When it comes to cryptocurrency exchanges, Coinbase is a fantastic option for those wanting a platform for crypto traders of all levels to buy and sell cryptocurrency.
This review will cover what Coinbase is, who it is suitable for, and why you should choose it over other cryptocurrency exchanges.
Table of Contents:
- What is Coinbase
- How Coinbase Works
- Coinbase's Cryptocurrency Selection
- How Can Coinbase Help Further Crypto Investments
- What is the Coinbase Fee Structure
- What is Coinbase One
- Should I Use Coinbase Wallet
- Features of Coinbase
- Who Should Use Coinbase
- Pros of Coinbase
- Cons of Coinbase
- Alternatives to Consider
What is Coinbase?
Coinbase is a crypto exchange platform that helps facilitate the trading of numerous types of cryptocurrencies. The platform is regularly mentioned in lists of the best crypto trading platforms, and for a good reason. While the central focus of this exchange is to trade cryptocurrency, several features are present on the platform that tailor it to be easy and efficient for all experience levels of crypto traders.
From educational materials and secure wallet services to approving loans and yield earning, Coinbase excels in its aim to provide a multifaceted package that can make cryptocurrency investing accessible to anybody. The platform is available on desktop and via mobile apps, making it accessible and convenient for all Coinbase users.
How Coinbase Works?
Coinbase offers cryptocurrency purchases to customers in a variety of currencies. In order to purchase the digital currency, you need to create a Coinbase account and transfer a fiat currency onto the exchange to ensure you have the funds to facilitate a trade.
This exchange accepts ACH payments through bank transfers, debit card deposits, and PayPal. There is even support for Google pay and Apple pay to make funding Coinbase accounts as easy as possible. ACH transfers are one of the best methods of funding your account because of the ease and speed with which you can deposit the funds.
The crypto exchange also features Coinbase Wallet, an online crypto wallet. You do not have to use Coinbase Wallet if you have an alternative storage option for your digital assets, but the option is available.
The inclusion of this easily accessible digital wallet that directly links to the exchange can be of great help for new crypto investors as it allows you to start trading as soon as you have signed up for a Coinbase account.
Once your account is set up and loaded with funds, you can start placing orders on the multiple cryptocurrencies supported through Coinbase. The original Coinbase platform uses a clean and straightforward user interface to make navigating swift and simple while conveying all the information you need when placing an order.
Trading fees are factored into the price of the purchase, with the fee amount being calculated for you during the order process. When your order goes through and your digital currency is secure in your account, you can use Coinbase's other features to take full advantage of the currency.
Coinbase's Cryptocurrency Selection
Coinbase provides access to a selection of over 150 types of cryptocurrencies, including most of the market-leading currencies such as Bitcoin, Ethereum and USD Coin. The platform also has a wide array of cryptocurrency types and tokens.
Even though Coinbase has nothing, the lineup does not contain a significant gap. This exchange has also actively added new cryptocurrencies that investors could look at. How to find Coinbase cryptocurrencies and buy them?
How Can Coinbase Help Further Crypto Investments?
Once your Coinbase account has received and stored your digital assets, you can utilise your new investment in various ways. Coinbase lets users start seeing returns on their investments straight away without leaving the website. The most obvious way to use your new digital currency is to sell it.
All crypto exchanges allow you to sell crypto, and Coinbase is no different. The process of selling crypto through Coinbase is subjected to the same fee structure as buying and is indicated to you as the selling process moves along.
There are other ways you can help your investment grow through Coinbase. You can stake your assets to earn a yield on your investment directly through the platform. This process allows you to start earning instantly with the ability to opt out of staking your crypto at any time.
This staking takes place securely on your Coinbase account and can be tracked alongside your cryptocurrency trading to get a complete picture of your return on investment.
Another excellent use for your cryptocurrency is borrowing fiat currency. Coinbase offers a service that facilitates a loan of up to £1 million and uses your cryptocurrency as collateral. This process is made quick and easy for any experience level, with the loan being instantly sent over to you through ACH transfers or directly into a Paypal account.
The flexible repayment structure and secure holding of your cryptocurrency through Coinbase make this a fantastic way to access cash with no fees.
What is the Coinbase Fee Structure? 💰️
Coinbase's fee structure was difficult to navigate because there were two platforms with differing fees. Now that the features of Coinbase Pro have been combined with the original Coinbase platform, there is much less confusion surrounding how much you pay per transaction.
Despite this, Coinbase fees are variable for trades, meaning there is no set amount you will pay per transaction. Some transactions could have significantly less in terms of fees Coinbase charges, but others can be relatively high.
For buying and selling crypto, the fees coinbase charges are calculated automatically based on a variety of factors such as type of cryptocurrency, transaction sizes and the payment method.
The fees are split into two categories for trading: a maker fee and a taker fee. If the cryptocurrency you require is immediately available, you will be charged a taker fee between 0.05% and 0.60% based on the asset prices and trading volumes at that time. If your order is not immediately fulfilled, a maker fee is charged, which is typically between 0% and 0.40%.
When staking your digital assets, there is a standard commission depending on the currency being staked. This commission amount sits between 25-35%, and your account calculates these fees into the earnings that it shows.
Coinbase runs offers that allow users to stake their crypto at reduced rates, so you should always check to see if any promotions are available to take advantage of.
What is Coinbase One?
Coinbase One is a subscription service that is currently in the beta stage of development and is available to certain people with an individual Coinbase account. In exchange for the monthly subscription, you receive a whole host of benefits that can help to expand your portfolio and create larger returns on your investments. You can pay your monthly subscription as a direct debit or use the funds in Coinbase accounts.
A huge benefit of this subscription package is that all crypto trades have zero trade fees. Removing the maker fee from the transaction helps you to ensure more of a return on your digital investments.
Alongside the lack of trading fees, the subscription also offers insurance on Coinbase accounts up to £1 Million, meaning you can build your crypto portfolio with the knowledge that your digital assets are protected. You also gain access to a 24/7 customer support line to help solve any account issues quickly.
Should I Use Coinbase Wallet? 👛️
Coinbase wallet is a fantastic option for any crypto investor looking to store and use their crypto. The wallet allows you to store and track all of your different cryptocurrencies in one place.
Whether you are at home or on the go, you can access your wallet through the Coinbase mobile app. The wallet uses advanced security protocols to keep your various private keys safe, including two-factor authentication and heavy data encryption.
You can also access a Coinbase card, a debit card that enables you to use your cryptocurrencies in the same way you would a traditional bank account. You receive a visa debit card that you can use worldwide in shops and ATMs.
The Coinbase mobile app allows you to choose which type of crypto to use for each transaction, with it only taking seconds to switch which currency your card is using. This feature allows your crypto assets to be more than just investments and enables them to truly act as digital currencies that can replace traditional fiat currencies.
Features of Coinbase
Coinbase offers a wide range of features that all combine to make a diverse and useful platform for all skill levels. Here are the top five best features that this Coinbase review considers as the reasons to use this platform.
Buy, Sell and Use Crypto Anywhere
Coinbase provides a fantastic suite of apps that allows you to trade, spend and organise your digital assets on the go. The fast-paced nature of the crypto market means being able to access vital information such as prices and staking offers no matter where you are can significantly help build up your portfolio.
Earn Free Cryptocurrency While Learning
Coinbase's extensive educational materials allow even the newest crypto investors to understand how cryptocurrencies work and how to use cryptocurrency exchanges. This educational material can provide invaluable insight into the crypto market and rewards your time with the ability to easily earn free cryptocurrency. This feature makes the platform incredibly beginner-friendly and makes it a fantastic place to start your journey into cryptocurrency.
Who Should Use Coinbase?
The ease of use that Coinbase provides means that anybody can effectively use this crypto exchange. The simple user interface, automatic fee calculations and helpful educational materials make this platform a fantastic way to learn about how exchanges work and then put that education into practice. The integrated wallet and Coinbase earn features all tie together to make the platform a singular place for crypto investment.
While the platform is beginner-friendly, there are plenty of reasons for more advanced traders to use Coinbase. The Coinbase One subscription provides many features that can make your crypto trades more efficient. Accessing your accounts anywhere from the mobile app can be essential to ensuring you make the most of your investments.
This platform has something for everyone, whether you want to build a large portfolio of high-value digital currencies or create a virtual bank account that provides more power and control over your finances.
Pros of Coinbase ✔️
As a cryptocurrency exchange, Coinbase has many pros that incentivise using this platform for your crypto purchases. Below are the most significant reasons for you to choose Coinbase over other crypto exchanges.
- This platform caters to all experience levels of crypto traders. While other platforms focus on targeting experienced traders or new investors in this market, Coinbase can scale to your needs with the various features on offer. Having all these tools for crypto investing in one place means you can streamline your digital portfolio.
- Coinbase provides access to a vast array of over 150 cryptocurrencies and supports all major fiat currencies.
- The interconnected suite of apps for tracking your wallet, managing your Coinbase debit card and assessing your crypto trading makes this platform easy to manage from anywhere that has an internet connection. The app often appears on lists of best crypto trading apps for its ease of use.
- The Coinbase One subscription can be a fantastic offer for advanced crypto traders, with the ability to surpass the monthly cost due to the lack of fees and security of account insurance.
- The security and privacy measures in place make Coinbase safe and secure when trading and storing your crypto.
Cons of Coinbase ✖️
The main downside to Coinbase is the high fees. Coinbase fees are not a flat fee for all transactions but rather a variable fee based on a number of variables. These fees are difficult to work out due to the number of variables used in the calculation. The calculated fees are only shown to the user during the final stages of placing an order, which adds to the complexity.
It would be easier if these fee calculations were shown earlier in the process in order to streamline investment decisions. Some more advanced traders may seek out cryptocurrency exchanges that have lower fees, but the higher fees are a relatively small price to pay when you think of the trustworthy reputation and high security of this platform.
Alternatives to Consider
Gemini is another cryptocurrency exchange that can be used to generate passive earnings from cryptocurrency investments. This cryptocurrency exchange offers fairly high interest rates on thousands of cryptocurrency coins and is fairly user-friendly, with excellent security and a plethora of learning tools. The main edge Coinbase has over Gemini is support for more countries and fiat currencies.
Coinbase is a fantastic way to build a crypto portfolio from the ground up. The educational material with the incentive to earn crypto rewards makes the platform incredibly accessible to beginners, and the platform's aim of accessibility and ease of use make it an excellent choice for crypto trading.