Fee: Because there are so many variables at play, the Coinbase Fee may be rather complex. Depending on the area, product, and payment method, the user will pay a flat fee or a variable percentage of the transaction.
Coinbase offers a diverse range of investment and trading choices, with ambitions to expand the list. It has more than 60 cryptocurrencies available, including the following:
- Bitcoin (BTC)
- Ethereum (ETH)
- Cardano (ADA)
- Tether (USDT)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- Uniswap (UNI)
- Chainlink (LINK)
- Stellar Lumens (XLM)
- USD Coin (USDC)
- Polygon (MATIC)
- Coinbase Card. Coinbase has announced that its debit card, Coinbase Card, is now linked with Apple Pay and Google Pay, making it even easier to spend crypto at home and on the go while earning bitcoin rewards.
- Staking. Stake supported crypto (Ethereum, Tezos, Cosmos, etc.) on Coinbase and earn up to 5.0% APR as a reward.
- Direct deposit. Customers can now directly transfer a portion of their paycheck into Coinbase. You can invest the cash in crypto investments, earn crypto rewards, or spend it using the Coinbase card.
Pros and cons
- Coinbase provides a wide range of tradable coins, with more than 60 cryptocurrencies available for investing, trading, and staking.
- The platform has a very user-friendly design, making it one of the easiest ways to get started investing in cryptocurrencies.
- Coinbase is frequently ranked among the most liquid exchanges. In an already volatile market, this protects the investor against significant price slippage.
- The fee structure is complicated, including a spread (a premium related to the market exchange rate) and a transaction charge.
- Standard Coinbase users will be charged high fees unless they switch to Coinbase Pro.
- Limited variety of available altcoins. Coinbase provides a fair range of altcoin alternatives for beginner investors to play with, but those interested in actively trading altcoins will not find a wide enough selection in this platform.
- Gemini. One of the best-known cryptocurrency exchanges. It is well-known for its user-friendly software and ease of use for newcomers.
- eToro. This is a multi-asset platform that allows you to trade CFDs as well as invest in stocks and cryptoassets. Offers a popular social trading feature, ideal for beginner / passive investors.
- Binance U.S. Offers a huge variety of crypto trading products including staking and NFTs. Licensed by a number of regulatory bodies.
- Kraken. A top-rated cryptocurrency trading platform. Founded in 2013, Kraken is the world's fourth largest exchange by trading volume.
- Robinhood. A simplified brokerage that popularized commission-free trading. Specializes in stock, ETF, and cryptocurrency trading, but also offers crypto trading.
- Bittrex. One of the oldest cryptocurrency exchanges in the world. Its primary product is a spot trading platform that allows users to trade in three distinct crypto-based markets as well as a USD market.
Want to compare Coinbase's fees, tradable assets, and more with another exchange? Use these side-by-side comparisons.
- Coinbase vs CEX.io
- Coinbase vs Changelly
- Coinbase vs Coinmama
- Coinbase vs Crypto.com
- Coinbase vs eToro
- Coinbase vs FTX
- Coinbase vs Gate.io
- Coinbase vs Gemini
- Coinbase vs Kraken
- Coinbase vs KuCoin
- Coinbase vs Robinhood
- Coinbase vs SoFi
- Coinbase vs Webull
Is Coinbase a regulated platform?
Yes. Coinbase follows all applicable rules and regulations in any jurisdiction where it does business. In the USA, it is regulated by FinCEn and complies with regulations around AML and KYC.
Is a Coinbase Pro app available?
Yes. There is an iOS app and an Android app available in the Apple App Store and Google Play Store, respectively.
Is it possible to move money between Coinbase.com and Coinbase Wallet?
Yes, you may switch between the two items at any moment. From the settings tab of your Coinbase Wallet app, you may link your Coinbase.com account to Coinbase Wallet.
What is the location of Coinbase's corporate headquarters?
It became a remote-first firm in May 2020. As a result, the company no longer has a corporate headquarters.
How do I open a Coinbase account?
Signing up with Coinbase is a straightforward procedure:
- To begin, enter your name, email address, and desired password. After that, you'll be prompted to confirm your email address.
- Coinbase will then ask you to provide your phone number in order to obtain a verification code. Coinbase will issue 2-step verification codes to this phone number in the future. Following this, you will be asked to provide your identifying details.
- You must confirm your identity with state identification, just as you would with any bank or investment account. US users will need to provide their social security number. Your Coinbase account will be created at this point, and you will be able to enter your bank account, credit card, or debit card details to enable deposits and withdrawals, allowing you to begin trading or investing.
How do I trade with Coinbase?
Coinbase makes it easy to buy and sell a wide variety of cryptocurrencies. Those interested in trading on the platform may either buy and hold certain coins or actively trade by buying and selling (or speculating) on price fluctuations.
Coinbase's market spreads are competitive, allowing for day trading and speculation. The trading platform (or market place) is the same on the website and the mobile app, allowing traders to keep track of their positions while on the move. The first step is to build a hosted wallet:
- Select a platform that you are comfortable with. Security, simplicity of use, and compliance with government and banking laws should be your top priorities.
- Make an account. Fill in your personal information and create a strong password. For an added degree of protection, two-step verification (commonly known as 2FA) is suggested.
Once you have your wallet you can buy and sell coins, as well as speculate on price changes.
Do I need a wallet with Coinbase?
Yes. The private keys (which reflect ownership of the cryptocurrency) are stored directly on your smartphone using Coinbase Wallet, rather than on a centralized exchange like Coinbase.com. Consider Coinbase.com as a brokerage that can store your cryptocurrency for you, and Wallet as a typical cash wallet that provides you direct and total control over your crypto assets.
How do I withdraw money from Coinbase?
To withdraw money from Coinbase, you must first complete the following steps:
- Sign in to your Coinbase Commerce account.
- Click the "Withdraw" button next to the relevant coin in the Balances section to withdraw your funds.
- A popup will appear, asking how much you want to withdraw and where you want the money to go.
Coinbase is the largest cryptocurrency exchange in the United States, dealing in more than 60 different cryptocurrencies. While Coinbase's security features are appealing, crypto trading is extremely volatile, so always be aware of the risks.
Coinbase has been a popular gateway for cryptocurrency investors seeking to get started due to its simple sign-up procedure, ease-of-use, and excellent security reputation. Its fees, on the other hand, might be a big drawback. While other exchanges like KuCoin and Binance list more tradable assets, what Coinbase — and especially Coinbase Pro — offers is enough for most beginner and intermediate traders.