Coinbase Review

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In this Coinbase review you will find out about every aspect of this popular exchange. I will cover their services and compare Coinbase vs Coinbase Advanced, their customer service, fees, security, alternatives to Coinbase and more.

Overview

Coinbase is one of the largest or the largest cryptocurrency exchange, with over 110 million registered customers on their platform. It is a fully regulated and licensed exchange that complies with KYC (Know Your Customer) regulation.

Coinbase Portfolio area

As one of the first movers in the cryptocurrency space, Coinbase continues to evolve, offering a range of services to meet the needs of crypto users worldwide. So far, Coinbase is still the only major exchange to go public and was publicly listed on the Nasdaq under the ticker symbol COIN in April 2021.

Some coinbase services include:

• crypto investing,
• trading,
• staking,
• crypto prepaid debit cards,
• NFTs,
• its own stablecoin; USDC,
• custodial accounts for institutions and
• wallets for retail investors

Coinbase is best known as a user-friendly crypto onramp tailored for beginners. Even Coinbase Advanced, though somewhat more complex, is still designed with newcomers in mind. That said, like most exchanges, Coinbase can feel overwhelming at first. Don’t let this deter you; with a bit of time, you’ll quickly get comfortable navigating the platform.

While Coinbase is a solid exchange overall, it has its challenges—particularly with customer service. For most customers, the platform works seamlessly, and they rarely need support. However, if an issue does arise, Coinbase’s customer service can be frustratingly inadequate.

Customer Support

This won’t be a typical review with a set format; instead, I’d like to give you a well-rounded perspective on the quality of Coinbase’s support. Personally, I’ve been involved in crypto for a while, starting out by setting up an account with Coinbase, which I used extensively.

Their platform is great on the whole, but, like many, I’ve encountered issues with their customer service. At times I waited months for a response even for straight forward questions.

Some Coinbase customers have had to wait weeks for customer service to resolve deposit or withdrawal issues. Fortunately, I haven’t encountered issues like these personally. However, a family member recently needed to review their Coinbase account but couldn’t due to a bug. This left him concerned his account might eventually be frozen, so he decided to stop using Coinbase altogether.

Coinbase has struggled with customer support issues for years. In fact, Coinbase got slammed for what users say is terrible customer service on CNBC back in 2021. They’ve made efforts to improve their service, but significant issues still persist.

If you happen to need to submit documents via email for KYC purposes and just have a payslip to submit, you will be fine. But if you have more paper work to submit, look out below! They’ll repeatedly request paperwork you’ve already submitted and ask questions you’ve already answered, sending you in circles like a never-ending merry-go-round. This happened to me. Eventually, I give up in frustration, realising the process was futile. If this happens to you, your account will be blocked.

The problem is that Coinbase grew rapidly and they outsourced some services, leading to a decline in service quality. My frustration with this ultimately led me to switch to Kraken, whose customer support has been far more reliable. Kraken offers prompt service and has streamlined their KYC process, making onboarding and continued KYC checks relatively hassle-free.

It is true that Kraken is mostly known as a platform that caters to more experienced traders. However, they also have a section on the site designed specifically for beginners. I also appreciate their emphasis on security, which has set the standard for the industry.

Plus, during market crashes when many people rush to the platform to sell their crypto assets, the Kraken platform remains stable. By contrast, Coinbase is notorious to be unavailable at the time you need it most.

If reliable customer service is a priority for you and you’re open to exploring other options, check out the “Crypto Exchanges” section in the menu above for additional exchange reviews. As I mentioned, my preferred exchange is Kraken. Here is the Kraken review and here is the Kraken website. Alternatively, if you’d like to learn more about Coinbase, keep reading for a deeper dive into its features and services.

Coinbase vs Coinbase Advanced

The primary difference between Coinbase and Coinbase Advanced (formerly Coinbase Pro) lies in their features, fees, and target customers. Here’s a breakdown:

1. User Interface and Target Audience

• Coinbase: Designed for beginners and casual investors, Coinbase has a simple, intuitive interface that makes buying and selling crypto easy.
• Coinbase Advanced: Geared towards more experienced traders, Coinbase Advanced offers additional trading tools and a more detailed interface for advanced trading activities.

Coinbase interface

Coinbase Advanced interface

2. Trading Features

• Coinbase: Allows straightforward buy and sell transactions but lacks detailed charting and order types. It’s more focused on simplicity.
• Coinbase Advanced: Provides a more robust set of trading tools, including advanced charting, limit and stop orders, and a view of the order book, enabling more control and flexibility.

3. Fees

• Coinbase: Has higher fees for regular transactions, which are often a percentage of the transaction amount and can vary with payment methods.
• Coinbase Advanced: Offers lower trading fees, particularly beneficial for high-volume and active traders. This makes it more cost-effective for frequent trades.

4. Funding and Withdrawals

• Coinbase: Supports easy funding and withdrawals, but with fewer customisation options for transferring assets between exchanges or wallets.
• Coinbase Advanced: Allows for more advanced fund management, including wire transfers and ACH, with some extra flexibility in deposit and withdrawal limits.

In summary, Coinbase is ideal for beginners who want a simple way to buy, sell, and hold crypto, while Coinbase Advanced is best for active and experienced traders who need more advanced trading options and lower fees.

Coinbase Review: Fees

Coinbase (Standard) Fees

• Transaction Fees: Coinbase applies a relatively high fee structure for transactions, which varies by payment method and transaction amount.
  • Debit Card Purchases: Typically, Coinbase charges around 3.99% for purchases made with a debit card.
  • Bank Transfers (ACH in the U.S.): ACH bank transfers often incur lower fees, around 1.49%, but may vary based on region and transfer method.
• Spread Fee: Coinbase includes a spread (often around 0.5%) on each transaction. This spread can vary depending on market volatility.
• Fixed Fees: For small transactions, Coinbase may add a flat fee (e.g., $0.99 for transactions under $10, $1.49 for transactions between $10 and $25, and $2.99 for transactions between $50 and $200).
• Crypto Conversion Fee: When converting one cryptocurrency to another, Coinbase typically charges a spread margin of 2% or higher, depending on the asset.

These fees make Coinbase one of the more expensive platforms, especially for frequent transactions or small purchases.

Coinbase Advanced Fees

Coinbase Advanced (formerly Coinbase Pro) is designed for active traders and offers lower fees. It operates on a maker-taker fee model for spot trades (which means buying at the current market price). The fee depends on whether you add liquidity to the market (maker) or remove liquidity (taker).

Coinbase Advanced Spot Fee Tiers

Maker and taker fees are based on your 30 day trading volume or asset balance:

Additional Features and Fees:

• No Spread Fee: Unlike standard Coinbase, Advanced does not have a spread fee, making trades more cost-effective.
• Withdrawal Fees: Coinbase Advanced may apply network fees for withdrawals, particularly for crypto withdrawals, based on network conditions.

Coinbase Review: Apps

Coinbase has 2 applications you can download on mobile that is compatible with IOS and Android phones: Coinbase and Coinbase Wallet. You can access both platforms on desktop via a web browser.

Coinbase App

Similarly to the desktop platform, the Coinbase mobile app is a comprehensive cryptocurrency trading and management platform. It provides a user-friendly interface with various features for you to buy, sell, and manage cryptocurrencies on the go.

Here’s an overview of its key features and functionalities:

1. Buying and Selling Cryptocurrencies

• Wide Selection of Cryptocurrencies: The app supports over 100 cryptocurrencies, including popular options like Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and various altcoins.
• Instant Purchases: You can purchase cryptocurrencies using debit cards, bank transfers (ACH), or PayPal (in some regions) with just a few taps.

2. Market Data and Price Alerts

• Real-Time Market Data: The app provides real-time price charts and market data for all supported cryptocurrencies. this will allow you to monitor market trends and make informed decisions.
• Price Alerts: You can also set price alerts for specific cryptocurrencies to receive notifications, when a coin reaches a specific price point.

3. Portfolio Management

• Portfolio Tracking: You can view your overall portfolio balance and the performance of individual assets so you keep track of your investments.
• Transaction History: The app maintains a detailed history of all transactions. This will help you review your trading activity over time.

4. Educational Resources

• Learning Materials: The app offers various educational resources, including articles and tutorials, to help users learn about cryptocurrencies and trading strategies.
• Coinbase Earn: You can earn cryptocurrency by completing educational modules about different coins, so you can learn while also gaining assets.

5. Staking and Earning

• Staking: You can stake certain cryptocurrencies directly through the app to earn rewards, contributing to blockchain networks while generating passive income.

Coinbase Wallet

The Coinbase Wallet app is a standalone, self-custody cryptocurrency wallet developed by Coinbase. It’s separate from the main Coinbase exchange app, allowing users to manage their private keys and assets independently. Both apps and browser platforms take some getting used to, but after a while are fairly intuitive to use and work flawlessly.

Here’s an overview of its main features and functionalities:

1. Self-Custody and Control

• Private Key Ownership: Unlike the Coinbase exchange app, where Coinbase controls private keys, the Coinbase Wallet app gives customers full control over their private keys and assets. This means only you have access to your funds.
• Recovery Options: When you create a wallet, you’ll receive a 12-word recovery phrase. This phrase is crucial for accessing your wallet if you lose your device, as Coinbase cannot recover it for you.

2. Supported Assets and Tokens

• Cryptocurrency Support: The wallet supports popular assets like Bitcoin, Ethereum, Litecoin, and others.
• ERC-20 and BEP-20 Tokens: It also supports Ethereum and Binance Smart Chain tokens, including NFTs (non-fungible tokens) and decentralised finance (DeFi) tokens.
• Stablecoins: You can store and transact with stablecoins like USDC, which are commonly used in DeFi.

3. DeFi and DApp Integration

• Access to DApps: Coinbase Wallet allows customers to interact directly with decentralised applications (DApps) and DeFi platforms. For instance, customers can access decentralised exchanges (DEXs) like Uniswap and protocols like Compound.
• Web3 Browser: The app has a built-in Web3 browser for navigating blockchain-based applications, including NFT marketplaces and gaming platforms.

4. NFT Support

• Customers can store, view, and manage NFTs within the wallet, making it popular among NFT collectors. NFTs appear in the wallet for easy access and management.

5. Crypto Transfers and Payments

• Customers can send and receive crypto by scanning QR codes or entering wallet addresses. Coinbase Wallet also allows for cross-chain asset bridging between supported networks.
• Username Feature: Users can create a username to simplify receiving funds, instead of using long wallet addresses.

6. Compatibility with Coinbase Exchange

• Integration with Coinbase Account: Users can easily link their Coinbase Wallet with their Coinbase account to transfer assets back and forth. This makes it easy for users to manage their assets between an exchange and self-custody.

Handy Features: Recurring purchases

Coinbase allows you to set up recurring purchases through its platform. This feature lets users automate buying cryptocurrency at regular intervals—daily, weekly, or monthly. It’s a convenient option for those who prefer a dollar-cost averaging (DCA) strategy, allowing users to gradually build their crypto holdings without having to time the market.

To set up a recurring purchase on Coinbase, navigate to the “Buy/Sell” section, choose the asset you want to purchase, and select the “Repeat this buy” option. After specifying the frequency, the automated transactions will take place using your linked payment method.

Coinbase History

Coinbase, founded in 2012 and incorporated in Delaware in 2014, was co-founded by Brian Armstrong, who currently serves as the company’s CEO.

Initially, Coinbase only supported Bitcoin, but in 2016, the platform began offering Ether, gradually expanding to include a wider variety of cryptocurrencies. Over the years, Coinbase has formed partnerships with notable companies such as Dell, Overstock, Time Inc., and PayPal, enabling Bitcoin payments on these platforms.

In October 2020, Coinbase introduced its own Visa debit card, and in April 2021, it became a publicly traded company, listed on the stock exchange. As an American company that went fully remote in 2020, Coinbase operates without a traditional headquarters.

Thanks to continuous investment and expansion, by March 2021, Coinbase had grown to become the largest cryptocurrency exchange in the United States by trading volume.

Supported Cryptocurrencies

Coinbase supports 250+ cryptocurrencies and over 400 trading pairs. (Trading pairs are to two different assets that can be traded for one another, like BTC/USD for Bitcoin and U.S. dollars or BTC/ETH for Bitcoin and Etherium.)

The cryptocurrencies supported on Coinbase include the most popular coins as well as those supporting various sectors, such as DeFi and the metaverse. Some cryptos on the list include Bitcoin, Ethereum, Dogecoin, Solana, Decentraland, Pepe and Litecoin.

Supported Countries

Coinbase operates in over 100 countries, including the U.S., Canada, the U.K. and the rest of Europe, Australia, South Africa. However, there are regions where Coinbase access is restricted, mainly due to U.S. sanctions and local regulations. These include countries like Cuba, Iran, North Korea, Russia and Syria, as well as regions with ongoing compliance issues like India, Pakistan, South Africa, and the United Arab Emirates where full services might not be available.

In some countries, Coinbase Wallet—a self-custody wallet allowing users to store, send, and receive cryptocurrencies—is accessible even when full Coinbase exchange services are not. I

Coinbase Review: Security

Coinbase offers a variety of security features to protect users’ assets and data which are outlined below. These security features make Coinbase one of the more secure exchanges.

Customers should still take extra steps to secure their assets, like using strong passwords and storing assets in self-custody wallets for long-term security. Self-custody hardware wallets give you complete control over your crypto by reducing reliance on any exchange’s security. By storing your private keys offline, these wallets add an extra layer of security, keeping your crypto safe from online threats and potential exchange breaches.

1. 2FA – 2 Factor Authentication

Coinbase offers two-factor authentication (2FA) to add a vital layer of security beyond your username and password, but not all 2FA methods provide the same level of protection. The options for 2FA include SMS-based authentication, authenticator apps, and, for some users, hardware-based security keys. Here’s a closer look:

1. Authenticator Apps: Apps like Google Authenticator or Authy generate time-based, one-time passcodes (TOTP) on your device, making them more secure than SMS. Since they are not linked to your phone number, they reduce the risk of SIM swap attacks—where an attacker tricks or hacks your mobile provider into transferring your number to a new SIM, potentially gaining access to SMS-based 2FA codes.
2. SMS Authentication: This is the least secure 2FA option, as your SMS code can be vulnerable to SIM swap attacks. Hackers could potentially use this method to take control of your phone number and receive your authentication codes, granting them unauthorized access to your account. It’s generally best to avoid SMS-based 2FA if possible, given the risks involved.
3. Hardware Security Keys: For the highest level of 2FA security, hardware security keys like YubiKey provide a physical layer of authentication. These are immune to phishing and SIM swap attacks because they require a physical tap or insertion into your device, making unauthorized access virtually impossible.

Though Coinbase has strong security features, including 2FA, it’s important to be aware of previous security breaches. For instance, here is an article on Reuters: Coinbase says hackers stole cryptocurrency from at least 6,000 customers.

This is why it’s essential to use more secure 2FA methods and take further personal precautions. Using a secure authenticator app or a hardware key is highly recommended to keep your assets as safe as possible.

2. Cold Storage

Coinbase follows a widely accepted industry security standard (set by Kraken) by keeping approximately 90% of customer funds offline in “cold storage,” which means they are stored on devices disconnected from the internet. This approach protects these assets from online threats and cyber-attacks.

The remaining 10% is held in “hot wallets” (digital wallets connected to the internet) to provide liquidity for customer transactions. These hot wallets are insured to cover potential losses from cyber-attacks, though this insurance generally doesn’t protect against individual account security breaches.

Cold storage and hot wallet management are essential best practices used by leading exchanges like Kraken and Coinbase. This setup helps safeguard funds while balancing security with users’ transactional needs.

3. Crime Insurance

Coinbase carries insurance to protect platform-held funds in the event of a security breach. However, this coverage may not guarantee full reimbursement of all funds, as the payout depends on the size of the loss and the amount of assets affected. Currently, Coinbase is insured for up to $255 million, as reported by Coindesk, which provides a substantial level of protection not available on many other platforms.

This type of coverage is intended to reassure Coinbase users but is important to note that it only applies if Coinbase’s platform itself is compromised. It does not cover individual accounts affected by personal security breaches or negligence.

For UK customers, Coinbase also offers up to £150,000 in insurance for individual accounts that are targeted by hackers (again, this excludes cases where losses result from personal security lapses). To reduce the risk of account compromise, users should take precautions such as creating strong, unique passwords—ideally, at least 16 characters long and sufficiently complex to deter unauthorised access.

4. FDIC Insurance for USD Balances

Coinbase provides FDIC insurance coverage for users’ USD balances held in custodial accounts, offering protection up to $250,000 per individual in case a bank fails. This insurance specifically covers cash holdings and does not extend to cryptocurrencies on the platform. Coinbase places customer USD funds in segregated accounts with FDIC-insured banks, ensuring compliance and transparency. For amounts exceeding the insured limit, funds are invested in liquid U.S. government money market funds for added safety.

Coinbase Issue – Unavailable During Market Meltdowns

Coinbase is generally a reliable exchange that functions smoothly most of the time. However, like many crypto exchanges, it was not designed to handle extreme user volume effectively. As I mentioned earlier, this is especially the case during sudden market downturns when there is a lot of panic selling.

This surge in activity can lead to system outages, locking many users out of their accounts. While Coinbase isn’t the only exchange that experiences these issues during market turmoil, its large user base often puts it in the spotlight when problems arise.

Overall, Coinbase offers an excellent user experience with an intuitive interface, performing well in most situations except during these high-stress moments.

Coinbase Alternatives

Coinbase is a good exchange, but there are several solid alternatives worth considering. A small handful of exchanges offer consistent uptime during high-traffic periods and generally provide better customer support than Coinbase.

Customer support remains the most significant challenge for Coinbase. If this concern is a dealbreaker for you, it may be worth exploring alternatives like Kraken or Coinmama. Both these exchanges provide superior support, resolving issues promptly and following up with customers.

However, Coinmama does have some drawbacks, including a smaller selection of cryptocurrencies and higher fees compared to other exchanges. Despite this, it is tailored for beginners, offering a straightforward purchasing experience without unnecessary complexities.

On the other hand, Kraken has lower fees than Coinmama and, while it may be slightly more complex, it features a basic exchange option that simplifies the process for users. This makes Kraken a great choice for both new and experienced traders looking for a balance of usability and cost-effectiveness.

Bitfinex has lower trading fees and is designed with experienced traders in mind, so it offers a more complex platform that may require some time to learn. However, it’s known for its robust infrastructure, handling large trading volumes and remaining stable during market crashes. One thing to note is that Bitfinex requires a minimum deposit and withdrawal of $/€/£10,000, which may make it less accessible for casual users.

Here is the Kraken review, Coinmama review and Bitfinex review should you be interested.

Coinbase Review Conclusion

To sum up this Coinbase review, Coinbase offers a user-friendly platform ideal for beginners and supports a wide range of cryptocurrencies. As one of the first major exchanges in the crypto space, it has grown to become one of the largest and most widely recognised.

However, Coinbase has its drawbacks, primarily in its lack of adequate customer support and its down time during market crashes. Coinbase is working to improve in these areas, but exchanges like Kraken currently offer superior customer service and platform stability, making Kraken a strong alternative.

For users looking to reduce Coinbase’s standard fees, Coinbase Advance provides a more competitive fee structure. Additionally, Coinbase’s unique client fund insurance offers added peace of mind in case of a platform breach, which is uncommon among exchanges.

Overall, while Coinbase isn’t the absolute best exchange, it’s an average to good option with an established reputation, and the company continues to work on enhancing its services.

Visit Coinbase

Intuitive platform
90% Coins in cold storage
Supports 250+ cryptos

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