Last Updated on February 1, 2022 by Arty Fisher
Coinbase is the most popular and reputable exchange available. They allow individuals to purchase cryptocurrencies with ease and their mobile app has a great user interface, making it perfect for investors who are new to the crypto space. Coinbase, however, is not without its faults. This review will cover everything you need to know about Coinbase including fees, security practices, pros & cons of the platform as well as how to set up an account.
If you’re not familiar with cryptocurrencies yet (or if you are but want a primer), check out my other article where I talk about what they are and the basics of how they work.
Who is Coinbase?
Coinbase is a San Francisco-based company that provides a platform for buying, selling, transferring and storing digital currency. Users can link their bank accounts and/or credit cards to purchase virtual currencies Bitcoin, Etherium and Litecoin.
The company was founded in 2012, and by 2015 had raised over US$106 million from top venture capitalists in the United States. Coinbase has been featured in The Wall Street Journal, Time Magazine, CNN, CNBC, New York Times and USA Today. It’s available in 32 countries around the world.
Coinbase offers its users wallets for free which they can use to store their bitcoins. These wallets are insured up to $250,000 by the Federal Deposit Insurance Corporation (FDIC) which is the same insurance that your bank account or credit card have.
How to sign up
To begin using the platform, you will need to provide some personal information like:
- your name,
- phone number
- and even your government id if you are based in the US.
Once Coinbase has verified this information, you will be able to purchase cryptocurrencies using your linked bank account or credit card. The process is instant which means you can buy crypto right away. The exchange itself is protected by various levels of security protocols including SSL encryption for both web and API access.
Coinbase pro – what is it?
Coinbase Pro is an online cryptocurrency trading platform operated by Coinbase that offers fiat currency trading and other trading features. Coinbase Pro offers a “Pro” tier option for professional traders offering features like stop loss orders and margin trading. The exchange also offers Gdax (previously known as “GDAX”), a platform for professional traders.
Pros of Coinbase
Simplicity: Open an account with Coinbase in minutes and start trading almost immediately after verifying your identity with a cell phone number or government-issued ID**
Security: Coinbase stores 98 percent of customers’ digital currency in secure offline storage. The remaining two percent is insured. Coinbase also has insurance protecting against employee theft**
Various Payment Types: You can deposit funds into your account via bank transfer, SEPA transfer, wire transfer or credit card**
Cons of Coinbase
Fees: Buying or selling digital currency through Coinbase costs a low 1% fee. However there are some confusing network transaction fees incurred (approximately 0% – 4%) depending on what coin you are trading.
Every day, more and more people are getting into cryptocurrencies. They’re looking for a new and exciting way to invest their money. As the popularity of Bitcoin continues to grow, we’ll see more and more companies offer us investment opportunities. All in all Coinbase offers an excellent service for anyone looking to get into the cryptocurrency world quickly and easily.