Coinbase

Coinbase Review

Trading or investing in cryptocurrency can be a challenging or intimidating task as this online market has a different flavor as it has a different impact compared to other markets. When trading or purchasing cryptocurrency, the top priority is the security and safety of the platform which is frequently discussed. Here is a crypto trading platform, it’s an opportunity for the investors to know about that before joining it. Coinbase is considered one of the leading mainstream cryptocurrency exchanges in the United States by trading volume and also the world’s largest crypto platform as well; offering a wide variety of products and services including investing in cryptocurrency, custodial accounts for institutions, an advanced trading platform, a wallet for retail investors and traders and more importantly it has its own U.S. dollar stable coin.

Introduction

Coinbase was established by Fred Ehrsam (a former Goldman Sachs trader) and Brian Armstrong (a former Airbnb engineer) in June 2012 and is being operated from its headquarter in San Francisco, California. Ben Reeves (Blockchain.info co-founder) was also the part of founding team but then left it due to having a different stance on how the wallet of Coinbase should work. Ultimately, after initial development and launch, the company started to buy and sell Bitcoins through bank transfer. Due to having growth, in May 2013, the company managed to have an investment of US$5 million from a venture capital firm Union Square Ventures led by Fred Wilson. That was the start of the platform but as of now, the company has an association with many investors and venture capital firms from all over the world. The company is being operated by 1123 employees, offering its key services in almost 190 countries. As of February 2021, Coinbase had a revenue of US$ 20 billion and a huge user base of 13,300,000 users with over $50 billion worth of crypto traded to date.

In 2013, Coinbase was ranked as the highest-funded Bitcoin startup and largest crypto exchange platform as well. Contrary to other exchanges, there is a set price for your cryptocurrency based on market value and this thing facilitates the users to buy cryptocurrency more easily and quickly as well. It is also considered one of the simplest and easiest crypto trading platforms where Bitcoin and other cryptocurrencies can be bought using PayPal, Debit Card, Credit Card or with fiat currency via Bank Transfer.

Core Features of Coinbase

Here are some key features of Coinbase:

  • Wide variety of Cryptocurrencies

There are 32 cryptocurrencies available to trade on the platform.

  • Trading platforms

There are two trading platforms supported by the company available in all U.S. states except Hawaii. Firstly, a simple Coinbase platform is used to purchase cryptocurrency by U.S. dollars, and secondly, Coinbase Pro (Formely named as GDAX) facilitating advanced charting functions for crypto-to-crypto trading and other unique functionalities as well.

  • Coinbase Wallet

Coinbase is also offering its services to store your crypto assets with strong security protocols. Coinbase wallet is the world’s most popular and reliable tool to buy and sell Bitcoin, Ethereum, and Litecoin.

  • Coinbase Card Services

Coinbase has just introduced its Card services which allow UK-based customers to spend their crypto-asset both online and in-store as well.

  • Offering High Liquidity

Coinbase is marked as high liquidity providing crypto exchange, this will help investors from price slippage in the volatile market.

  • Earn free crypto while interacting with Coinbase

To interact with global customers, Coinbase is providing a learning portal where customers can learn about the platform and also earn cryptocurrencies at the same time.

How to set up a Coinbase Account

Coinbase account can be opened by following the given step by step guide and you will be there to buy or sell your crypto asset:

  • Sign Up and Join

Your name, email address, and password will be asked to create an account on Coinbase.

  • Select Account Type

After giving an email address, an authentication process will be performed and then you will be redirected to the startup page where account type will be asked, whether you want to create a business account or personal/individual account. Select an account as per your requirements.

  • Phone Number Verification

To provide a 2-factor identification, you will be asked to give your mobile number. After verification, 2-factor identification will be activated to ensure your account remains secure following all security protocols.

  • Confirm Payment Method

Coinbase permits users to select from two payment methods like credit card or bank transfer. PayPal account is also allowed to use but it is preferred for crypto trading. By giving all the credentials, your payment method will be integrated with your Coinbase account.

  • Start buy and sell Cryptocurrency

After setting up the account, you will be navigated to the platform to buy digital currency using funds available in your account. Before performing any transaction; service fee details are provided by the platform and upon confirmation, cryptocurrency will be transacted to your relevant Coinbase wallet.

Coinbase – Security

Coinbase uses a variety of security measures to secure its users. However, it is important to understand that each user’s own actions also have an impact on potential security risks. It is essential to use strong passwords and take advantage of available security features such as two-step authentication.

Coinbase offers two-step authentication, biometric fingerprint authentication and also saves 98% of users’ funds in offline cold wallets.

The platform offers solid protection compared to numerous other conductive platforms. This is one reason why Coinbase is a great option for those who want to safely start investing in cryptocurrencies.

coinbase

Coinbase Trading fees

The fee structure of Coinbase is so complex and confusing depending upon two following factors:

  1. For cryptocurrency sales and purchases, about 0.5% is charged and these rates may be lower or higher as per the fluctuations in the market.
  2. A flat or variable fee is also charged depending upon the purchasing amount and its type.

Here is more clarification regarding the Coinbase fees on different amounts.

Total Trade Amount FEE
$10 or less amount $0.99
More than $10 and up to $25 $1.49
More than $25 and up to $50 $1.99
More than $50 and up to $200 $2.99

Fees on different payment methods on Coinbase

Payment Methods FEE
Wire transfer 1.49%

 

ACH transfer 3.99%

 

Instant card withdrawal Up to 1.5% (minimum fee of $0.55)
Debit card FREE
U.S. bank account or Coinbase wallet $10 ($25 outgoing)

 

Liquidity and Limits

Coinbase offers high liquidity to facilitate its customers for a better trading experience and there are great limits as well depending upon user account level. The limits on an account are determined by the provided information required for verification. If you are a verified US-based customer, you will be allowed to buy up to $50,000 worth of Bitcoin daily and this limit varies from country to country and provided verified data as well. Similarly, European customers can have a limit of buying crypto worth €30,000 in their account at any time.

Here is complete detail for better understanding.

Methods Limits Time Before You Can Withdraw
Wire Transfer

 

Unlimted Instant once debit clears
ACH Transfer

 

$25k/day (cumulative ACH limit) The majority of the customer can withdraw within 5 business days
Debit Card

 

Up to $7,500/week Instant once wire clears

Coinbase Pro

While Coinbase is an incredibly simple trading platform for those just new to investing, Coinbase Pro offers a much broader as well as more diverse experience.

Customers using Coinbase Pro can see short-term price charts and use a variety of indicators such as exponential moving averages. Currently, the only two indicators available are EMA (12) and EMA (26). Coinbase Pro also has over 100 cryptocurrency pairs available worldwide.

While the standard Coinbase platform is a great tool for many inexperienced investors, the Coinbase Pro is by far the better platform for those who want to trade or invest at lower fees and get the most out of more versatile features.

Additional Projects supported by Coinbase

Besides providing a crypto trading platform, Coinbase is also offering other multiple services as the following:

  • Coinbase Index

This platform is used to track the financial performance and activities on your Coinbase listed crypto assets.

  • USD Coin (USDC)

It is a stable coin created by Coinbase to introduce its cryptocurrency in the crypto community.

  • Custodian Services

The platform is used to safeguard and protect crypto assets for institutional investors.

  • Paradex

This platform is so useful to perform trading activities directly from your wallet.

  • com

This service is used to filter out spam emails and it has been acquired by Coindesk to provide better, secured and quality services to its users.

  • Coinbase Ventures

Coinbase is also presenting investment opportunities in the companies building open financial systems. This investment platform is supported by Coinbase to enhance investment scenarios in modern financial systems.

Payment Methods and Supported Currencies on Coinbase

Platform allows its users to use the following payment methods:

  • Debit Card
  • Credit cards (now new cards aren’t currently accepted)
  • PayPal (For withdrawal purposes only)
  • Cryptocurrency deposit and withdrawal
  • Wire transfer (including SEPA in the EU and ACH in the US)

Some cryptocurrencies that are supported on Coinbase are the following:

  • Bitcoin (BTC)
  • Tezos (XTZ)
  • Ethereum (ETH)
  • Orchid (OXT)
  • Ripple (XRP)
  • Maker (MKR)
  • Litecoin (LTC)
  • Decentraland (MANA)
  • Bitcoin Cash (BCH)
  • Loom Network (LOOM)
  • EOS (EOS) Stellar Lumens (XLM)
  • Chainlink (LINK)
  • Ethereum Classic (ETC)
  • Kyber Network (KNC)
  • Zcash (ZEC)
  • Golem (GNT)
  • Augur (REP)
  • District0x (DNT)
  • Dai (DAI)
  • Dash (DASH)
  • USD Coin (USDC)
  • Civic (CVC)
  • 0x (ZRX)
  • Cosmos (Atom)
  • Algorand (Algo)
  • Basic Attention Token (BAT)

Pros & Cons

PROS

  • Easy to use and secured platform.
  • Having a strong reputation and user base.
  • Both Credit and Debit cards are accepted.
  • The platform is FDIC insured.
  • Wide variety of cryptocurrencies almost all over the world.
  • Cryptocurrency will be insured if the website is hacked.

CONS

  • Providing limited payment methods
  • Having a tracking system of how Bitcoins are being spent, bought, or sent.
  • Not a good customer support
  • Charging higher fees compared to other crypto exchanges.

Coinbase Conclusion

Being one of the best crypto exchanges, Coinbase still requires so many improvements in its structure like customer support should be upgraded and more cryptocurrencies should to added to trade. Overall it’s a good trading platform and a good choice for beginners due to its easy-to-use and practical service for trading, buying, and selling crypto assets almost globally. But it is highly recommended to use your wallets on any crypto exchange despite claiming ultimate security by the platform. The crypto-assets should always be transferred from any exchange to your wallet as it’s a good approach while dealing with the crypto community.

FAQs

Is Coinbase safe?

Yes it is. It is one of the largest cryptocurrency trading platforms in the world, operating in almost 200 different countries!

Does Coinbase work on mobile devices?

It works. The platform is also fully optimized for the phone screen directly from your browser. In addition, there is a proprietary application that is really simple to use. You can download it directly from your own app store.

Does Coinbase work in Finland?

Yes it works. Coinbase is a really popular trading platform among Finnish investors. However, be sure to familiarize yourself with the taxation of cryptocurrencies before you start trading!