Coinbase is the most popular cryptocurrency exchange in the United States. It offers a wide variety of cryptocurrencies including Bitcoin, Ethereum, and Litecoin.
Coinbase is an online platform that allows users to buy, sell, and store digital currencies such as Bitcoin, Ethereum, and Litecoin. The coinbase fees are the fees that Coinbase charges for its services.
To begin investing in cryptocurrency, you’ll need a cryptocurrency exchange (recommended) or an online broker that accepts crypto. However, with so many various crypto exchanges to choose from, finding the right one for your requirements isn’t always simple. This is where Coinbase comes into play.
Coinbase, being one of the world’s biggest crypto exchanges, is a popular option for both novice and seasoned crypto investors. Is it, however, the best trade for you?
In this Coinbase review, we’ll go through all of the exchange’s features, costs, benefits, and drawbacks. We’ll explain how it all works and help you decide if Coinbase is the right exchange for you to start investing in cryptocurrency.
What Is Coinbase and How Does It Work?
Coinbase is a cryptocurrency exchange that operates entirely online. The business began operations in 2012 and has since expanded to over 100 countries, making it one of the world’s biggest cryptocurrency exchanges.
Coinbase, as a cryptocurrency exchange, enables anybody to buy, sell, and convert cryptocurrencies with reasonable simplicity. Since its inception, the company has extended its services to include an online crypto wallet as well as Pro version of Coinbase, a professional-level crypto trading platform.
What Is Coinbase and How Does It Work?
Coinbase, while being a cryptocurrency exchange, is intended to function similarly to a traditional online brokerage, with one exception: you can only buy and sell bitcoin, not bonds, stocks, ETFs, mutual funds, or other marketable assets.
Before you can start trading cryptocurrency on Coinbase, you must first verify your eligibility for the platform and register an account. This is how it works:
The First Steps
You’ll need to establish an account with Coinbase if you want to purchase and sell bitcoin. But, first and foremost, you’ll need to arrange your papers and have a few pieces of information on hand.
Coinbase is now accessible in over 100 countries to individuals aged 18 and above, including the United States and Canada. To create an account, you’ll need the following items:
- A government-issued picture identification card (with your address and date of birth)
- Social Security Number (SSN) (for US residents)
- A smartphone that can send and receive text messages through SMS (for two-step authentication)
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Creating a Bank Account
You may open an account online or via the Coinbase mobile app as soon as your papers are in order.
The site will ask for your personal details initially. For security reasons, you’ll need to confirm your email address and phone number.
After that, you’ll submit a picture of your photo ID to Coinbase to validate your identification (note that this step can take up to 48 hours). Finally, you’ll use Plaid to connect a payment method to your account, and then you’ll be able to start trading cryptocurrency.
Coinbase accepts a variety of cryptocurrencies.
It’s difficult to figure out which cryptocurrency Coinbase supports, as it is with many other elements of the site.
Various nations have different levels of access to the platform’s cryptocurrencies. Additionally, account users in certain areas are unable to trade specific currencies and may only send and receive money.
With this in mind, Coinbase now accepts more than 50 different currencies from US clients. On Coinbase, you may buy and sell a variety of popular cryptocurrencies, including:
- Bitcoin is a digital currency (BTC)
- Ethereum is a cryptocurrency (ETC)
- Litecoin (LTC) is a cryptocurrency that was launched (LTC)
- Ripple effect (XRP)
- Bitcoin Cash (BCH) is a cryptocurrency that (BCH)
- Cardano is a cryptocurrency (ADA)
- Excellent (XLM)
- Linking Chains (LINK)
While Coinbase has an amazing list of supported cryptocurrencies, several prominent cryptocurrencies, such as Polkadot (DOT) and Binance Coin, are presently unavailable (BNB).
Features of Coinbase
Coinbase is a bitcoin exchange with a lot of features. We’ll go over some of the platform’s key features in this part so you can decide whether it’s suitable for you.
Coinbase’s crypto trading platform is the company’s most prominent feature. Coinbase’s trading interface is designed to be as user-friendly as possible, and the platform is quite similar to that of any online brokerage.
To make a transaction on Coinbase, just choose the cryptocurrency you wish to purchase or sell, as well as your payment method. Then, enter the total amount of cryptocurrency you wish to exchange and confirm.
If you buy cryptocurrency via Coinbase, it will be stored in a safe place until you decide to sell it. You may also move your cryptocurrency to your Wallet on Coinbase or any other hot or cold wallet you may have. Simply said, it’s that simple.
The basic trading platform on Coinbase was created with simplicity in mind. However, if you want more sophisticated charting tools or order types, you’ll need to subscribe to a Coinbase Pro account.
Coinbase Pro is a premium exchange that offers sophisticated trading features like as real-time charting and the ability to set stop and limit orders.
The Coinbase Pro platform has a unique pricing structure as well (more on that in a bit). Although this price structure is usually less expensive than Coinbase’s standard fee structure, novice traders may find Coinbase Pro to be confusing and intimidating.
However, you may upgrade your Coinbase account to Coinbase Pro for free at any time. As a result, some people choose to start with a normal Coinbase account and subsequently upgrade to Pro as their crypto trading expertise grows.
When you trade cryptocurrency with Coinbase or Coinbase Pro, your funds are kept by the company in offline wallets located in safe locations all around the world. However, you’ll need a separate crypto wallet if you want complete control over your coin and private keys.
Thankfully, Coinbase provides a wallet called Coinbase Wallet that anybody may use. To make trades, you must first create a Coinbase Wallet and then connect it to your Coinbase trading account.
Coinbase Wallet is completely free to use, and you may move money between wallets at any moment. However, if you want to utilize cryptocurrency, you will be entirely responsible for its administration.
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Earnings on Coinbase
Coinbase has a rewards program called Coinbase Earn that may help you learn more about cryptocurrency. You may earn free crypto by watching short films on various cryptocurrencies via this service.
To get your free cryptocurrency, you’ll need to show your expertise by watching videos and doing quizzes. For example, if you spend three minutes watching informative videos on Celo (CGLD), you might earn approximately $3 in Celo.
After you finish watching the videos and successfully answering the quiz questions, your free cryptocurrency will be placed in your account for you to retain or trade.
Card from Coinbase
While many crypto exchanges only enable you to buy and sell cryptocurrency, Coinbase also allows you to use your Coinbase Card to make everyday transactions.
The Coinbase Card is a Visa debit card that may be used to make everyday purchases. In the Coinbase Card app, you can choose which cryptocurrency to use for purchases and then track your spending. Additional incentives are available on specific purchases, which you can read more about in the app.
Coinbase enables you to set up “recurring buys” if you want to automate your cryptocurrency purchases.
You may set up a recurrent buy for almost any cryptocurrency on the site, enabling you to acquire a pre-determined quantity of cryptocurrency on a regular basis. For example, to assist you increase your balance over time, you may set up a recurring transaction for $50 worth of Bitcoin every week.
It’s worth noting that setting up a recurrent purchase necessitates making a purchase at the time of setup. So, if you wish to set up a monthly Litecoin purchase of $100, Coinbase will execute your first transaction right away and arrange your second purchase for one month later.
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The Coinbase App for Android and iOS
Although Coinbase is accessible through the web, many users prefer to utilize the mobile app.
Each of the platform’s services, such as Coinbase Pro, Coinbase Wallet, and Coinbase Card, has its own app, and you’ll need to download each one separately if you want to use them. However, since they offer an easy method to purchase and trade cryptocurrency, all of the applications have received excellent ratings on the Google Play Store and Apple App Store.
Fees on Coinbase and Pricing
The company’s complicated fee structure is one element of Coinbase that doesn’t exactly impress.
Because Coinbase’s price varies according on your location, we’ll concentrate on expenses for US account users. However, the costs you pay will differ depending on whether you use Coinbase or Coinbase Pro. Here’s all you need to know about it.
The first cost is a spread fee of approximately 0.50 percent of the order amount, which is charged by Coinbase’s standard platform.
The second cost is either a flat-fee transaction charge or a variable fee, whichever is higher. Depending on your payment method, the variable charge for US accounts ranges from 1.49 percent to 3.99 percent of the transaction amount.
Meanwhile, the per-order flat cost ranges from $0.99 to $2.99. For various transaction amounts, you’ll have to pay the following fees:
Because the variable cost, even at its lowest level of 1.49 percent, is higher than the flat price for transactions worth more than $200, any transactions worth more than this will be charged the variable fee.
Coinbase charges a 2.5 percent fee for PayPal deposits and a $10 fee for inbound wire transfers in addition to trading costs. ACH transfers, on the other hand, are free, and there is no charge to establish an account. In the United States, the following fees apply:
Pro Fees on Coinbase
With Coinbase Pro, the company employs a “maker-taker” pricing structure. A maker in this system is someone who buys or sells cryptocurrency in a non-immediate order, such as via a limit order. Takers, on the other hand, are individuals who purchase or sell crypto immediately, such as via a market order. Takers, on average, pay more than creators.
The maker-taker cost structure on Coinbase Pro charges various fees depending on your account balance before you place an order.
Total taker costs range between 0.50 percent and 0.04 percent of the order amount, with smaller balance accounts paying more. Maker fees, however, range from 0.50 percent to 0.00 percent of the order amount, with accounts above $50 million incurring no costs.
Security & Insurance at Coinbase
Security is a major worry for many cryptocurrency investors. Fortunately, reputable exchanges such as Coinbase take precautions to safeguard your cryptocurrency. So, here’s a quick rundown of the firm’s security and insurance policies that you should be aware of before investing:
Coinbase keeps around 98 percent of its customers’ money in safe deposit boxes and secure vaults all across the globe. By withdrawing money off the internet and keeping them in a variety of geographic places, this helps to reduce the danger of online hacking and physical theft.
To assist combat fraud, Coinbase employs AES-256 encrypted disks, paper backups, and two-step verification. However, until you move your money off of the platform and into your own crypto wallet, Coinbase retains possession of your private keys.
If you’re a US client with money in your Coinbase account, it’s FDIC-insured up to $250,000 per person if the company goes bankrupt.
Cash money are stored in custodial accounts for non-US clients, which are kept separate from all other accounts for safety, but they are not entirely FDIC-insured. Regardless, Coinbase retains its own private insurance to cover any client money that are lost due to a security compromise.
Customer Service at Coinbase
When it comes to customer service, Coinbase offers a comprehensive online help platform where you can get solutions to a variety of frequent problems. A chatbot is also available on the online assistance platform, which may guide you to solutions to frequent queries in a matter of seconds.
If you need more customized assistance, Coinbase offers an email-based customer support service to all account holders, as well as a phone number for Coinbase Card problems. Coinbase, on the other hand, does not presently offer a customer service phone number that you may call with basic inquiries or concerns.
However, if you believe your account has been hacked, you may contact Coinbase directly to have it instantly locked. While the absence of phone-based customer service may be a drawback for some account holders, you may receive immediate assistance if you have a security-related issue.
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Pros of Coinbase
- Residents of over 100 countries may use it.
- There’s a lot of crypto to choose from.
- Options for earning incentives and getting free cryptocurrency
- Access to a free online wallet is included.
- The ability to get a free upgrade to Coinbase Pro.
- New traders will like the user-friendly interface.
- Access to educational materials is excellent.
- Provides a Visa debit card for cryptocurrency purchases.
Cons of Coinbase
- The system of pricing and fees is very complex.
- Account creation requires photo ID verification.
- Crypto trading has high expenses, particularly for minor transactions.
- With the platform, you have little control over your private keys.
- In certain jurisdictions, not all crypto assets are accessible for trade.
- Customer service choices are limited.
Alternatives to Coinbase
Are you unsure whether Coinbase is the best cryptocurrency exchange for you? Before you join up for a Coinbase account, consider these two alternatives:
Kraken, like Coinbase, is one of the most well-known cryptocurrency exchanges today. Unlike Coinbase, though, it is geared at experienced traders who want access to a broader variety of trading tools and capabilities.
Traders that use Kraken have access to a variety of trading options, including sophisticated charting tools. The site also offers a somewhat greater number of cryptocurrencies than Coinbase, but the most popular cryptocurrencies, such as Bitcoin and Litecoin, are available on both.
Kraken, on the other hand, differs from Coinbase in that it allows sophisticated traders to trade on margins. While crypto margin trading isn’t for everyone, it may be a good option for certain investors.
Kraken’s fees are also much cheaper than Coinbase’s and somewhat lower than Coinbase Pro’s. While it may not be ideal for novice crypto traders, it does provide improved capabilities for more seasoned investors. To discover more, read our entire Kraken review.
Gemini is a relatively new exchange that’s grown popular among traders looking for a simple method to buy and sell cryptocurrency. It was founded by the Winklevoss twins of Facebook fame.
Gemini account users get access to a simpler exchange as well as a more complex platform with extensive charting capabilities. Gemini also makes it simple to earn interest on crypto assets, and they also have a credit card that allows you to earn crypto rewards.
Gemini’s pricing structure, like Coinbase’s, is complicated and difficult to comprehend. However, Gemini’s costs are almost identical to Coinbase’s, so neither exchange has a significant advantage in this area.
Furthermore, account users may select between hot and cold crypto wallets, both of which come with extra insurance and enhanced customer assistance. So, Gemini is a good choice for crypto traders who want many of the same features as Coinbase but with a little more protection. To discover more, read our whole Gemini review.
Coinbase vs. Coinbase
Check out how Coinbase compares against the competition.
For Whom Is Coinbase the Most Appropriate?
Coinbase is an excellent crypto exchange for novice cryptocurrency investors or anybody who values simplicity in their financial life due to its ease of use. Furthermore, Coinbase distinguishes itself from other exchanges with a variety of features such as dozens of supported cryptocurrencies, access to a Visa debit card, high-tech security, and the opportunity to win free crypto.
Furthermore, the fact that the business makes it simple to switch to a more complex crypto exchange platform (Coinbase Pro) makes it a good option for individuals who wish to become more involved in the crypto market.
Coinbase’s hefty fees and complicated pricing structure, on the other hand, aren’t ideal for those looking to save costs. However, if you’re searching for a crypto exchange that’s simple to use and has a good set of tools for experienced traders, Coinbase may be the answer.
Coinbase Frequently Asked Questions
Here are the answers to some of your most frequently asked Coinbase questions:
Is Coinbase a secure platform?
Although trading cryptocurrencies carries a financial risk, Coinbase is regarded as one of the most secure exchanges and online wallets in the business. The company’s security measures are top-notch, and the overwhelming majority of client money are stored offline to prevent hackers from gaining access to your cryptocurrency.
Is Coinbase a Reliable Bitcoin Exchange?
If you’re searching for a fast and easy way to acquire cryptocurrency, Coinbase is an excellent option. However, the business does impose some expensive fees for minor transactions, so keep that in mind before creating an account.
Is Coinbase Safe for Personal Information?
Coinbase, like other fintech firms, collects a significant amount of personal data, including picture ID scans, which may be a privacy issue for certain traders. However, most of this data is needed by government agencies, and Coinbase states that it will not sell your personally identifying information without your permission.
Coinbase is the market leader in cryptocurrency exchanges. The platform’s clean design, user-friendly features, and extensive instructional resources make it a popular choice for novice crypto investors, but Coinbase Pro is also a good alternative for experienced traders.
Coinbase’s pricing structure is a little complicated, and customer assistance options are limited, so bear that in mind when choosing a crypto exchange. Coinbase, on the other hand, is a crypto exchange that is difficult to match if convenience is your main concern.
The coinbase scammed me is a review of Coinbase. It will cover the features, fees, pros, and cons of the platform.
Frequently Asked Questions
Does Coinbase Pro have better fees?
Coinbase Pro has lower fees.
Are Coinbase fees worth it?
Coinbase fees are worth it if you use them for buying and selling cryptocurrencies. The fees vary depending on the type of cryptocurrency, but they tend to be around $1 per trade.
How bad are Coinbase fees?
Coinbase fees are very high. They charge a 3.99% fee on all purchases and withdrawals, which is much higher than other exchanges like Binance that only charge 0.1% for deposits and withdrawals.
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