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Cryptocurrency has gained a steady following amongst traders and investors, with multiple websites and apps being created for the purpose of investing. Since 2010, with the rise of Bitcoin, cryptocurrency has become a trending commodity to buy and sell. One of the mainstream cryptocurrency investment platforms today is Coinbase.
Coinbase started early in the cryptocurrency timeline, established in 2012. The platform’s prime objective has been to build a successful economy around cryptocurrency. With over 73 million verified users around the globe, Coinbase has become a reliable platform for the top currencies.
Coinbase is a reliable platform for both beginner and advanced investors. The convenience Coinbase offers allows for accessible learning and transparency for all users, with over 80 cryptocurrencies to invest in and trade. However, Coinbase does have a few drawbacks and shortfalls you should take into consideration as well. Here is what you need to know about Coinbase.
Onto our Coinbase review!
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Coinbase Pros and Cons
Before we dive deep into Coinbase, here are some of the key pros and cons to consider for the platform.
- Available in 100 countries: As Coinbase has grown, the company has expanded and is available in countries in Africa, Europe, Asia, Australia, North America and South America.
- Over 80 cryptocurrencies available: Although Coinbase has been noted to not have a wide selection of currencies to choose from, the more than 80 currencies they do invest are the top-ranking types on the market today. A few that Coinbase carries includes Bitcoin, Ethereum, Tether, Bitcoin Cash, Litecoin, Chainlink, and Polygon.
- Dashboard shows current market status: Coinbase’s dashboard is easy to understand and features charts that showcase the current market for each type of cryptocurrency and updates every 24 hours.
- Educational resources available: For the beginner investors or advanced traders alike, Coinbase has resources for furthering client’s education under a section called ‘learn’, in addition to a blog section.
- Separate sections for individuals, businesses, and developers: Coinbase includes resources for the different types of people who use their platform, including individuals who buy and sell, businesses that choose to invest, and developers who are interested in creating crypto-based projects.
- Established, large competitor with a great reputation: Coinbase is one of the top mainstream platforms for the industry today, with only a few other notable platforms for competition. In the years that Coinbase has been around, there has been no current knowledge of any security breaches against Coinbase.
- User-friendly interface for both desktop and mobile: Coinbase offers both PC and smart phone use of the platform, with an available wallet app for both Apple and iOS. The interface for both is sleek and clean, offering easy understanding and navigation for users.
- Fees are higher and can be confusing: Coinbase has an extensive fee tracking list, with fees that are higher if you do not use Coinbase Pro, which is the alternative platform for advanced traders. The fees are dependent on the amount being traded, with additional fees depending on deposits and withdrawals.
- Customer service is lacking: Coinbase only currently has email for everyday support, with an emergency phone number that can be called in case an account needs to be disabled. There is no 24/7 online chat available at this time.
- Not all countries have the same capabilities: Although Coinbase is accessible in 100 countries, not every country has the same opportunities. Some countries can only convert their currency into the cryptocurrency of their choice, while others are allowed to convert, buy, and have their choice of payment methods.
Coinbase is a decentralized company that was established in 2012, in San Francisco, California. The fact that Coinbase does not technically have a headquarters or location on a map can be considered a negative to some, but this factor fits in well with the mission of Coinbase. The mission of Coinbase is to promote and create economic freedom across the globe, in hopes of creating a new common standard that is untouchable by companies or countries and where everyone is on the same page. Overall, Coinbase aims to create an equal economy through the investment in cryptocurrencies and has made a name for itself by creating a transparent brokerage service.
Coinbase is a digital asset exchange company that has built a strong reputation for itself throughout the years. The platform is easy to use, making Coinbase a great starting place for beginner crypto investors, with educational information at the ready. But Coinbase is also great for advanced investors and traders with Coinbase Pro.
Features of Coinbase
Coinbase is set up to be not only an investment platform but also a learning opportunity on investment and cryptocurrency. Coinbase makes a point to cover all bases that investors, both old and new, might find useful in their experience with trading cryptocurrency. With the value of cryptocurrency expected to rise greatly by 2030, these are a few of the features that Coinbase provides:
- Different trading options: Coinbase currently offers three trading options: spot markets, options trading, and futures trading. As of this time, there is no leverage trading option.
- Various safety features: Coinbase is a rare kind of platform in that it offers insurance in the case of security breaches against the platform. Such safety features for both the platform and individual accounts include cold storage, two-factor authentication, encryption protection, a coin base vault, and FDIC insurance.
- Two platforms: Coinbase offers two platforms; Coinbase and Coinbase Pro, which each has its pros and cons and uses for both beginner and advanced users.
- Visa debit card and wallet app: The card makes it easy to use your cryptocurrency worldwide, while the wallet app helps you to keep track of your accounts, switch between currencies, and store your cryptocurrency in one place.
More of our Coinbase review is below.
RELATED: Coinbase Vs Coinbase Pro.
How Does Coinbase Work?
Back in the day, brokerage services were dependent on brokers with who you had to arrange accounts and meetings to ensure your money was going to the right investments. Coinbase allows you to oversee the brokerage process without all the phone calls and meetings. It is as easy as setting up your account, deciding the currencies you wish to invest in, and then keeping an eye on the market, while the brokers on the other side of the app or website handle the rest.
Having an account with Coinbase also allows you to take your accounts everywhere on your phone, for immediate use and monitoring. In order to open an account with Coinbase, you will need to confirm your mobile number, preferred payment method, and your identity. To finalize your account, you will also need to make a purchase, which the minimum amount to open an account is currently two dollars. From there, purchasing your first currency is a similar process you would follow for buying, selling, and trading other currencies available.
After your first purchase, you will be able to buy more, sell what you purchased, or make a trade with just a click of a button. From there, you will need to specify future purchases at one-time purchases, or set the purchase on a schedule, from daily, weekly, or monthly. Choose the amount you wish to purchase, select the currency you wish to purchase, then finalize the order with your choice of payment method.
The Coinbase Wallet is a place to securely store your currencies, whereas the main platform is for transactions. However, it is the user’s responsibility to manage the information stored in the Coinbase wallet safely. The final part of how Coinbase works is in the fee structure, which can be overwhelming at first. Simply put, Coinbase is a tier-like fee system, where the higher the amount, typically the higher the fees are. So, for every purchase and sale, Coinbase charges 0.50%. Coinbase also charges flat-rate fees which start at 99 cents and can reach a percentage-based amount.
The amounts that the fees are based on begin at ten dollars are less, then reach $200 in which the fee is $2.99. If your transaction reaches above $200, then your fees will be custom to the amount. The range and amount of fees can vary depending on where you live. If you decide to use Coinbase Pro, the fees will be lower.
- Etoro: Etoro is a great platform for beginners. This platform is regulated within the US and registered with FinCEN. Etoro is popular for copy trading and social trading, allowing users to copy successful trades from other successful investors, while allowing users to talk with other users about trading. Even though this platform only carries over 30 cryptocurrencies, the fees are lower, and the platform even offers a demo account to practice with no risk using play money.
- Gemini: Regulated by NYSDFS with FDIC protection, Gemini is another well-known investment platform that is more secure than Coinbase. This platform has been awarded ISO 27001 certification, with two interfaces to match the level of familiarity of the user. Options for the platform include direct buying, advance activetrader interface, auction support, and electronic block trades. The fees for Gemini are also lower than Coinbase, starting at 0.25% and 0.35%, which can be reduced with the higher the trade volumes.
- Uphold: This platform has more trading assets, with a more diverse investment array, including over 60 cryptocurrencies, 27 fiat currencies, and even four precious metals. Users are able to trade between two assets, so you are able to trade gold for bitcoin through Uphold. There are no fees technically because they are included in spreads, but overall, the fees are still lower. Uphold also has a debit card.
- Crypto.com: This platform has better staking than Coinbase and has more than 150 cryptocurrencies available. Crypto.com offers stakes on over 40 coins, including their own coin called CRO. Staking on their coin allows users to take advantage of other special benefits, including a premium metal Visa with 12% APR paid daily to the user and 8% cashback. Users will also benefit from the 14.5% investment interest paid on staked coins to their account. Lastly, Crypto.com is also an insured platform.
Coinbase Reviews & Complaints
The one common con to Coinbase is known to be the lacking customer service contact options. There are currently only two ways to contact customer service, one of which is reserved for emergency use only, in case your account has been hacked, compromised, or needs to be disabled. Email is the common way to get ahold of customer service, which does not guarantee immediate resolution. In general, the overall public consensus of Coinbase’s customer service is not positive.
Frequently Asked Questions About Coinbase (Faq)
Our Coinbase review answers some of the most common questions in the faq below.
Is Coinbase secure?
Coinbase is secure, as long as you avoid third-party companies or services. The platform promises FDIC protection with encryption and various account protection steps. Cryptocurrency is known as a highly volatile industry, so prevention is the best step to stop hacking and lost account information.
What are the fees like?
The fees are notably higher than most platforms and vary greatly depending on the actions taken on the platform. Fees vary based on buying/trading, debits, credits, and withdrawals. Credit fees start at 3.99%, whereas debit and withdrawals start at 1.49%. As mentioned earlier, the fees for buying and trading vary greatly depending on the transaction amount.
What’s the difference between Coinbase and Coinbase Pro?
Coinbase is the beginner’s version of the platform, which features a starter’s choice of cryptocurrencies to choose from, higher fees, and basic trading options. Coinbase Pro allows users more choices of currencies to choose from, more trading options, lower fees, and unlimited trading amounts. However, Coinbase Pro for beginners would have a steep learning curve.
Coinbase Review Conclusion
Coinbase may be a great platform for advanced users but may be a tough time for beginner investors. Coinbase Pro is the better option of the two platform options, as the fees are lower and the trading options are unlimited, so it is better to weigh the pros and cons of the learning curve in favor of higher investment outcomes. For other features, the alternative options show great promise, if you are looking for a specific environment or set of options over what Coinbase currently offers.
Coinbase is overall a better option for people with prior investment knowledge and experience with cryptocurrency, as the industry is still quite new. Since Coinbase was established around the time of Bitcoin’s notoriety, the platform does have a dedicated history, but the public opinion of the platform is quite varied, mostly against the platform.
Thanks for reading our Coinbase review.