Coinbase Review 2021

Keeping our readers well informed with unbiased reviews of the best cryptocurrency exchanges is a top priority. Exchanges are considered for review only if they pass our standards of safety, security, liquidity and are either regulated by a proper agency or entirely decentralized. This helps aspiring cryptocurrency investors make informed and safe decisions. If you want to buy cryptocurrencies or coins with your fiat money (USD, EUR, etc.), Coinbase may be the exchange for you. In this Coinbase review, we’ll cover the basics of Coinbase, including what it is, how it works, its pros and cons, and whether it’s right for you.

So, let’s get started!

Overview

With over 13.3M active users, Coinbase remains one of the biggest crypto exchanges in the world, and there are few exchanges that are as trusted and reliable as Coinbase. You can buy and sell Bitcoin and a few popular digital currencies. Coinbase is a globally recognized cryptocurrency exchange, which facilitates all crypto with fiat currencies in more than 32 countries. They hold over $20 billion in assets and over $50 billion in crypto, including bitcoin, which has been traded using its platform since it was founded in San Francisco, California, in 2012. This exchange was rebranded in the year 2016 to Global Digital Asset Exchange (GDAX), it’s best known primary asset.

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What Is Coinbase?

Coinbase’s cryptocurrency wallet is offered in 190 countries, and it has several thousands of employees around the world. It is a fully regulated and licensed cryptocurrency exchange in 40 U.S. states and territories. Coinbase initially only allowed for Bitcoin trading but quickly began adding cryptocurrencies that fit its decentralized criteria. It is the most trusted place for all things crypto. Coinbase actually has two core products; a broker exchange and a professional trading platform named GDAX. However, the two can be used independently from one another. Coinbase, today offers everything from cryptocurrency investing and an advanced trading platform to custodial accounts for institutions, a wallet for retail investors, and its own U.S. dollar stable-coin.

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Several reviews recognize this company as one of the best online secured platforms for buying, selling, storing, and transferring coins and cryptos. Its mission is to offer an open financial system to its members and also to help to convert digital currency into local currency.

Features

Let’s discuss some of the platform’s features in our Coinbase review

  • Coinbase has a developer platform where it gives the developers a chance to build APIs that record historical price information and real-time data of Coinbase supported crypto.
  • The company has a commerce platform for businesses to use cryptocurrency for their products and services. By offering API documentation, these businesses can review and use Coinbase products for setting up an easy and safe system to accept cryptocurrency as a payment method. This enables users to buy coins using crypto.

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  • Many company reviews mention that Coinbase provides an intuitive platform that is easy to use. Comparing prices, checking balances, executing buy-sell orders are just a few clicks away.
  • The platform has been used as a starting point for traders to enter the cryptocurrency market. Traders can buy several cryptos like Bitcoin, Cash, Ether, Litecoin, and many more.
  • As mentioned in other reviews, Coinbase fees are a bit higher compared to other brokers, but these fees are worth paying for the services that are offered. These include fees for buying, exchanging, and network fees for withdrawals.
  • Coinbase mobile wallet allows traders to hold their crypto safely. Coinbase wallet offers a seed phrase which permits the user to extract the keys of the cryptocurrencies in the wallet.
  • The prepaid Coinbase credit card is known as Coinbase card, which has an app available on Google play store and Apple app store. This helps the user to buy cryptocurrencies more efficiently. Traders can also request a visa card, which allows them to spend the cryptos that are held on the crypto exchange

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  • Coinbase provides a “Coinbase affiliate program” to those who’d like to work as affiliate or advertising partners. You will receive trading fees for the first three months that a user trades on Coinbase com through your referral link.
  • One of the reasons why Coinbase is one of the Best Crypto Exchanges is because people can buy Bitcoin and several other coins by using fiat currencies through a credit card, debit card, and bank transfer.
  • If you want an instant exchange and would like to send and receive money by Bitcoin, but you need to transact with fiat currencies, using the Coinbase feature called “instant exchange.” Rather than using fiat currency to buy Bitcoin and send it to the receiver, you can use an instant exchange feature to make a seamless instant transfer.
  • You can upgrade to GDAX completely for free if you are interested in buying and selling coins and trading with them. You can transfer easily to GDAX or Coinbase Pro platform. GDAX offers a wide selection of cryptocurrencies for trading, and you can also trade between cryptocurrencies.

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  • One of the most important features is that Coinbase keeps 99% of its assets in offline cold storage, ensuring safety from hackers. 1% of the assets that are available online are already insured. This way, traders are compensated in case of an unfortunate event.
  • The Coinbase customer service team is highly dedicated and can be contacted anytime

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Pros and Cons of the Platform

Let us review a few pros and cons of Coinbase –

Pros Cons
The platform has an easy and simple to use interface
Coinbase is not available in a few countries
Coinbase accepts major cryptocurrencies and fiat currencies
Compared to its competitors, Coinbase trading fees and exchange fees are a bit high
The website offers an exclusive platform for advanced traders called Coinbase Pro
User does not control wallet keys
The mobile app has all the features of the desktop Those interested in altcoin trading won’t find as many as some other exchanges
Very high liquidity
It has a solid variety of altcoin choices

Pros Explained

Extremely user-friendly interface: Coinbase’s intuitive design makes it easy for traders of all levels to navigate the user interface and use tools to make effective and profitable trades. Signing up and buying cryptocurrencies is a matter of minutes.

High liquidity: Crypto exchange is a very volatile market. More volatility means more slippages. However, investors can be protected with liquidity, and Coinbase is one of the most highly liquid exchanges.

Altcoin choices: There are over 25 cryptocurrencies for investment, trading, and staking.

Cons Explained

High fees: New traders may find the standard Coinbase platform pricey compared to others. Using Coinbase Pro is a cheaper alternative. You can switch to it for free, but it has features that could be overwhelming.

Users do not have full control of their wallet keys. Users don’t have full autonomous control over their holdings, which, in essence, is against the ethos of decentralized currency or finance. This can be avoided if the investor withdraws their currency to their own personal wallet, preferably a hard wallet.

Limited altcoin options: Serious traders mention in their reviews that there isn’t a wide enough variety of altcoins.

Is Coinbase Legit?

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Coinbase is a legitimate crypto exchange, and they operate in 30 states in the U.S. It has different licenses to cater to all types of traders around the world. These licenses make sure that all company practices are legal, and the traders’ money is safe and handled with integrity. This platform is used in several countries for making transactions like sending, storing, or receiving cryptos. Coinbase’s buy and sell features are available only in a few countries. The company also fights hard against the illegal market that also trades with Bitcoin. Coinbase monitors and reviews what payments are being made and see whether these have anything to do with the black market, gambling, or other illegal activities. If this is the case, they either freeze the account or close it completely.

Who Can Use Coinbase?

Let’s talk about who Coinbase is ideally for in this review:

  • Coinbase provides a great user experience since the interface is easy to learn and helps new traders learn about the benefits of using an online crypto exchange. Traders can transfer funds to the GDAX platform. It is one of the easiest ways to transact several currencies on this platform.
  • If you are looking for a way to buy crypto using fiat currencies, then Coinbase is the best choice.

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  • If you are a small business investor, who is looking to invest your money into cryptocurrency, then Coinbase is ideal. But if you are a large investor or a big business and investing large amounts of money in crypto or bitcoin, then you might feel Coinbase’s high fees are a bit high.

Is Coinbase Secure?

Our review of the company’s security measures is very positive. When it comes to investing and trading with crypto, Coinbase offers top-notch security.

  • Coinbase is one of the four exchanges to have a license in New York under the pilot BitLicense program, and it strictly adheres to KYC (know your customer) rules, and it complies with the regulations.
  • Coinbase has several licenses to operate in the United States and other countries. Its assets are insured, so you won’t lose any of your hard-earned money by theft or hacking.
  • Coinbase uses a variety of safety measures for account holders. It is important to understand that any crypto on any exchange account is only as secure as the account holder makes them. It is imperative to use strong passwords and to utilize the available security features like two-step verification.
  • Coinbase has two-step verification, biometric fingerprint logins, insurance in the event that Coinbase itself is breached (this insurance does not apply if your account is breached due to your own lack of security measures), and also stores 98% of users’ funds in offline cold storage.
  • Coinbase shows you a QR code, which represents the secret key, which you’ll then need to scan using an Authenticator app on your phone.

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  • Digital currency is not considered legal tender and, therefore, is not backed by SIPC or FDIC. Coinbase provides insurance by pooling Coinbase balances and holding them in USD custodial accounts, USD denominated money market funds or liquid U.S. treasuries
  • At Coinbase, you need to register with your real personal information, and this needs to be verified. Coinbase wants to know who they do business with, and this can only be done by verifying your email address, telephone number, proof of identity, and bank account/credit card details. They have set up this process in such a way that you, as a buyer, don’t have much trouble doing this.
  • For the email address, you will receive a confirmation email and, for your mobile number, a verification SMS. You can have your proof of identity checked by uploading a photo taken via the webcam or using your smartphone camera. If you are on your desktop, you will receive a special link by SMS where you can upload your passport. After uploading your I.D., it will be automatically checked. This takes about 2 minutes.
  • Coinbase provides a solid amount of security in comparison to a number of other leading exchanges. This is one of the reasons why Coinbase is a great offering for those looking to safely get started investing in cryptocurrency.
  • That said, the premise of cryptocurrency is to remove intermediaries where possible and to be in total control of all your funds. While Coinbase does provide an easy entry to cryptocurrency investing, it is important to learn about proper cryptocurrency security and storage. Savvy crypto investors may use Coinbase Pro for its reduced fees and then withdraw their holdings to their own secure cold storage.

Cold Storage

If you leave your crypto in an online wallet or a third-party platform, there are chances that it might get hacked or might be stolen. Coinbase has strict security controls around its platform, and it offers commitment for cold storage. 99% of the client’s coins and cryptocurrency funds are stored in cold storage, which means these coins remain offline at all times. This way, the trader’s cryptos are safe and do not get hacked or stolen.

Account Types

Let’s review the types of accounts the company has on offer:

  • The standard Coinbase account can be used by beginner traders. Even though it offers few trading tools to its users, many reviews praise its ease of use.
  • Coinbase Pro trading accounts can be used by more experienced traders where they have access to advanced charting, technical analysis, tools, and various order types.

Cryptocurrencies That Can Be Traded on Coinbase

Coinbase currently has the following currencies:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • XRP (XRP)
  • Chainlink (LINK)
  • Bitcoin Cash (BCH)
  • Bitcoin Satoshi’s Vision (BSV) (Send Only)
  • Litecoin (LTC)
  • EOS (EOS)
  • Tezos (XTZ)
  • Stellar Lumens (XLM)
  • USD Coin (USDC)
  • Cosmos (ATOM)
  • Dash (DASH)
  • Ethereum Classic (ETC)
  • Zcash (ZEC)
  • Maker (MKR)
  • Compound (COMP)
  • Basic Attention Token (BAT)
  • Algorand (ALGO)
  • OMG Network (OMG)
  • Dai (DAI)
  • 0x (ZRX)
  • Kyber Network (KNC)
  • Band Protocol (BAND)
  • Augur (REP)
  • Orchid (OXT)

Services Provided by Coinbase

Let’s review the services offered by Coinbase:

Brokerage Services

  • Coinbase offers cryptocurrency brokerage services for all its traders to purchase crypto through their platform.

Coinbase Earn

  • Coinbase has a “Coinbase Earn” program as a way to urge users to watch videos to learn about different types of crypto.
  • Users need to complete a quiz on what they have learned from the video
  • Users get crypto for every quiz completed.
  • This program is available for a limited period and for a limited set of customers

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Coinbase Pro

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Experienced traders can use a proprietary trading platform called Coinbase Pro. Compared to the standard platform, it offers a significantly fancier charting and trade experience. A user has the option of margin trading and can place market, limit, and stop orders with lower commission fees.

Coinbase Pro has 80 trading pairs and two available overlays and indicators- EMA (12) and EMA (26).

Many reviews mention that Coinbase Pro is, by far, a better platform for those who wish to actively trade or invest with lower fees and more features.

For Businesses

If you are a business looking for a way to invest your capital in cryptocurrency, Coinbase offers the below services –

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Prime

Coinbase’s prime is a platform for professionals; it is specifically built for institutional investors, operated and owned by Coinbase.

Commerce

Coinbase offers a commerce service which allows businesses to use crypto as a form of payment without any transfer fees.

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Custody

Independent capitalist business can use custody as a cryptocurrency asset in the exchange

Ventures

Startups can raise funds for their projects by using Coinbase ventures.

Mobile App

  • Coinbase’s fully functional mobile app can be downloaded free of charge on android and IOS devices. This mobile app allows the trader to perform the same functions as the desktop site. It has many positive reviews.
  • This company’s mobile app can be used for simple order placements, and the trader can either place a buy-sell order on this app. The trader should click the convert button, select the cryptocurrency, and place an order in just under 1 minute.
  • Coinbase has an enhanced newsfeed, which is comprehensive and is updated frequently. It offers review articles from sources like Coindesk, Bloomberg directly on the app.
  • The mobile app of Coinbase provides several advanced security features, and it also enables two-factor authentication, security notifications, fingerprint scanning with just a touch of a button.

Fees

Coinbase’s fees vary across countries and regions. It also charges variable spreads of around 0.50% on purchases and trades.

For our review, We’ll focus on fees charged within the United States

  • $0.99 for a total transaction amount of less than or equal to $10
  • $1.49 for a total transaction amount of $10 but less than or equal to $25
  • $1.99 for a total transaction amount of $25 but less than or equal to $50
  • $2.99 for a total transaction amount of $50 but less than or equal to $200

Coinbase Pro Fees

Coinbase Pro fees are markedly lower and less complicated. Digital assets and ACH transfers are free to deposit and withdraw. Wire transfers are $10 to deposit and $25 to withdraw.

Account Opening Process

Many users appreciate the convenience of Coinbase’s account opening process in their reviews. Opening an account with Coinbase is very easy. Coinbase complies with mandatory KYC requirements. The trader needs to submit a copy of their I.D. card along with their residence proof for the account verification procedure.

  • Signing up for Coinbase is a very straightforward and easy process. First, you enter your name, email, and a strong password. It will then tell you to verify your email. After confirming your email address, you choose the account type. When this is done, you need to set up 2FA by confirming their phone number. Coinbase will later use this number to send two-step verification codes. You’ll enter your phone number to receive a code that you must enter. After this stage, it will prompt you to enter your identification information.
  • Just like any bank account or investment account, you must prove your identity via state identification. For a resident of the United States, this will require a photo id or a social security number. At this point, your Coinbase account will have been created, and you would then be able to add your bank account, credit card, or debit card information to enable deposits and withdrawals so that you can start trading or investing.
  • The next step would be to make a minimum deposit. This step should be completed before the trader proceeds to buy the cryptos. They need to go to the homepage, log in to the account, and select any of the payment methods for depositing the funds. This can be done through credit cards, a bank transfer, or PayPal.
  • When the trader has added the funds to the account, they can go to “buy Crypto” and then select the digital asset they wish to purchase. The next step would be to enter the payment and then confirm the transaction details. Lastly, they receive the cryptocurrency in their wallet.

Payment Methods

Payment methods accepted by Coinbase currently are –

  • Wire transfer – Traders can directly connect their bank account to the Coinbase account to buy the cryptocurrency at a very low fee. Using a bank account for transfers might take 1 to 5 working days. ACH transfers are used in the U.S. while SEPA transfers are used in Europe and the U.K.
  • A debit card or Visa or Mastercard – You can buy any amount of cryptos, which otherwise might be restricted with a bank transfer. You can buy cryptocurrency instantly with a transaction fee of 3.99%. Because of banking regulations, this platform has suspended credit card support as a form of payment. If the card is not 3D secure, you need to make a SEPA transfer.
  • You can also use PayPal as a method of payment to withdraw your funds.

Coinbase Wallet App

Many beginners in their reviews say that Coinbase Wallet is incredibly easy to use. Users can not only explore cryptocurrencies in a safer, more regulated environment but also access airdrops and Initial Coin Offerings (ICOs) through the wallet. You don’t need an account to use the wallet. The wallet stores the private keys on the device for the owner, and only they have access to the funds.

The Coinbase wallet computer software is available on iOS and Android devices.

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Customer Support

Coinbase’s customer service is excellent and highly dedicated. Customer service can be reached through live chat, Twitter, email, and phone. You can also fill a contact form available on Coinbase com. You can call Coinbase Support to immediately disable your account if you suspect your account has been compromised. The Customer Support phone number can be found on the email request form.

The Verdict

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Coinbase consistently ranks among the best cryptocurrency exchanges out there for investors who are looking to invest in Bitcoin but do not have any investment experience. Even though it charges high fees, some of its features like the learn program and recurring purchases feature provide inexperienced traders with an understanding of the cryptocurrency market. New traders can start crypto trading with confidence using Coinbase. Coinbase also offers Coinbase Pro for advanced traders where they can benefit from its lower fees and robust charting. Overall, Coinbase is designed with the beginner in mind, yet its features and functionalities allow both novice and veteran traders to trade cryptocurrencies with confidence.

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Now that you’ve finished reading this Coinbase review, you’ll have a good understanding of Coinbase and what it offers. More importantly, you’ll be able to decide whether Coinbase is the right cryptocurrency exchange for you!

Faqs

How Do I Withdraw Money from Coinbase?

To withdraw your funds, you need to sign in to your Coinbase account and click on the withdrawal button tab. A new window will immediately open up, and you’ll have to enter the amount you would like to withdraw and specify where your funds should be sent to.

Can You Get Scammed on Coinbase?

Even though it is not safe to store your money on any online exchange, Coinbase provides a safe and secure wallet that can be used by traders. As we said earlier in the review, Coinbase stores 99% of its funds through offline cold storage that cannot be easily accessed. We should also note that it is difficult to hack if the funds are stored in offline cold storage.

What Is the Minimum Deposit Required by Coinbase?

Coinbase requires a minimum deposit of $1.99.

How Can I Send Crypto to Another Wallet?

If you are provided with a Q.R. code, you need to follow the below steps –

  • Select the Q.R. icon provided in the upper right
  • Take a picture of the code
  • You need to enter the desired amount and click continue
  • Lastly, review the details of the transaction and select send.
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