Coinbase Exchange Review: Features, Pros & Cons

Coinbase is a digital currency exchange you can use in your cryptocurrency business. They offer a user-friendly platform with many features for traders to take advantage of. This Coinbase exchange review will cover everything you need to know about trading on this platform, including the different cryptocurrency trading pairs available, fees, and how to deposit and withdraw funds.

What is the Coinbase Exchange?

It is a digital currency exchange that offers a user-friendly platform with lots of features for traders. It was founded in 2012 and is currently headquartered in San Francisco, USA. 

Coinbase allows users to buy and sell cryptocurrencies and store them in a wallet on the site. Coinbase also offers its own cryptocurrency, called Coinbase USD Coin (USDC), which can be used to trade on the Coinbase platform or transferred to a user’s personal wallet.

Coinbase offers a variety of features that make it a great choice for those looking to trade cryptocurrencies. One of the most popular features is Coinbase Pro, a trading platform designed for more advanced traders. Coinbase Pro offers more features and tools than the regular Coinbase platform, including advanced charting, order types, and trade history. 

Coinbase also has a mobile app that allows users to buy, sell, and store cryptocurrencies on the go. Read on to find more Coinbase features that can improve your crypto investment journey.

Who Can Use Coinbase?

Coinbase is available to crypto traders in over 100 countries, making it one of the most accessible digital currency exchanges. The exchange is available to traders above the age of 18 with a valid email address. 

However, while it is available in many countries, residents of New York and countries on the OFAC sanctions list cannot use it. So if you are in these regions, you might need to use the best VPN for crypto to trade anonymously.

How to Open A Coinbase Account

Opening a Coinbase account is relatively simple and only requires a valid email address and a strong password. You will be asked to provide personal information, such as your first and last names, date of birth, and phone number. 

Once you have provided this information, you will need to verify your account through email and your identity by providing a government-issued ID. After verifying your identity, you can create a Coinbase account.

Coinbase’s Top Features

Here are the features that make Coinbase a great choice for both novice and experienced crypto traders:

a) Security

In the world of cryptocurrency, security is paramount. After all, Bitcoin and other digital currencies are often held in online wallets, making them vulnerable to hacks. So, how secure is Coinbase? 

Coinbase is often hailed as the most secure place to buy and sell cryptocurrency. It has, unfortunately, not been immune to discouraging security breaches in the past. In 2014, some Coinbase users were scammed to lose their Bitcoin, an incident that recurred in 2016, with user data exposed to fraudsters. As recently as 2021, over 6000 Coinbase accounts were also wiped clean by hackers.

As a result, Coinbase has since implemented tough security measures to keep accounts safe. For example, all sensitive data (over 98% of customer data and funds) is stored offline in what’s known as “cold storage.” This storage makes it much harder for hackers to access customer information. 

In addition, Coinbase employs several security measures, such as two-factor authentication and uses advanced security protocols such as SSL encryption to guarantee any data exchange between your computer and the website cannot be read by potential hackers.

As you know, the cryptocurrency world is risky, so finding an exchange platform that is 100% hack-proof may be hard. That said, and while the Coinbase breaches are concerning, it’s important to remember that the company has always been quick to respond and improve its security measures in the wake of each incident. So, as the world of cryptocurrency continues to grow, it’s likely that Coinbase will also become more secure in the years to come.

b) Customer Support

The Coinbase exchange company offers customer support through various channels, including email, phone, and live chat. In general, Coinbase’s customer support is fast and responsive, with representatives typically able to resolve issues within a few hours. 

Coinbase also has a comprehensive FAQ section on its website that covers various topics. Overall, Coinbase’s customer support is generally positive, with most issues being resolved promptly.

c) Learning Center

Coinbase also has a Learning Center on its website that covers various topics, including cryptocurrency basics, buying and selling digital currency, and using Coinbase’s platform. In addition, you can also keep up with the industry’s market updates and Coinbase’s newsletter updates by browsing this Learning center.

The Learning Center is well-organized and easy to navigate, making it a great resource for novice and experienced crypto traders.

d) Fees

Coinbase uses a “flat + percent fee” structure for each transaction made on its platform. The transaction fee amount depends on several factors, including the currency you’re trading, the volume of the transaction, the liquidity of the market, and the payment method you use (e.g., credit card, bank transfer).

Unlike other exchanges, Coinbase’s fees can be a bit confusing when you try to differentiate the margin fees from the Coinbase fees (flat rates and percent fees). According to Coinbase, they calculate the flat fees on the following structure: 

  • $0.99 for $10 transaction amounts
  • $1.49 on transactions worth more than $10, less than or equal to $25
  • $1.99 on transactions worth more than $25, less than or equal to $50
  • $2.99 on transactions worth more than $50, less than or equal to $200

In addition to these flat fees, Coinbase also adds some percentage fees based on the payment method as follows: 

  • 1.49% conversion rates on payments through US banks
  • 1.49% conversion rates on Coinbase USD wallet payments
  • 3.99% conversion rates on debit card buys
  • Up to 1.50% of any transaction and a minimum fee of $0.55 for instant card withdraws

It is also vital to note that Coinbase offers lower transaction fees when you subscribe to their Pro version. With Coinbase Pro, you wil incur lower fees when you trade more volumes. The maker-taker model works as follows:

  • Less than $10k to $500M taker orders are charged rates between 0.60% and 0.04%, respectively
  • Less than $10k to $500M maker orders are charged rates between 0.50% and 0.00%, respectively

Generally, you can expect to pay higher fees on Coinbase than on other exchanges like Binance or Kraken. However, Coinbase also offers a number of features that may be worth the extra cost, such as a built-in wallet and support for fiat currencies.

e) Deposit and Withdrawal Options

Coinbase offers a variety of deposit and withdrawal options, including bank transfer (ACH), wire transfer, credit/debit card, PayPal, and Coinbase USD Wallet. You will also need a minimum of $2 in your account to start trading.

f) Mobile app

Coinbase also has a mobile app available for iOS and Android devices. The Coinbase app allows you to buy and sell cryptocurrencies, check prices, view your account balance, and more. The Coinbase mobile app is well-designed, easy to use, and a great way to stay up-to-date on the latest cryptocurrency prices and news while on the go.

g) Coinbase Wallet

Coinbase also offers a Coinbase Wallet, which is a separate product from the Coinbase digital currency exchange. The Coinbase Wallet is a software wallet that allows you to store, receive, and transfer cryptocurrencies. There are no limits on how much you can deposit or withdraw from your Coinbase USD Wallet.

The Coinbase Wallet is available for both iOS and Android devices. It’s a great way to store your cryptocurrencies if you’re looking for an easy-to-use and secure wallet option.

h) Coinbase trading pairs

Coinbase supports over 150 digital currencies like Bitcoin, Ethereum, Litecoin, and more. Coinbase also allows you to trade these cryptocurrencies against fiat currencies, such as USD, EUR, and GBP but supports a limited number of countries for fiat-to-crypto trading.

Coinbase also offers many cryptocurrency pairs you can trade on its platform, including BTC/ETH, BTC/LTC, ETH/USD, LTC/USD, and more. 

i) Coinbase exchange software

Coinbase’s exchange software is available for both web and mobile devices. However, the platform’s Pro version is only available on the web. Coinbase’s Pro software is designed for more advanced traders and includes features such as candlestick charts, advanced order types, and margin trading.

Coinbase also offers a Coinbase Prime service, which is designed for institutional investors and includes features such as OTC trading, enhanced API access, and more.

Advantages of Using Coinbase

Coinbase is a popular digital currency exchange and allows you to buy and sell cryptocurrencies. It also offers a suite of business tools, a mobile app, and a software wallet. In addition, Coinbase supports various fiat currencies and has one of the most diverse selections of trading pairs available on any digital currency exchange.

Here are the main advantages of using Coinbase today:

  1. A wide selection of crypto trading pairs. Coinbase supports over 150 digital currencies, including Bitcoin, Ethereum, Litecoin, and more. You can also trade these cryptocurrencies against fiat currencies, such as USD, EUR, and GBP.
  2. A well-designed and easy-to-use mobile app. The Coinbase mobile app is supported on iOS and Android devices. The Coinbase app allows you to buy and sell cryptocurrencies, check prices, view your account balance, and more.
  3. Crypto portfolio tracker compatibility. Coinbase is also compatible with many cryptocurrency portfolio trackers, such as Blockfolio and Delta. You can import your Coinbase transactions into your portfolio tracker for easy studying.
  4. The Coinbase user interface is clean and easy to navigate, even for first-time users.
  5. Coinbase also offers a Coinbase Card, a Visa debit card that allows you to spend your cryptocurrencies like cash. 
  6. Coinbase allows advanced trading features on the Coinbase and Coinbase Pro versions. The latter offers better features such as limit and stop orders and more trade types.
  7. A wide range of payment methods. You can fund your Coinbase account with a bank transfer, debit card, or credit card. Coinbase also allows you to link your PayPal account for easy withdrawals.
  8. High security standards. Coinbase stores 98% of customers’ funds offline in cold storage wallets. This makes it very difficult for hackers to steal customers’ cryptocurrencies.
  9. Their customer support is available 24/7via live chat, phone, or email.

What Are the Disadvantages of Using Coinbase?

While Coinbase has many advantages, there are also a few disadvantages to using the platform: 

  1. Coinbase fees can be high. Coinbase charges a flat fee of $0.99 for US bank account transfers and a variable fee of 1.49% for credit/debit card purchases (depending on your region). These transaction fees can add up if you’re making a lot of trades or purchases on Coinbase.
  2. Coinbase is not available in all countries or US states.
  3. They do not offer support with your tax filing process. However, you can invest in one of the best crypto tax software for seamless filing.

Frequently Asked Questions About the Coinbase Exchange

a) Is Coinbase a good exchange?

Coinbase is a legit cryptocurrency exchange based in the US. They make it easy to buy, sell, or trade hundreds of cryptocurrencies while their security measures are unmatched. That said, Coinbase has some of the highest transaction fees you can find in the market. 

b) What are the Coinbase fees?

Coinbase fees are estimated or calculated using three methods:

  • A flat fee on transactions below $200
  • A percentage fee on transactions above $200
  • The method you use to fund or withdraw from your account

Overall, Coinbase fees are a little higher than other exchanges, but you can minimize them by trading through the Coinbase Pro, which has lower taker and maker fees depending on your trading volume.

c) How do I deposit money into Coinbase?

You can fund your Coinbase account with a bank transfer, debit card, or credit card. Coinbase also allows you to link your PayPal account for easy withdrawals.

d) Is Coinbase safe?

Coinbase is one of the most popular digital currency exchanges and is considered very safe. Coinbase stores 98% of customers’ funds offline in cold storage wallets. In addition, they require 2-factor authentication and a strong password to open your account. Coinbase also has SSL certificates to guarantee privacy as you interact with the website.

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