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Coinbase is the best-known US-based cryptocurrency exchange. It has an intuitive interface and modern design, making it easy to buy and sell cryptocurrencies.
Coinbase is one of the most used crypto platforms in the U.S. despite the fact its fees are considerably higher than other exchanges. However, it makes up for this with its versatile deposit and withdrawal options along with two separate services – the platform’s core brokerage service and the more traditional exchange platform too – Coinbase Pro.
Its unique structure means Coinbase effectively operates as both a broker and an exchange while supporting over 100 cryptocurrencies and multiple fiat currencies.
Pros
- Easy to use for beginners with a website and mobile app for buying, selling, and exchanging cryptocurrencies quickly
- Support for a large number of cryptocurrencies
- Opportunities to earn cryptocurrency through staking
- Multiple deposit and withdrawal methods
- Operational in over 100 countries
- Lower pricing available with Coinbase Pro
Cons
- High transaction fees on the primary Coinbase platform
- Customer service issues, including lengthy withdrawal times
- No access to many cryptos with many altcoins with large market caps missing
- Overly intrusive KYC
Coinbase history and background
Coinbase was founded in 2012 by Brian Armstrong and Fred Ehrsam. Initially, it was part of Ycombinator. Coinbase is one of the oldest exchanges around, starting out only as a Bitcoin brokerage service. Fully regulated and licensed, the company’s capital exceeds $1 billion as of 2017.
After launching as a a Bitcoin-only business, Coinbase has since expanded its services with the addition of Coinbase Pro – a cryptocurrency trading platform. Formerly known as GDAX, it is aimed at more experienced users.
At Coinbase, our first priority is to ensure that we operate the most secure and compliant digital currency exchange in the world.
Screenshots
What Cryptocurrencies Can You Buy on Coinbase?
Coinbase enables you to purchase a wide range of cryptocurrencies including:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Basic Attention Token (BAT)
- Ripple (XRP)
- Dai (DAI)
- EOS (EOS)
- Litecoin (LTC)
- Chainlink (LINK)
- Augur (REP)
- USD Coin (USDC)
- Stellar Lumens (XLM)
- Zcash (ZEC)
- 0x (ZRX)
- Binance Coin (BNB)
- Cosmos (ATOM)
- Tezos (XTZ)
Setting up for a Coinbase Account
You can open an account by visiting the official Coinbase homepage. In the top right corner of the page is a ‘Get Started’ button. You need to click on it to open an account.
The company has an overly intrusive KYC procedure, which got even stricter after hiring employees from Hacking Team in 2019.
- You will be prompted to give your first and second name, and your email address.
- Coinbase will then send you an email, which you will need to verify.
- Afterwards, you need to provide a mobile number, set up a preferred payment method and verify your identity. In order to do this, you’ll need to upload a copy of your government issued ID. This needs to be a passport, driver’s license or national ID card.
- You can choose between an ‘Individual’ account or ‘Business’ account based on the volume of cryptocurrencies you intend on trading.
- Depending on the withdrawal and deposit limits you wish to unlock, there will be additional steps of verification to pass. For some Coinbase will require proof of funds, bank and/or earning statements as well as proof of address or residency.
The steps to open an account on Coinbase are as follows:
Open www.coinbase.com and click on the Sign Up button.
A form will pop up. You need to fill out the fields with your first and last name, email address, and select a password.
Choose a strong password that is a combination of upper and lowercase letters, special characters and numbers.
A window with a CAPTCHA will pop up so you can verify that you are not a bot.
Click on the ‘accept’ box for the User Agreement and Privacy Policy
Press the Create Account button.
You will receive a confirmation email with a link you need to click on or paste into your browser. After doing so, it will activate your Coinbase account.
After these initial steps, you will be asked to confirm your identity. You can skip this and do it later but bear in mind not doing it comes with certain restrictions regarding deposit and withdrawal limits.
Coinbase Fees
Compared to other cryptocurrency exchanges, Coinbase has higher fees.
There are three Coinbase layers with different fee structures and benefits:
- Exchange
- Pro
- Prime
The Coinbase Exchange has the highest fees. Fees range from 1.49% to 3.99%, which is considerably higher than Kraken’s 0.26% or Binance’s 0.5%. Generally speaking, fees are always highest for debit card deposits. If you have a US bank account or use a Coinbase USD wallet, you can take advantage of smaller fee limits.
On the upside, Coinbase lets users buy bitcoins with zero fees.
These are the main Coinbase platform fees:
| Total Trade Amount | Fee |
|---|---|
$10 or less | $0.99 |
$10 to $25 | $1.49 |
$25 to $50 | $1.99 |
$50 to $200 | $2.99 |
Trades above $200 have a percentage-based fee instead of a flat fee.
Coinbase Deposit and withdrawal methods
US users of Coinbase can deposit funds via
- bank account,
- debit card, and
- wire transfer
But only the bank account (ACH) option supports all operations. With it, you can buy, sell, deposit, and withdraw. The average speed for each request is 4-5 business days.
Debit cards work best for small investments because they are instantly processed. However, you can only buy cryptocurrencies, but not to sell or deposit with this method.
Coinbase recommends wire transfer for large investments. It processes faster than bank accounts (1-3 business days), but it is limited. With wire transfers you can only deposit and withdraw.
There are more payment methods for users in the United Kingdom.
UK residents can withdraw to
- PayPal or their
- Coinbase Cards
They can make GBP bank transfers through
- Faster Payments, or use
- SEPA
European Coinbase customers only have 3 basic payment methods available
- SEPA transfers for deposits and withdrawals
- a 3D Secure card to buy cryptocurrencies or
- Ideal and Sofort.
Deposit Methods
| DEPOSIT METHOD | BUY | SELL | TIME |
|---|---|---|---|
BANK ACCOUNT (ACH) | Yes | Yes | 4-5 days |
WIRE TRANSFER | No | Yes | 1-3 business days |
CREDIT / DEBIT CARD | Yes | No | Instant |
PAYPAL | Yes | Yes | Almost instant |
Is Coinbase Safe?
Coinbase is not FDIC insured and only protects users’ funds against hacks and theft. The company states that it “carries crime insurance that protects a portion of digital assets” held across its storage systems against losses from theft.
However, its policy does not cover any losses resulting from unauthorized access to personal Coinbase account(s) due to a breach. In 2021, thousands of Coinbase accounts were drained of their funds in an organized hacking attack. Coinbase has since updated its 2FA mechanisms and committed to reimbursing the funds as well as providing credit monitoring services to customers.
Coinbase is safe to store your crypto on as it mainly relies on cold (offline) storage. According to the exchange’s insurance page, it holds 98% of the funds it operates with on their offline cold storage; which heavily decreases the chances of users’ funds being stolen.
As an additional layer of security – Coinbase runs a bug bounty program that rewards hackers who find certain vulnerabilities in their system, and report them to Coinbase.
Coinbase Mobile App
Coinbase’s mobile app has the functionality of the desktop version. It is well suited for users who want to manage their crypto on the go.
The Coinbase Pro app is available for Android and iOS customers allowing them to capitalize on market conditions at any time, wherever they are.
The app is powerful, designed with a focus on:
- speed,
- ease of use, and
- a clean, streamlined trading experience.
After several rounds of upgrades, users of the mobile app now have access to deposits and withdrawals into fiat and crypto, and enhanced security features including passcode authentication.
The Coinbase Card
The Coinbase card is a unique service that the company provides for its US customers. It is essentially a debit card that allows you to spend the USD value of your crypto and receive rewards for doing so.
This means you can spend crypto everywhere Visa debit cards are accepted and earn up to 4% back in rewards whenever you make a purchase. The Coinbase card has no annual fee or sign-up fee and rewards every purchase you make with it.
Depending on which crypto you choose to earn your rewards in, you’ll be rewarded at the following rates:
Depending on which crypto you choose to earn your rewards in, you’ll be rewarded at the following rates:
| Crypto | Reward Rate |
|---|---|
Stellar Lumens (XLM) | 4% back |
The Graph (GRT) | 4% back |
Bitcoin (BTC) | 1% back |
Ethereum (ETH) | 1% back |
Dogecoin (DOGE) | 1% back |
Dai (DAI) | 1% back |
Coinbase Education
Coinbase has an ample knowledge base to educate users about their investment decisions. Some of the available resources include investor education videos as well as a Reddit Ask Us Anything campaign.
In addition to these, there is:
- Coinbase Learn – a place with beginner guides, practical tips, and market updates for first-timers, experienced investors, and everyone in between.
- Coinbase Asset Pages is another resource the company supports that lists the top 50 cryptocurrencies based on market cap.
Customer Support
Despite increasing its customer support team since 2018, Coinbase does not stand out when it comes to the quality of its customer support.
Customers can connect with agents via several methods but response times are slow.
- If you’re from the UK, you’ll need to dial: 0808 168 4635
- For everyone else, including the US, you’ll need to dial: +1 888 908-7930
- You can also send an email to Coinbase via an online contact form from their website
Conclusion
Frequently Asked Questions
Withdrawing your funds usually takes 1-5 business days to a US based bank account. SEPA withdrawals within the European Union may take 1-2 days, while wire transfer withdrawals are usually completed on the same business day.