Coinbase Review
Users can purchase, sell, or store cryptocurrencies on Coinbase, as well as, more recently, NFTs. As of Q4 2022, the exchange boasted 110 million verified users across more than 100 countries.
Beginners and experienced traders can trade not-so-popular but highly sought-after cryptocurrencies like SUI and MAGIC on Coinbase, which offers over 10,000 assets to pick from. The platform offers an easy-to-use interface that is perfect for beginners and allows users to convert cryptocurrency to cash and vice versa in a straightforward manner.
Coinbase has changed throughout time, introducing and eliminating currency as well as releasing updates to improve user experience. The exchange declared in June 2022 that Coinbase Pro would be discontinued and Coinbase Advanced Trade would take its place, offering the complete range of advanced cryptocurrency investment services on a single platform. After six months, the business transferred Coinbase Pro accounts to the more flexible “Advanced Trade” platform, which caters to high volume traders.
The markets may be quite unpredictable, and investing in cryptocurrencies, decentralized finance (DeFi), and other initial coin offerings (ICOs) is very dangerous and speculative. Before making any financial decisions, seek the advice of a trained specialist. Neither Investopedia nor the author of this post recommends investing in cryptocurrencies, and neither can they guarantee the timeliness nor accuracy of the information provided.
Available Cryptocurrencies on Coinbase
Coinbase keeps an ever-expanding list of assets that include thousands of distinct cryptocurrency assets that may be traded while on the road. Popular cryptocurrencies listed on Coinbase include:
The Bitcoin (BTC)
Ethereum (ETH)
USDT (Tether USD)
Cardano (ADA)
Solana (SOL)
Dollar Coin (USDC) Polkadot (DOT)
Dogecoin (DOGE)
Uniswap (UNI)
Litecoin (LTC)
Shiba Inu (SHIB)
Star Light Mass (XLM) vs. Polygon (MATIC)
Due to low usage, the Coinbase Wallet discontinued supporting BCH, ETC, XLM, and XRP on February 20, 2023.
On the Coinbase exchange, users can still trade these coins if they’re interested in investing.
Trading Knowledge
More than 30 products are available on Coinbase for users, developers, and companies.
Every commodity, though, caters to a distinct market and offers a unique trade experience. For those who would like to trade using Coinbase, the best options are Coinbase (the exchange), Coinbase Wallet, and Advanced Trade.
Coinbase
Even without any cryptocurrency understanding, anyone can easily navigate and trade their coins in a few simple clicks using the straightforward structure of the Coinbase primary platform.
For those who would rather trade while on the go, Coinbase is accessible through both its website and the Coinbase exchange app, which is available on the Apple App and Google Play Store. You must link your bank account to Coinbase in order to finish the account setup process. You can quickly withdraw your cryptocurrency as cash from this connected account or deposit money into your Coinbase account.
You must click on the “Dashboard” tab in order to see all of your cryptocurrency holdings.
Unless you disable the notifications, Coinbase will send you emails on a regular basis if the value of your assets changes considerably. This is a security measure. Coinbase is open 24/7, just like other cryptocurrency exchanges, allowing you to trade cryptocurrencies at any time of day.
Wallet on Coinbase
For those who would rather utilize a more interactive, mobile platform, Coinbase also offers a wallet that is a great substitute. Since the wallet is non-custodial, unlike the website, you must safeguard your login information or risk losing your funds forever. Additionally, the Coinbase Wallet offers users who still wish to access Coinbase services an alternative to Coinbase.com, which is unavailable in certain areas.
Advanced Trade: Coinbase’s native trading platform, Advanced Trade gives experienced users access to real-time order books as well as additional tools and security for their trades. From Coinbase Pro, the company’s previous sophisticated trading platform, this is a significant upgrade. Advanced Trade offers better staking payouts, more market pairs, and a TradingView integration than the previous Pro platform.
Fees: Coinbase’s whole fee schedule is spread across several pages in their Help Section rather than being provided on a single page. As a maker, you pay less than as a taker. Takers pay a greater percentage, which could range from 0.05% to 0.60%, of their transactions as fees, while manufacturers pay 0.00% to 0.40%.
Depending on your transaction volume and tier, some fees may be waived.
Users that transact in higher volumes might pay lower costs thanks to Coinbase’s tier-based structure for maker and taker fees.
Safety
Coinbase protects your account in a number of ways. A mandatory two-factor authentication (2FA) system is one of these beneficial security measures. Nevertheless, you still need to exercise caution and take precautions against any unwanted access that can jeopardize your account.
Cold storage and multiparty computation are two essential security mechanisms that the exchange uses to protect client assets (MPC). The majority of customer assets are kept in safe, off-site locations, but MPC shields the remaining assets from hackers when they are kept online.
Every on-chain transaction using MPC generates a cryptographic key. Since keys are generated in segments, it is nearly impossible for an attacker to obtain your cryptocurrency by piecing together all of the necessary keys.
Users who have used Coinbase have lost their assets in spite of the exchange’s “bank-grade” security. A Coinbase user filed a lawsuit against the exchange in March 2023 after a hacker stole 90% of his life savings, or roughly $96,000, from him after accessing his account and hacking his phone.
After his account was compromised, another user lost $2 million worth of cryptocurrencies, and at the time of the occurrence, he was unable to receive any helpful assistance from customer care.
Creating an Account on Coinbase
Just like opening a new bank account, opening a Coinbase account is a simple process. To verify your identity as a human being and to comply with know your customer (KYC) rules, you will be required to provide personal information such as your name, email address, and proof of residency, among other things.
You also need to send in a photo of your official identification document. Coinbase is not one of the bitcoin exchanges where you can remain anonymous, however there are few. Before you can begin transacting, you must first be confirmed and have your bank account linked to your current identification.
These are safeguards put in place to keep Coinbase users safe.
Client Support
Among the most common complaints made by Coinbase users about the exchange’s customer support are poor response times and impersonal communication. The ticketing system, social media help platform, and live chat feature are the customer care choices; these are all more self-service than interactive.
Client Contentment
While Coinbase has received positive reviews for its user-friendliness and ease of use, security and consumer happiness still require work. It can be difficult for users to fix account problems including locked accounts and hacks.
With 1.8 out of 5 ratings from 9,300+ evaluations, Coinbase has received negative feedback from customers on Trustpilot, indicating a serious issue with users’ ability to access and manage their accounts.
Aside from review websites, Coinbase is not well-regarded by consumer protection organizations. Coinbase users filed thousands of complaints with the Consumer Financial Protection Bureau.
Coinbase was also hit with civil fines totaling more than $6 million by the Commodities Futures Trading Commission.
How Coinbase Differs from Other Companies in the Cryptospace
Coinbase is not the only cryptocurrency exchange available to users; there are over 500 of them. Users might choose decentralized exchanges if they would rather remain anonymous. If users don’t think Coinbase is a suitable fit, they can use other centralized exchanges like Binance, Kraken, or Gemini if they don’t mind being known.
You are not limited to a single exchange. For a better experience, you can utilize Coinbase in conjunction with other exchangers. For regular purchases, for instance, a different centralized exchange could be preferable, but Coinbase safely keeps your cryptocurrency.
One exchange that functions very much like Coinbase is called Gemini. This is how Coinbase and it compare:
In comparison to Coinbase, Gemini is more affordable and has a better fee schedule.
In the US, both exchanges are legal.
Apart from its standard exchange, Gemini also provides a professional trading platform called ActiveTrader, which is comparable to Coinbase’s Active Trade in terms of capabilities.
Users can earn interest on their cryptocurrency with both Coinbase, up to 9%.
Check out our Gemini Review first to understand how to make the most of the exchange if you want to move to Gemini instead of Coinbase or utilize it in tandem with it.
Last Word
Anyone can purchase, sell, or store cryptocurrencies on the well-known cryptocurrency exchange Coinbase. It reduces the processes required to invest in cryptocurrencies and spares customers from wading through the technicalities common to many other exchanges. With over 10,000 assets supported by the exchange, customers can discover and take advantage of a wide variety of virtual currencies.
Always keep your gadgets safe when using Coinbase or any other cryptocurrency exchange. If you can get over Coinbase’s expensive fee schedule and subpar customer support, it’s a useful tool that can make investing in cryptocurrencies easier.
Frequently Asked Questions:
What is Coinbase?
Coinbase is a cryptocurrency brokerage that makes trading and storing cryptocurrencies easier. It’s perfect for novices with no experience with cryptocurrencies and for more experienced users who want something simpler. Users of this exchange can deposit and withdraw fiat money using a number of ways, including ACH and SWIFT transfers, in addition to trading cryptocurrency around-the-clock.
Is Coinbase Secure?
Coinbase is a reasonably safe place to store your cryptocurrency assets because it has a number of security mechanisms in place to protect customer funds. It is not completely safe, therefore you still need to take precautions to safeguard your possessions. Coinbase allows you to trade cryptocurrencies, but make sure you never give out your verification codes or keep any login credentials private.
Is Coinbase Suitable for Novice Users?
Indeed. Since Coinbase doesn’t require much technical knowledge, it’s a suitable option for newbies. The Coinbase interface is simple to use and anyone with an internet-connected device may trade cryptocurrency.
Should I provide Coinbase with my SSN?
Providing Coinbase with your Social Security number (SSN) is generally safe. It is one of the most well-known bitcoin trading platforms, safeguarding user accounts with cutting-edge security procedures. It’s not completely safe against hackers, though, so only you can determine if you want to move forward.
The FDIC Insures Coinbase?
The FDIC does not insure Coinbase.
Rather, the business provides cybersecurity and theft protection through its crime insurance, which also protects some of the digital currencies in its system. Keep in mind that the insurance does not cover illegal access to user accounts, like in the event that someone steals your login information.
Does Coinbase File IRS Reports?
The IRS receives reports from Coinbase. Only Form 1099-MISC is reported by the exchange.
Activities on Coinbase can yield a variety of taxable income streams, such as interest income from staking and capital gains from purchasing and selling cryptocurrency. Customers in the US can acquire all the information they require to declare taxable income from Coinbase by visiting Coinbase Taxes.
Techniques
Investopedia is committed to assisting individuals who are considering investing in cryptocurrencies in making wise and secure choices. Our goal is to give readers of all skill levels objective evaluations of the best cryptocurrency exchanges.
Exchanges were examined in terms of security, costs, quantity of cryptocurrencies offered, and other aspects. We also took into account whether the exchange is fully decentralized or governed by an appropriate body. You are welcome to evaluate our whole bitcoin exchange methodology, which includes the evaluation procedure and weighted data points.