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This tradingcritique.com broker review looks into the advantages of Coinbase, what it has to offer, and any potential downsides.
Coinbase is a well-established cryptocurrency exchange in the United States, as well as one of the largest in the world. It provides a reliable platform for everyone to buy, sell, hold, and trade cryptocurrencies.
Coinbase is a cryptocurrency broker/exchange established in the United States that allows customers to purchase and sell cryptocurrencies. The exchange’s headquarters are in San Francisco, and it is the world’s largest cryptocurrency exchange.
This is one of the most well-known exchanges in the world, allowing cryptocurrency-to-fiat currency transactions in 32 countries. It has a bitcoin wallet in 190 countries. Almost 73 million traders, 10,000 institutions, and 185,000 ecosystem partners from over 100 countries use Coinbase, which has a trading volume of over $327 billion and over $255 billion in assets on the Platform. Coinbase employs approximately 2700 people throughout the world.
Image 1: Home page of Coinbase website
Image Copyrights reserved to Coinbase
Coinbase is a cryptocurrency exchange that was founded in 2012 as part of the YCombinator cohort by Brian Armstrong (CEO) & Fred Ehrsam (Board Director) (S12). It is sometimes referred to as a crypto exchange, which it was at one time, but it has since extended its offerings to encompass much more than purchasing, selling, and exchanging crypto assets. The company is headquartered in San Francisco, California. In 2015, Coinbase launched its trading platform. In 2016, the product was renamed Global Digital Asset Exchange, or GDAX, and then again in 2018 to Coinbase Pro.
Image 2 : Executive team of Coinbase
Image Copyrights reserved to Coinbase
Coinbase claims that all of the digital money it maintains online is insured, even though cryptocurrency exchanges are not covered by the FDIC or the SIPC. In most U.S. jurisdictions, Coinbase, Inc., the corporation that owns Coinbase and GDAX in the United States, is permitted to participate in money transfers. Coinbase is also registered with Fin CEN as a Money Services Business.
The firm claims to keep less than 2% of client assets online, with the remainder held on offline cold storage away from any internet breaches, and that if its online storage is breached, “the insurance coverage will pay out to replace any customer cash lost as a result,” according to the company. The insurance only covers damages due to Coinbase cybersecurity and employee theft, according to the business; breaches on individual Coinbase accounts (for example, if your password was taken) are not covered. Cash balances are kept in US custodial accounts, US Treasury’s, or money market funds. If you keep your money in a bank in the United States banks, the FDIC will insure it for up to $250,000 per person.
Table 1: Supported Countries of Coinbase
| Africa | Asia | Europe | South Africa | Oceania | North America |
|---|---|---|---|---|---|
|
Angola
Benin
Botswana
Cameroon
Ghana
Kenya
Mauritius
Namibia
Rwanda
South Africa
Tunisia
Uganda
Zambia |
Armenia
Bahrain
Brunei Darussalam
Hong Kong
India
Indonesia
Japan
Jordan
Kazakhstan
Kuwait
Kyrgyzstan
Macao
Maldives
Mongolia
Nepal
Oman
Philippines
Singapore
Taiwan
Turkey
Uzbekistan |
Andorra
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Gibraltar
Greece
Guernsey
Hungary
Island
Ireland
Isle of man
Italy
Jersey
Latvia
Liechtenstein
Lithuania
Luxembourg
Malta
Monaco
Montenegro
Norway
Poland
Portugal
Romania
San Marino
Serbia
Slovakia
Slovenia
Spain
Sweden
Switzerland
United Kingdom
|
Argentina
Brazil
Chile
Colombia
Ecuador
Paraguay
Peru
Uruguay
|
New Zealand
|
Aruba
Bahamas
Barbados
Bermuda
Canada
Costa Rica
Curacao
Dominican Republic
El Salvador
Guatemala
Honduras
Jamaica
Mexico
Nicaragua
Panama
Trinidad and Tobago
United state
Virgin Islands, British |
Coinbase and Coinbase Pro are the two platforms that the firm offers. Each one enables you to purchase, sell, and exchange cryptocurrencies, but they also have their own set of features. If you have a Coinbase account, users may log into both platforms using the same credentials.
Anyone with basic computer knowledge can trade on Coinbase since it is user-friendly. Coinbase may be accessed over the web or through mobile devices running Android and iOS. The original Coinbase platform, allows users to buy cryptocurrency with US dollars. The regular Coinbase platform has high fees, especially for little transactions (less than $200).
Coinbase Pro may appear to be designed just for experienced traders, yet anybody with a Coinbase account may access and utilize it. Coinbase Pro, formerly known as GDAX, offers extensive charting capabilities as well as the ability to perform crypto-to-crypto trades and place market, limit, and stop orders. It brings additional trade options. We suggest using Coinbase to make transactions since it has lowered rates.
Image 3 : Home page of Coinbase Pro platform
Image Copyrights reserved to Coinbase
Coinbase has a highly efficient and user-friendly app that lets users purchase, sell, as well as manage their cryptocurrencies from anywhere. On the Apple App Store and Google Play Store, you may download the Coinbase mobile app. Both, Apple App Store and Google Play Store have given it high ratings. Regardless of your device, the Coinbase app is a good choice for mobile crypto trading.
On Coinbase, the minimum amount required to purchase bitcoin is $2. On purchases made with an ACH transfer from the bank account or funds in the Coinbase USD Wallet, those are the only transaction costs you’ll incur. Certain payment options, including debit cards or PayPal, are subject to extra costs from Coinbase. The trading fees are varied according to the type of the platforms.
Trades above $200 have a percentage-based fee rather than a flat fee. In comparison to Coinbase Pro, fees on the basic version may be greater than regular. The following are the flat costs charged by Coinbase, which vary based on the transaction amount:
Table 2: A trading fee for the Coinbase platform
 Size Of Trade |
 Coinbase Fees |
|---|---|
|
$10 or less |
$0.99 |
|
$10 - $25 |
$1.49 |
|
$25 - $50 |
$1.99 |
|
$50 - $200 |
$2.99 |
If your monthly trading volume is less than $10,000, you’ll pay a charge of about 0.5 % for the Pro Platform. The Pro price system is metered, meaning that the more you trade, the lower your costs become. The amount you pay is determined by your 30-day total dollar trading volume.
For bitcoin trading, Coinbase Pro employs a maker-taker fee arrangement. You’ll be charged maker-taker fees based on the 30-day trading volume. Clients who trade frequently pay reduced commissions. For up to $20 million on monthly trading volume, here is the Coinbase Pro charge table:
Table 3: Maker & Taker fee of Coinbase Pro platform
 Pricing Tier |
Taker Fee |
Maker Fee |
|---|---|---|
|
$0 - 10K |
0.50% |
0.50% |
|
$10K - 50K |
0.35% |
0.35% |
|
$50K - 100K |
0.25% |
0.15% |
|
$100K - 1M |
0.20% |
0.10% |
|
$1M - 10M |
0.18% |
0.08% |
|
$10M - 20M |
0.18% |
0.08% |
|
$20M - 50M |
0.15% |
0.05% |
|
$50M - 100M |
0.15% |
0.05% |
|
$100M - 300M |
0.10% |
0.02% |
|
$300M - 500M |
0.08% |
0.00% |
|
$500M - 750M |
0.06% |
0.00% |
|
$750M - 1B |
0.05% |
0.00% |
|
$1B - 2B |
0.04% |
0.00% |
|
$2B + |
0.04% |
0.00% |
Coinbase Pro withdrawals and deposits must be done through a bank account; card transactions are not permitted. Fees for wire transfers will also apply. Coinbase accepts several payment options for deposits and withdrawals. Their availability, on the other hand, is determined by the user’s location. FPS (UK), SEPA (Europe), Bank transfers (ACH), wire transfers, debit cards, PayPal, and Instant Card Payments are some of the most common choices.
Table 4: Coinbase fees for various methods of payment
 Method Of Payment |
 Coinbase Fees |
|---|---|
|
Wire transfer |
$25- Outgoing $10- Incoming |
|
Bank account |
1.49% |
|
Debit/Credit card |
3.99% |
|
ACH transfer |
Free |
|
USD Wallet |
1.49% |
|
Crypto Conversion |
2% |
Coinbase offers over 130 cryptocurrencies for trade, and new coins are added to the list regularly. Here are a few of Coin base’s most popular currencies:
Table 5: Most trending cryptocurrencies of Coinbase
|
Most Trending Cryptocurrencies |
|---|
|
Bitcoin Ethereum Tether USD Coin Cardano Ripple Solana Dogecoin Avalanche Polka Dot Polygon TerraUSD SHIBA INU Cosmos Lite coin |
Image 4: Asset directory of Coinbase
Image Copyrights reserved to Coinbase
Coinbase has about 80 crypto-to-crypto trading pairs, including dozens that can be used to trade bitcoin and ether, including more than 10 currencies that can be used to trade stablecoins like USDC (a currency whose price is always equal to $1).
Table 6: Maker & Taker fees for Stable pairs of Coinbase
 Stable Pairs |
 Taker Fee |
Maker Fee |
|---|---|---|
|
DAI - USDC |
0.01% |
0.00% |
|
DAI - USD |
||
|
PAX - USD |
||
|
PAX - USDT |
||
|
USDC - EUR |
||
|
USDC - GBP |
||
|
USDT - EUR |
||
|
USDT - GBP |
||
|
USDT - USDC |
||
|
USDT - USD |
||
|
UST - USD |
||
|
UST - USDT |
||
|
UST - EUR |
||
|
WBTC - BTC |
The currencies that are available to you are determined by your country of residency.
Table 7: Fiat Currencies of Coinbase
|
Fiat Currencies Of Coinbase |
|---|
|
CLP |
|
SGD |
|
MXN |
|
USD |
|
GBP |
|
EUR |
|
CAD |
You may also use Coinbase margin trading to your advantage. This allows you to borrow funds from your broker to place more deals. It’s better to think of it as a short-term borrowing situation. Margin trading costs on Coinbase have been reduced. This means you won’t have to pay any interest or fees at this time. To be eligible for a margin account, you must have a minimum of $5,000,000 invested on a discretionary basis.
Image 5: Margin trading of Coinbase
Image Copyrights reserved to Coinbase
Prime is a type of brokerage service that caters to high-volume traders. Coinbase recognizes that institutional investors have distinct demands from regular ones. It is a package that combines both consumer and professional trading tools, however, it is exclusively available for institutional investors. Fund managers, hedge funds, family offices, endowments, and sovereign wealth funds that require vast liquidity pools can use the service.
Image 6: Home page of Coinbase prime
Image Copyrights reserved to Coinbase
Staking is similar to earning income on a bank account, but with many more dangers. Because your holdings are needed to confirm transactions in a specific cryptocurrency, staking earns you money, which Coinbase shares with you. Any revenue you earn via staking is subject to a fee by Coinbase. Staking incentives are currently available on only a few cryptocurrencies, notably Ethereum and Tezos. Staking is charged at a rate of 25% on Coinbase.
Table 8: Assets & Staking rewards of Coinbase
 Assets |
Staking Rewards |
|---|---|
|
USD Coin (USDC) |
0.15% |
|
Tezos (XTZ) |
4.63% |
|
DAI |
2% |
|
Cosmos (ATOM) |
5% |
|
Algorand (ALGO) |
6% |
|
Ethereum (2.0) |
6% |
Image 7: Staking rewards of Coinbase
Image Copyrights reserved to Coinbase
The Coinbase Card is just a contactless Chip and Pin plastic debit card provided by Coinbase in collaboration with Visa card. Users get alerts on payments made with the card and block or unblock the card using the complimentary Coinbase Card app. Instant receipts, transaction summaries, and spending statements are also available through the app on both Android and iOS devices. Spending USDC with a Coinbase Card is free, but all other transactions, including ATM withdrawals made with other cryptocurrencies, are subject to a flat 2.49 % transaction fee.
Image 8: Coinbase Debit card
Image Copyrights reserved to Coinbase
Coinbase Commerce was created as a PayPal alternative for receiving online payments. It’s a free Checkout solution that lets retailers accept Bitcoin, Bitcoin Cash, Ethereum, Lite coin, DAI, and USD Coin as well as other stablecoins (USDC).
This solution enables merchants to function as one of their banks, eliminating issues including such chargebacks and high-cost services. Through the provided API, merchants with e-commerce stores may connect with the Shopify, Woo Commerce plugins, or a custom-developer solution.
Image 9: Coinbase Commerce
Image Copyrights reserved to Coinbase
Coinbase’s wallet application is a stand-alone application. You don’t need a Coinbase account to use the wallet, although it does make things easier. It’s also crucial to recognize the difference between both the Coinbase application as well as the Coinbase wallet, because they aren’t the same. The Coinbase wallet is a mobile wallet that is mostly used to store cryptocurrency.
Digital assets like as dApps (decentralized apps), ERC-721 NFT tokens, and ERC-21 fungible tokens can also be sent and received. The wallet offers access to thousands more tokens and currencies that are not currently accepted by the Coinbase app or its consumer and trade services.
Image 10: Coinbase Wallet
Image Copyrights reserved to Coinbase
These organizations need reliable storage that ensures the digital asset’s security and safety for the clients. So, Custody was established by Coinbase in 2018 in collaboration with Electronic Transaction Clearing (ETC), the FINRA member and SEC-regulated broker-dealer.
Coinbase Vault, a comparable robust storage service for retail investors, is also available. The Vault, which opened in 2014, is a long-term cold storage unit for anyone looking to keep their valuables. The Coinbase Vault seems to be free, and there are no transaction fees.
Image 11: Coinbase Custody and Vault
Image Copyrights reserved to Coinbase
Coinbase stated on October 12, 2021, that it will be opening a non-fungible token (NFTs). Furthermore, the exchange has established a queue for early access to its non-fungible token marketplace that will enable customers to create, collect, & trade non-fungible tokens.
Image 12: Coinbase NFT Market place
Image Copyrights reserved to Coinbase
Coinbase Learn is a reward program for newcomers who take the effort to learn about certain crypto projects. It offers several video lessons and tests to help consumers learn more about bitcoin trading and the various cryptocurrencies available. Users may also earn particular cryptocurrencies by attending the classes. The prizes may be as much as $12, and they aren’t just for showing up to the program. The procedure is simple and clear and users can watch the videos and then answer the questions based on the concepts offered. Once you properly answer the questions, reward coins and tokens will be transferred into your Earn account.
Image 13: Coinbase Learn & Earn
Image Copyrights reserved to Coinbase
The extensive customer care page of Coinbase, which features a range of articles and FAQ pages, is where traders and new clients may go if they have any issues or questions. Coinbase is also famous for its extensive educational resources, which include top tips, tutorials, and market analysis. There are articles on everything from the fundamentals of the blockchain to crypto guides, tips, and techniques, as well as market updates. It includes instructions on more advanced concepts involving DeFi, NFTs, and staking, as well as deep dives into individual projects and networks.
Image 14: Tips & Tutorials of Coinbase
Image Copyrights reserved to Coinbase
Image 15: FAQ section of Coinbase website
Image Copyrights reserved to Coinbase
The absence of customer service is one of the most frequent criticisms of Coinbase. Because it’s practically hard to get in touch with a human for any form of assistance, think of Coinbase as largely self-service. The Coinbase help page, emailed support requests, an automated phone system, and a chatbot are all officially supported customer care alternatives. Coinbase utilizes Twitter, Instagram, YouTube, LinkedIn, and Facebook to ensure its customers are informed about the status of their accounts.
Table 9 : Customer support section of Coinbase
 Customer support of Coinbase |
|
|---|---|
|
|
|
 Facebook |
|
|
|
|
|
|
|
 Instagram |
|
|
|
|
|
|
UK - +44 808 168 4635 USA/International - +1 (888) 908-7930 Ireland - 1800 200 355 |
Image 16: Customer support section of Coinbase website
Image Copyrights reserved to Coinbase
Coinbase has both the advantages and disadvantages which are listed in table 10.
Table 10 : Rewards and Risk of the Coinbase
 Pros |
 Cons |
|---|---|
|
Coinbase's main website and mobile app are both incredibly user-friendly, allowing you to rapidly purchase, trade, and swap bitcoins.
Coinbase presently supports over 100 different currencies for trade, with more being added daily.
Earn interest on approved investments or just use Coinbase Earn to get a small quantity of a new currency.
Coinbase Pro, an active trading platform offering greater features and lower costs, is available to anybody.
|
On the main Coinbase platform, transaction costs are frequently high. Coinbase's customer support is rated poorly, especially in the event of major account security problems. Even though support a large number of currencies, many more are absent. |
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