Last Updated on October 24, 2020 by harsh vasistha
Coinbase exchange, founded in 2012 by Brian Armstrong (CEO), Fred Ehrsam and is based in San Francisco, California.
Coinbase is one of the leading and reputed cryptocurrency exchange, available in more than 100 countries, with more than 30 million customers around the world.
Coinbase is a bilateral exchange system, One is the Standard Coinbase exchange, and the other one is Coinbase Pro for Professional traders. In this article, I will make an in-depth detailed Coinbase exchange review. Here we will discuss the services provided by the exchange. Coinbase features, fees, payment methods, countries supported, trading options, and later conclude by analyzing whether coinbase is safe and legit to use?
Coinbase Services And Features
Brokerage Services
In 2013 Coinbase initially started as a cryptocurrency broker i.e It only offered buying and selling of cryptocurrencies.
Coinbase easy to use interface makes it ridiculously easy to buy cryptocurrencies directly with VISA, Master Card, and bank transfers.
It will take a couple of minutes for the whole buying process to complete. You can buy and sell more than 30 Cryptocurrencies directly from the platform and receive instantly in your wallet.
There is a difference between Cryptocurrency Broker and Cryptocurrency Exchange.
Cryptocurrency broker holds the cryptocurrency and sells cryptocurrency at a set price.
A cryptocurrency broker mainly acts as an intermediary to simplify the purchasing and selling of cryptocurrencies at a premium.
Coinbase Pro
Coinbase exchange charge a brokerage fee 3.99% with credit & debit card and 1.49% with bank transfer which is relatively low compared to other cryptocurrency brokers like coinmama broker and Cex.io
Coinbase also provides advanced trading services. In 2015, Coinbase created a separate platform for trading services which was known as GDAX, and then again rebranded the platform to Coinbase pro in 2018.
Coinbase Pro interface is highly intuitive, and make very easy to get into crypto trading even for starters.
You can use margin orders, limit orders, stop orders, and market orders on Coinbase pro. It also offers leverage.
Coinbase pro does not offer Future contracts and trading derivatives unlike other margin trading platform like ByBIT, Bitmex, etc
Every user registered to Coinbase exchange is automatically get registered to Coinbase pro.
The interface also included various trading friendly tools. Crypto pair charts, candlestick charts, depth charts, market data feeds, order-books etc.
Coinbase Pro has crypto/fiat trading pairs in USD, EUR, GBP, and crypto/crypto trading pairs in BTC, DAI, ETH, and USDC (Coinbase stablecoin).
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Coinbase wallet and mobile app
Coinbase also provides storage services to store the cryptocurrencies.
In 2018 The Coinbase launched their independent mobile wallets. The Coinbase wallet is available for both iOS and android devices.
The wallet private keys are stored on the device itself and only user can have access to the funds.
The Coinbase wallet also makes it easy for users to keep track of crypto price movements. It also allows users to buy, sell, and trade cryptocurrencies at real-time prices effortlessly.
You can also deposit and withdraw funds via the coinbase wallet.
Coinbase also recently added support for Segwit, an upgrade to Bitcoin that allows block space to be used more efficiently.
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This was a major update, as Coinbase was pretty slow to make the change. Today, Segwit is used by over 50% of the Bitcoin network and increasing every day.
Note – If you are deciding to enter the cryptocurrency world for long-term then always store your funds in a hardware wallet.
Coinbase Commerce – Coinbase exchange review
Coinbase also offer the payment gateway services to the merchants via dedicated plugin.
The plugin is supported by the various CMS platforms like WooCommerce, PeestaShop, Magneto etc.
There are more than 8000 merchants who use Coinbase Commerce services and accept cryptocurrencies as the payment method.
Coinbase Custody
In 2018, Coinbase launched Custody services that offer clients to secure, an institutional-grade offline storage solution.
It’s like you don’t hold your cash under your bed mattress, rather you deposit it in a bank. So bank is the custodian of your funds. Likewise, if you deal in stocks then most probably your broker will be your stocks custodian.
Even gold investors use custodians such as Bullion vault to store their gold.
Coinbase charges a setup fee of $100,000 and a minimum holding of $10million. The custodian service is aimed at Bigger financial institutions like banks and hedge funds.
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Coinbase Custody supports 90+ percent of crypto assets by market capitalization.
As a qualified and regulated custodian Coinbase Custody can also quickly add new crypto assets on client requests
This service, the first of its kind, could lead to larger adoption of cryptocurrencies by financial institutions
Coinbase Staking
Staking is the process of actively participating in transaction validation on a proof-of-stake (PoS) blockchain to earn rewards. It is similar to mining as miners receive rewards for validating the transaction.
Anyone with a minimum-required balance of a specific cryptocurrency can validate transactions and earn Staking rewards.
Coinbase Exchange only allows Tezos (XTZ) staking.
A minimum of 1 XTZ requires in your wallet to opt in coinbase staking.
Rewards are calculated by the network. Coinbase receives the rewards from the network on your behalf and then automatically credits them to your crypto wallet.
They are calculated based on the amount of the cryptocurrency you hold the XTZ wallet
The more you hold, the more Coinbase can stake on your behalf, and the more potential rewards you receive
This is quite similar to how someone would receive interest for holding money in a bank account or giving it to the bank to invest.
Coinbase Earn
Coinbase Earn lets you earn cryptocurrencies while learning about the Cryptocurrencies in a very simple and engaging way.
The platform introduced this feature for users to understand the specific crypto asset and its underlying technology.
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In order to earn you have to watch the educational videos created by the platform about different cryptocurrencies. After each video, you’ll have to pass a quiz test about that specific cryptocurrency.
Coinbase Earn is available to limited customers because of high demand. So you have to check your eligibility. However, if you receive an invitation from any other Coinbase users who have enrolled in Coinbase Earn.
But you have to complete maximum account level ID verification,
Supported cryptocurrencies
Coinbase currently supports more than 31 cryptocurrencies to buy, sell and trade. However, the Availability of cryptocurrency also depends on your area of jurisdiction. Coinbase pro supports 20 cryptocurrencies.
Coinbase Exchange also planning to add following cryptocurrencies in coming weeks.
Aave, Aragon, Ve Chain, Numeraire, KEEP, Arweave, Bancor, DigiByte, Horizen, Livepeer, NuCypher, Ren, Render, Siacoin, SKALE, Synthetix, DigiByte, Horizen, and Livepeer
Coinbase only add well established cryptocurrencies with high market capitalization.
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You can check the complete list of cryptocurrencies available according to location here.
- Bitcoin
- Ethereum
- Litecoin
- Bitcoin cash (BCH)
- Ripple (XRP)
- EOS
- Stellar
- Tezos
- Ethereum Classic (ETC)
- Maker (MKR)
- Compound
- MANA
- ATOM (COSMOS)
- DAI
- USDC
- Bitcoin SV
- ORCHID
- OXT
- OMISE GO (OMG)
- Zcash
- Chainlink
- Ox
- Algorand
- Zilliqa
- Augur (REP)
- Basic Attention Token (BAT)
- Golem
- Decentraland
- Loom Network
- District Ox
- Civic
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Payment methods supported by Coinbase exchange
Coinbase supports the following payment methods
- Wire transfer (including ACH in the US and SEPA in the EU)
- Credit and Debit cards (Visa and MasterCard)
- Cryptocurrency deposit and withdrawal
- PayPal (only available for FIAT withdrawal)
- 3D Secure Credit Card (EU countries)
Fiat currencies supported by coinbase platform are.
USD ($), GBP (£), EUR (€), SGD, CAD
Availability of Payment methods also depends on the location which you can read here
Fees – Coinbase Exchange review
Coinbase fee structure is little tricky.
Coinbase fees ranges between 1.49% to 3.99%.
If you buy cryptocurrencies with a credit and debit card costs 3.99% fee.
If looking to buy, sell cryptocurrencies with all other payment methods costs 1.49% fee.
Coinbase still has one of the lowest fee structures if you are looking to buy cryptocurrencies directly with a credit card compared to other Cryptocurrency brokers available in the exchange market like Coinmama, and Cex.io.
Depositing Funds via Bank transfer with ACH costs no fee otherwise costs $10.
Coinbase pro uses maker/ taker fee model which varies from 0.04% to 0.50% depending on the amount of trade.
Cryptocurrency deposits and withdrawals costs no fee (minimum withdrawal amount is 0.001 BTC)
Coinbase fee varies according to country and payment methods
USA
| Standard Buy/Sell | Instant Buys (Credit & Debit Card) | Bank Transfers ACH / Wire |
| 1.49% | 3.99% | Free / $10 (Wire transfer) |
UK
| Standard Buy/Sell | Instant Buys (debit card only) | Bank Transfers (SEPA) – In/Out |
| 1.49% | 3.99% | Free/€0.15 |
Europe
| Standard Buy/Sell | Instant Buys (debit card only) | Bank Transfers (SEPA) – In/Out |
| 1.49% | 3.99% | Free/€0.15 |
Asia & Australia
| Instant Buy (Credit & debit card) | Bank transfers |
| 3.99% | Not available |
Coinbase Account Limits
Coinbase has multiple transaction limits. The transaction limits depend on country, Account age, Verification level, and payment methods used for the transaction.
Your limits are displayed on the Account limits section of your Settings.
You can increase your account transaction limit by:
- Verifying phone number
- Verifying personal information
- Verifying photo ID (valid state ID for US customers)
A fully verified US residents have $25000/day and $50,000/week transactions limit. Although Using Credit and debit cards you can do transactions up to $7500/day.
For US customers who are looking to deposit more than the maximum $25,000 a day ACH limit, Then you need to transfer funds directly to the Coinbase account using wire transfer.
A fully verified European user can have up to $50000 at any point of time.
Coinbase customer support
Coinbase has an extensive support FAQ page.
Where you can find answers of most of your questions.
You can also submit a support ticket via email, and the response can take up to 24 to 48 hours. You can also contact them via phone which is available 24*7.
At the bottom right of every exchange page, an automated chatbot is available to fulfill immediate queries
There are also many controversies associated with Coinbase exchange. Coinbase had previously banned user’s accounts for processing certain transactions like gambling sites or adult sites without any prior warning. It seems they track user’s transactions which is a clear violation of user privacy. However, In those cases, the User’s money was refunded.
Supported Countries
Coinbase is available in more than 1000 countries. But it does not provide all its services to every supported country.
Coinbase doesn’t support buying and selling cryptocurrencies in India with Fiat Currency. You can only store, trade and withdraw cryptocurrency from the Coinbase platform.
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Supported countries are:
Angola, Benin, Botswana, Cameroon, Ghana, Kenya, Mauritius, Namibia, Rwanda, South Africa, Tunisia, Uganda, Zambia, Armenia, Bahrain, Brunei Darussalam, Hong Kong, India, Indonesia, Jordan, Kazakhstan, Korea, Kuwait, Kyrgyzstan, Macao, Maldives, Mongolia, Nepal, Oman, Philippines, Singapore, Taiwan, Uzbekistan, Australia, New Zealand, Andorra, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Gibraltar, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Italy, Jersey, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Monaco, Montenegro, Netherlands, Norway, Poland, Portugal, Romania, San Marino, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, United Kingdom, Aruba, Bahamas, Barbados, Bermuda, Canada, Costa Rica, Curaçao, Dominican Republic, El Salvador, Guatemala, Honduras, Jamaica, Mexico, Nicaragua, Panama, Trinidad and Tobago, United States, British Virgin Islands, Argentina, Brazil, Chile, Colombia, Ecuador, Paraguay, Peru, Uruguay
Coinbase services in supported countries
United States
SERVICES AVAILABLE
- Trade
- Buy/Sell
PAYMENT METHODS AVAILABLE
- Bank transfer ACH / WIRE
- Credit & Debit card
- PayPal
United Kingdom (UK)
Services Available
- Trade
- Buy
- Sell
Payment Methods
- PayPal
- UK Bank Account
- SWIFT Account
- 3D Secure Credit Card
- Debit Card
- Credit Card
Canada
Services Available
- Trade
- Buy/Sell
Payment Methods
- PayPal
- Debit Card
Europe
UK and Germany excluded
Services available
- Trade
- Buy
- Sell
Payment Methods
- SEPA
- PayPal
- 3D Secure Credit Card
- Debit Card
- Credit Card
In total 40 European countries supported and provided with above services
India
Services Available
- Crypto conversion (Trade)
- Crypto Storage (Wallet)
Payment methods
- Crypto deposit and withdrawal
Coinbase doesn’t support currently buying and selling cryptocurrencies in India
Australia
Services available
- Trade
- Buy/Sell
Payment methods accepted
- Credit and Debit Card
Asia
Services available
- Trade
- Buy/Sell (Only for Singapore)
Payment methods accepted
- Crypto deposits and withdrawal
- Credit & Debit Card (only for Singapore)
Coinbase Card
Coinbase Card allows Coinbase customers to spend their cryptocurrencies to buy products and services online and on your favorite merchants worldwide.
The coinbase card is a Visa debit card, funded by your Coinbase balance.
The Coinbase Card is integrated with VISA network and can be used everywhere VISA is accepted.
The card works offline, online, and internationally. The card can be used for everyday purchases at your favorite merchants and at ATMs for cash withdrawals.
You can order the card by paying the one-off £4.95/€4,95 issuance cost by using your Coinbase crypto balance. You can use one of nine cryptocurrencies to make payment. These are BTC, ETH, LTC, BCH, XRP, BAT, REP, ZRX, or XLM.
The coinbase card can be used to make purchases up to £10,000 / 10.000 € / per day, up to £20,000 / 20.000 € per week and a yearly purchase limit of £100,000 / 100.000 €
You can also withdraw funds via ATM up to £500 / 500 € daily.
In order to get your Coinbase Card, You need to download the card from their android or iOS mobile app. Then connect the coinbase mobile app with your Coinbase account.
Once this is completed, you’ll be able to use your virtual Coinbase Card and the physical debit card will be sent to your coinbase account attached home address.
Coinbase Card is currently available for customers in UK, Austria, Belgium, Bulgaria, Croatia, Cyprus, Denmark, Estonia, Finland, France, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, and Sweden. We’re working on expanding the offer to additional markets.
The Coinbase card fee
| Card Issuance Fee | £4.95 / 4.95 € |
| Domestic Cash Withdrawal Fee (ATM and Over The Counter “OTC” withdrawals) | Up to £200 / 200 € per month – Free Above £200 / 200 € per month -1.00% of the transaction amount |
| International Cash Withdrawal Fee (ATM and Over The Counter “OTC” withdrawals) | Up to £200 / 200 € or currency equivalent per month – No fee Above £200 / 200 € or currency equivalent amount per month – 2% |
| Domestic Purchase Transaction Fee | Free |
| International Purchase Transaction Fee | 3.00% |
| Card Replacement Fee | £4.95 – 4.95 € |
| Chargeback Processing Fee | £20.00 / 20,00 € |
| Crypto Liquidation Fees | 2.49% of transaction |
Coinbase Security
Coinbase Exchange has given the security of the platform an utmost priority. Coinbase works closely with regulatory bodies and governments to comply with KYC and AML laws and regulations.
Coinbase is backed by trusted financial investors and venture capital by reputable financial institutions and banks which itself provide an assurance.
User’s all personal data is held by Coinbase and its partners securely and in accordance with the Data Protection Act 2018 and the General Data Protection Regulation.
Enabling 2-Fa authentication is mandatory to access the platform. You can choose between Google auth or phone number to enable 2fa authentication.
On top of that, passwords and OAuth tokens are stored using AES-256 encryption on their servers, and all traffic goes over SSL.
The Coinbase Card is fully regulated and issued by Pay safe Financial Services Limited, who in turn is authorized by the Financial Conduct Authority (FCA)
Coinbase also provides a security vault option. You can use the coinbase vault if you need to store vast no of cryptocurrencies securely on the exchange. The cryptocurrencies are protected over multiple layers of security. If you request cryptocurrency withdrawal then the request has to be confirmed and pass through all security layers. The entire withdrawal process could take approximately 48 hours.
If you want to store your funds in USD and not in the form of cryptocurrencies. Then you can use USD wallet,
Coinbase provides this feature to US-based users. USD wallet is insured by FDIC for up to $250,000.
Is coinbase exchange is safe and legit to use?
Coinbase implements an unparalleled level of security along with its highly intuitive interface makes crypto transactions safe and smooth even for beginners.
Coinbase Exchange without a doubt is a safe and legit platform to buy, sell, trade and store cryptocurrencies for crypto users.
Coinbase is FDIC insured exchange (maximum $250,000). Their insurance policy covers any losses resulting from a breach of Coinbase’s physical security, cybersecurity, or employee theft.
Coinbase holds less than 2% of customer funds online. The rest is held in cold storage and Fiat currency is stored in, custodial bank accounts, or in U.S. Treasuries.
Coinbase, Inc., the company which operates Coinbase and Coinbase Pro in the US, is licensed and is also registered as Money Services Business with FinCEN.
It is a go-to place for beginners especially for US and European Users to make their first cryptocurrency purchase at a relatively low fee.
Coinbase is also planning to expand their restricted services in countries like Hong Kong, India, Indonesia, South Korea, Philippines, Mexico, Chile, Argentina, Brazil, New Zealand, and other restricted countries
Always store your cryptocurrencies in a hardware wallet
Frequently asked Questions
Does Coinbase allow buying Bitcoins in India?
No, you can not buy & sell Bitcoins and other supported cryptocurrencies in India, However Indian residents can create a wallet to store Coins. Coinbase cold wallet is highly secure. You can also trade derivatives at Coinbase pro.
How to avoid coinbase fees?
Coinbase is a cryptocurrency broker whereas Coinbase pro is a professional trading platform. If you buy directly from Coinbase using the credit & debit card then it will cost a 3% fee which comparatively lowers then other cryptocurrency brokers. But You can still reduce it if you buy bitcoins at the Coinbase pro.
Instead of buying bitcoins at coinbase broker using a credit or debit card.
You can deposit funds at Coinbase pro using bank transfer. Coinbase pro doesn’t charge fees for depositing the funds using bank transfer. You have to only pay a tiny amount of trading fees.
Coinbase pro uses a maker-taker fee model which ranges between 0% to 0.30%. To covert your fiat currency into bitcoins. You have to only pay trading fees up to 0.30% which is subsequently smaller than 3% charged by coinbase broker.
Then you can either store or withdraw your bitcoins to the Bitcoin wallet at zero fees. There are no withdrawal fee charges by coinbase and coinbase pro. But If you are using Coinbase for withdrawals then you have to pay a network fee (0.0002 to 0.001 BTC).
On the other hand, if you are a beginner and purchasing bitcoin for the first time then you don’t need to go through all this hassle. If you sign-up using the above Coinbase link you will receive a $10 bonus on a purchase of worth $100 or more.
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Source: https://www.coinexpansion.com/coinbase-exchange-review-features-safe-legit/
