Coinbase is a renowned exchange platform that makes working with cryptocurrencies simple. Over 170 digital assets, like Ethereum, Bitcoin, the basic attention token (BAT), and others, can be bought, sold, or held by active traders on this platform.
It is a collection of software products for businesses focusing on cryptography and includes hosted checkout sites, transaction buttons, invoices, and several e-commerce interfaces. Let’s look closely at Coinbase’s structure, features, and advantages and disadvantages.
Coinbase
Cryptocurrencies are a comparatively recent asset class. They can be volatile, making them a risky investment. But if you’re fascinated by cryptocurrencies, Coinbase is an excellent choice for both experienced users and beginners. With more than 98 million members and $256 billion worth of assets on the platform, it is a massive firm.
In 2012, Coinbase was established as a platform for sending and receiving bitcoin. The company now employs over 4,900 individuals globally and supports scores of distinctive cryptocurrencies. It is a decentralized business without a primary office.
Over 100 nations have customers on Coinbase, and each quarter, consumers trade almost $309 billion worth of goods. In addition to providing a reliable cryptocurrency wallet service, Coinbase operates two different trading platforms. You may find everything you need to establish and maintain a bitcoin portfolio or investment plan with the range of products offered by Coinbase.
Users of Coinbase can trade across several platforms. Classic Coinbase platform users can buy cryptocurrencies with U.S. dollars using a straightforward interface. Those with Coinbase Pro can execute crypto-to-crypto trades, place the market, restrict and stop orders, and access sophisticated charting features.
With a feature called Advanced Trade, Coinbase has recently extended several of Coinbase Pro’s capabilities and lower pricing to its primary interface. The business has also indicated that Coinbase Pro will soon be completely pulled out.
Additionally, Coinbase has launched a brand-new service named Coinbase One, which provides no-cost trades and other advantages for a monthly subscription of roughly $30. Beginners probably prefer the old Coinbase platform for straightforward purchasing and selling. Other platforms mentioned above provide access to more capabilities for experienced users.
The cryptocurrencies available on Coinbase include:
- Ethereum
- Solana
- Avalanche
- Solana
- USD Coin
- Cardano
- Tether
- Dogecoin
Different coins have various withdrawal values, as well as trading limitations. Some cryptocurrencies can only be exchanged for specific fiat currencies, such as the U.S. dollar. Depending on your state or territory, you might be unable to trade certain coins. The website of Coinbase provides a summary of these limitations for everyone.
With Coinbase’s regular trading account, you can exchange over 170 different cryptocurrencies, provided that you have at least $2. Moreover, you can still benefit from several other goods, such as its online and mobile interfaces, even if you’re not constantly purchasing, trading, or using cryptocurrency.
Coinbase offers a unique learning rewards function through which you can earn free crypto assets. This can be done by learning about various cryptocurrency subjects. All you have to do is watch a few informative videos on various cryptocurrencies. Additionally, each course ends with a quiz that you must pass. For every quiz you pass, Coinbase will transfer cryptocurrency to your Coinbase storage wallet.
Furthermore, Coinbase provides USD Coin, a cryptocurrency secured by U.S. dollars. These are also stablecoins because you can always exchange one USD coin for a U.S. dollar, unlike other volatile and riskier cryptocurrencies. What’s more intriguing is the fact that the application also enables authorized USD Coin users to earn rewards at a 0.15% annual percentage yield.
Coinbase is one of the few cryptocurrency exchanges that permit customers to withdraw their cryptocurrency as soon as they buy it with fiat money. Customers who desire to use cryptocurrencies in decentralized apps and other service operations may find this to be of great use.
As a safe marketplace for cryptocurrency trading, Coinbase has established a solid reputation. According to the platform, 98% of user funds are kept offline in different places around the globe, which contributes to even greater protection for digital assets.
You can hold your cryptocurrency in a third-party wallet or have Coinbase store it for free. For the latter option, you must sign in to your account, purchase your cryptocurrency, and leave it there.
This means that your coins’ safety will depend on Coinbase’s security procedures rather than your accessibility to private keys. You must complete two-factor verification to log in to your account. Additionally, private keys are encrypted using AES-256 and biometric procedures.
Alternatively, you can transfer your assets to Coinbase Wallet, a special hot wallet software. This software provides you access to your private keys. Since you have more authority, you can use your cryptocurrency more effectively. For example, you can transfer coins among wallets and participate in other DeFi activities that call for crypto transactions and settlements beyond the exchange.
Additionally, Coinbase combines the assets in your account with its other U.S. clients and deposits them into one of the three options: Short-term U.S. treasuries, custodial accounts at U.S. banks, or U.S. money market funds.
You can also register for a Coinbase Card if you have a regular Coinbase account. You can use this prepaid Visa debit card to purchase cryptocurrency because it is connected to your account funds. Additionally, the Coinbase Card provides crypto incentives and lets you select the cryptocurrency you earn from a fluctuating list. This allows you to receive up to 4% of your cashback.
Key Features
- Offers a wide variety of cryptocurrency
- Easy to use for beginners
- Offers extreme security through Coinbase Wallet
- USD coins can help in earning rewards
- Earn free assets through the learning rewards function
- Coinbase card provided
Pros
The Coinbase platform offers several benefits. The first is that it is simple for those new to cryptocurrencies. You can instantly purchase, sell, and swap virtual currencies using the official Coinbase mobile app and website because they are both incredibly user-friendly.
The website contains sophisticated tools for more experienced traders, but it also offers a layout with various options for users of various backgrounds. Simple tools for purchasing and selling are available for novices, and solutions for comparing, monitoring, and exchanging digital assets are available for far more knowledgeable crypto investors.
Additionally, Coinbase’s customer service is excellent. The site offers interactive phone support. Customers can also contact the company through email or chat. Additionally, the site includes a substantial collection of educational materials, and Coinbase Earn is a brilliant method to encourage users to learn more.
Companies and organizations can choose from various investing choices thanks to Coinbase. These include Asset Hub, its primary cryptocurrency trading network, enabling companies and issuers to list digital assets on the Coinbase platform to expand and increase exposure.
The investing platform also provides corporations and organizations with safe cold storage. Additionally, the venture’s feature provides a platform for emerging businesses to raise capital for growth.
Cons
Compared to other exchanges, the main flaw of Coinbase is its expensive fee structure. You will be billed a spread and a Coinbase fee when transacting cryptocurrencies on Coinbase. The spread can be described as the difference in price between what you pay and the market rate. It’s comparable to the commission or trading cost you could incur when investing through a brokerage account.
The spread on Coinbase is roughly 0.50% of your cryptocurrency transactions and purchases, but this could change based on market conditions. Depending on market movements, you can also be levied a spread of almost 2% for crypto conversions.
Likewise, the Coinbase Fee may change based on your payment option, region, and other elements. It can be a flat fee or a percentage of your purchase. For U.S. customers, the flat cost works out as follows:
- The charge is $0.99 for transactions under $10 or equal to it.
- The charge is $1.49 for transactions over $10 but under $25 or equal.
- The charge is $1.99 for transactions over $25 but under $50 or equal.
- The charge is $2.99 for purchases over $50 but under $200 or equal.
After you spend more than $200, the pricing system becomes percentage-based and is entirely reliant on how you purchase the cryptocurrency:
- For Coinbase wallets and U.S. bank accounts, the fee is 1.49%.
- The fee is 3.99% for PayPal or a debit card
- The fees for purchases over $200 can be as high as 1.5% of the total transaction, with a minimum charge of $0.55.
As a result, Coinbase’s fees are needlessly complicated and perplexing. Different trading cost systems are used depending on whether you select the exchange’s advanced or simple trade option. Although the fees for complex trades are fair and easy to comprehend, the prices for simple trades are higher, and you can only see the fee sum when you examine the transactions. If Coinbase implemented the same costs for all kinds of crypto trading, it would simplify things for users.
Final Verdict
In a nutshell, Coinbase makes buying and selling cryptocurrency simple with its user-friendly features and sleek design. These benefits have helped it swiftly rank among the most popular crypto networks in the U.S. If you are looking to invest in Bitcoin as a long-term option, Coinbase makes the process easier. Purchase your coins, store them on Coinbase, and monitor their value growth. The network offers all the primary services you need, including the Coinbase Wallet option and a wide variety of other currency options.
