Cryptocurrency has quickly grown from a modest alternative investment to one with a market value of hundreds of billions of dollars. You’ve probably heard of Coinbase if you want to invest in cryptocurrencies or use them as a payment method. It is, after all, one of the most widely used bitcoin exchanges online, with millions of users. Additionally, it is among the simplest methods for purchasing cryptocurrencies, which has contributed to its meteoric rise to fame.
A cryptocurrency exchange like Coinbase lets you buy Bitcoins, Ethereum, and Solana. Over 120 different cryptocurrencies are supported on Coinbase, though not all of them are available. Meanwhile, tens of thousands of various cryptocurrencies are out there. Coinbase allows you to trade the most well-known crypto types, which is adequate for most people.
With all of this in mind, Coinbase is an excellent choice for novice cryptocurrency traders. Coinbase is popular, but is it safe? What is the fee? What are Coinbase services? We will discuss these topics and more below in this Coinbase review article.
Although Coinbase does not support all cryptocurrencies, the most popular ones do. As a result, most Coinbase users will not experience any problems when purchasing and selling. It is possible, however, that more experienced traders will need to open an account elsewhere.
It is possible to purchase over 120 different cryptocurrencies on Coinbase. The following are some of Coinbase’s most popular features, although we won’t mention them all:
- Ethereum (ETH)
- Stellar Lumens
- Shiba Inu
- USD Coin
With Coinbase Wallet, Ethereum and all other EVM-compatible networks are supported on both the mobile app and the browser extension. Coinbase Wallet comes preconfigured with the following EVM-compatible networks, but you can manually add additional networks as well:
- Bitcoin Cash
For the purchase, sale, and conversion of cryptocurrencies, there is a Coinbase fee. When placing an order, fees will be calculated based on several variables, such as the method and size of the payment, and market conditions, including volatility and liquidity. During the trade preview, you can view the fees associated with your transaction before you complete it. A comparable transaction may result in a different price:
- For $10 or less — $0.99
- Between $10 to $25 — $1.49
- Between $25 to $50 — $1.99
- Between $50 to $200 — $2.99
The price of one Bitcoin is much higher than these sums of money, but Coinbase lets you buy modest quantities. A spread markup is already included in the price you pay when you buy or sell.
If your total trade value exceeds $200, you will be charged a spread mark-up of 0.5%.
If Coinbase or one of its affiliates needs to sell your BTC collateral (as allowed by the applicable loan agreement), the platform will charge you a flat fee of 2% of the total transaction.
There are no transaction costs associated with the Coinbase Card. On Coinbase, the price to buy or sell cryptocurrency includes a spread. As a result, the platform will provide a trade execution price that will be locked in while you check the transactional information before finalising the transaction. There is a possibility that an ATM operator will charge you a fee.
If you are making significant investments, it makes sense to question Coinbase’s security. Furthermore, the platform is still in its infancy. While Coinbase is generally safe, it is not immune to security breaches due to two-factor authentication and other features. With a simple search online, you can find claims that Coinbase consumers’ accounts were emptied overnight. According to experts, SIM switching is one cause of these instances.
However, you do not necessarily need to avoid Coinbase if this alarms you. It is possible to take additional steps to make it more difficult for potential hackers, such as using a non-custodial wallet. You can also choose a hardware wallet.
This strategy has the drawback of making you remember your own password, also known as a private key. If you have read about individuals losing millions of dollars after being locked out of their bitcoin wallets, they have probably used a non-custodial wallet. Even though this is a safer approach, you are responsible for ensuring you have access to your money.
The process of creating an account with Coinbase is similar to that of opening an account with an online bank or brokerage company. To complete the verification process, you will need to provide your personal contact information, including your Social Security number.
New account holders must upload a photo of a government ID to verify their identity. As a result, Coinbase tracks your transactions for tax reporting purposes and other regulatory purposes, which should reassure you that cryptocurrencies are not anonymous.
Once you create your Coinbase account and verify your details, you can begin purchasing and selling cryptocurrencies.
The quality of customer service at Coinbase is one of the most common complaints. Unfortunately, it is extremely difficult to reach a professional for any assistance with Coinbase since it is mainly self-service.
In addition to the Coinbase help site, email support requests, a phone system, and a chatbot, Coinbase offers a variety of customer support options.
Coinbase vs other Cryptocurrency Platforms
Coinbase vs Gemini
Both Gemini and Coinbase are safe and easy to use, so beginners will feel comfortable using them. In addition, Gemini offers institutional investors the capability to monitor device access rights and device use. In addition, customer assistance is much easier to reach on the Gemini exchange.
However, new Coinbase users might prefer its accelerated onboarding process, which includes earning cryptocurrency and learning trading skills. Also, compared to Gemini, Coinbase appears and feels more accessible.
Coinbase vs Binance
The Binance platform is a reliable choice for cryptocurrency traders of all levels, including beginners. Users can trade cryptocurrencies at meagre costs and are provided with a wide selection of trading options and user education. Furthermore, there are awards for more speculative investing and access to upcoming cryptocurrencies.
Coinbase is a great place to get started investing in cryptocurrencies if you’re a novice. A user-friendly design and straightforward onboarding make it easy to purchase your first digital currency with Coinbase. In terms of cryptocurrency bonuses and user education, Coinbase is a fantastic place to get started.
Pros and Cons
- Beginner-friendly: Coinbase’s main website and mobile app are relatively easy to use for buying, selling and exchanging cryptocurrencies. As a result, they are ideal for those who are new to cryptocurrency.
- More opportunities to earn: You can make money with cryptocurrencies by earning interest on qualified accounts or obtaining a small quantity of a new currency through Coinbase Earn.
- Low pricing: The Coinbase Pro platform is a more feature-rich and lower-cost active trading platform for users.
- Numerous cryptocurrencies are supported: Cryptocurrency support for a wide range of coins: Coinbase supports over 120 cryptocurrencies at the moment, and that number is growing every day.
- High transaction fees: On the main Coinbase platform, transaction costs are frequently high.
- No Altcoin support: It is unfortunate that Coinbase does not support many altcoins, despite offering a wide range of currencies.
- Customer service problems: Coinbase receives low customer support scores, especially in major account security issues.
Is Coinbase Right For You?
The Coinbase platform is an easy way to learn about cryptocurrencies for those who are new to them. Using its simple interface, users can buy and trade cryptocurrency with just a few clicks. It does not support all cryptocurrency types, but some of the most popular ones are supported.
It is also important to ensure that your cryptocurrency portfolio is diverse if you decide to invest in cryptocurrencies. You can do this by investing in tried-and-true assets such as stocks, bonds, and if you so choose, real estate.
It is also important to keep some cash on hand. Money markets and high-yield savings accounts are the best places to store them. Investing in cryptocurrencies can often be volatile, but you can withstand the volatility by following these steps.