Rating

7.4/10

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Best of Coinbase

• Extensive cryptocurrency selection
• Simple and advanced trading features
• Ability to earn free crypto
• Access to educational content

Diego G. Crypto Enthusiast

Updated: July 5, 2024

Coinbase is a secure platform that makes it easy to buy, sell, and store cryptocurrency like Bitcoin, Ethereum, and more. Based in the USA, Coinbase is available in over 30 countries worldwide.

Coinbase Review 2023: A Top Exchange With Tools for Beginners and Advanced Investors

Coinbase boasts an extensive range of cryptocurrencies, an intuitive user interface, and informative educational resources. It caters to seasoned crypto investors with its advanced trading features. With its exceptional security measures, Coinbase stands as one of the leading global cryptocurrency exchanges. Take a look at our comprehensive Coinbase review to determine if it meets your exchange needs.

Complete Coinbase Review

Crypto investors and traders of all proficiency levels choose this cryptocurrency exchange for its reliability and comprehensive platform to buy, store, and sell cryptocurrencies.

Pros:

Cons:

Key Benefits

Extensive Range of Cryptocurrencies

Coinbase stands out among cryptocurrency exchanges, particularly for U.S. investors, due to its vast selection. With over 150 types of cryptocurrencies available for trading, including major coins like Bitcoin (BTC) as well as smaller and emerging tokens, Coinbase offers a comprehensive range of options.

User-Friendly Trading Tools

Coinbase provides both simple and advanced trading options accessible from your account. The simple trade option features a user-friendly interface, while advanced trading offers additional features such as charts, a live order book, and limit orders. It is recommended to use the advanced trade option to minimize fees associated with simple trades.

Coinbase Earn

A unique feature of Coinbase is Coinbase Earn, where users can earn free cryptocurrency by completing educational modules. The modules offer modest earnings but can be completed quickly, providing a fun way to learn about various cryptocurrencies.

Rich Educational Resources

Coinbase maintains an impressive library of educational content covering various aspects of cryptocurrency, including basics, tips, tutorials, and market updates. Whether you need a comprehensive introduction to Bitcoin or guidance on tax implications related to cryptocurrency investments, Coinbase offers valuable resources.

Mobile App Convenience

Coinbase’s mobile app offers a user-friendly experience for buying, selling, and managing cryptocurrency. With high ratings on both the Apple App Store and Google Play Store, the mobile app is an excellent option for convenient on-the-go crypto trading.

Crypto Rewards

Coinbase allows users to earn interest on certain cryptocurrencies held in their accounts. Interest is automatically paid on select stablecoins like USD Coin (USDC), and staking is available for cryptocurrencies like Ethereum (ETH) and Solana (SOL), enabling users to earn rewards. Eligibility for these features may vary depending on your region and the specific cryptocurrency.

Coinbase Debit Card

Users with a Coinbase account can apply for a Coinbase Card, a prepaid Visa debit card linked to their Coinbase account balance. This card enables the spending of cryptocurrencies and offers crypto rewards. Users can choose which cryptocurrency they want to earn rewards from a rotating list, with the potential to earn up to 4% back using this feature.

Areas for Improvement

Complex Fee Structure

On Coinbase, the fee structure can be overly intricate and difficult to understand. Confusion is increased by the exchange’s use of different pricing structures for basic and sophisticated trading. Simple transactions have greater fees, and consumers can only see the charge amount when previewing the transaction, while sophisticated trade fees are reasonable and clear. If Coinbase adopted a standard cost structure for all kinds of cryptocurrency trading, like other exchanges do, it would be more user-friendly.

High Fees on Simple Trades and Staking

Coinbase’s fees can be expensive in certain areas. Simple trades incur high fees, particularly for smaller transactions below $200. On the other hand, advanced trades offer cheaper fees, allowing users to save money. However, it can be frustrating that the best deals on Coinbase are only accessible through the more advanced trading tools, especially for those who prefer the simplicity of the basic trade interface. Additionally, when using Coinbase’s staking services, the platform charges a hefty 25% commission, which is higher than what you would typically pay if staking cryptocurrency independently.

Limited Rewards Opportunities

While Coinbase offers the opportunity to earn rewards, it is limited to a relatively small selection of cryptocurrencies. Other exchanges provide more robust rewards programs with higher rates and the ability to earn interest on a wider range of digital assets. Expanding the rewards program to include a greater variety of cryptocurrencies and improving the rates would enhance the overall rewards experience for Coinbase users.

Alternative Options to Consider:

• Robinhood: If you are interested in trading both stocks and cryptocurrencies, Robinhood provides a platform that offers commission-free trading for both asset classes. While Robinhood may not have as extensive a selection of cryptocurrencies as Coinbase, it can be a suitable choice if you prefer to manage your entire investment portfolio in one place.
• Gemini: For those seeking to earn interest on a wider range of cryptocurrencies, Gemini is an excellent alternative. The Gemini Earn program allows users to passively earn income from their crypto holdings, offering competitive interest rates on numerous cryptocurrencies. Gemini is highly regarded for its strong security measures and provides valuable educational resources for users.

Both Robinhood and Gemini present viable options depending on your specific needs and preferences, offering unique features and benefits that may align better with your investment goals.

How Coinbase Works

Coinbase facilitates the buying, selling, and trading of cryptocurrencies. It supports various payment methods, such as ACH transfers from a bank account, debit cards, money wires, and PayPal. ACH transfers are the most cost-effective option as they allow users to deposit funds from their bank accounts without incurring additional fees.

This cryptocurrency exchange provides several notable features, including:

• Simple and Advanced Trading Options: Coinbase offers both simple and advanced trading interfaces, catering to users with different levels of trading expertise.
• Coinbase Debit Card: Users can acquire a Coinbase debit card, enabling them to spend their cryptocurrencies and earn crypto rewards.
• Coinbase Earn Program: Coinbase features the Coinbase Earn program, which allows users to earn free cryptocurrency by completing educational modules.
• Crypto Staking Program: Coinbase provides a crypto staking program, enabling users to stake their cryptocurrencies and earn rewards.

A virtual cryptocurrency wallet called Coinbase Wallet is also available on this site. By using a wallet, users may fully control their bitcoins, increasing security and independence. It’s vital to remember that anyone, whether or not they are Coinbase clients, can use the free Wallet to store both cryptocurrencies and non-fungible tokens (NFTs).

Fees overview

The fee structure used by Coinbase can be complicated and is influenced by a number of variables. While the exchange offers both a simple trade and a complex trade option, each with a different charge amount, the choice of trading tool is a crucial factor in determining the fees on Coinbase.

For maximum cost-efficiency, use the advanced trade option on Coinbase, which offers significantly lower fees. The advanced trades have a tiered fee structure based on your trading volume. They also use a maker-taker system. Orders filled immediately pay a taker fee since they take away liquidity, while orders that aren’t filled right away pay a maker fee because they add liquidity to the order book.

Coinbase does not provide upfront fee amounts for simple trades. Instead, fees are calculated at the time of placing an order. However, the exchange maintains consistency in its fee structure.
For simple trades amounting to $205 or more, Coinbase applies a variable percentage fee of slightly less than 1.5%. On the other hand, smaller trades incur a flat fee. Here are the flat fees charged by Coinbase based on the transaction amount:

Coinbase only applies the commissions mentioned previously. However, there are additional fees for specific payment methods, including debit cards and PayPal. Transactions made via ACH transfer from a bank account or funds in your Coinbase USD Wallet do not incur any additional fees.

How Coinbase fees work

Let’s look at a few instances that show the costs associated with buying crypto for $10, $100, and $1,000 using various transaction choices in order to understand Coinbase’s fee structure. An explanation of the related costs is given in the table below:

Cryptocurrency Selection

Coinbase offers an extensive range of over 150 cryptocurrencies for trading. It includes popular market leaders like Bitcoin, Ethereum, and Cardano (ADA), as well as a variety of other cryptocurrencies, including both serious projects and meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB). The platform consistently adds new cryptocurrencies to its lineup.

Is your cryptocurrency safe with Coinbase?

Your cryptocurrency is secure with Coinbase, known as one of the most secure exchanges. More than 98% of client funds are stored in offline cold storage, providing enhanced protection against hackers. Coinbase also maintains crime insurance for assets stored online. Cash balances in Coinbase accounts are FDIC insured up to $250,000 per customer, similar to bank accounts.
Coinbase emphasizes security measures such as mandatory two-factor authentication (2FA) for all accounts. Additionally, users have the option to whitelist withdrawal addresses, limiting withdrawals to approved addresses. For added security, Coinbase offers vaults that require a 48-hour waiting period and approval from designated parties for withdrawals.
In 2021, a vulnerability led to the theft of funds from some Coinbase clients. However, Coinbase quickly resolved the issue and fully reimbursed the affected clients.

Coinbase is a suitable choice for you if:

• You desire a high-quality trading platform and a user-friendly mobile app, enabling you to buy and sell cryptocurrencies effortlessly.
• You are new to the world of cryptocurrencies and seek a platform that offers ample educational resources to enhance your understanding.
• You are interested in earning free crypto through various opportunities such as staking and interest programs.