Coinbase

Coinbase Review – Introduction

Coinbase is one of the world’s largest exchanges with high volume, trust and safety. This is a US-based exchange, launched all the way back in 2012. The company holds multiple regulatory licenses and approvals, and is overall considered one of the safest crypto exchanges.

In our review, we’ll tackle Coinbase features, fees, safety concerns and more.

Who is Coinbase for?

Coinbase is mainly suitable for beginners who are completely new to buying crypto, however it does also provide a decent derivatives trading experience for those looking to speculate and earn money with trading.

Is Coinbase good for first time crypto investors?

For first time buyers, Coinbase provides a solid, intuitive interface and very low fiat deposit fees through multiple payment methods. Platform’s good reputation for safety also plays a key factor, and it can be considered one of the top exchanges by safety in the industry.

New investors will have no issues buying crypto on Coinbase. The beginner-friendly interface has been improved over the years to provide a smooth process for buying Bitcoin, Ethereum or many other altcoins.

Coinbase also has other features catering to beginners, such as regular and Coinbase Pro versions. On the regular version, users can use the quick-convert feature to quickly convert one asset into another with a couple of clicks. Because this has very high fees and potentially additional spread, caution is advised, but more on that later.

Additional beginner-friendly features include ATM debit cards, letting you spend crypto seamlessly at any merchant, or withdraw cash on regular ATMs. Users can also access fiat withdrawals to cash out with low fees. On Coinbase, you can also stake assets to earn passive income, all wrapped up in a fully dark themed interface, which can be a deal breaker for some traders.

Is Coinbase good for crypto traders?

In short, no. Coinbase has the highest trading fees out of all exchanges listed on our website. In fact, the Spot market fees are so high that Coinbase shouldn’t even be listed based on our criteria. However, due to the popularity of the exchange it’s only fair to include it regardless. On Spot trading, you will pay 0.6% and up to 1.20% fee per each transaction, which in some cases is five times higher than competitors!

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For frequent traders, these fees are completely unacceptable. Even casual or long-term investors need to consider whether Coinbase is good for trading or not, because converting assets several times can take a massive amount of profits out of your hands.

It’s critical that users swap from Coinbase’s regular version to Coinbase Pro or Advanced mode. The interface in Pro will be slightly more complex to use, but the regular version will charge additional spreads alongside its already ridiculously high trading fees.

Day traders can use derivatives trading with leverage up to 20X, if supported in their region. On derivatives/futures, trade fees start at 0.4% up to 0.6%. Compared to Spot market, Futures fees are a lot lower, as is expected. However, they are still very high when compared to other exchanges.

Coinbase’s trading upsides include high volume, high liquidity, and solid amount of 280+ altcoins.

Top Coinbase features

Easy for beginners: One of Coinbase’s key strengths lies in its accessibility, making it an ideal choice for beginners entering the world of crypto. The platform provides a straightforward interface, allowing users to easily purchase popular cryptocurrencies like Bitcoin, Ethereum and others, using various payment methods including bank transfers and credit cards.

Funds safety: Security is a paramount focus for Coinbase, and the exchange has implemented robust measures to safeguard user funds and personal information. Its commitment to regulatory compliance has contributed to building trust among users and establishing Coinbase as a reliable and secure platform.

Trading for beginners and pros: Coinbase’s services extend beyond a simple trading platform. The exchange offers advanced features such as Coinbase Pro for experienced traders, enabling them to engage in more complex trading strategies. Additionally, Coinbase provides a secure wallet service for users to store their digital assets.

Get free crypto with “Earn”: The platform’s continuous efforts to expand its offering have seen the introduction of various products and services. Coinbase Earn allows users to earn cryptocurrency while learning about new digital assets, fostering a culture of education within the crypto community.

Staking: Customers can also stake assets on Coinbase for additional passive income. Those holding ADA, ATOM, AVAX, DOT, ETH, POL, SOL and other assets on Spot can receive regular yield with competitive APY (yearly returns). Unlike most exchanges, Coinbase will charge a commission on profits up to 35%, unfortunately.

Debit card: One of Coinbase’s standout features is the Coinbase Card, a standard debit card that can be used to spend your cryptocurrency seamlessly anywhere Visa is accepted. The card is available to users in United States (excluding Hawaii), United Kingdom, and most of Europe. There are no fees for spending with the card. Instead, currency conversion spreads will be charged.

Safety and security

Overall, Coinbase is one of the safest crypto exchanges in the industry. It’s been around since 2012, its corporate structure and executive team are transparent and vetted, and the company is at the forefront of regulatory compliance and innovation.

Regulatory compliance

Coinbase is compliant with all local laws in all countries it operates in, and holds multiple regulatory licenses.

• In United States, it holds 46 separate money transmitter and other licenses in nearly all states.
• In Europe, Coinbase holds licenses in United Kingdom, Germany, Ireland, and Netherlands.
• Worldwide, the company also holds additional licenses in Argentina, India, Singapore, Canada, Australia, and few other countries.

In total, Coinbase and its various companies hold more than 50 regulatory licenses and approvals, making it one of the most regulated exchanges in the world.

Asset safety

• Coinbase is the world’s largest crypto custodian trusted by many large institutions and governments.
• Proof of Reserves reports are published, proving that all customer deposits are safe and accounted for.
• Bug bounty program is available, ensuring potential security issues get reported rather than exploited. Discovering critical vulnerabilities rewards up to $1 million.
• No known major hacks or security breaches have been recorded. Known security Incidents are limited to individual account breaches through compromised 2FA keys, SIM-swap attacks, and similar.

Account safety

• 2FA (2-factor authentication) can be completed with security keys, email, authenticator apps, SMS messages, and other methods.
• Platform will send important security alerts such as login notifications or password reset requests via email, app, or SMS messages.
• Account activity such as buys, sells or transfers will also send notifications and require confirmation.
• Withdrawal whitelist is available to ensure assets can only be withdrawn to pre-approved addresses.
• Account activity is available showing all active sessions, while letting you instantly force log out of freeze your account in case of suspicious activity.
• Additional confirmation will be required when logging in from a new device or browser.
• Users can also add trusted contacts who can verify sensitive account actions such as account recovery.

In summary, Coinbase provides plenty of ways to secure customer accounts and prevent unauthorized logins or withdrawals.

Is Coinbase safe to use?

Coinbase is a publicly traded company, listed on major stock exchange markets. They’re providing cryptocurrency custody services to many other companies, and there is little doubt that Coinbase is one of the most secure exchanges.

The platform never suffered from any large hacks or had its funds stolen. Coinbase is not a scam platform and you can trust them to keep your assets safe.

As always, it’s still important to adhere to security best practices. Coinbase also provides one of the most popular decentralized wallets, letting anyone keep full custody of digital assets.

In case of any issues or problems, you can use Coinbase’s help center, which has hundreds of articles and guides about using the platform. Additionally, you can always live chat with customer support on the platform’s website.

Final thoughts – Is Coinbase a good exchange?

• Coinbase is excellent for first-time Bitcoin purchase with fiat (local currency).
  • Customers can use credit or debit cards, ACH, SEPA, SWIFT, and other bank transfers. Google Pay and Apple Pay can also be used to deposit, and PayPal is available in select territories.
  • Fiat deposit fees are industry-average compared to biggest competitors, but swap fees and spreads can be substantially higher.
• After buying crypto on Coinbase, most traders should consider transferring their cryptocurrency to cheaper exchanges. Coinbase’s high trading fees make it unsuitable for those who wish to swap assets frequently.
• When it comes to safety and security, Coinbase is undoubtedly one of the most secure exchanges you can use.

Coinbase’s combination of user-friendly design, security measures, educational initiatives, and commitment to compliance has positioned it as a leading cryptocurrency exchange. It’s one of the most known exchanges used by over 100 million customers.

Largest competitors such as Binance, Crypto.com, CEX.io or Kraken have equally cheap or even cheaper fiat deposit fees. For investors who care about every penny, these are all good alternatives for converting local currency into crypto.

Coinbase’s biggest downside are high trading fees, making it the most expensive exchange listed on Cexfinder. Paying over 1% for swapping crypto is completely unacceptable for most users. Therefore, it’s highly recommended to find a different platform for trading.

On the other hand, customers looking for a user-friendly crypto investment for a long period can certainly consider Coinbase as their go-to centralized exchange.