Coinbase Review 2022: Coinbase is undoubtedly the most well-known bitcoin exchange.
Coinbase has been buying and trading bitcoin since 2012, but it received widespread notice in 2021 when it became the first cryptocurrency exchange to go public on the Nasdaq.
Coinbase now has over 73 million users who trade over $300 billion in cryptocurrencies each quarter. According to crypto research firm CoinMarketCap, it has the second-highest trade volume of all exchanges.
Pros and Cons of Coinbase
- Beginners will appreciate the simple UI.
- Instruments for education
- There are over 150 different cryptocurrencies to choose from.
- Strong security measures are implemented.
- Account funding has a low minimum requirement.
- Fees are high when compared to other exchanges.
- When you retain coins on your account, you have no control over your private keys.
A Quick Overview of Coinbase (Coinbase Review 2022)
- There are more than 150 cryptocurrencies supported.
- Spread and Coinbase Costs are two types of trading fees.
- You can keep your crypto on your Coinbase account for $2 minimum to purchase or sell, or you can use a free wallet service with private key access.
- It has a theft insurance coverage and stores the majority of digital assets. offline
- Accounts can be accessed using a web browser or a mobile app.
- Crypto rewards for learning and a learning hub.
- Upgrade to Coinbase Pro.
More than 50 different cryptocurrencies are supported by Coinbase. On Coinbase, you’ll find all of the most popular cryptos, including the following:
- Bitcoin (BTC)
- Ethereum (ETH)
- Avalanche (AVAX)
- Solana (SOL)
- Cardano (ADA)
- USD Coin (USDC)
- Dogecoin (DOGE)
- Polygon (MATIC)
- Tether (USDT)
There are varying trading limits and minimum and maximum withdrawal amounts for each coins. Some can only be traded for fiat currencies, such as the US dollar, or converted into or out of other cryptocurrencies. You may also be prohibited from trading certain coins depending on your nation or state of residence. On Coinbase’s website, you can see a list of these limits for each of the cryptocurrencies it supports.
When compared to other exchanges, one of Coinbase’s main flaws is its exorbitant charge structure.
You’ll be charged a spread and a Coinbase fee when you perform a cryptocurrency transaction on Coinbase, such as buying Bitcoin or exchanging Ethereum back into US dollars.
The spread is the difference (or margin) between the market price and the actual price you pay or get for a buy or sale. It’s comparable to the commission or trading cost you’d pay if you invested through a brokerage account.
Coinbase’s spread is roughly 0.50 percent of your bitcoin sales and purchases, though it varies depending on market conditions. Based on market movements, you may be charged a spread of up to 2.00 percent for cryptocurrency conversions, such as trading Bitcoin for Ethereum. Converting your crypto coins to other cryptocurrencies, on the other hand, does not incur a Coinbase fee.
The Coinbase Fee varies depending on the payment type you use, your region, and other factors. It could be a flat cost or a percentage of your transaction, but the latter will always be higher.
For US users, here’s a comparison of the flat vs. % Coinbase fee:
|TOTAL TRANSACTION AMOUNT||FEE|
|$10 or less||$0.99|
|More than $10 but less than or equal to $25||$1.49|
|More than $25 but less than or equal to $50||$1.99|
|More than $50 but less than or equal to $200||$2.99|
|PAYMENT METHOD (FOR PURCHASE OR SALE)||FEE|
|U.S. Bank Account||1.49%|
|Coinbase USD Wallet||1.49%|
|Debit Card or PayPal||3.99%|
|Instant Card Withdrawal||Up to 1.5% (minimum $0.55)|
So, if yoy $50 worth of Bitcoin on Coinbase with a bank transfer, you’ll pay a $0.25 spread plus the $1.99 flat fee (which is higher than the 1.49 percent alternative fee). That implies you’ll finish up with approximately $47.76 in Bitcoin. That may not seem like much, but the more you buy, the more it adds up.
Other Coinbase Fees
You can also transfer cash into your Coinbase USD wallet and then purchase cryptocurrency from that wallet later (for the 1.49 percent fee described above). Because crypto values fluctuate so rapidly, maintaining USD in your Coinbase wallet can help you avoid potentially lengthy bank transfers – for example, if you want to react fast to a price reduction. The following are the fees for putting USD into Coinbase:
|Wire Transfer||$10 ($25 outgoing)|
Cryptocurrency, unlike cash in the bank, is not covered by any federal restrictions.
Coinbase claims to keep 98 percent of its customers’ bitcoin in cold storage (the remaining 2 percent is used to facilitate trading volume). The exchange also has a policy that protects cryptocurrency assets. According to experts, rigorous procedures like this are why a mainstream exchange like Coinbase may be worth the extra fees.
Even if your crypto is taken in a big security breach, there’s no guarantee that your money will be returned to your wallet. “We shall attempt to make you whole,” Coinbase writes on its website in that circumstances. “However, total losses may exceed insurance reimbursements, resulting in the loss of your funds.”
Losses resulting from unauthorized access to your personal account are also not covered by the insurance policy. To put it another way, if your identity is stolen or someone discovers your Coinbase account password and steals your wallet, you may not be able to restore it.
Most customers don’t need to store cash on Coinbase (just as they wouldn’t retain uninvested cash in a traditional investment account), though it can be useful for speedier trades. However, any cash you maintain on the exchange is pooled with other users in one of three ways: stored in US bank accounts, invested in US Treasuries or money market funds, or held in US bank accounts. You don’t get to choose how your money is stored, however Coinbase claims that money kept in bank accounts as cash is FDIC-insured up to a current limit of $250,000.
Two-factor authentication, biometric logins (such as fingerprint and Face ID), and data encryption are among the other security features. Use strong passwords, don’t reuse passwords across accounts, enable 2-factor authentication, and keep an eye on your accounts for any unwanted activity.
In general, experts advise using bitcoin exchanges that are well-known and have a substantial user base. Coinbase is the most well-known of the traditional cryptocurrency exchanges, having been operational for a long period in comparison to many others. Because Coinbase’s financials are now public, customers can get a better picture of the platform’s health thanks to its recent listing on the Nasdaq.
Investing in cryptocurrency requires a lot of education, especially for novices. Coinbase has a Coinbase Learn hub featuring beginner’s guides to various coins and uses of bitcoin, as well as regular market updates and recommendations for more resources.
Through Coinbase Earn, it also encourages users to actively learn. You may learn about certain altcoins by watching short films and taking quizzes, and Coinbase will deposit a tiny amount of that cryptocurrency into your wallet as a reward. Because altcoins aren’t suggested for long-term investments, you can exchange them for Bitcoin or Ethereum once you’ve earned them. Keep note of these transactions because every crypto-to-crypto trade is taxed.
When it comes to crypto storage, Coinbase has a variety of solutions.
To begin, you can keep your cryptocurrency on Coinbase. This is the most straightforward option: simply log into your account, purchase your cryptocurrency, and keep it in your account. You won’t have access to your private keys if you do this; instead, Coinbase’s security procedures will protect your funds (and your own account protections).
You can also migrate your funds to Coinbase Wallet, the company’s standalone hot wallet program. This is a different program that you would download, and it does offer you control over your private keys, unlike storing your funds on Coinbase. Because you have more control over your cryptocurrency, you can do things like transfer coins between wallets and participate in other decentralized finance activities that require crypto transfers and payments outside of the exchange. It’s not necessary, however, if you’re only looking to buy and hold Bitcoin or another cryptocurrency for its asset value.
Coinbase also offers Coinbase Pro, a free exchange platform with lower fees and more features for customers who are actively trading cryptocurrency.
Coinbase Pro’s advanced capabilities are generally not necessary if you’re just getting started with bitcoin and learning about it — or if you’re interested in cryptocurrencies as a long-term store of value. Coinbase Pro, on the other hand, offers more tools and reports, as well as cheaper trades, if you’re wanting to purchase and sell coins more frequently.
For Whom Is Coinbase the Most Appropriate?
Coinbase is an excellent place to start investing in bitcoin because of its simple interface, educational features, and solid security measures.
If you’re only wanting to invest a little more money in Bitcoin as a long-term investment, Coinbase makes it simple. Simply purchase your coins, store them on Coinbase, and monitor their value over time.
However, it’s also a terrific alternative for you to grow with as you learn more about cryptocurrency. Between various alternative currency offers and the Coinbase Wallet option, it doesn’t lack any important services you’d find elsewhere. If you decide to invest in something other than Bitcoin or keep your own private keys, Coinbase is still a good place to start.
The most significant disadvantage of Coinbase is its costs, which are often greater than those of competing exchanges. Considering most ordinary investors, though, they’re a tiny amount to pay for the ease, variety of services, and security they’ll receive.
Coinbase vs Gemini
|Coins||150+ cryptocurrencies||70+ cryptocurrencies|
|Fees||0.50% spread; Trading fee between 1.49% and 3.99% (or $0.99 to $2.99 flat fee)||0.50% convenience fee; $0.99 to $2.99 transaction fee; 1.49% transaction fee for trades over $200|
|Wallet Storage||Keep coins on Coinbase account, Coinbase Wallet option, or transfer to your own wallet||Keep coins on Gemini account, Gemini Wallet option, or transfer to your own wallet|
|Minimum Trade||$2||Equal to the smallest amount of each coin that can be traded (0.00001 BTC)|
Most Commonly Asked Questions
Can I trust Coinbase?
Investing in bitcoin is dangerous by nature, and your cryptocurrency is at best a speculative asset. Coinbase, on the other hand, is a safe and genuine exchange to utilize if you’re willing to take the risk (and have your other financial priorities in order).
Although you can’t protect your investments from market swings, Coinbase has a solid reputation and reliable security mechanisms in place to safeguard the funds you deposit.
How to withdraw money from coinbase?
You can transfer money from Coinbase to your bank account. All you have to do now is sell your cryptocurrency on an exchange. The proceeds from the sale will be transferred to your Coinbase USD Wallet, from which you can withdraw the monies to your bank account.
You can send cryptocurrency from your Coinbase account to your own wallet if you know your wallet address, however there may be a cost.
Is coinbase safe
Yes. Coinbase is regarded as one of the most reliable cryptocurrency exchanges available today. It keeps money safe in FDIC-insured accounts, allows you to securely connect and trade cryptocurrency with your bank account, and blocks questionable accounts to keep users safe.