If you’re keen on joining a cryptocurrency exchange and you’re mainly looking for one that will enable you to buy and sell Bitcoins with a variety of payment methods, then Coinbase should be on your radar.
But this renowned exchange has lots of information pertaining to it that you need to know before jumping in and giving it a try.
How long has Coinbase been around?
Started in 2012, Coinbase is one of the oldest cryptocurrency exchanges you can find. It started out as a way to sell bitcoins to customers but has since added lots of exciting new features.
Coinbase is accessible to many people as it’s available in more than 100 countries all over the world, which makes it very inclusive. With that in mind, let’s take a deeper look into Coinbase and what it’s all about.
Brief History Of Coinbase
Coinbase was set up by Fred Ehrsam, a Goldman Sachs alum, and Brian Armstrong, its billionaire co-founder and CEO.
It initially started out as only operating as a bitcoin brokerage service in which bitcoins could be sold directly to people. But now it’s grown, and it’s both completely regulated as well as licensed.
Coinbase has a good reputation, based on its stellar services. It scores high marks in various aspects, such as its user-friendly platform, payment methods, and fees. Let’s jump into these, and more, in greater detail.
What Coins Are Supported By Coinbase?
If you’re looking for versatility when it comes to digital currency, you’ve come to the right place. You can use lots of different coins on Coinbase. Here’s a complete list:
- Bitcoin (BTC)
- Ripple (XRP)
- Stellar Lumens (XLM)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Bitcoin Cash (BCH)
- Litecoin (LTC)
- EOS (EOS)
- Zcash (ZEC)
- Dai (DAI)
- Civic (CVC)
- Basic Attention Token (BAT)
- Augur (REP)
- USD Coin (USDC)
- 0x (ZRX)
- Dash (DASH)
- Cosmos (Atom)
- Algorand (Algo)
- Golem (GNT)
- District0x (DNT)
- Loom Network (LOOM)
- Kyber Network (KNC)
- Chainlink (LINK)
- Maker (MKR)
- Decentraland (MANA)
- Orchid (OXT)
- Tezos (XTZ)
What Are The Available Payment Methods?
When it comes to how you can pay on the exchange, Coinbase allows the use of the following payment methods:
- Wire transfer
- Credit cards
- Debit cards
- Cryptocurrency deposit and withdrawal
- PayPal (but only for use with withdrawals)
Some crypto exchanges don’t allow for PayPal or credit cards, so this is a really good feature that makes Coinbase even more user-friendly, while allowing smoother transactions.
Another benefit of Coinbase is that it provides users with the opportunity to buy coins with a range of traditional fiat currencies, such as bitcoin and litecoin. These can be bought on Coinbase with fiat.
What To Know About Coinbase Fees
Coinbase fees are a bit complicated to understand, but it’s important to know that when you use the exchange to purchase bitcoins, the price you will have to pay is made up of the market price and a flat fee for transactions that are less than $200.
However, most of the transaction fees you’ll have to pay are 1.49 percent for standard buys and 3.99 percent for purchases made with your credit card. If you’re completing transactions with another Coinbase account, then the fees will be zero, which is a bonus.
What About Wallets?
Coinbase has moved from being a wallet to only providing exchange services to offering both! It has developed an independent mobile wallet for both Android and iOS. You can make use of two kinds of Coinbase wallets.
Coinbase Bitcoin Wallet
If you choose this option, you need to put your trust in the company that it will secure and control your bitcoins. To make you feel better about this, it’s good to bear in mind that Coinbase has strong security features.
You will get a login and password when using this wallet. However, you want to be able to control your bitcoins so it’s a good idea to transfer your bitcoins into a different wallet over which you have full control.
If you’ve got more bitcoins, you want to secure them well. That’s where the Vault comes in. If you want to withdraw your funds from your Vault, this will take 48 hours.
This is done to provide you with security because this delay allows you to cancel the withdrawal, such as in the case of a withdrawal being requested by someone else.
How To Set Up A Coinbase Account
In order to set up an account with Coinbase, you’ll need to provide some personal details. This takes the form of your identity needing to be verified, and it’s as a result of the company following KYC/AML (Know Your Customer/Anti Money Laundering) laws.
The info you’ll have to provide to the exchange includes photo IDs as well as the last four digits of your SSN.
Based on how you verify yourself, you’ll be able to enjoy various services on the exchange.
- Verifying your ID will enable you to buy and send digital currencies.
- If you go one step further and verify your phone number, this will enable you to invest up to $9,500.
Verifying your personal information allows you to invest unlimited amounts, store funds in your account, and transfer funds in and out of your account.
How Does Coinbase Differ From Coinbase Pro?
You might’ve heard about Coinbase Pro and wondered if it’s the same thing as Coinbase. There are important differences between the two.
The biggest difference between Coinbase and Coinbase Pro is that the former is best for beginners. It’s easy to use and can help even first-time buyers to use the exchange with ease, such as by providing a really simple platform.
With Coinbase Pro, the focus is placed on advanced users. There’s a ton of data, such as price charts, as well as features including order books, market orders, and stop limits. If someone really knows what they’re doing, Coinbase Pro will be most suitable for them.
Another difference worth mentioning is that Coinbase has higher fees than Coinbase Pro. You can expect to pay a fee of 3.99 percent on credit card or debit card transfers. In addition, you’ll have to pay a 1.49 percent fee when making use of bank transfers.
With Coinbase Pro, you might be able to make use of no fees whatsoever. There are no fees for maker trades and when it comes to taker trades, you’ll be charged between 0.1-0.25 percent fees.
What To Know About Coinbase Account Closures
A common gripe among Coinbase users is how the exchange can shut down accounts, sometimes for no seemingly good reason. Why does this happen, you ask?
Well, Coinbase possesses U.S. regulatory approval, which means that it works in the same way that a bank would, making use of Anti-Money Laundering and Know Your Customer practices. Your coins will be tracked and your account can be closed for reasons such as the following:
- Bitcoin gambling
- Adult services transactions
- Resale of coins via other crypto exchanges (this is especially the case for exchanges that don’t make use of Anti-Money Laundering and Know Your Customer practices)
Disappointingly, some Coinbase users have complained that their customer accounts have been frozen when there’s no real evidence that any violations have occurred!
Coinbase Vs. Binance Vs. Gemini
Now that we’ve looked at some important features of Coinbase, let’s compare Coinbase with Binance and Gemini, two popular cryptocurrency exchanges. We’ll look at four important elements for all three: fees, user-friendliness, security, and customer service.
Binance: What makes Binance cheaper as a crypto exchange is that it doesn’t handle fiat currencies. On Binance, you’ll be charged 0.1 percent for all trades. If you’re trading with Binance Coins, you’ll get a 50 percent discount on your fees.
Coinbase: Although we’ve discussed fees earlier in this article, it’s worth mentioning that Coinbase fees are lower than other exchanges. However, when compared to crypto-to-crypto exchanges (such as Binance), they are higher.
Gemini: Gemini’s fees are a little higher than what you’d find in other exchanges. For starters, it charges a trading fee of 0.50 percent. In addition to this amount, you’ll have to pay transaction fees. These are fixed amounts for small purchases but they range from USD 0.99 to USD 2.00 for purchases that are less than USD 200.
Binance: Binance is good for beginners and advanced users alike. However, one of the things that let it down is that it’s “basic” user setting is a bit advanced for people who are starting out.
Coinbase: Coinbase comes out as a winner when it comes to how easy it is to use. Even if you’re just starting out in the world of cryptocurrencies, you’ll find using its interface simple and straightforward.
Gemini: This exchange is right up there with the best of them when it comes to being user-friendly. It has a simple interface that’s easy for beginners to use and understand.
Binance: It uses two-factor authentication to protect users. However, it hasn’t been super-transparent with its users about where their money is stored, which is a little concerning.
Coinbase: Like Binance, Coinbase also provides users with two-factor authentication. However, it stores 98 percent of its users’ funds offline. The bit that’s stored online is insured by Lloyd’s of London against theft.
Gemini: Gemini has strong security measures in place, such as that it maintains most funds offline. This reduces the risk of theft. It also makes use of two-factor authentication for its users.
Binance: The exchange offers a customer service bot, but this sometimes fails for non-Chinese customers because some responses are said to be in Chinese. That said, the website is multilingual. However, as with other crypto exchanges, contacting customer support sometimes results in long waiting periods.
Coinbase: Sadly, this is where Coinbase drops the ball a bit. People who have used the exchange have expressed how Coinbase’s support team doesn’t really give in-depth replies to queries and problems, which has left them feeling frustrated. The main way to get in touch with the support staff is via email.
Gemini: Similar to Coinbase, Gemini’s main way of contacting support is via email, but the good news is that many queries are attended to within a few hours.
Should you choose Coinbase?
As can be seen from the above comparisons, Coinbase is a reputable and valuable exchange.
It shines brightly when it comes to features such as security and ease of use, while also having a few one-ups over competitors such as Gemini and Binance, such as when it comes to its user-friendliness for beginners.
How long does it take to withdraw money from Coinbase?
It can take up to three days for banks to process the transfers. As for cryptocurrency withdrawals, they’re pretty instant, taking approximately an hour to reflect.
Why has Coinbase delayed your digital currency transaction?
This can happen if it’s thought that you didn’t authorize the transaction. If this happens to you, you can wait 72 hours and the transaction will automatically be completed, or you can verify your identity to speed up the withdrawal.
Coinbase is usually mentioned when people speak of the best cryptocurrency exchanges that are available, and after reading this Coinbase review it’s clear to see why.
Coinbase is beginner-friendly while catering to advanced users too. It boasts many great features, such as low fees, while also being one of the most secure exchanges out there.
If you’re looking for a crypto exchange that offers you a variety of fiat deposits, cryptocurrencies, and withdrawal options to make your transactions hassle-free, then Coinbase is worth it.
In addition, you can make the most of free transfers between users on the Coinbase exchange while the easy-to-use platform is sure to make you feel motivated, whether you’re an advanced or beginner.
Last Updated on June 19, 2020 by Eito