Coinbase Review| Is Coinbase Safe?

This a Coinbase review.

After the first cryptocurrency Bitcoin was launched, got people’s wealth, and gained popularity, other digital assets were created.

Now, these cryptocurrencies are decentralized and are not controlled by the government. They’re not the regular fiat money therefore they need a legit and secured exchange platform for trading and investment.

There are several cryptocurrency exchange platforms in the world today and Coinbase stands out among them.

Coinbase is a regulated and licensed crypto exchange platform launched in 2012. It has a great security record and offers different digital currencies on its platform. 

This Coinbase review will provide you with detailed information about the exchange platform, history, cryptocurrencies offered, fees, payment methods, security, regulations, and licenses.

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What is Coinbase?

According to Wikipedia, Coinbase Global Inc. or Coinbase is an American company that operates a cryptocurrency exchange platform. Coinbase is a trading platform for digital currencies.

Coinbase is the leading cryptocurrency exchange platform in the USA. It offers different services to its users like an advanced trading platform, cryptocurrency investing, a wallet for retail investors, custodian accounts for organizations, its own US dollar stable coin, and lots more.

It is a fully regulated and licensed cryptocurrency exchange platform available in every state in the USA except Hawaii.

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History of Coinbase

Coinbase was established in 2012 by Brian Armstrong and Fred Ehrsam. The company lacks physical headquarters and operates remotely.

As of March this year, Coinbase was the largest digital currency exchange platform in the USA by trading volume. Coinbase serves over 100 countries.

The name company got its name for Coinbase transactions which are unique transactions that introduces digital currencies into circulation in proof of work cryptocurrencies. 

Since its inception, the company has received funding from top investors like Union Square Ventures, Ribbit Capital, and several other institutions. Coinbase has gotten over $500 million from its investors.

In 2014, Coinbase partnered with companies like Dell, Overstock, Dish Network, Time Inc, and Expedia, allowing these firms to transact in cryptocurrencies. Coinbase also included Bitcoin payment processing capabilities to the traditional payment firms PayPal, Braintree, and Stripe.

In 2015, Coinbase became the first company to offer a regulated crypto exchange in the United States of America. Over the years, the company’s users have rapidly grown to cover 35 million people worldwide, with more than $200 million trading transactions executed on the platform.

The company has grown from the initial four coins traded on the exchange to more than 100 coins. Coinbase has also gone from just having a website to launching its app in 2017, making it one of the most downloaded apps on Apple. The company has also expanded its team to include more people.

In April 2021, Coinbase went public on the NASDAQ exchange through a direct listing. Wikipedia.

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Pros and Cons of Coinbase

The following are the pros of Coinbase:

  • User-friendly interface
  • Access to over 50 different digital currencies
  • High liquidity
  • Regulated and licensed exchange platform
  • Recognized in more than 100 countries.
  • Access to different payment options
  • Excellent customer service
  • Low minimum account
  • Insured against cybercrime and hacking

The following are the cons of Coinbase

  • Charges more fees than other exchange platforms
  • Complex fee structure
  • Limited altcoins compared to other exchange platforms
  • Issues of hacks draining user’s accounts

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Features of Coinbase

The following are the features of Coinbase:

Digital currencies

After Coinbase was launched it offered just Bitcoin before adding Ethereum, Litecoin, and Bitcoin Cash. These were the only digital assets traded on the platform for a very long period.

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Now Coinbase has expanded its cryptocurrency collection to include other coins. The digital currencies offered on Coinbase include:

  • Ox ZRX
  • 1inch 1INCH
  • Aave AAVE
  • Alchemy Pay ACH
  • Adventure Gold AGLD
  • Algorand ALGO
  • Amp AMP
  • Ampleforth Governance Token FORTH
  • Ankr ANKR
  • Augur REP
  • Avalanche AVAX
  • Axie Infinity AXS
  • Balancer BAL
  • Bancor Network Token BNT
  • Band Protocol BAND
  • BarnBridge BOND
  • Basic Attention Token BAT
  • Bitcoin BTC
  • Bitcoin Cash BCH
  • Brain Trust BTRST
  • Cardano ADA
  • Cartesi CTSI
  • Celo CGLD
  • Chainlink LINK
  • Chiliz CHZ
  • Civic CVC
  • Clover Finance CLV
  • Compound COMP
  • Cosmos ATOM
  • COTI COTI
  • Curve DAO Token CRV
  • Dai DAI
  • Dash DASH
  • Decentraland MANA
  • DerivaDAO DDX
  • DFI.Money YFII
  • DistrictOx DNT
  • Dogecoin DOGE
  • Enjin Coin ENJ
  • Enzyme MLN
  • EOS EOS
  • Ethereum ETH
  • Ethereum Classic ETC
  • Fetch.ai FET
  • Filecoin FIL
  • Bitcoin GTC
  • Golem GNT
  • Harvest Finance FARM
  • Horizen ZEN
  • iExec RLC RLC
  • Internet Computer ICP

Coinbase Wallet

Coinbase has a built-in wallet app known as Coinbase wallet. This is a non-custodial wallet that gives users full charge of their private keys, which means that you have control over access to your digital assets. 

This wallet is available on both Android and iOS devices, when you get your wallet, you have the choice of connecting it to your bank account to have easy access to cryptocurrencies transfers from and into your wallet.

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Regulation and Licensing

Coinbase is regulated and licensed in the USA. They’re registered in the USA. The exchange platform is among the few that normally get regulatory approval in any location they operate it. They have licenses to operate in several states in the USA, having gotten the money transmitter licenses and the BitLicense from the New York State Department of Financial Services. 

Coinbase also adheres to the rules provided by the Bank Secrecy Act that ensures its demands for KYC and AML compliance from users on the platform. They also comply with the Consumer Protection Laws such as the USA Patriotic Acts. 

Coinbase also has regulatory approval in Europe and UK. They always seek approvals from any international jurisdiction they’d like to establish their base at. Coinbase Licenses

Security and Insurance

Coinbase holds crime insurance that protects a part of the digital currencies held across its storage system against theft as well as cybersecurity breaches.

More than 90% of its users’ funds are stored offline as this provides important security measures against losses or theft. All delicate data that would usually stay in its servers is disconnected entirely from the internet.

Coinbase advises its users to use strong passwords and usernames, they also go a step further by employing 2-step verification of all accounts. They also use SSL encryption and AES-256 encryption.

Digital currencies are not recognized as legal tenders therefore they’re not supported by FDIC or SIPC.

Coinbase ensures that every employee that works with the company passes through a criminal background check, they’re also required to encrypt their hard drives, use strong passwords, and enable screen locking. Coinbase security.

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Fees and Cost

There’s no fixed cost on Coinbase and some competitors may offer something higher or lower. Coinbase has one of the most competitive fees compared to other exchange platforms.

Deposit and Withdrawal Fees

Coinbase fees vary from $1.49 to $3.99. The cost differs depending on the payment option used.

Credit card costs are one of the highest but they’re normally not above the recognized industry average.

Coinbase’s fees differ across various countries and regions, however, we will be focusing more on the one used in the USA.

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Trading Fees

Crypto trading Fees are normally charged based on two methods, a 1% flat fee for crypto to crypto trading and 0.5% for Fiat to crypto sales and purchases.

Below are the fee guidelines which are given by Coinbase for the total trade amount:

Total trade amount and fees

  • Over $10 and up to $25 __ $1.49
  • $10 or less __ $0.99
  • Over $25 and up to $50 __ $1.99
  • Over $50 and up to $200 __ $2.99

Payment Options and Limitations

Coinbase offers different payments to its users, one of the best things about the exchange platform is its offering of local currency payment.

Some of its payments options are not supported globally that’s why it is advisable you find out the payment option supported in your country to avoid mistakes. Coinbase payment options include:

  • Credit cards
  • Debit cards
  • Bank deposits
  • PayPal
  • Crypto

Here are the fee guidelines which are given by Coinbase for payment type in the USA:

  • US Bank account or Coinbase wallet __ 1.49%
  • Debit cards __ 3.99%
  • Instant card withdrawal __ Up to 1.5% ( minimum fee of $0.55)
  • ACH transfer __ Free
  • Wire transfer __ $10 ($25 outgoing) 
  • Crypto conversion __ 2%

Limitations

Verified accounts on Coinbase get some of the highest payment limits in the industry, while unverified accounts get the lowest limits.

Residents of the USA get up to $50,000 in daily BTC purchases, while European residents get a daily limit that is up to €30,000. 

Coinbase Pro

Coinbase Pro is an account for advanced traders. You can check out the added benefits of this interface like the various trading options, charting tools, and real-time order books. 

Coinbase pro comes with its fees which are less complex and cheaper. Here digital currencies and ACH are free to withdraw and deposit. Wire transfers are also 25% to withdraw and $10 to deposit. 

Your trading volume is usually dependent on how much you traded over the past 30-day period and it is always calculated in dollars.

 Coinbase pro “taker” fee only applies when you make an order and you get an immediate response while the “maker” fee applies when you make an order and you have to wait for a buyer. It is possible to have an order as both maker and taker however this depends on how quickly coinbase moves your order at a time. This account doesn’t allow card purchases, it must be done through a bank account. 

Coinbase Trading Interface

Coinbase’s interface is easy to use and beginner-friendly. The exchange platform has a search bar to help you find the many cryptocurrencies offered on the platform. Users can either settle for the normal Coinbase platform where you can use dollars to purchase digital assets or opt for Coinbase pro account. 

The exchange platform also offers “Coinbase earn” to users, where you can learn while you earn. With a series of videos classes and exams to expand your knowledge of cryptocurrency and 12 of the cryptocurrencies on offer. Coinbase is available on both iOS and Android devices. 

Each time you log into your Coinbase account, you’ll be presented with an interface showing your portfolio balance and the performance over a time frame maybe 1 hr, 1 day, a week, 4 weeks, or 6 months. There are action buttons like “Buy crypto” and others located at different places on the platform for quick trade transactions.

Coinbase offers two types of accounts to users which they can select the best option for them when signing up, these are the individual account and company account. 

Coinbase has a blog page where you can visit for the latest trends in cryptocurrencies and other vital information. It also has a FAQ page where you can get answers to questions about the platform. The customer service is also available 24/7. 

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Another outstanding feature of Coinbase is that it supports fist currencies like USD, EUR, GBP, etc. It can be accessed through the web or app, you get an instant exchange of fiat to crypto at no extra charges, and there’s also a Coinbase card that allows you to use money directly from your wallet account.

How to Sign up on Coinbase

1. Register and confirm your ID

Simply visit the site or get the app, create an account using a legit email, click on “Get Started” and enter your name and password in the field provided.

Accept the terms and conditions, click “Create Account” and verify your email address and select the account type either individual or company. Set up a 2-factor authentication by verifying your phone number to secure your account.

2. Make a deposit

When you’ve successfully created an account, you can then buy any cryptocurrencies of your choice.

Login to your account from the homepage, select a payment method, and follow the rules to make deposits through credit cards, bank transfers, or PayPal.

3. Purchase your crypto

After making deposits, visit the “Buy crypto” page and choose the cryptocurrencies you want to purchase.

Provide the payment method and cross-check the transaction details. Click the buy button to get the assets into your wallet.

Is Coinbase Safe?

As a first-time cryptocurrency adopter, it is understandable for you to hold your reservations and be wary of which exchange platform to use in terms of security, which is why most times carrying out detailed research is great.

While the choice of deciding which exchange platform to use for your digital assets trading and investment is left to you, one thing we’d like to point out is that Coinbase remains one of the best exchange platforms you can trust thanks to its many approved licenses and regulations. 

Coinbase is considered a safe exchange platform because they always seek approval from different regulatory bodies in any country they want to establish a base, it also has a lot of security protocols that safeguard its users’ vital information from theft and hackers. 

With their many licenses and regulations, the exchange platform is not likely to disappear any time soon with your funds and investments.

Conclusion

There are indeed lots of exchange platforms in existence and none is perfect but when compared with other exchange platforms, Coinbase tends to stand out.

It offers one of the best easy to use and beginner-friendly interface for people who wants to trade.

Coinbase offers educational resources to help its users keep up with current trends in the crypto market. Coinbase has proved that it is one of the most secured and legit trading platforms out there. 

It is also advisable that you have total control over all your wallets. Ensure you protect the private keys where your digital assets are stored to avoid security breaches and then you should also use only exchange platforms that are legal and licensed.

FAQs

1. Is Coinbase legit?

Yes, Coinbase is a legit and secured exchange platform.

2. How many cryptocurrencies are offered on Coinbase?

Coinbase offers more than 100 cryptocurrencies on its platform to users.

3. Is Coinbase beginner-friendly?

Yes, Coinbase was built with first-time cryptocurrency adopters in mind.

4. What type of accounts does Coinbase offer?

Coinbase offers two types of accounts, individual account and company account.

5. Does Coinbase support fiat to crypto transactions?

Yes, Coinbase supports fiat to crypto transactions.

References

https://coinjournal.net/exchanges/coinbase/#history-of-coinbase

https://en.m.wikipedia.org/wiki/Coinbase

https://www.investopedia.com/tech/coinbase-what-it-and-how-do-you-use-it/

https://www.nerdwallet.com/reviews/investing/brokers/coinbase

https://www.forbes.com/advisor/investing/coinbase-review/

https://www.coinbase.com/learn/crypto-basics

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