Coinbase is among the largest cryptocurrency exchanges in the world and is popular for offering high-quality services to customers from all around the world. In this Coinbase review, you will learn about the pros and cons of the Coinbase exchange and whether it is a good platform for you or not.
You can also start trading on Coinbase with a free bonus after reading this review by clicking on the highlighted text.
What is Coinbase?
Coinbase was first introduced in 2012 as a Bitcoin brokerage service that allowed customers to buy and sell Bitcoin conveniently. Over time the exchange started adding more services and is currently known to be one of the biggest cryptocurrency exchanges in the world.
As of today, Coinbase is the second-largest cryptocurrency exchange in the world in terms of volume. It hosts over 103 million verified users across the world and billions of dollars are traded on the exchange every day. Approximately 50% of these users come from the United States alone as Coinbase is one of the most prominent cryptocurrency exchanges in the USA.
Coinbase is a fully licensed and regulated exchange. It is among a handful of cryptocurrency exchanges that offers its services in almost all American states (except Hawaii). It is arguably the most popular crypto trading platform in the United States and is the first choice of most traders.
Is Coinbase an Ideal Exchange for New Traders?
Coinbase is an ideal exchange for new investors and traders as it allows you to buy cryptocurrencies without making you go through any complex processes. Users can sign-up on Coinbase and can purchase Bitcoin or Altcoins directly from the exchange. They also don’t have to use the spot-market trading interface, which can be complicated for new users.
Note: New investors can also consider signing up on PrimeXBT as it allows beginners to copy trading moves of experienced traders. With PrimeXBT Covesting, you can follow successful traders and mimic their trading strategies.
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Coinbase Review on Services and Features
Coinbase acts as a brokerage for cryptocurrency buyers and sellers, and it is the main service offered at the platform. Users who are new to the crypto space often choose Coinbase to buy their first Bitcoin or Altcoin.
The simple one-click user interface makes it easier for new investors to buy and sell crypto. Users pay a small premium on their crypto purchases and can buy them instantly without having to go through any hassle.
One drawback of this service is that Coinbase does not give you complete control over your funds. They are kept in a wallet that is controlled by the exchange, and it is equivalent to keeping your money in the bank.
Coinbase PRO is an advanced version of Coinbase that is targeted towards experienced traders and investors. Where the basic version of Coinbase targets users that are new to the crypto space, this one is designed for those who are familiar with trading.
Coinbase PRO also offers many advanced tools and features that are not available on the simple regular version of the exchange. It also has more than 250 cryptocurrencies, which you can trade directly for FIAT, BTC, or ETH.
Coinbase also launched its own wallet in 2018, which users can install on their mobile phones and can be in charge of their own funds. The private keys for the wallet are stored on the user’s own device, and they have full control over the assets.
Coinbase is not just a cryptocurrency exchange, but it is also an institution. The platform allows you to learn crypto trading on your own with its educational videos and online exams. After going through Coinbase’s educational material, users can earn a decent amount of money with basic trading strategies.
Learning about new cryptocurrencies or methods sponsored by the exchange can also be very beneficial for you.
Is Coinbase Legit and Safe?
Coinbase is a fully licensed and regulated exchange and is also considered one of the safest crypto exchanges out there. It uses a number of security methods to protect its customer’s information and assets.
Two-factor authentication login
The platform uses a two-factor authentication system for logins to ensure that only the account holders can access their accounts. However, users must still be careful with their login information because if the account gets breached because of the customer’s own mistake, the exchange cannot be held responsible for the loss.
Coinbase is also one of the few cryptocurrency exchanges that offer insurance on digital assets. Cryptocurrency is not considered legal tender, so it is not backed by FIDC or SIPC. However, Coinbase converts that balance into USD and holds them in US custodial accounts for insurance.
Coinbase Review on Payment Methods
One of the best things about Coinbase is that it supports multiple payment methods, and users usually don’t face any trouble when it comes to buying or selling.
Payment methods supported by Coinbase include:
- Debit/Credit Cards
- Wire Transfers (ACH/SEPA)
- Direct Cryptocurrency withdrawals and deposits
When it comes to the fee structure, Coinbase is not exactly the ideal cryptocurrency exchange. The features and services offered at Coinbase are excellent but the fees are quite high.
Cryptocurrency exchanges like Binance, Phemex, and Swissborg offer much better rates, and if fees is your main concern you might want to consider these options. You can also earn a sign-up bonus on these exchanges by clicking on the highlighted text.
Deposit and Withdrawal Fee
The deposit and withdrawal fees for Coinbase are as follow:
Trading Fees on Coinbase PRO
Coinbase PRO is the platform that is preferred by traders, and it follows the old maker and taker price model. The maker and taker fee on Coinbase PRO is 0.50% and can decrease further depending on the trading volume. Check our list of lowest fee crypto exchanges.
The complete fee structure for Coinbase PRO is as follow:
The fee structure is updated often and it is recommended that you check the latest fee tier list before you begin trading on Coinbase.
If you are looking for a low fee alternative in the US, you can consider signing up on the following exchanges:
Coinbase Review on Supported Cryptocurrencies
Unlike other crypto exchanges in USA, both Coinbase and Coinbase PRO offer a number of different cryptocurrencies. Currently, Coinbase offers over 250 different cryptocurrencies and is consistently expanding its roster. Some of the main altcoins available on Coinbase include:
- Ethereum (ETH)
- Polkadot (DOT)
- Cardano (ADA)
- Ripple (XRP)
- Solana (SOL)
- Litecoin (LTC)
- Bitcoin Cash (BCH)
- EOS (EOS)
- Cosmos (ATOM)
Can You Do Margin Trading on Coinbase?
Coinbase is a US-based cryptocurrency exchange and does not support margin trading. However the PRO version of the exchange does allow you to trade with a maximum leverage of 3x on certain cryptocurrencies.
If you are someone who is looking to trade cryptocurrency with higher leverage ranging from 10x to 100x, you can do that by signing up on any of the below-mentioned exchanges.
However, it is important to note that margin trading classifies as CFD trading and is not allowed in the US. Therefore, U.S. traders cannot directly access the platforms mentioned above.
Coinbase Pros and Cons
Just like all the cryptocurrency exchanges out there, Coinbase has its strengths as well as its drawbacks.
- Wide variety of Altcoins
- Ideal for new investors
- High-quality Mobile App
- Advance trading platform
- Learn and Earn
- Low minimums
- High trading fees
- Complicated fee structure
- Does not support margin trading (only 3x on Pro version)
- Doesn’t lend private keys to customers
Conclusion: Is Coinbase Right for You?
Coinbase is an excellent cryptocurrency trading platform and can prove good for all kinds of traders. The company has invested a lot of time and effort into making the platform user-friendly and provide a smooth experience.
If you are a US citizen, Coinbase might just be the right platform for you regardless of how you want to trade your crypto. However, if you are outside of the US and are also interested in other services like margin trading and staking, there are better alternatives available out there.
A: Coinbase is considered a secure investment platform and is safe for buying and trading cryptocurrencies.
A: Coinbase basic version is ideal for users who are just stepping into the world of crypto trading for the first time.
A: You can convert your crypto into USD and cash it out directly in you linked bank account. You can also withdraw any cryptocurrency in your personal crypto wallet.
A: Yes you can send money from Coinbase to bank account once you have converted your assets into USD.
A: Coinbase is safe to link to your bank account.
A: Coinbase offers free wire transfers, bank transfers and ACH transfers. If you deposit crypto with these payment methods instead of using a credit/debit card, you can avoid the fee.
A: Coinbase is a well-reputed, easy-to-use exchanges that is ideal for beginners. It makes buying cryptocurrency and is also a trusted exchange. However, if you are looking for exchanges that offers high leverage, Coinbase is not the right fit for you.