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August 19, 2024 
26 min. 
There are so many cryptocurrency exchanges now that it becomes absolutely difficult to choose the best one. Are you also stuck in making such a decision? Worry not. This Coinbase review is going to answer all your questions if you read it thoroughly.
According to BitDegree, there are over 604 active cryptocurrency exchanges where you can trade crypto assets. You’ll also find Coinbase at No.2 on this list with high liquidity and active users.
Coinbase is undoubtedly one of the most popular cryptocurrency exchanges. Its popularity is due to its user-friendly interface and wide range of supported currencies. Coinbase recorded over 8 million users who perform transactions on the platform every month.
Now that you’re familiar with the basics let’s take this Coinbase review to the next level. Keep reading.
Intro to Coinbase
Coinbase is a centralized cryptocurrency exchange where you can buy, sell or store crypto assets like tokens and NFTs. This exchange was founded in 2012 by Brian Armstrong and Fred Ehrsam when they were in San Francisco, USA.
It had over 115 million verified users worldwide as of 2023 and has over $3 billion in 24-hour trading volume currently. This exchange is working in over 100 countries which makes this platform so reliable and one of the favorites.
Coinbase has over 252 tradable digital assets on their platform with over 406 active trading pairs. The users can also hold over 425 crypto assets depending on their geographical location.
The intuitive interface and the wide range of crypto tokens make Coinbase the best option for both beginners and experienced traders. Especially for the people who are new, Coinbase allows them to start trading with only $2. So if you’ve got $2 then you can easily trade on Coinbase. As the quote goes, “ Slow but steady wins the race”.
Coinbase Pro
Until 2022 Coinbase Pro was an advanced version of Coinbase which only experienced and VIP traders had access to. There were advanced trading tools which users can use to make huge trades which are not common for the beginner version.
However its name was changed to “Coinbase Advanced Trade”. This platform now provides a full suite of advanced crypto investment services all in one one place. It’s especially built for experienced and professional traders. This platform offers extra features like staking and the Coinbase Card.
Another amazing thing about this platform is that it offers over 500 crypto assets which is far more than the normal version. The accounts and assets of all the users of Coinbase Pro were migrated to Coinbase Advanced Trade.
Here are a few things that this platform now offers:
Advanced Order Types
In addition to Market Limit and Stop Limit, you also get access to Auction Mode orders if you’re eligible for this advanced platform. By using these you can execute your trading strategies and make heaps of profit according to market conditions.
Sophisticated Trading Tools
Now for people who want to dive deeper into the world of trading charts, this platform has the ability to use charts from TradingView. Additionally the users can also use advanced indicators like MACD, MA, RSI and more. You can analyze the market with these indicators and make informed decisions. If you don’t know what these indicators are then you need to head back to Google and learn the basics of crypto trading first.
Derivative Trading
Lastly if you’re someone who’s looking to hedge your spot position or speculate on price movements then Derivative Trading is what you need. This feature is typically used by expert traders who want to manage their risk or take advantage of the market volatility. If you’re new, you should stay away from this market until you’re experienced enough.
Coinbase Features
As per the stats above Coinbase is one of the most used and preferred cryptocurrency exchanges. So the Coinbase features which have made it a top choice and are essential for this Coinbase review include:
Fee Structure
The fee structure on Coinbase is quite complicated as compared to other big exchanges. Most trading platforms charge a straightforward maker/taker fee or a flat rate. However Coinbase uses the spread fee model to charge for transactions. This model basically means that the fee is embedded in the price you see when you’re about to make a trade.
This fee is usually around 0.5% but it can be reduced if you’re trading in higher volume. This model is a little difficult to understand but once you get it you can take full advantage of it and minimise your trading costs. It’s especially helpful for traders who trade frequently and in high volume.
In 2023 Coinbase earned a revenue of over $2.9 billion. This value is increasing every year as evident by the revenue of over $1.58 billion in only the first quarter of 2024.
DeFi Yield
It is a yield farming product that allows users to earn rewards by participating in decentralized finance (DeFi) protocols. The users can use this service by using their holdings to fuel various DeFi smart contracts.
For instance you can participate in lending platforms, swap services and Automated Market Makers (AMMs) to generate fees or interest which you get as a form of passive income. Coinbase works as the intermediary that manages the investments and distributes the rewards after deducting a commission.
Coinbase Earn
Are you a beginner and want to start earning right away? Don’t miss out on this opportunity then. Coinbase Earn is an opportunity for people who don’t know anything about cryptocurrency to learn what it actually is and even earn while doing so.
You can watch educational videos on this platform and complete short quizzes which would give you crypto in return if you score higher. It’s a fun and easy way to earn crypto while learning about it. This also gives you the added incentive and motivation you need to trade crypto assets.
Staking Rewards
Now if you’re someone who’s got piles and piles of cryptocurrency but don’t have the confidence or skill to trade them then you should definitely go with staking.
If you have Proof-of-Stake (PoS) cryptocurrencies in your portfolio, you can give them to the platform and earn passive income as long as your tokens are in the staking pool. Your rewards will add up over time and then you can use the profits for luxuries while letting the foundational investment to make more money for you.
User-Friendly Interface
Coinbase is on a mission to make trading easier and accessible for everyone. The main idea was to keep everything simple and straightforward so even a new user can easily navigate through it and buy or sell cryptocurrencies. The entire process is hassle-free. However if you’re still not confident then you can watch an easy tutorial to understand how it’s used.
Advanced Trading Tools
Coinbase offers advanced trading tools to users with the right amount of experience and expertise. They have an entirely different trading platform for this specific feature. They offer advanced order types, sophisticated trading tools and even derivatives trading. If you haven’t read it above, go back and give it a read.
Variety of Cryptocurrencies
Coinbase isn’t just limited to Bitcoin, Ethereum or other top cryptocurrencies. For beginners they also have the lesser-known altcoins that many people still prefer over the big names. This means that as a trader you have plenty of options to fill your portfolio with. You can also keep a bag of low cap cryptocurrencies if you think they have the ability to boom in the near future.
Top-Notch Coinbase Security
Security is always a concern when it comes to digital assets. But you need not worry as this platform takes this thing very seriously by providing the best Coinbase security features. They provide two-factor authentication so your assets cannot be assessed without your permission.
They also store most of the funds in cold storages to keep them safe from the latest online threats. Lastly the platform also offers insurance to cover certain types of losses so that you can trade with peace of mind.
How to Use Coinbase
In this Coinbase review we’ve already covered most of the basics and necessary information. So now it’s time to learn how to actually use this platform. This little guide is especially added for people who’re not familiar with using any cryptocurrency exchange. If you already know then you can skip to the next part.
Coinbase Website
Now the basics are simple. Visit the Coinbase website, create a new account and verify your identity. After that add a payment method and verify it and then explore the dashboard. Check out where the asset tab is, where are learning resources and where are the market tabs.
You should also enable 2FA for added security. Now if you have some money saved up, transfer it to your exchange wallet and buy a bit of any of your favorite cryptocurrency. This way you’ll have a general understanding of how to buy and sell assets on this platform.
Coinbase App
After signing up on the website we highly recommend that you download the Coinbase App. You can also sign up using the Coinbase App if you want. It’s the same as above but on a smaller screen of course.
After signing in on the Coinbase App you should go through it to see where everything is. This app is an easy and portable solution for people who want to keep an eye on their trades all day long. You can also set up alerts which would keep you updated on how your trade is performing. With the Coinbase App you can access your account from anywhere anytime.
Coinbase Wallet
Cryptocurrencies are sensitive digital assets so it’s important to have the most secure wallet to store them. Coinbase understands the different needs of users which is why they offer three different crypto wallets. These include:
Coinbase Exchange Wallet
This one is the default wallet that you get when you register for an account on Coinbase. It’s designed to keep everything simple and easy. You can keep your crypto assets in this wallet if you are a regular trader. There are no private keys for this wallet and it is totally in control of Coinbase which can be a little risky sometimes. It’s not like the exchange is running away anywhere but it’s better to be safe than sorry.
Coinbase Wallet
Now Coinbase also offers a self-custody wallet to crypto traders worldwide. As a user you have full control over this wallet and no third entity has the ability to change anything. This wallet supports hundreds of thousands of cryptocurrencies as it’s not attached to their trading platform which only supports a limited number of tokens.
When you sign up for this wallet you get a private key which only you have. It’s important to keep this key safe because if you ever lose it nobody will ever be able to help you in recovering your assets. You should write it down somewhere so you don’t ever forget it. The best thing about this is you don’t need a Coinbase account to use this wallet. You can use any other exchange while keeping your assets in this wallet.
Coinbase dApp Wallet
If you’re looking for a wallet that allows you to interact with decentralized applications (dApps) then Coinbase dApp Wallet should be your first choice. This is a sem-custodial wallet which means half of the private key is stored by Coinbase and the other half is in your hand. This split provides extra security for your crypto tokens. By using this wallet you can interact with dApps and discover a whole new world of Web 3.0 applications based on blockchain technology.
What is Base?
Base is a Layer-2 (L2) network of Coinbase network which they have developed in partnership with Optimism blockchain. Base uses the OP stack and is a significant step for a publicly traded company to launch their very own blockchain network. The main aim of this project is to decentralize the chain over time. However they don’t plan to launch any new network token yet.
Since the launch of Base there has been a lot of buzz as traders have been making a lot of money from the projects being released on this network. Some of the notable projects that have deployed smart contracts on Base network include:
- DEXs such as Curve, Uniswap and Balancer.
- Cross-chain protocols, for instance, Stargate and Hop Protocol.
- Lending platforms like Compound.
Now the most prominent project that stood out for this network is Friend.Tech. It is basically a Social Finance (SoFi) protocol. This platform allows users to trade “keys” that grant access to private chat rooms. This is going to take social media interactions to a whole new level. This project has all the features to revolutionize the world of social media in the next few years.
Negative Points of Coinbase Exchange
We’re determined to keep this Coinbase review as real as possible. So here are some of the negative points that our team and many other users of this platform have complained about over the years.
High Fees
The one thing that Coinbase is always criticized about is its fee structure. The fee here is higher than many other platforms of the same stature. They use the spread fee model which can cost upto 0.5% of the transactions which is very high for smaller transactions. Apart from this they also impose other types of fees on withdrawals and deposits. This makes it less cost-effective for people who trade regularly but with smaller amounts.
Privacy Concerns
Coinbase is bound to comply with crypto regulations because of many part cases and issues. However because of this they need to collect user data and require all its users to complete a KYC for complete transparency. It’s actually a good thing so users can be saved from any frauds. But on the other hand it’s a problem for people who prefer anonymity and want their identity and transactions private.
Legal Issues with the SEC
In the past few years Coinbase has been on the hit-list of the SEC. This platform has faced many issues for allegedly operating as an unregistered exchange and broker. Because of these legal battles Coinbase faced a lot of backlash and a lot of people moved their funds to other exchanges. However these cases have now been somewhat cleared and Coinbase now has the legality to operate in the U.S.
Limited Customer Support
Coinbase has always lacked in providing customer support to the users. Many people have complained about this thing that they never got a satisfactory response whenever they tried to ask for help. Even the Better Business Bureau has rated Coinbase with B+ remarks depending on the time their customer support takes to listen and resolve customer complaints. They’ve tried to improve this but haven’t been successful till now.
Account Freezes and Restrictions
There have been multiple complaints but people who faced account freezes and restrictions especially when the market was highly volatile. There’s no indication of why this happens but the only answer from their end is that the exchange works on strict regulations due to which sometimes it automatically bans accounts on temporary basis. This has caused a lot of frustration for many users.
In 2022 a similar incident happened when a FCA regulator had to wait for 8 months just to recover his £40k in assets from the Coinbase platform. You can check out his review from Trustpilot below.
Coinbase vs Other Exchanges
Features | Coinbase | Kraken | Gemini | |
|---|---|---|---|---|
Fee | 0.5%-4.5% | 0.1% spot trading fee | 0.16%-0.26% | 0.35%-1.49% |
Customer Support | Slow, often criticized | Quick but inconsistent | Quick, generally well-rated | Good, responsive |
Security Features | Insurance, strong security | Strong security, SAFU fund | Strong security, never hacked | High security, insurance |
Ease of Use | User-friendly, great for beginners | Complex, for experienced traders | Intermediate, balanced | User-friendly, intuitive |
Supported Cryptocurrencies | 250+ | 350+ | 185+ | 100+ |
Publicly Traded? | Yes | No | No | No |
Conclusion – Is Coinbase Right for You?
Coinbase stands out as a popular cryptocurrency exchange. By using this platform you can easily buy, sell and trade digital assets. Ever after its higher fees and less-than-stellar customer service Coinbase provides peace of mind to its users. This exchange now complies with strict regulations as it is publicly traded on Nasdaq.
Coinbase is particularly suited for beginners. It’s an attractive option for users because of its user-friendly interface and the Coinbase Earn feature. And that’s everything you need to know about Coinbase. We hope that this Coinbase review was more than enough for you to make a decision on whether or not you should use this platform for trading.
FAQs
Can I trade NFTs on Coinbase?
Coinbase launched an NFT marketplace in 2022. However this project is still in Beta version so it is still limited to just a few users for now. But the platform will be fully available when it’s completed.
Is Coinbase FDIC Insured?
No, Coinbase is not FDIC insured. However the platform does offer some kind of crime insurance for a few currencies. It is actually for the protection against theft and cybersecurity breaches. But the platform doesn’t provide insurance for unauthorized access to user accounts.
Is Coinbase Good for Beginners?
Absolutely. From the start of this Coinbase review we have been talking about how this platform is perfect for beginners. That’s because of the easy to use interface and the security features that protect your assets at all costs.
How Secure is Coinbase?
Coinbase is one of the most secure exchanges with features like two-factor authentication, cold storage for 98% of funds and insurance for assets held in their online storage. Their strong security protocols make it a trusted platform for buying and selling cryptocurrencies.
Does Coinbase offer any incentives for referrals?
Yes, Coinbase has a referral program where you and the person you refer can earn free Bitcoin. It’s a simple way to earn additional cryptocurrency by inviting friends or family to the platform. However according to some sources, the platform sometimes doesn’t pay the whole amount.
