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Mon, Nov 15, 2021 6:03 PM by Max E.

CoinBase Review: One of The Earliest Crypto Exchanges

Coinbase review

Cryptocurrency users cannot bypass Coinbase, the oldest online cryptocurrency broker and exchange, operating since 2012. On Coinbase, you can buy and trade cryptocurrencies in the Coinbase Pro section of the platform.

A detailed Coinbase review includes information on fees, available cryptocurrencies, the security of this cryptocurrency platform, and more.

Coinbase Benefits

  • The ease of registration and ease of use of the platform allows even beginners in the world of cryptocurrencies to trade on it.
  • Lots of payment methods including bank cards and wire payments.
  • Coinbase's security is guaranteed by the appropriate accreditation and licenses. In the US, Coinbase is accredited by the Treasury's Financial Crimes Authority (FinCEN), and in the UK, it is licensed by the Financial Conduct Authority (FCA). Coinbase also has insurance against funds stolen in the course of a possible hacker attack, however, this is only about the exchange's own funds, and not about customer accounts.
  • Wide selection of cryptocurrencies. It is noteworthy that once only four cryptocurrencies were available on Coinbase: Bitcoin, Bitcoin Cash, Ether and Litecoin. The platform is constantly adding new assets, but it does it quite selectively.

Coinbase fees

Coinbase's fee structure is complex.

Trade commission

Trading fees on Coinbase are charged in the same way as fees for trading stocks from the respective brokers, with the only difference that it is not fixed. The standard commission is 1.49% "one way", i.e.you are charged this percentage when buying cryptocurrency, and then when selling it.

When trading small amounts, the commission is fixed. For example, if the transaction amount is less than $10, the commission is $0.99; with a transaction amount of $10 to $25, the commission is $1.49. At first glance, it is not so much, but if you look at the percentage, it turns out that by buying Bitcoin in the amount of $11, you will give away $1.49, that is, almost 15%.

Conversion of Cryptocurrencies

On Coinbase, you can convert cryptocurrencies directly, i.e., for example, exchange Bitcoin for ETH not through dollars or other fiat currency, but directly. However, the commission is still present in the form of a 2% spread, i.e. Coinbase will simply increase the price of the purchased cryptocurrency by 2%. As a result, the commission is also significant.

Coinbase Purchase Limit

On Coinbase, you can purchase up to $10,000 worth of cryptocurrency daily. Before operating with such amounts, you must pass a check by providing a copy of your passport or driver's license.

There is also a separate restriction on purchases through bank cards: the limit is $750 for the first transaction, and then increases as the documents are checked.

Coinbase Pro

The main site of Coinbase serves for the usual purchase of cryptocurrencies and resembles a traditional stock broker: an asset is acquired for a period of several months or years for the purpose of long-term investment.

However, for experienced traders who want to deal specifically with cryptocurrency trading, i.e. short-term transactions, there is the Coinbase Pro platform. You can trade on it both in pairs, which include real currencies, and purely cryptocurrency pairs.

A currency pair includes one fiat currency and one cryptocurrency: for example, ETH/USD is made up of ETH and USD and reflects the corresponding exchange rate.

A cryptocurrency pair consists of two cryptocurrencies: for example, BCH/BTC is the Bitcoin Cash rate in relation to Bitcoin.

At the same time, in both cases, speculation on exchange rates occurs, i.e. this kind of trading is very similar to forex trading.

The Coinbase Pro platform features a variety of tools and capabilities. First, pairs can not only be bought but also sold, i.e. speculate on a depreciation.

Secondly, there are different types of orders: stop loss and take profit to limit the risk and limit orders that are activated when the pair reaches a certain rate.

Coinbase Pro can also use third-party automated trading software (aka "robots") that can be accessed by obtaining a custom API key.

Finally, Coinbase Pro features a variety of analytics and charting tools.

Coinbase Wallet

After purchasing cryptocurrency on Coinbase Pro, there are two options for how to store it.

  • First, you can withdraw the cryptocurrency to your own wallet, which can be a mobile application, computer program, or hardware wallet. In such a case, the user is solely responsible for the storage of the currency.
  • The second option is to store your cryptocurrency on Coinbase, which also has two types of wallets: web wallet and mobile wallet.

Coinbase Web Wallet

The most convenient way to store cryptocurrency on Coinbase is through a web wallet, in which case the funds simply remain in your Coinbase account. However, the same method is also the most vulnerable: if a hacker attack is made, there is a risk of losing all funds.

Coinbase Mobile Wallet

Mobile wallet is a mobile application for Android or iOS devices and allows you to store currencies such as Bitcoin, Ethereum, Bitcoin Cash, Ethereum Classic, Litecoin and all cryptocurrencies based on the ERC-20 token.

The scheme of the work is the same as with other mobile wallets: you enter the system using a PIN-code or a fingerprint, after which you can send cryptocurrency from the wallet and to the wallet. The transfer procedure is simplified using a QR code scanner.

Offline Storage

98% of all client funds on Coinbase are held offline in hardware wallets (the remaining 2% must be stored online to provide liquidity). Thus, these funds are almost impossible to steal by any means.

Two-step Authorization

Two-step authorization (confirming login with another device) on Coinbase is required for all users. Most often, such authorization is provided via a special secret code, which is sent to the user's mobile phone in the form of an SMS.

In addition, Coinbase will also require an email confirmation when logging in from an unfamiliar device. Thus, hacking someone's account is also almost impossible.

Even if someone manages to hack into your account, it will be very difficult to withdraw funds from there, since the withdrawal is possible only to the same card or account from which the deposit was made. In theory, an attacker can try to transfer money to a third-party wallet, but in this case, too, you will need to enter the code from the SMS, so if you have the phone with you, the hacker will fail. In addition, you can enable e-mail confirmation of withdrawal, which will also provide additional protection.

Freezing Funds

After confirming the withdrawal operation, the money is not immediately transferred to the selected account but is frozen for two days. Thus, even if the fraudster manages to bypass all possible protection measures, you still have two days to cancel the withdrawal request and inform Coinbase that the account was hacked.

Coinbase Mobile App

Using the Coinbase mobile app, you can perform the same operations as on the website: buy, sell and convert cryptocurrencies, fund your account and withdraw funds.

Minimum Deposit

The minimum deposit on Coinbase is only set for bank transfer via SWIFT. In this case, it is $ 1,000 and the minimum withdrawal amount is $ 500.

How To Use The Coinbase Platform

1. Opening an account

First you need to go to the Coinbase website and create an account there.

To do this, enter personal data: full name, address, date of birth, email address and phone number.

2. Verification

To verify the data, you will need to upload a copy of your passport or driver's license.

It is possible to take a photo of the document directly from the webcam, but the photo must be of adequate quality. If the quality is inadequate, you will be prompted to make a copy yourself and download it as a PDF document. You can also register through the Coinbase mobile app, in which case it is easy to use your phone's camera to get the picture quality you want.

3. Deposit of funds

After checking the documents, which, as a rule, takes place instantly, you can proceed to the account replenishment. With a debit card, you can buy cryptocurrency instantly, it will be credited to your account immediately after the operation is completed. You can also use a bank transfer, but this procedure will take 1 to 3 days. After the funds are credited to the account, it will be possible to select the desired cryptocurrency and buy it.

4. Storage

After making a purchase, the client decides on the storage of the cryptocurrency. As mentioned above, you can store it on a web wallet, withdraw it to your personal wallet, or download the Coinbase wallet app.

5. Sale

Selling your existing cryptocurrency on Coinbase is as simple as clicking the Sell button.

At this point, the cryptocurrency will be debited from your account, and the corresponding amount in the regular currency will be credited instead. After that, you can withdraw funds. If you store cryptocurrency in your own wallet, you first need to transfer it back to Coinbase, and then convert it to fiat currency, before you can proceed to withdraw funds.

Coinbase Vs Binance

It is shown below how Coinbase and Binance differ in terms of trading fees, withdrawal fees, deposit methods, supported cryptocurrencies, and trading types.

Supported Cryptos

  • Coinbase: 120
  • Binance: 368 

Exchange Fees 

Taker Fee

  • Coinbase: 2.00%
  • Binance: 0.10%

Maker Fee

  • Coinbase: 2.00%
  • Binance: 0.10%

Active Since

  • Coinbase: 2012
  • Binance: 2017

Deposit Methods

  • Both crypto exchanges have Wire and Credit options. 

US Allowed

  • Coinbase: Yes
  • Binance: No 

Offers Derivatives

  • Coinbase: No
  • Binance: Yes 

FAQ

Does Coinbase have an app?

The Coinbase mobile app is available for Android and iOS. The Coinbase Android app is available from the Google Play store on your Android device. The official name of the app is “Coinbase – Buy & Sell Bitcoin. Crypto Wallet". The iOS app is available in the App Store on iPhone. The official name of the application is "Coinbase – Buy & Sell Bitcoin". Both apps are released by Coinbase, Inc.

Is Coinbase safe and legit?

Coinbase is a completely legit and safe cryptocurrency broker and exchange because of its highly regulated location and high-profile investors.

Can you get scammed on Coinbase?

Coinbase is just as safe as most other platforms, but users should still look out for hackers phishing scams and hackers.

Summary

There is no doubt that Coinbase is one of the best cryptocurrency brokers. The main advantages are a very simple interface, the ability to fund the account with a card, and strict security measures.


The content of this article is for informational purposes only and should not be construed as investment advice. We ask you to do your research. This text is not a guide to action. The author's opinion may not coincide with the opinion of CoinJoy

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