Coinbase Review 2022: Fees, Products and More

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Whenever someone asks how to start investing in cryptocurrency, Coinbase is usually cited as a good place to start.

Founded in 2012 just three years after Bitcoin was created, Coinbase has since grown to become the largest cryptocurrency exchange in the US by trading volume, with more than 73 million verified users in over 100 countries.

While the company offers a range of valuable products for retail and institutional investors, corporations and developers, its core feature is the ability to buy, sell and trade more than 100 different cryptocurrencies and crypto tokens. Quarterly trading volume is currently $327 billion with $255 billion in assets on the platform, having gone public in April 2021 through a direct listing on the Nasdaq exchange.

Although Coinbase’s transaction and trading fees are higher than some of its competitors, it’s still one of the most popular applications for cryptocurrency investing.

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Coinbase cryptocurrency exchange review

coin base

On the safe side of Coinbase

  • Minimum Deposit and Balance

  • fees

    0.5% – 4.5% per trade. Fees vary depending on the type of transaction and other fees may apply.

  • bonus

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

  • investment opportunities

    You can trade over 100 cryptocurrencies on Coinbase. You can also earn interest on a range of crypto coins.

  • educational resources

    Coinbase Earn allows you to earn crypto rewards as you educate yourself about different cryptocurrencies.

advantages

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

disadvantage

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

Products for small investors

For retail investors Coinbase offers the following 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 an interface better suited for professional traders, offering charting tools, real-time order books and a feed of market data, among other features that are more sophisticated Investors would need to trade. Trading fees are also lower with Coinbase Pro.
  • Coinbase Wallet – A standalone crypto wallet app that allows users to store themselves (in other words, 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 access a variety of decentralized applications or dapps through this feature. Note that it is very important for users to securely store the 12-word recovery or seed phrase that will allow them to recover their wallet if they forget their password, as Coinbase does not have access to this information.
  • USDC – A cryptocurrency stablecoin pegged 1:1 to the US Dollar; USDC users can earn 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 with every purchase.

At just $2, Coinbase has one of the lowest minimum balance requirements of any crypto exchange, making it an attractive choice for new investors. The Coinbase Earn feature – which allows users to watch short instructional videos, take little quizzes about it, and earn free crypto assets – is also appealing, as users have been using Stellar Lumens, the Flexa Network’s Amp tokens, and the GRT tokens from The Graph to name a few.

Retail investors can pay higher fees to access the Coinbase app’s simple and elegant interface. Migrating to Coinbase Pro allows users to save on fees, especially if they have higher account balances, but might be intimidated by the elaborate interface if they are not used to trading platforms. While Coinbase Pro offers more than 250 cryptocurrencies and crypto tokens to choose from, as well as advanced features like stop and limit orders, the platform really doesn’t have all the tools that more sophisticated investors might want access to, such as: B. Futures.

Both Coinbase and Coinbase Pro include up to $250,000 of FDIC insurance coverage. However, it is worth noting that the insurance is only available if Coinbase encounters a hack or cybersecurity breach of their storage services – not if a user suffers a loss or theft due to a breach of their personal account. Also note that the insurance is only paid back to users in the form of fiat money, not cryptocurrency.

Coinbase Fees

Transaction and trading costs on Coinbase range from 0.5% to 4.5% depending on the cryptocurrency, transaction size, and payment method.

Coinbase charges a flat fee that changes depending on the size of your transaction — the fee is $0.99 for those $10 or less, while it’s $1.49 for those between $10 and $25, $1.99 for those between 25 and 25 and $50 and $2.99 ​​for those between $50 and $200. Note that transactions over $200 are charged a percentage fee instead of a flat fee.

Coinbase also charges a spread-based fee of 0.50%, while other fees depend more on what payment method you use – ACH transfers are free, while using a bank account or USD wallet adds a 1.49% fee , if you use a credit or debit card, there is a 3.99% fee, and wire transfers have an additional fee of $10 for incoming payments and $25 for outgoing payments.

When using Coinbase Pro, trading fees can range from 0% to 0.5% per trade. Users can expect a taker fee between 0.04% and 0.50% and a maker fee between 0% and 0.50%.

If paying lower fees is your primary concern, you might want to look into other exchanges like Kraken or Binance, which charge more modest trading fees compared to Coinbase.

Products for companies and institutional investors

For companies looking for crypto products and services, Coinbase offers Coinbase Commerce, a payment service that allows merchants to accept cryptocurrencies at their stores, with features like payment buttons, hosted checkout pages, and invoices.

Coinbase’s 10,000 institutional customers can take advantage of Coinbase Custody, which holds Bitcoin and other cryptocurrencies on behalf of its customers in secure cold storage accounts that are not connected to the internet. The custodian service then goes through regular financial and security audits conducted by outside firms. Institutional clients can also use Coinbase Prime, a trading platform specifically designed to meet the unique needs of institutions.

Possible disadvantages of using Coinbase

While Coinbase offers an easy-to-use platform to start your crypto investing journey, there is one area the company seems to be really struggling with.

Coinbase doesn’t have the best reputation when it comes to customer service, even earning an F from the Better Business Bureau for it. customers have consistently complained about being locked out of their accounts even after providing the necessary information to recover, while other users criticized the company for being almost impossible to reach if help was needed.

bottom line

While customer service is lacking and the company’s fees are higher and more complex than the competition, Coinbase remains one of the most popular applications for those who are just starting their crypto investing journey.

It’s a regulated company with high security practices, a simple and convenient interface, and a decent selection for those who use it. By offering a range of tools for more sophisticated investors, companies and institutions, Coinbase enables its users to improve while learning more about the technology involved and the crypto industry as a whole.

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Editorial note: Any opinion, analysis, review, or recommendation expressed in this article is solely that of Select’s editors and has not been reviewed, approved, or otherwise endorsed by any third party.

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