- Coinbase overview – What is Coinbase?
- Coinbase Pros and Cons
- Coinbase at a Glance
- Coinbase Is Right for You if:
- Coinbase Alternatives
- FAQ about Coinbase crypto exchange
Coinbase Overview – What Is Coinbase?
Coinbase Global, Inc., known as Coinbase, is a cryptocurrency exchange founded in 2012 by Brian Armstrong and Fred Ehrsam. It went public on the Nasdaq exchange on April 14, 2021, becoming the first publicly listed cryptocurrency exchange in the process.
Users in over 100 countries depend on Coinbase to send and receive around 170 cryptocurrencies, but its primary business location is the U.S., where Coinbase ranks as the largest cryptocurrency exchange by trade volume.
The Coinbase exchange was once based in San Francisco, California, but then it transitioned into a “distributed” company, meaning that it decentralized its operations and has no physical headquarters. Very meta.
The company claims it supports over 13,000 crypto institutions, boasts a workforce of more than 4,000 employees globally, and, at the crypto market peak, boasted $7.9 billion in daily trading volume. However, in 2022, the bear market significantly affected the exchange, resulting in an 86.5% decrease in its share price over the year.
However, do falling share price and trading volume suggest that Coinbase’s goose is cooked, or does it still deserve to be considered the crypto giant that many believe it to be? Let’s find out.
Coinbase Pros and Cons
What follows are some of the pros and cons of the crypto exchange:
| Pros | Cons |
| Quick KYC verification | Poor customer support |
| Low account minimum | Some fees (such as the spread) are not totally transparent |
| Simple process to buy, sell, and transfer cryptocurrency | Updates with layout changes require time to adjust to |
| Intuitive user interface | Some transaction costs are not competitive |
| Very secure | Educational content could be more insightful |
| Market updates with push notifications on mobile | The mobile app has bugs |
| Offers discounts on high-volume tradesOpportunity to earn crypto rewards | Smaller cryptocurrencies and alt-coins are not supported Two-factor authentication can be burdensome sometimes |
Coinbase Strengths
- Advanced trading features. The Coinbase advanced trade platform offers users the following features:
- Coinbase Pro: Gives users access to full-fledged trading tools like real-time market data, charting tools, trade history, and an API that allows them to develop advanced trading bots. USD balances on Coinbase Pro are insured by the FDIC up to $250,000. It also has a simple order process so you can trade from day one.
- Coinbase One: Is a subscription VIP service that offers users $0 trading fees, 24/7 phone support, account protection for accounts with $1 million or more, and a pre-filled form 8949. The primary benefit of the Coinbase One subscription for those of us who don’t have millions lying around is the 0% trading fees, but to justify the $29.99 subscription, you’ll need to be trading actively every day.
- Over 170 cryptocurrencies available. Gone are the days when you could name on one hand the coins that Coinbase supported. Now you can trade the latest altcoins, with new ones getting added on a regular basis. The platform still lags behind other exchanges, however, so if your tastes are a little more niche you may have to go elsewhere.
- Coinbase crypto debit card. The Coinbase crypto debit card is offered by the platform in partnership with MetaBank and Visa. Like with Crypto.com, the card allows its users to spend crypto or USD at all outlets where Visa cards are accepted. The exchange charges 0% annual fees and 0% ATM fees and allows users to earn rewards every time they make purchases using the card, but there are other fees just for using it, so make sure you read up first and don’t get a shock.
Coinbase card users get the following cashback rewards when they spend the following cryptocurrencies:
- U.S.D. Coin: 1%
- Dai: 1%
- Ethereum: 1%
- Bitcoin: 1.5%
- Amp: 2%
Coinbase Shortcomings
Fees
Coinbase is significantly more expensive to use than its counterparts. Despite the fee review and update in September 2022, Coinbase is still over 600% more expensive than competitors like Crypto.com. The Coinbase wallet is also about 5x more expensive on transactions like swaps than competing wallets.
There are logical reasons why Coinbase is more expensive, such as higher compliance costs because it is regulated by the U.S. Securities and Exchange Commission, compared to Crypto.com, which is based in Singapore. However, whatever the reasons for it, higher fees are never attractive to the average crypto user.
Coinbase at a glance
| Minimum trade | $2 |
| Trading and transaction fees | Trading fees range from 0% to 0.4% for makers and 0.05% to 0.6% for takers depending on the amount.
Coinbase charges a 25% commission for staking. Other transaction fees vary based on the network. |
| Crypto-to-crypto trading pairs | About 550. |
| Website Transparency | Coinbase is very transparent. All critical information is available in the help center. |
| Storage offering | Users can store their assets on the Coinbase wallet or other hosted wallets, self-custody wallets, or hardware wallets. |
| Staking offering | Rewards on a handful of coins, with rates up to 5.75% |
| Mobile app | Coinbase’s mobile app is intuitive and easy to use, which is excellent for newbies. But advanced traders will have a better experience on a desktop. |
| Customer service | Phone, email and chat. |
How To Buy, Sell, and Send Crypto on Coinbase
This section provides all the information you need if you’re keen to get started with Coinbase. If you’re buying, bear in mind that it typically takes 3-5 hours for a purchase or sale of cryptocurrencies to appear in your account. Coinbase charges a 0% fee when transacting between two Coinbase accounts, but it sets a fee for buying or selling transactions on cryptocurrency networks. The transaction fee will be displayed on the “Order Review” page.
Buying Crypto on Coinbase
Method 1: How to buy crypto on the Coinbase website
If you don’t have a Coinbase account, that’s the first thing you’ll need to take care of. It’s easier to sign up on the website, but not massively so. Here’s how to do it.
Step #1: Create an account
- Create an account on Coinbase
- Fill in details like Name, Email, and Password
- Verify that you are 18 years of age or aboveVerify your email address
- Setup two-step verification to secure your account
- Add a bank card to your account
Step #2: Buy Crypto
- Click “Buy & Sell” in the header menu to activate a pop-up menu
- Verify your ID: You have to verify your ID before you can buy or sell on Coinbase
- Input contact information
- Submit a Passport, Driver’s license, or National ID card
- Complete verification
- Click “Buy & Sell” in the header menu
- In the pop-up menu, you will have three options – Buy/ Sell/ Convert.
- Ensure the “Buy” option is active
- Check the list of cryptocurrencies in the “Buy” tab (in the middle of the pop-up) and pick the cryptocurrency you want to buy
- Check the “Pay With” tab to pick your preferred payment method Click on the “$0” and enter the amount you want to purchase
- Click on “Preview Purchase”
- Review the “Order Preview” pop-up to ensure everything is in order
- Click “Buy now” to finalize your purchase
Selling Crypto on Coinbase
Method 1: How to sell crypto on Coinbase Website
Made a healthy profit and want to cash out? Here’s how through the website:
- Login to your account
- Click “Buy & Sell” in the header menu.
- In the pop-up menu, click on the “Sell” option.
- Search for the crypto you want to sell in the “Sell” tab or use the search bar
- Select the cryptocurrency you want to sell
- Enter the amount you want to sell or click “Sell all” to offload the asset entirely
- Select where you want funds from the sale deposited into
- Click the “Preview Sell” button
- Review the transaction details
- Click “Sell now” to complete the sale
Method 2: How to sell crypto on Coinbase mobile app
Need to cut your losses on the go? Here’s what to do:
- Launch the app
- At the top of the dashboard, tap on “Sell”
- Scroll down the list of cryptocurrencies available for purchase or use the search bar to find your preferred crypto
- Select the cryptocurrency you would like to sell
- Input the amount you would like to sell or click on “Max” to offload the entire asset
- Select where you want your funds deposited into
- Click on the “Preview Sell” button
- Review the transaction details
- Click “Sell now” to finalize the sale
How to send crypto on the Coinbase website
Method 1: Sending crypto on the Coinbase website
Want to send us a few Bitcoins for our work educating the masses? How kind of you! Here’s how to do it on the Coinbase website:
- Click on the “Send & Receive” button in the header menu
- In the “Pay with” tab, select the cryptocurrency you want to send
- Input the amount you want to send
- Input the mobile number, email address, or crypto wallet address you want to send to
- Click “Continue”
- Review the order details
- Click “Send now” to finalize the transaction
Method 2: How to send crypto on the Coinbase mobile app
Can’t wait until you get home to top up our wallet? You’re too kind. Here’s how to do it on your mobile:
- Launch the app
- At the top of the dashboard, click “Send”
- In the “Pay with” tab, select the cryptocurrency you want to send
- Input the amount you want to send
- Input the mobile number, email address, or crypto wallet address of the recipient (with mobile, you can also scan a QR code or just pick a contact from your phonebook)
- Click “Preview send”
- Review the details
- Click “Send now” to finalize the transaction
Coinbase Is Right for You if:
- You are interested in cryptocurrency investing and are looking for a safe and secure cryptocurrency trading platform that is regulated by the U.S. Securities and Exchange Commission.
- You want an intuitive platform with a beginner-friendly mobile app that you can use while on the go.
- You need an advanced trade platform where you can buy and sell a wide variety of coins so that you can make the maximum profits.
Coinbase Alternatives
Binance
Binance is Coinbase’s primary competitor. It was founded in 2017 in Hong Kong by Chanpeng Zhao (known as CZ), a software developer. Binance quickly rose to the top of the cryptocurrency exchange rankings due to its focus on altcoin trading, offering its users access to over 200 cryptocurrencies and tokens.
Some of the standout features of the Binance exchange are:
- Spot/Margin and Futures trading: Binance provides expert, hobbyist, or professional traders trading terminals and margins designed to match their trading expertise.
- Lending: Binance users can create a new income stream with their cryptocurrency holdings by lending it out and earning interest.
- Staking: Binance offers staking features that allow users to earn significant yields from staking their holdings.
- Crypto Sub-account: This Binance feature allows users to manage up to 200 Binance accounts for their friends, family, or clients.
Robinhood
Robinhood is a fintech company founded in 2013 by Vladimir Tenev and Baiju Bhatt. The company enables its users to buy and sell stocks, cryptocurrencies, ETFs, options, and American depositary receipts (ADRs).
In September 2022, the company launched a crypto wallet as part of its plans to double down on cryptocurrencies as a growth channel. Robinhood currently offers support for just seven cryptocurrencies, which is great if you hate choice.
Robinhood is well-known for its commission-free stock trading. However, as Gametsop traders discovered in 2021, Robinhood simply funds its bills elsewhere in exchange for valuable trading data.
The same principle applies to crypto trading on the website – there are zero transaction fees, but it also comes with a hidden cost linked to the platform’s collection and selling of sensitive trading information. Unfortunately, many new users of the platform have no idea about this.
Kraken
Kraken was launched in 2011 by Jesse Powell after he saw firsthand how not to run an exchange when trying to get Mt. Gox back online earlier that year. Kraken has built a solid reputation over the years as a safe, trustworthy exchange and offers support for over 120 coins and other crypto trading features. The exchange has built a reputation as a platform that offers low fees, pro features, and good security features.
Some of the standout features of Kraken are:
- Pro: Kraken offers this feature for expert traders who need more robust trading tools, detailed information, active charts, order books, and lower trading fees overall.
- Futures: This derivatives platform by Kraken allows users to speculate on cryptocurrencies using complex trading strategies. Users can enter long or short positions and maximize their potential returns using up to 50x leverage (although it shouldn’t be attempted by the faint-hearted). Kraken allows users to collateralize their positions with cash, cryptocurrencies, or stablecoins.
- Low Fees: Kraken offers competitive low fees, but only high-volume traders with trades exceeding $10 million will be able to enjoy a 0% fee rate. For an average trader, the maximum fee for spot trading transactions up to $50K is 0.26%.
Crypto.com
In 2026, Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo founded a crypto exchange platform, named Crypto.com.
The company grew from its early days in Hong Kong into a global crypto powerhouse that serves over 10 million customers globally and is very popular with first-timers. The exchange offers over 250 cryptocurrencies to users in 90 countries, a crypto wallet, and an NFT marketplace.
Some of the standout features of Crypto.com are:
- Visa Card: Crypto.com in collaboration with Visa created a debit card that allows its holders to spend their crypto in the real world. It offers tiered benefits such as 8% cashback and a full refund for subscription fees on Netflix, Spotify, Amazon Prime, and others. Users’ tiers are determined by how much Crypto.com’s Cronos (CRO) token they stake for six months. If you are a baller who can stake up to $400,000 in CRO tokens, you get bonuses like airport lounge access and private jet partnership.
- Low Fees: On Crypto.com, fees for active crypto traders are as low as 0.1% to 0.16% as a taker fee per order, with the possibility of a 0% fee if you stake CRO and a 0.04% to 0.1% maker fee. For derivatives, the platform charges a taker fee of 0.015% to 0.04% and a maker fee of 0% to 0.025%.
- Security: In order to guarantee maximum security, Crypto.com stores users’ assets in cold storage, making them inaccessible to hackers. Fiat deposits are kept in traditional banks, protected by the government and insurance policies. Apart from one incident where Crypto.com mistakenly sent $400,000 worth of ETH to a different exchange, it has proven to be a safe and secure platform.
FAQs About the Coinbase Crypto Exchange
Q: Can Coinbase Be Trusted?
A: Coinbase is a highly regulated platform registered with FinCEN as a Money Services Business and holding a New York BitLicense and licenses in almost every US state. Certain services, such as Coinbase Pro, are also insured by the FDIC. Therefore, you can rest assured that your crypto is safe, and the exchange cannot simply shut down and disappear with your crypto assets.
Q: Is Coinbase Good for Beginners?
A: Coinbase, thanks to its educational resources, such as a blog, a help section, and tutorials, is one of the most popular cryptocurrency exchanges among crypto newbies. The UI is also simple and intuitive, making it easy to navigate the website.
Q: How Do I Get My Money out of Coinbase?
A: If you want to cash out your crypto from the platform, follow these steps:
- Login to your account
- On the side-bar menu on the left of your screen, open “Assets”
- Select your fiat currency account
- In the fiat account assets page, open the “Wallet” sub-menu
- On the right side of the screen, click “Cash Out”
- Click “Cash out all”
- Click “Continue”
- Select a destination: Instant cash out to a debit or credit card / Standard cash out to a bank account
- Click “Continue” to submit your order for processing
- You will receive an email confirmation once the transaction is processed.
