This will be a complete and up-to-date review of the Coinbase cryptocurrency exchange. It is not a paid review so you can be sure you are not getting a piece of biased or misleading information. We will look at the features, security, reputation, pros, and Cons of the exchange, as well as other information that could guide you in making your choice as regards the exchange.
What Is CoinBase?
CoinCoinbase is an American Cryptocurrency company that offers exchange and custodian wallet services. It prides itself as “the most trusted platform for trading cryptocurrency”. Coinbase claims that it offers individuals the ability to trade crypto assets on a secured and insurance-backed platform – meaning that funds are insured in any event of unforeseen circumstances.
Coinbase has been around for a long while now, it was founded in 2012 and is currently a publicly traded company in the US. It is one of the very few crypto exchanges that can operate within the US – a country that is known for its strict regulations on the trading of digital assets. Coinbase is open to both individuals and corporate bodies. The reported daily trading volume is between $2-3 billion (according to data from coinmarketcap.com, for January 2023 market conditions). It had over 100 million verified users as of 2022, with 9 million monthly active users. As for institutional users, Coinbase has over 14,500 users. It is the largest crypto exchange in the US.
Feature Of Coinbase Exchange
Coinbase exchange is designed for both beginners and professional traders. You have the option to switch between the Simple mode and the Advanced mode and also choose between the light and dark modes to suit your display preference.
Simple Mode
This mode is suitable for beginners, the interface is simple and easy to interact with as a beginner. No advanced diagrams or trading tools. Just the buy and sell buttons for a simple trade.
Advanced Mode
In this mode, you find more advanced trading tools and features that will aid your trading experience as a professional trader. You have access to real-time charts by TradingView, indicators, drawing tools, etc. You can also set up limits and Stop orders. It is designed for professional traders.
Fast Account Opening and Verification
Account opening is easy – you only need a functional email. However, Coinbase is a Government-regulated crypto exchange. It means they will have to conduct a KYC (know your customer”) on the account. Typical documents for the KYC are Government-issued IDs such as a driver’s Licence(or Identification Card for US Citizens), National ID, or Passport. The process is usually very fast. I had my account verified within 5mins. You could sign up for a Coinbase account here
So, If you are someone who wants to remain anonymous, Coinbase might not be the best option for you. They must report transactions of certain characteristics to regulatory bodies.
Trading Fees
Coinbase trading fee comes in different tiers depending on your trading volume. It ranges from 0 – 0.40 % for the Maker and 0.05 – 0.60% for Takers. A trade maker is someone who is creating or providing liquidity while takers are those who are taking the orders created by the makers, those executing the instant trades. The table below shows the tiers and the trading fee for both makers and takers.
| Pricing Tier | Maker Fee | Taker Fee |
| $0 – $10K | 0.40% | 0.60% |
| $10K – $50K | 0.25% | 0.40% |
| $50K – $100K | 0.15% | 0.25% |
| $100K – $1M | 0.10% | 0.20% |
| $1M – $15M | 0.08% | 0.18% |
| $15M – $75M | 0.06% | 0.16% |
| $75M – $250M | 0.03% | 0.12% |
| $250M – $400M | 0.00% | 0.08% |
| $400M+ | 0.00% | 0.05% |
Coinbase Trading Fee Tier Table
These values are calculated based on the total volume of trade executed in a 30-day trailing cycle. These fees are not necessarily cheap, especially in comparison to other top-level crypto exchanges. For example, Binance charges a trading fee of 0.1% for both makers and takers. You will weigh this against other benefits of using Coinbase.
Trading Pairs and Liquidity
Coinbase offers over 550 trading pairs (as of January 2023) and includes all the major cryptocurrencies. It has 228 coins listed( not much of the shitcoins because it is a regulated exchange). You will find a direct pairing of cryptocurrency with many national currencies (such as the USD, Eur, and GBP) as well as with the major stablecoins. Coinbase offers users a lot of options to trade from.
Coinbase also has a substantial trade volume for most of the assets listed. Daily transaction volume for Coinbase is in the range of $1-2 billion (January 2023 data from coinmarketcap.com and Coingecko).
Deposit And Withdrawal – Credit Card allowed.
The use of credit/debit cards to make purchases on crypto exchange is a major option as it implies a good integration with the traditional banking system. It makes for the wider adoption of cryptocurrencies. Coinbase offers its users this option as well as other payment options such as direct deposit from your banks(local and Internationals) using payment options such as SEPA, SWIFT, Wire, etc. Also, direct withdrawals are possible. Below are typical charges that are applicable.
Fiat Deposit and Withdrawal Fees
| Deposit Fee | Withdrawal Fee | |
|---|---|---|
| ACH | Free | Free |
| Wire (USD) | $10 USD | $10 |
| SEPA (EUR) | EUR 0.15 | $25 |
| EUR 0.15 | Free | £1 GBP |
Earn Rewards On Coinbase -Staking
Coinbase offers users the opportunity to low-risk earnings programs through staking. You earn some interest on your digital assets for the staking period. Typical interest on your crypto assets can be up to 6.12 % APY. and is available on several assets such as Ethereum, Algorand, Cosmos, Tezos, and several stablecoins.
According to a report in Coinbase Q2 report of 2022, 67 percent of active Coinbase users were focused on this low-risk non-investive option to make some decent returns.
Free Bitcoin on Sign-Up
New users get a signup bonus of 10$ in Bitcoin upon registration and execution of at least $100 volumes in trade or direct purchase. This incentive is available to new users. You can register for the account at the link below: https://coinbase.com/join/YCFX71?src=referral-link
Wallet Services
Coinbase Exchange offers a wallet service (Custodian Wallet) as a major product as part of its services. Unlike many other exchange wallets, Coinbase wallets can be integrated for use in Decentralized Applications and other similar services. Coinbase wallet has been in operation even before the exchange was available to most countries. It is a good way to store your crypto assets if you do not want to worry so much about securing your private keys (and are willing to bear the inherent risks in operating a custodian wallet). You could sign up for a wallet and earn 10$ free Bitcoin when you integrate it with the exchange and make transactions with it.
https://coinbase.com/join/YCFX71?src=referral-link
Coinbase Customer Support
Coinbase has an extensive customer support platform to help resolve issues. Services are offered in multiple languages across different regions/countries. The Coinbase virtual assistant offers instant response through chats, you could also submit a complaint via email and responses are usually within 24 hours.
Coinbase is also very active on Twitter and Facebook, They also maintain a rich FAQ section to help customers better understand the platform and resolve issues.
Regulations
Coinbase is one of the few crypto exchanges that is licensed to operate within the US. That is a strong testament to its commitment to playing by the books. Coinbase is registered with the US Security and Exchange Commission under the company name Coinbase Global, Inc. (Feb 25, 2021) Details of the registration documents can be found here https://www.sec.gov/Archives/edgar/data/1679788/000162828021003168/coinbaseglobalincs-1.htm. For regulatory reasons, Coinbase currently does not offer leverage products to limit the risk exposure of clients.
Security and Safety of Funds
No crypto exchange is 100 percent immune to malicious attacks by hackers. You however will be better off trading with an exchange with some level of significant investment in the security of customers’ funds. Coinbase has been in operation for over a decade and there has not been any reported security breach. Every customer’s funds (crypto and Fiat) are fully audited and tracked in real-time and are available on request anytime. Coinbase is operated like a traditional bank or broker. your funds cannot be repurposed or invested without your specific request to do so. It is, however, your responsibility to ensure the security of your account- such as using secured passwords and 2FAs.
Are my Funds with Coinbase Insured?
According to a Coinbase article, the exchange carries Crime Insurance that covers a portion of your Digital Assets. Crime Insurance can cover losses due to theft, including cybersecurity breaches. Such breaches such be from the exchange and not from the customer negligence. Coinbase specifically states
our policy does not cover any losses resulting from unauthorized access to your personal Coinbase or Coinbase Pro account(s) due to a breach or loss of your credentials. It is your responsibility to use a strong password and maintain control of all login credentials you use to access Coinbase and Coinbase Pro.
There is no FDIC insurance (Federal Deposit Insurance Corporation) as you would have in a bank nor are your funds covered under the Security Investor Protection Corporation (“SIPC”). You may lose your funds.
Supported Countries
Coinbase is one of the few exchanges that is licensed to operate in the US. Its services are also available in over 100 countries. The list of supported countries and their regions are as follows:
North and Central America: United States, Bahamas, Barbados, Canada, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Nicaragua, Panama, Trinidad and Tobago
South America: Argentina, Bolivia, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay, Venezuela
Europe: Albania, Andorra, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Gibraltar, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Italy, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Serbia, Slovakia, Slovenia, Sweden, Switzerland, Ukraine, United Kingdom.
Asia: Australia, Brunei Darussalam, Hong Kong, India, Japan, Kazakhstan, Kyrgyzstan, Maldives, Mongolia, Nepal, New Zealand, Pakistan, Philippines, Singapore, Sri Lanka, Taiwan, Uzbekistan
Africa: Angola, Armenia, Azerbaijan, Bahrain, Benin, Botswana, Burkina Faso, Cameroon, Georgia, Ghana, Jordan, Kenya, Kuwait, Mauritius, Namibia, Nigeria, Oman, Rwanda, South Africa, Togo, Tunisia, Turkey, Uganda, United Arab Emirates, Zambia.
The Pros And Cons Of Coinbase Exchange
There is so much about Coinbase exchange, to simplify things, Here is a summary of the Pros and Cons of Coinbase exchange
The Pros of Coinbase
1. Reputation – Coinbase is the largest change in the US and has maintained a good reputation for years, It is a regulated exchange. There are fewer chances of unwholesome practices such as trading or investing with customers’ funds.
2. Fast Account Opening and Verification – It takes only a few minutes to open an account with Coinbase and be verified.
3. Large Liquidity and Many Exchange Pairs– Coinbase has a large liquidity and you have a large number of coins listed -238 coins and 552 trading pairs. Your trade orders are more likely to be executed with a large volume of trade.
4. Security of Funds -Coinbase offers some level of protection for customers’ funds with Crime Insurance. This covers theft and cybersecurity breaches on the exchange in general (not individual customers).
5. Earning Opportunity– There are several non-investing options such as single-asset staking to earn you some rewards. There are low risks and a certain level of security in the highly volatile crypto market.
6. Wallet Services – Coinbase offers excellent wallet services for storing your digital assets. The wallet can be integrated with many of the common decentralized applications.
7. Customer Service – Coinbase offers a variety of options/platforms for support services- including emails, direct phone calls, and the use of its various active social media platform
8. Different Payment Gateway -Coinbase offers a wide variety of deposit and withdrawal options, including direct Credit/debit card purchases, bank deposits, etc.
9. Global Reach – Coinbase is open to US citizens – one of the few exchanges that are licensed to do so. You will also find Coinbase operational in over 100+ countries. It has a global reach.
The Cons of Coinbase
The following are the Cons of using Coinbase.
1. High Exchange Fee– The exchange or trading fees for simple trade on Coinbase are significantly higher than those of other top-tiered crypto exchanges. This is the most common downside of using Coinbase. Maybe it is because they really do not touch customers’ funds and all their income is primarily from exchange fees.
2. No Leverage Products – If you are hoping to trade leverage products or margins, you should look elsewhere as Coinbase currently does not offer such. This is because they are highly regulated.
3. KYC Requirements – KYC is a major requirement on Coinbase. If you want to be anonymous, or you do not have the required documents, Coinbase might not be the best option for you.
4. Privacy Coins – Because of the potential for the illicit use of privacy coins, Coinbase – under regulatory requirements has a lot of restrictions. You will not be able to trade many of your favorite privacy coins such as Monero, PiVX, or Decred.
5. No Shitcoins – Shitcoins are often shitty. They come with high risk and high reward. So if you are looking for a way to get those quick snacks of 10x returns with shitcoins, you are probably never going to get them on Coinbase. Coinbase maintains a rather rigid listing policy to protect its customers from pump-and-dump schemes.
Conclusion
Coinbase is a reputable exchange with good products and services that serve various needs of customers. With the level of regulation and Government oversee, it is satisfactory to trade with Coinbase. One should be aware of some of its drawbacks and weigh them against the numerous benefits of using the exchange.
Sign up for a Free Coinbase account and Get a 10$ bonus
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