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Pros, Cons, & Overall Rating


With so many cryptocurrency exchanges in the world, it is difficult to figure out which crypto exchange is the best.  Let’s pay attention to one of the oldest & safest crypto exchanges in the world, Coinbase. In this Coinbase exchange review, you will get to know everything related to Coinbase fees, security, App, and other features and then, you will be able to determine, whether this exchange is good enough for you. Let us dive into Coinbase.

Overview

Official Web Address https://www.coinbase.com/
Headquarters No Headquarters – Virtual Company
Founder Brian Armstrong and Fred Ehrsam
Exchange Type Centralized
Trading Options Spot Trading, Margin trading, Derivatives Trading
Trading fees 0.40-0.60% (Coinbase fees are based on Maker-taker Model)
Trading pairs 500+ crypto-to-crypto trading pairs
Native Token no native token
Deposit methods ACH Bank transfer, bank wire transfer, PayPal
Deposit fees No charges
Withdrawal methods SEPA withdrawal, USD wire transfer, USD ACH transfer
Withdrawal fees 1%
Supported Countries 100+
Restricted countries 7+
Supported Fiat currencies USD, GBP & EUR
Mobile App Google Play store & Apple App store

What is Coinbase?

Coinbase global, Inc known as Coinbase is one of the largest U.S based centralized exchanges which embarked on its journey in June 2012 with the mission of creating an open financial system for the world. It is a decentralized organization with no physical headquarters. Previously, San Francisco was their headquarters but they closed it down and became a ‘remote-first’ organization in the wake of COVID 2020.

The founders of this centralized exchange are Brian Armstrong, a former-Airbnb employee, and Fred Ehrsam. They built this platform initially for Bitcoin investment and trading, but additional services were added along the way.

It became a publicly listed company in the U.S. by directly listing on NASDAQ. On the launching day, Nasdaq had given a reference value of $250 per share but it closed at $328.28 per share, giving it a market value of $85.5 billion. As time went by, the share value considerably decreased due to market fluctuations and is now traded at $53.2, giving a market value of $13.9 billion

The Coinbase fee is calculated based on trading volume and Maker-taker position. The Maker Fee is in the range of 0.40-0.00% & the taker fee is in the range of 0.60-0.05%

Coinbase has now 108+ million verified users. It offers 158 coins and  447 pairs. The quarterly volume traded is $159 billion. It has Twitter followers of around 5.4 M and more than 4700 employees.

Timeline of Coinbase

  • 2012 – Coinbase was founded
  • 2013 – Received “Series A round” investment of $5 million.
  • 2014 – Grew into 1 million users for crypto trading.
  • 2015 – Launched U.S Based Bitcoin exchange for professional traders called Coinbase Exchange
  • 2016 – It rebranded Coinbase exchange to Global Digital Asset Exchange (GDAX)
  • 2017 – Coinbase obtained BitLicense & License to trade in Ethereum & Litecoin
  • 2018 – GDAX was rebranded as Coinbase Pro. Coinbase Ventures was founded to support Blockchain and cryptocurrencies start-ups
  • 2019 – A major security hack was blocked by the Coinbase team and no cryptos were stolen
  • 2020 – Became a decentralized company by fully opting for remote-first operation in the wake of COVID
  • 2021 – Became a Public Company on NASDAQ via Direct Listing with a share value of $250
  • 2022 – Launched in India but had to cease operations due to RBI regulations

Features

  • Trading Accounts: Coinbase has different account versions like Coinbase for beginners, Coinbase Pro – for professional traders (advanced trading/ Futures trading) & Coinbase Prime for institutions, Asset Managers, and High Net Worth Individuals
  • Trading fees: Coinbases uses the maker-taker fee model to determine the trading fees. Additional fee factors include selected payment method, order size, volatility & liquidity. 
Taker Fee Maker Fee
Normal Trading 0.05-0.60% 0.00%-0.40%
Stable Pair Trading 0.01% 0.00%
  • Payment methods: There are several types of payment methods that you can link to your Coinbase account. They include bank transfers (ACH), SEPA, credit/debit cards, wire transfers, PayPal, Apple Pay & Google Pay. 
  • Security: 98% of the users’ crypto funds are stored offline through cold wallets. There is less chance of hacking where only 2% of the funds are stored in hot wallets for liquidity.
  • Learn & Earn: You can earn free crypto through Coinbase by learning about the new cryptocurrencies. It consists of videos/ educational resources and you have to pass the test to earn free cryptos.
  • Staking – You can earn simply by crypto holdings and enable staking with a few clicks. Coinbase has made the process so simple that you don’t need any technical expertise in cryptocurrency investing.

Coinbase Exclusive Features

  • Coinbase Card: It is a debit card where you can spend in crypto & also can earn in crypto as cashback by using this card.
  • Coinbase Custody: Launched in 2018 to address security, regulatory and operational challenges posed by the crypto market. It’s like a bank aimed at providing custodial accounts for institutional-grade investors like asset allocators, endowments, foundations, pension funds & family offices. It can be also paired with staking
  • Coinbase Wallet: You don’t need to have a Coinbase account to use a Coinbase wallet. You cannot directly connect your Coinbase wallet to your bank account. It gives you a wide choice of DEX, where you can buy and store ERC20 tokens, collect NFTs, take part in airdrops, ICO, and much more.
  • Coinbase Status – This is a Coinbase website page to communicate any issues with its products including planned and unplanned outages.

Cryptocurrencies Available on Coinbase

This crypto exchange supports the trading of over 100 cryptocurrencies and regularly puts new coins on the list. There are too many to list here, so here’s a glance at some of the most popular currencies on Coinbase:

  • Bitcoin (BTC)
  • Polkadot (DOT)
  • Uniswap (UNI)
  • Ethereum (ETH)
  • USD Coin (USDC)
  • Litecoin (LTC)
  • Cardano (ADA)
  • Dogecoin (DOGE)
  • Shiba Inu (SHIB)
  • Solana (SOL)
  • Algorand (ALGO)
  • Stellar Lumens (XLM)
  • Polygon (MATIC)
  • DAI (DAI)
  • SushiSwap (SUSHI)

To view, the full list of cryptos click here for more options

Please note that this cryptocurrency trading platform doesn’t have a native coin/ token. However, the USD coin (USDC) is a coin that Coinbase helped build with Consortium called Centre. 

How to Set up a Coinbase Account?

Let us explore the steps to open a new account

  1. Go to Coinbase.com. Click on [Get Started].
  2. Enter the details like your name, Email & password.
  3. Agree to user agreement and policy.
  4. Click on the link which is sent to your Email and get started.
  5. Set up two-step verification by adding your current phone number.
  6. Whenever you sign in on a new device it sends you a code to verify it’s you.
  7. Tap on ‘send code’. Enter the code and click on ‘Submit’.
  8. Verify your identity by uploading the necessary Photo ID documents
  9. Link your payment method depending on your country
  10. You are now set to buy crypto

Once you open an account, you can apply for a coinbase card which will allow you to spend in cryptos

How to verify your identity?

https://youtube.com/watch?v=G2ZW5hDrDEg%3Fstart%3D10

How to Buy Cryptocurrency on Coinbase?

  1. Sign in to your account and verify the code.
  2. Go to the Buy/sell option located at the right side of the top navigation bar. 
  3. Click on the ‘buy’ field in the box.
  4. Select the currency you want to buy. 
  5. Choose your payment method. eg: – visa debit card
  6. Click on ‘Preview Buy’.
  7. Click on ‘Buy now’ to complete your buy.

How to add crypto to your Coinbase wallet?

https://youtube.com/watch?v=-o7_23LOUFM%3Fstart%3D10

How to Sell Cryptocurrency on Coinbase?

  1. Go to the dashboard of Coinbase. Click on Buy/Sell option on the top.
  2. Select ‘Sell’. Fill in the crypto you want to sell.
  3. Enter the amount and tap on ‘Preview Sell’.
  4. Choose the bank account you’d like the funds to be sent. 
  5. Click on ‘Sell now’ to complete the process.
  6. After this process, your funds will be transferred to your local wallet.

How to Deposit Cryptocurrency on Coinbase?

To deposit cryptocurrency (digital assets) on Coinbase Exchange:

  1. Sign in to Coinbase Exchange.
  2. Click the Trade tab.
  3. Under Wallet Balance, click Deposit.
  4. Search for and select the asset you’d like to deposit.
  5. Click the deposit method you’d like to use.
  6. Review and select the appropriate destination address. Choose the correct network. 
  7. Copy the wallet address. If you’re transferring assets from another platform, you’ll initiate a withdrawal from that account and paste this address into the destination field.
  8. You can view your completed deposits and withdrawals from the Portfolios tab. 

How to Withdraw Cryptocurrency From Coinbase?

To withdraw cryptocurrency (digital assets) on Coinbase Exchange:

  1. Sign in to Coinbase Pro.
  2. Click the Trading tab.
  3. Under Wallet Balance, select Withdraw.
  4. Search for and select the asset you’d like to withdraw. 
  5. Choose the withdrawal method you’d like to use.
  6. In the To field, enter the external wallet address. 
  7. Confirm you’re withdrawing the correct asset to the correct address.
  8. Enter the amount you’d like to send, then click Withdraw. Complete the 2-step verification process
  9. You can view your completed deposits and withdrawals from the Portfolios tab. 

Coinbase Fees And Supported Payment Types

Coinbase Exchange uses a maker-taker fee model for determining its trading fees. Maker Orders and Taker Orders are charged differently. 

Transaction Fees are calculated at the time you place your order and may be determined by additional factors like the selected payment method, the size of the order, and market conditions such as volatility and liquidity. 

Coinbase lists its fees in the trade preview screen before you submit your transaction

Coinbase Fees are listed below

Pricing Tier Taker Fee Maker Fee
$0 – $10K 0.60% 0.40%
$10K – $50K 0.40% 0.25%
$50K – $100K 0.25% 0.15%
$100K – $1M 0.20% 0.10%
$1M – $15M 0.18% 0.08%
$15M – $75M 0.16% 0.06%
$75M – $250M 0.12% 0.03%
$250M – $400M 0.08% 0.00%
$400M+ 0.05% 0.00%

There are no deposit fees and no storage fees for cryptocurrencies. 

In the case of stable pairs, the maker fee is 0.00% and the taker fee is 0.001%

Withdrawal and Deposit fees for Fiat currencies

Fiat withdrawal and deposit fees are free for ACH transfer. 

Deposit Fee Withdrawal Fee
ACH Free Free
Wire (USD) $10 USD $25 USD
SEPA (EUR) €0.15 EUR €0.15 EUR
Swift (GBP) Free £1 GBP

For additional information regarding Coinbase fee details

Supported Payment Methods

It slightly varies from country to country. However, the common payment methods are bank accounts and debit cards. 

The following payments are accepted in the U.S

  1. Bank Account (ACH)
  2. Wire Transfer
  3. Debit cards
  4. Paypal
  5. Apple & Google Pay

Coinbase App

Coinbase Global Inc has got two mobile apps for its centralized exchange, Coinbase for beginners and Coinbase Pro for more advanced users, designed based on user requirements and has more than 4-star ratings on Mobile App Stores. 

App Features

  • Best for Beginners
  • Simple user interface
  • Higher and complex fee structure
  • 100+ Cryptocurrencies
  • Simple trading options like buy, sell, send, and receive

Some of the common security features 

  1. Two-step verification
  2. Biometric fingerprint logins
  3. Insurance in the event this crypto exchange is breached
  4. AES-256 encryption for digital wallets

Coinbase Referral Programme & Other Earning Programs

Coinbase Referral Programme – allows you and your friend to earn a bonus. All you have to do is- Invite your friend using a referral link, let them register and make their first trade within 180 days. 

Coinbase Affiliate Program – If you are an influencer or a content creator, you can opt for this program. You will get 50% of your invitees’ trading fees for the first three months plus you will have exclusive access to performance tracking software & tools. 

Coinbase Learn & Earn – a program that allows you to learn about cryptocurrencies and how specific cryptocurrencies work. As a reward, you will be paid in specific cryptos on the successful completion of the learning module. 

Coinbase Customer Support

Coinbase offers a dedicated help section on its website. Almost all of your queries can be solved by reading the FAQs and topics section. However, if you are not happy with it, you can use the 24X7 live chat services. You can also raise an email support ticket which will be responded to in 48-72 hours. 

Conclusion

Coinbase offers the worlds leading compliant cryptocurrency platform, serving more than 108+ million individuals, investors & non-profits in more than 33 countries. 

Coinbase has never been hacked. It has rock-solid security features and it provides offline storage for 98% of its digital assets. The only frowning factor is its high transaction fees compared to other cryptocurrency exchanges. 

Being a public-listed company, they are transparent about its operations risk management and gives more importance to consumer protection, and is in good books by the top auditors. Even though Coinbase Fees are slightly high compared to other exchanges, this crypto exchange is good for you in terms of transparency, security, and ease of trading. 

As of now, Coinbase is one of the top cryptocurrency exchanges in the world in terms of security. Moreover, you can earn free crypto through learn and earn program.

FAQs

Can Coinbase be trusted?

Yes, this crypto exchange can be trusted because it offers the world’s best security features which include Two Factor Authentication, Biometric Fingerprint Login, and Wallets encrypted with AES-256. Moreover, it only stores 2% of the fund online in hot wallets and it blocks suspicious accounts, etc

Can I have different accounts in Coinbase and Coinbase pro?

No, you can only have one account with Coinbase pro. If you have an account in Coinbase then you can use the same information for Coinbase pro

Is Coinbase FDIC insured?

Coinbase is not an FDIC-insured bank. The cryptocurrency is not insured or guaranteed by or subject to the protections of the Federal Deposit Insurance Corporation (“FDIC”) or Securities Investor Protection Corporation (“SIPC”).

Does Coinbase sell Private information?

No, it only uses your private information to verify your identity, enable transactions, and improve product features. Coinbase claims that it does not and will not sell your data to third parties.

  • Trading Options
  • Security
  • Website Transparency
  • Customer Care
  • Transaction fees

Pros

  1. Various trading dashboards
  2. User-friendly and handy platform for beginners
  3. Learn and earn free cryptos
  4. Possesses its own debit card
  5. Cold storage facility

Cons

  1. More complaints about customer support
  2. No privacy
  3. Transaction fees are towering.
  4. No diversity in coins
  5. Verification is needed most of the time.



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