Coinbase review: A crypto exchange for new investors and traders

Select ’ s editorial team works independently to review fiscal products and write articles we think our readers will find useful. We earn a commission from affiliate partners on many offers, but not all offers on Select are from affiliate partners. Whenever person asks about how to begin investing in cryptocurrency, Coinbase is normally mentioned as a good position to start. Founded in 2012 just three years after the creation of Bitcoin, Coinbase has since become the largest cryptocurrency exchange in the U.S. by trading volume, with more than 73 million verify users in over 100 countries.

While the company offers a number of valuable products for retail and institutional investors, businesses and developers, its congress of racial equality have is the ability to buy, sell and trade more than 100 different cryptocurrencies and crypto tokens. Its quarterly trade volume is presently $ 327 billion with $ 255 billion in assets on the platform after going public through a direct list on the Nasdaq exchange in April 2021. While Coinbase ‘s transaction and trade fees are higher than some of its competitors, it ‘s inactive one of the most popular applications out there for cryptocurrency invest. Subscribe to the Select Newsletter! Our best selections in your inbox. Shopping recommendations that help upgrade your life, deliver hebdomadally. Sign-up here .

Coinbase cryptocurrency exchange review

Coinbase

Learn More On Coinbase ‘s guarantee locate

  • Minimum deposit and balance

    $ 2

  • Fees

    0.5 % – 4.5 % per trade. Fees varies by type of transaction and other fees may apply .

  • Bonus

    New Coinbase users can earn $ 5 in bitcoin after signing up .

  • Investment options

    You can trade over 100 cryptocurrencies on Coinbase. You can besides earn interest on a act of crypto coins .

  • Educational resources

    Coinbase Earn allows you to earn crypto rewards when learning about unlike cryptocurrencies .

Pros

  • Over 100 cryptocurrencies available to trade
  • Simple user interface
  • Low account minimum
  • Coinbase Earn feature which allows you to earn rewards when learning about cryptocurrency

Cons

  • Confusing fee structure and high fees compared to other crypto exchanges
  • Reports of bad customer service
  • Advanced trading tools not available on normal Coinbase app

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Products for retail investors 

For retail investors, Coinbase offers the pursue products :

  • Coinbase — A simple mobile and website application for buying, selling and trading cryptocurrencies and crypto tokens.
  • Coinbase Pro — An application for buying, selling and trading cryptocurrencies and crypto tokens with a user interface that’s better suited for  professional traders, providing charting tools, real time order books and a feed of market data, among other features more sophisticated investors would need to trade. Trading fees are also lower on Coinbase Pro.
  • Coinbase Wallet — A standalone crypto wallet app that lets users self-custody (in other words, the users themselves can control their crypto, keys and data). Coinbase users can hold more than 4,000 cryptocurrencies, crypto tokens and NFTs in their wallet, and are able to access a variety of decentralized applications, or dapps, through this feature. Note that it’s very important for users to securely store the 12-word recovery or seed phrase that allows them to restore their wallet if they forget their password, since Coinbase won’t have access to that information.
  • USDC — A cryptocurrency stablecoin pegged 1-to-1 with the U.S. dollar; USDC users can receive 0.15% APY on their holdings. 
  • Coinbase Card — A Visa debit card that allows users to spend their cryptocurrency at any merchant that accepts Visa and earn up to 4% back in crypto rewards on each purchase. 

At precisely $ 2, Coinbase has one of the lowest minimal balance wheel requirements of any crypto exchange, which makes it an attractive choice for new investors. The Coinbase Earn feature — which allows users to watch short educational video recording, take small quizzes about them and earn free crypto assets — is besides appealing since users can earn leading Lumens, the Flexa Network ‘s Amp tokens and The Graph ‘s GRT tokens, to name a few. retail investors can pay higher fees for entree to the Coinbase app ‘s simple and slick interface. By migrating to Coinbase Pro, users can save money on fees, specially if they hold higher report balances, but might be intimidated by the elaborate interface if they ‘re not accustomed to trade platforms. While Coinbase Pro offers more than 250 cryptocurrencies and crypto tokens to choose from a well as more advanced features like stop and limit orders, the platform in truth does n’t have all the tools more sophisticated investors might want access to, such as futures. Both Coinbase and Coinbase Pro include FDIC indemnity protection up to $ 250,000 per person. That insurance is entirely available on customer funds held in cash. It is pass-through FDIC indemnity from the accounts at banks where Coinbase holds its customer’s cash. This policy alone protects users in the event of cash loss because of a bank bankruptcy .

Coinbase fees

transaction and trade costs on Coinbase roll from 0.5 % to 4.5 % depending on the cryptocurrency, transaction size and requital method acting. Coinbase charges a flat tip, which changes according to the size of your transaction — the fee is $ 0.99 for those $ 10 or lower, while it ‘s $ 1.49 for those between $ 10 and $ 25, $ 1.99 for those between $ 25 and $ 50, and $ 2.99 for those between $ 50 and $ 200. notice that transactions above $ 200 are charged a percentage-based fee rather of a flat fee. Coinbase besides charges a spread-based fee of 0.50 %, while other fees depend more on which method acting of payment you ‘re using — ACH transfers are exempt, whereas using a bank bill or USD Wallet adds a 1.49 % fee, using a credit or debit batting order adds a 3.99 % fee and wire transfers rack up an extra fees of $ 10 entrance and $ 25 extroverted. When utilizing Coinbase Pro, trading fees can be anywhere from 0 % to 0.5 % per deal. Users can expect to pay a taker tip between 0.04 % to 0.50 % and a godhead tip between 0 % and 0.50 %. If you ‘re primarily concerned with paying lower fees you may want to look to other exchanges, like Kraken or Binance, which charge more modest trading fees compared to Coinbase .

Products for businesses and institutional investors 

For businesses seeking crypto products and services, Coinbase offers Coinbase Commerce, a payment overhaul that allows merchants to accept cryptocurrency in their stores, with features including payment buttons, hosted check pages and invoices. Coinbase ‘s 10,000 institutional clients can take advantage of Coinbase Custody, which holds bitcoin and early cryptocurrencies on behalf of their customers in secure cold storage accounts that are not connected to the internet. The hands service then goes through regular fiscal and security audits, which are conducted by external firms. institutional clients can besides use Coinbase Prime, a trade platform built specifically to handle the singular needs of institutions .

Potential downsides of using Coinbase 

While Coinbase offers an easy-to-use platform for beginning your crypto investing journey, there ‘s one sphere the company actually seems to be struggling with. Coinbase does n’t have the best reputation when it comes to customer service and has actually scored an F from the Better Business Bureau because of it. Customers have systematically complained about being locked out of their accounts even after providing the want information to reinstate them, while other users have criticized the company for being about impossible to reach whenever aid was needed .

Bottom line

While customer avail is lacking and the caller ‘s fees are higher and more complex than its competitors, Coinbase placid remains one of the most popular applications for those just starting their crypto investment travel. It ‘s a baffle company with high security practices, a elementary and convenient interface and a adequate amount of choice for those who utilize it. By offering a compass of tools for more twist investors, businesses and institutions, Coinbase allows its users to level up as they learn more about the engineering involved and the crypto diligence as a solid. Catch up on Select’s in-depth coverage of  personal finance tech and tools wellness  and more, and follow us on  Facebook Instagram  and  Twitter  to stay up to date.

correction : This article has been updated to reflect that Coinbase lone offers FDIC indemnity on customer ‘s funds that are held in cash, and that it does not offer FDIC policy for hacks or cybersecurity breaches of Coinbase ‘s crypto repositing services. Editorial Note: Opinions, analyses, reviews or recommendations expressed in this article are those of the Select editorial staff ’ south alone, and have not been reviewed, approved or otherwise endorsed by any third party .

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