Coinbase Review 2024

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Revisor

Last update: 6 months ago

Our veredict

Coinbase has firmly established itself as a leading cryptocurrency exchange renowned for its user-friendly interface, making it an ideal platform for beginners entering the crypto market. One of its strongest features is the extensive range of cryptocurrencies available for trading, which includes popular options like Bitcoin, Ethereum, and many others, providing users with a broad market exposure.

However, despite these advantages, Coinbase has drawn criticism for its relatively high fees compared to other exchanges. These fees can impact the overall profitability of users, especially those who engage in frequent trading. Additionally, while Coinbase provides a secure environment for trading with robust security measures, the platform has faced challenges, including customer service issues where users have reported slow response times during peak periods. This could be a significant drawback for traders who need timely support in fast-moving market conditions.

Pros

Cons

4,9

Threenvest Score

Fees

0,40%/0,60%

U.S Legal

Yes

With the confidence of Threenvest

Year Founded: Established in 2012, Coinbase has a long-standing presence in the cryptocurrency market. This extensive history not only showcases its resilience and adaptability but also its ability to innovate and grow alongside the rapidly evolving crypto ecosystem.

Number of Users: With millions of users globally, Coinbase is one of the largest cryptocurrency exchanges. This large user base not only demonstrates trust and satisfaction among a significant portion of the crypto community but also contributes to its robust trading volume and liquidity.

Security Methods: Coinbase employs state-of-the-art security measures including two-factor authentication, cold storage of 98% of customer funds, and insurance to protect against theft or breaches of the online storage. This comprehensive approach to security helps ensure user funds are protected at all times.

Possible Regulation: Coinbase is known for its strong regulatory compliance, operating in accordance with major regulatory bodies in the U.S. and other jurisdictions. This adherence to strict regulatory standards ensures operational transparency and security for its users.

Reputation and Reviews: Over the years, Coinbase has built a solid reputation within the cryptocurrency community. Positive reviews from users and its standing in the industry as a reliable, easy-to-use platform further affirm its credibility and reliability as a top choice for both new and experienced cryptocurrency users.

Best Crypto Exchanges

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About Coinbase

Introduction to Coinbase

Coinbase stands as one of the most accessible and user-friendly platforms in the cryptocurrency world, offering a bridge between traditional finance and the emerging digital currency ecosystem. Its platform caters to a range of users from beginners to more seasoned traders and investors, emphasizing ease of use and comprehensive educational resources.

What is Coinbase?

Coinbase is a digital currency exchange that allows users to buy, sell, and store cryptocurrencies like Bitcoin, Ethereum, and many others. It also provides a suite of services including a wallet, professional trading platform, and custodial accounts for institutions.

Background and History

Founded in June 2012, Coinbase quickly evolved from a Bitcoin wallet service to a more expansive cryptocurrency exchange. The exchange is known for its regulatory compliance and was one of the first platforms to provide fiat-to-crypto transactions, simplifying the process of purchasing cryptocurrencies with traditional currencies.

Founders

The vision of Coinbase was conceived by Brian Armstrong, a former Airbnb engineer, and Fred Ehrsam, an ex-Goldman Sachs trader. Together, they set out to make cryptocurrency accessible to the masses. Their efforts have been central to the platform’s design and operational philosophy, focusing on simplicity and security.

Fun Facts and Interesting Details

First Regulated Bitcoin Exchange: Coinbase was the first regulated Bitcoin exchange in the U.S., paving the way for more widespread acceptance of crypto transactions in compliance with local laws.
Bitcoin Payment Processor: In 2012, Coinbase also started off as a Bitcoin payment processor, helping merchants accept Bitcoin while shielding them from its volatility by immediately converting it into fiat currency.
Launch of USD Coin: In collaboration with Circle, another cryptocurrency giant, Coinbase was instrumental in launching the USD Coin (USDC), a stablecoin pegged to the US dollar, in an effort to bridge the gap between fiat and digital currencies.

This holistic approach to simplifying and securing the crypto experience has solidified Coinbase’s position as a cornerstone of the cryptocurrency trading community.

Why Choose Coinbase?

Coinbase is an excellent choice for both new and seasoned cryptocurrency users due to its intuitive user interface and extensive support resources. It simplifies entering the world of cryptocurrencies by offering easy-to-use tools and a straightforward buying process, making it ideal for beginners. The platform also includes an educational section, Coinbase Learn, which provides valuable insights and tutorials to help users understand and navigate the complex crypto market. This focus on user education and ease of use makes Coinbase a strong gateway for anyone looking to start their journey in cryptocurrency investment.

Security is a paramount concern in the crypto space, and Coinbase addresses this with robust security measures, including two-factor authentication, biometric fingerprint logins, and insurance in case the platform itself is breached. For added security, it stores 98% of customer funds offline, protecting them from online hacking attempts. These security protocols align with the best practices in the industry, providing users peace of mind that their investments are safe. This commitment to security makes Coinbase a trustworthy platform for storing and trading digital assets.

Moreover, Coinbase’s wide range of supported cryptocurrencies means that traders and investors have broad market exposure, from popular assets like Bitcoin and Ethereum to an array of altcoins. This diversity allows users to experiment with a varied portfolio, taking advantage of potential opportunities across the cryptocurrency spectrum. Additionally, the platform’s ongoing development and integration of new features, such as staking and more advanced trading functions, cater to the needs of more advanced users. This makes Coinbase a versatile platform that can grow with you as you expand your crypto investments.

Where it falls short

One significant drawback of Coinbase is its fee structure, which is relatively high compared to other exchanges. Users often find themselves paying premium fees for transactions, which can accumulate, especially for active traders. To improve, Coinbase could consider restructuring its fee model to offer more competitive rates, possibly through a tiered system based on user activity or total volume traded. This change would enhance its attractiveness to frequent traders and those dealing in larger volumes, ensuring it remains competitive in the fast-evolving crypto exchange market.

Another area where Coinbase could enhance its offering is in the realm of advanced trading tools. While the platform excels in simplicity and user-friendliness, it lacks the sophisticated analytical tools and trading options that more experienced traders require. Introducing more comprehensive charting tools, advanced order types, and better risk management features could cater to the needs of professional traders. By expanding its toolset, Coinbase could not only retain users as they become more experienced but also attract a new demographic of professional investors.

Features	Explanation
Minimum Trade	Coinbase allows relatively low minimum trade amounts, making it accessible for beginners.
Trading and Transaction Fees	Fees are higher than average but justified by high security and user-friendly services.
Number of Cryptocurrencies	Offers a wide range of cryptocurrencies, catering to both popular and niche market interests.
Crypto-to-Crypto Trading Pairs	Provides a robust selection of trading pairs, allowing diverse trading strategies.
Website Transparency	Highly transparent about security measures, fees, and operational procedures.
Credit/Debit Card	The card is widely accepted, allows users to earn cryptocurrency rewards on purchases, and integrates seamlessly with Coinbase accounts, enhancing the user experience for everyday transactions.
Storage Offering	Offers secure wallet services with a majority of assets stored in cold storage.
Staking and Rewards	Provides competitive staking rewards and incentives for various cryptocurrencies.
Mobile App and Desktop	Both platforms are user-friendly and highly functional, providing excellent trading experiences.
Customer Service	Offers adequate support, though response times can vary during peak periods.
Deposit and Withdraw	Efficient deposit and withdrawal processes, with some limits and fees that vary by region.

Xavier Tarrasó

EIP and Cryptocurrency Investor

As an expert in the crypto market, I highly recommend Coinbase for its ease of use, especially for beginners entering the world of cryptocurrency. With a highly intuitive user interface, Coinbase makes buying, selling, and managing cryptocurrencies simple, which is why it’s a go-to platform for many users globally. One standout feature is the Coinbase Card, a Visa debit card that allows users to spend their crypto assets seamlessly with real-time crypto-to-fiat conversions at any location where Visa is accepted. This makes Coinbase a practical choice for those wanting to integrate crypto into everyday spending.

Fees

Coinbase is known for its relatively higher fee structure, which can be a significant consideration for its users. The exchange charges a flat fee for smaller transactions and a percentage of the transaction amount for larger ones. Fees vary depending on the payment method used, such as credit/debit cards or bank transfers, and the country of the user. Additionally, Coinbase applies a spread of about 0.50% for cryptocurrency purchases and sales. While the fees may be higher compared to some other platforms, they are often justified by the high level of security, user-friendly services, and the robust infrastructure that Coinbase offers to its customers. This makes it especially appealing to new entrants to the cryptocurrency market who seek ease of use and reliability.

Pros

Predictability: Coinbase's commission structure is transparent and clearly outlined on their website, which helps users understand exactly what fees they will incur per transaction. This predictability is beneficial for both planning investment strategies and managing trading costs effectively.
Simplified Fee Options: For smaller transactions, Coinbase offers a flat fee option, which can be more economical for users making small volume purchases or sales. This can be especially appealing for beginners or casual traders not looking to make large transactions.
Security Justification: The higher fees charged by Coinbase are often seen as a trade-off for the high level of security and reliability the platform provides. This includes extensive security measures and insurance against certain types of losses, providing peace of mind for investors.

Cons

Higher Cost for Active Traders: The fee structure can be costly for frequent traders or those trading in large volumes. Compared to other exchanges that offer lower fees or tiered pricing based on trading volume, Coinbase's fees can add up, affecting the overall profitability for active users.
Fee Complexity: While the flat fees for small transactions are straightforward, the variable fees based on the percentage of transactions can become complex depending on the payment method and the amount traded. This complexity can sometimes make it difficult for users to calculate the exact cost of their transactions upfront.

Trading Commissions

Coinbase’s trading fee structure is tiered and primarily based on the user’s location, method of payment, and transaction amount. For U.S. customers, the platform charges a base rate of 4% for all transactions. However, this rate can vary significantly due to additional costs determined by the payment method:

U.S. Bank Account: 1.49%
Coinbase USD Wallet: 1.49%
Debit/Credit Card: 3.99%
Wire Transfer: $10 ($25 outgoing)

For trades involving cryptocurrency conversions, Coinbase charges a spread of about 0.50% of the trade value. Market fluctuations may cause this percentage to vary, as Coinbase calculates the spread at the time of the transaction. The exchange uses a volume-based pricing model where higher-volume traders enjoy reduced fees, making it an attractive option for large-scale traders. This structure aligns with practices across the industry where exchanges incentivize high-volume trading.

Hidden Commissions and Additional Fees

Beyond the obvious trading fees, Coinbase also imposes several lesser-known charges that can impact the overall cost to users:

Withdrawal Fees: While not directly a trading fee, withdrawal charges can be considered hidden fees. These fees vary depending on the cryptocurrency being withdrawn and the network load at the time of the transaction. For example, withdrawing Bitcoin might incur a different fee compared to Ethereum due to the different network fees associated with each blockchain.
Currency Conversion Fees: If a user needs to convert between currencies not directly traded on Coinbase, an additional spread is charged. This fee is above the market exchange rates, which can subtly increase the cost of trading.
Inactivity Fee: Unlike some other platforms, Coinbase does not charge a direct inactivity fee. However, users should be mindful of maintaining minimum balance requirements to avoid potential account maintenance fees.

Comparative Analysis

When placed in the broader context of global cryptocurrency exchange fees, Coinbase’s fee structure can be perceived as higher than many of its competitors. Exchanges like Binance or Kraken offer lower transaction fees, which can be as little as 0.1% per trade for high-volume traders, significantly undercutting Coinbase’s fees. However, these platforms might not match Coinbase in terms of user interface simplicity and regulatory compliance within the United States.

Strategic Considerations for Users

Users need to strategize their use of Coinbase to minimize fees. Utilizing ACH transfers instead of debit cards can save on transaction fees. Engaging in fewer, larger transactions rather than many small trades can also reduce costs, as the flat fees become a smaller proportion of the transaction value.

Additionally, users should consider the overall benefits of Coinbase’s security measures, customer service, and platform stability, which might justify the higher cost compared to other less robust platforms.

Conclusion

In conclusion, while Coinbase’s fees are on the higher end of the cryptocurrency exchange spectrum, they are accompanied by an ease-of-use and a level of service that can justify the extra cost for many users. The platform remains a solid choice for those new to cryptocurrency or those who value a secure, well-regulated trading environment. Prospective and current users should remain cognizant of the various fees and structure their transactions to minimize costs where possible, ensuring an efficient trading experience tailored to their needs.

Product selection

Coinbase offers a diverse array of services and products designed to cater to a broad spectrum of cryptocurrency enthusiasts, from beginners to institutional clients. At its core, Coinbase provides a platform for buying, selling, and exchanging a wide variety of cryptocurrencies such as Bitcoin, Ethereum, and many more. Users can utilize Coinbase Wallet, an easy-to-use and secure app, to store their digital assets independently of the exchange. For advanced traders, Coinbase Pro offers a more robust trading experience with detailed analytical tools, real-time order books, and lower transaction fees.

Additionally, Coinbase supports staking rewards for certain cryptocurrencies, allowing users to earn rewards by holding specific coins in their Coinbase accounts. The exchange also caters to institutional clients through Coinbase Prime, which provides dedicated tools and services tailored to meet the needs of institutional investors, including advanced trading options and increased liquidity. Overall, Coinbase’s comprehensive service offerings make it a versatile platform suitable for a variety of users within the cryptocurrency market.

Pros

Comprehensive Product Range: Coinbase provides a versatile range of products and services, including Coinbase Pro for advanced traders, which offers detailed analytical tools and a more dynamic trading environment. This caters to both novice users and experienced traders, making it a one-stop-shop for diverse cryptocurrency needs.
User-Friendly Interface: One of Coinbase's standout features is its intuitive and accessible user interface. This makes it exceptionally easy for beginners to navigate the platform, conduct transactions, and manage their portfolios without a steep learning curve, enhancing the user experience significantly.
Security and Reliability: Coinbase is known for its strong security protocols, including two-factor authentication and cold storage of the vast majority of client assets. Additionally, it is one of the few cryptocurrency exchanges that is insured and regulated, providing an extra layer of security and trust.

Cons

Higher Fee Structure: Despite its extensive offerings, Coinbase's fee structure is relatively high compared to other platforms. This can be a significant disadvantage for active traders who may find the cumulative costs of transactions cutting into their potential profits.
Limited Customization for Advanced Traders: While Coinbase Pro offers more advanced features than the standard platform, it still lacks the depth of customization and advanced order types provided by competitors that cater specifically to high-volume professional traders. This could be a deterrent for those seeking more sophisticated trading tools and capabilities.

Read more about product selection in Coinbase

Coinbase is a comprehensive cryptocurrency exchange offering a wide range of services and products to accommodate the diverse needs of its user base, from novice traders to seasoned investors and institutional clients. Here’s an extensive overview of the products and services available on Coinbase:

Standard Trading and Coinbase Pro

Coinbase provides a user-friendly platform for regular trading, suitable for beginners, with a straightforward process for buying, selling, and managing cryptocurrencies. For more experienced traders, Coinbase Pro offers advanced features like detailed charts, trading history, order books, and lower transaction fees. This platform is designed for serious traders looking for more control and detailed analytical tools.

Coinbase Wallet

The Coinbase Wallet is a self-custody wallet, giving users control over their keys, which are used to access the cryptocurrency assets. This product is separate from a Coinbase account, where Coinbase holds the keys. The wallet allows users to store a wide range of cryptocurrencies and interact with decentralized applications (dApps).

Coinbase Card

Coinbase offers a Visa debit card that allows customers to spend their cryptocurrency assets for daily purchases. Whenever the card is used, Coinbase converts the cryptocurrencies to fiat currency, such as USD, in real time.

Earn and Staking

Coinbase Earn allows users to earn cryptocurrencies by watching educational videos and completing simple quizzes about specific coins. This is designed to educate users about new cryptocurrencies while rewarding them with a bit of the currency to try out. Additionally, Coinbase supports staking, where users can earn rewards simply by holding certain cryptocurrencies in their Coinbase accounts, contributing to the network’s operations and security.

Coinbase Ventures

This is an investment arm of Coinbase that invests in early-stage crypto and blockchain startups. Coinbase Ventures helps stimulate innovation in the blockchain ecosystem by providing financing to promising new companies.

Coinbase Commerce

This is a payment service for merchants, allowing businesses to accept cryptocurrency payments in a fully decentralized way. Merchants can integrate Coinbase Commerce into their businesses and begin accepting crypto payments for goods and services without transaction fees.

Institutional Services

Coinbase offers services tailored for institutional clients through Coinbase Prime, providing advanced trading, custody, and reporting tools. This platform is designed for the higher operational demands of institutions and offers features like over-the-counter (OTC) trading.

Coinbase APIs

Developers can use Coinbase’s APIs to build new applications and integrate existing ones with Coinbase features like wallets, trading capabilities, and more. These APIs facilitate a range of functionalities, including automating trading strategies, retrieving real-time or historical price information, and managing accounts.

Educational Resources

Coinbase places a strong emphasis on education through Coinbase Learn and various research publications that help demystify cryptocurrency and blockchain technology for all levels of traders. This platform offers guides, tutorials, and market analysis to enhance users’ understanding.

Additional Financial Products

Coinbase continuously expands its offerings, exploring products like futures and derivatives trading for users in certain jurisdictions. These financial products allow for speculation on price movements without the ownership of the actual cryptocurrencies.

Promotions and Referral Programs

Frequent promotions and referral programs incentivize users to invite others to join the platform. New users and those who refer them often receive bonuses as Coinbase credits, which can be used to offset trading fees or converted into cryptocurrencies.

Security Features

Coinbase employs robust security measures such as two-factor authentication (2FA), biometric logins, and cold storage for the majority of customer funds. These features ensure that users’ accounts and assets are well-protected against unauthorized access and potential security breaches. Through these extensive offerings, Coinbase caters to a broad audience, ensuring tools and products are available to meet a wide array of needs and preferences within the cryptocurrency space. This approach not only enhances user experience but also enriches the ecosystem with innovative financial solutions.

Account opening

Opening an account with Coinbase is a straightforward and user-friendly process designed to welcome new users into the world of cryptocurrency trading. Initially, you are required to provide your email address and create a password. Following this, Coinbase will ask for a verification of your email address to ensure security. Once your email is confirmed, you will be prompted to enter additional personal information, which may include your phone number for two-factor authentication, enhancing account security. Identification verification is a crucial step in the process, requiring you to upload a government-issued ID to comply with regulatory requirements. This step is integral for ensuring the safety and security of the platform and its users.

After these steps, you will need to link a payment method, like a bank account or credit card, which you will use for funding your purchases. Once your payment method is verified, you are all set to start trading cryptocurrencies on Coinbase. This seamless process is designed to guide new users through setup while ensuring compliance with legal standards and securing personal account information.

Pros

Simplicity and Speed: Coinbase offers a streamlined account setup process that is notably easy and quick, especially appealing to beginners. The steps are clear and guided, making it straightforward for anyone, regardless of their tech savviness, to start trading cryptocurrencies promptly.
Compliance and Trustworthiness: The thorough verification process, although time-consuming, ensures that Coinbase complies with regulatory requirements, fostering a trustworthy trading environment. This compliance reassures users that Coinbase is a secure and reliable platform for trading and storing cryptocurrencies.
Robust Security Measures: During the account opening process, Coinbase requires two-factor authentication and ID verification, which significantly enhance the security of the user's account. These measures protect against unauthorized access and fraud, providing peace of mind for users about the safety of their investments.

Cons

Privacy Concerns: The extensive personal information and identification required can be a deterrent for users who are particularly sensitive about their privacy. This mandatory sharing of personal data might be unsettling for users who prefer maintaining anonymity with their financial transactions.
Potential Delays: While the initial steps of the account opening process are typically quick, the verification of identification can take longer, especially during periods of high demand. These delays can frustrate users eager to start trading immediately or take advantage of timely market opportunities.

Read more about account opening in Coinbase

How to Sign Up on Coinbase

Step 1: Visit the Website

Start by navigating to the Coinbase website. Click on the ‘Get Started’ or ‘Sign Up’ button typically located at the top right corner of the homepage.

Step 2: Fill in Your Details

Enter your basic information such as your name, email address, and choose a strong password. It’s important to use an email that you regularly check, as Coinbase will use it for essential communications.

Step 3: Email Verification

After submitting your details, check your email for a verification message. Click on the verification link sent by Coinbase to confirm your email address.

Step 4: Phone Verification

Provide your phone number and verify it through a code sent via SMS. This adds an extra layer of security through two-factor authentication (2FA).

Step 5: Set Up Your Account

Complete setting up your profile by entering any additional required information, such as your address and date of birth.

Opening an Account

Step 6: Identity Verification (KYC)

To comply with financial regulations, Coinbase requires you to verify your identity. Upload a government-issued ID (driver’s license, passport, or national ID card). You may also need to submit a live facial scan using your webcam or smartphone camera to confirm that your appearance matches the ID.

Step 7: Wait for Approval

After submitting your ID, wait for Coinbase to verify your identity. This process can take from a few minutes to several days, depending on the volume of signups Coinbase is handling.

How to Buy Your First Cryptocurrency

Step 1: Add a Payment Method

Navigate to the “Settings” on your account dashboard, select “Linked Accounts,” then click on “Link a New Account” to add your payment method, such as a bank account or debit card.

Step 2: Make a Purchase

Go to the ‘Buy/Sell’ page on Coinbase. Select the cryptocurrency you want to purchase, enter the amount you want to buy in your local currency, and then review the transaction details, including the fees that will apply.

Step 3: Confirm the Transaction

Confirm your purchase details. Double-check the payment method and the amount of cryptocurrency you are buying. Click ‘Buy’ to complete the transaction. Your first cryptocurrency purchase will now be added to your Coinbase wallet.

Account Types

Basic Account

Ideal for beginners looking to trade or invest in standard cryptocurrencies. Provides access to basic trading features and wallet services.

Coinbase Pro Account

Aimed at experienced traders, offering advanced trading options, detailed analytical tools, and lower transaction fees.

Institutional Accounts

Tailored for businesses and institutional investors, these accounts provide specialized services, higher withdrawal limits, and dedicated support.

How to Use Coinbase?

Navigation: Utilize the main dashboard to monitor the market, view your portfolio, and access various trading operations.
Trading: Use the ‘Buy/Sell’ tab for straightforward transactions or switch to Coinbase Pro for advanced trading.
Explore: Check out the ‘Learn and Earn’ section to educate yourself about cryptocurrencies and earn free crypto by watching educational videos.

Registration and KYC

Registration involves filling out your personal details during the signup process and is critical for creating your account. The KYC (Know Your Customer) process, a regulatory requirement, involves identity verification to prevent fraud and ensure the security of transactions on the platform.

Depositing Money

In the next section, we will discuss how to deposit money into your Coinbase account, completing your setup and preparing you for active trading.

Security

Coinbase is renowned for its robust security measures, positioning it as one of the safest cryptocurrency exchanges in the industry. It employs a comprehensive range of security protocols to protect user accounts and assets, including two-factor authentication (2FA), biometric fingerprint logins, and AES-256 encryption for digital wallets. Furthermore, Coinbase stores 98% of customer funds in cold storage, which are geographically distributed in safe deposit boxes and vaults around the world to minimize the risk of theft or loss. The platform also maintains an insurance policy that covers any losses resulting from a breach of its physical security, cybersecurity, or by employee theft, providing an extra layer of security. Additionally, Coinbase encourages users to utilize its secure vault service for added protection, which includes timed withdrawals and multiple approvers for enhanced control over large sums. These stringent security measures underscore Coinbase’s commitment to maintaining a secure and trustworthy trading environment for its users.

Pros

Robust Cold Storage: Coinbase securely stores 98% of customer digital assets in cold storage, which significantly minimizes the risk of theft or loss due to hacking. Cold storage refers to keeping cryptocurrency offline, away from any internet access, which is a best practice for protecting large amounts of digital assets.
Comprehensive Insurance Policy: Coinbase provides an insurance policy that covers any losses resulting from a breach of their physical security, cyber security, or employee theft. This insurance gives users peace of mind, knowing that their investments are protected against potential security breaches.
Two-Factor Authentication (2FA) and Additional Safeguards: Coinbase requires two-factor authentication for all user accounts, adding an extra layer of security by requiring not only a password and username but also something that only the user has on them, i.e., a piece of information only they should know or have immediately to hand - often a physical token. Coinbase also uses encryption and secure vaults with timed withdrawals to enhance security further.

Cons

User Privacy Concerns: While Coinbase’s security measures are stringent, they require users to undergo extensive verification processes that involve sharing personal information. For users who prioritize anonymity, this can be a significant drawback as it involves providing sensitive personal data that could potentially be compromised or exposed in a data breach.
Delayed Withdrawals Due to Security Checks: Coinbase’s enhanced security measures, such as the vault withdrawal delay and additional verification for large transactions, can sometimes lead to inconvenient delays for users. These security checks, while necessary for protecting funds, can impede the immediate availability of funds, frustrating users who need quick access to their assets.

Is Coinbase Legit?

Coinbase is widely regarded as one of the most legitimate cryptocurrency exchanges in the industry, trusted by millions of users globally. Established in 2012, it has grown to become a benchmark for safety and compliance within the crypto space.

Regulation and Licensing

Coinbase is heavily regulated and licensed to operate in over 40 U.S. states and territories. Internationally, it adheres to the regulatory standards of every country it operates in, including stringent European laws like the General Data Protection Regulation (GDPR). This commitment to following legal and regulatory frameworks ensures a high level of user protection and compliance with financial laws.

Is Coinbase Safe?

Coinbase is considered very safe for trading and storing cryptocurrencies. It employs a range of security measures and practices that are designed to protect user assets and personal information from theft or hacking attempts.

Security Methods

Cold Storage: Coinbase stores 98% of customer funds in cold storage, ensuring that the majority of assets are kept offline and away from potential online vulnerabilities.
Encryption and Data Protection: The platform uses AES-256 encryption for the storage of all personal data. Additionally, sensitive data that would normally reside on servers is disconnected entirely from the internet.
Two-Factor Authentication (2FA): Mandatory for all users, 2FA adds an extra layer of security at login by requiring a second form of verification in addition to the password.
Vaults: Coinbase offers a vault service that provides time-delayed withdrawals (48 hours) and multiple approvers for enhanced security, particularly useful for the storage of large amounts of cryptocurrencies.
Insurance: In the unlikely event of a breach, Coinbase’s insurance policy covers any loss of funds due to security breaches, cybersecurity attacks, and employee theft.

Security History

Throughout its history, Coinbase has maintained a strong security record with no major successful attacks on its platform. It has continually adapted its security measures to address emerging threats and vulnerabilities, demonstrating a proactive approach to safeguarding user assets.

Why It Is a Secure Crypto Exchange

The combination of regulatory compliance, advanced security technologies, insurance, and a strong track record of safety establish Coinbase as one of the most secure platforms in the cryptocurrency industry. Its use of offline cold storage for the majority of its assets, rigorous data protection measures, and adherence to regulatory standards all contribute to its reputation as a safe haven for crypto traders.

Conclusion

Coinbase’s extensive focus on security, compliance, and user safety makes it a highly secure and trustworthy platform for cryptocurrency transactions. If there were any reasons to doubt its safety, it would likely stem from external factors such as broader systemic risks associated with the crypto market or user practices like weak personal security measures. However, as it stands, Coinbase’s own security infrastructure is robust and designed to protect against internal and external threats effectively.

Customer service

Coinbase provides a comprehensive customer service framework designed to assist users with a wide range of issues and inquiries. The platform offers support through various channels, including email, a dedicated help center, and automated chatbots. While there is no direct phone support for all issues, Coinbase does provide phone support for account lockouts and other critical security issues, ensuring users can quickly resolve urgent matters. Customer reports generally indicate that response times can vary, with some users experiencing delays during peak times, which is a common issue in the rapidly growing crypto industry. Overall, customer feedback suggests that while the support is helpful and informative once reached, the accessibility and speed of support could be improved. Coinbase continues to develop its customer support services, aiming to enhance response times and user satisfaction, aligning with its commitment to maintaining a user-friendly and secure trading environment.

Pros

Multiple Support Channels: Coinbase provides several ways for users to seek help, including a detailed help center, responsive email support, and a chatbot for more immediate assistance. This variety ensures that users have multiple avenues to resolve their issues, enhancing overall accessibility and user satisfaction.
Security-Focused Phone Support: For critical issues such as account lockouts or potential security breaches, Coinbase offers direct phone support. This service provides immediate assistance for urgent matters, ensuring that users can secure their accounts quickly and effectively, which is crucial in the fast-paced crypto market.
Dedicated Help Center: The Coinbase Help Center is a comprehensive resource packed with articles, guides, and FAQs that cover a wide range of topics. This extensive repository allows users to quickly find answers to common questions and troubleshoot issues on their own, potentially reducing the need for direct contact with customer service.

Cons

Delayed Response Times: Despite multiple support channels, users often report delayed response times, especially through email and during periods of high demand. These delays can be frustrating for users who need timely support to address trading issues or account concerns, impacting their overall trading experience.
Limited Direct Human Interaction: While Coinbase does offer a variety of support options, the reliance on automated systems like chatbots can sometimes hinder users who require more detailed, human assistance. The absence of widespread, direct human support via phone for all types of issues can leave some users feeling underserved, especially in complex situations that automated systems may not adequately address.

Read more about customer service in Coinbase

Customer Support at Coinbase

Coinbase offers a structured customer support system designed to address a variety of user inquiries and issues effectively. Their support infrastructure includes several components aimed at providing comprehensive assistance to ensure a smooth user experience.

Reputation and Customer Feedback

The reputation of Coinbase’s customer service is mixed. Users praise the platform for its user-friendly interface and the breadth of resources available at the Help Center. However, there are frequent mentions of slow response times during periods of high demand, such as during market surges or downturns. The quality of support received can vary, with some users reporting quick resolutions to their issues, while others experience delays and less helpful interactions. Overall, while there are areas of strength, there is noticeable room for improvement in how consistently effective the support is perceived by the broader user base.

Methods of Contact

Coinbase provides several methods for users to seek support:

Help Center: A comprehensive database of FAQs, troubleshooting articles, and guides.
Email Support: Users can submit support tickets via email, which is useful for non-urgent and detailed inquiries.
Live Chat: For real-time assistance, Coinbase offers a chatbot, which can also escalate issues to human support if necessary.
Phone Support: Available for urgent issues related to account security such as breaches or lockouts, providing direct and immediate assistance.

Response Time

The response time for Coinbase support can vary significantly based on the method used and the current demand on the system. Emails may take several days, especially during periods of high traffic, while the live chatbot offers immediate responses but may not always resolve more complex issues without escalation. Phone support for urgent security issues tends to be quicker but is limited to specific critical concerns.

Additional Considerations for Readers

When reaching out to Coinbase customer support, it’s helpful to have all relevant information about your issue ready, including transaction IDs, screenshots, and detailed descriptions of your concern. This preparation can help streamline the process, whether you’re interacting via email, chat, or phone. Additionally, users should regularly check the Coinbase status page for any ongoing outages or issues that might be affecting a larger number of users, as this can provide immediate context for problems they are experiencing. Lastly, engaging with community platforms or social media can sometimes offer swift peer-supported advice and insights into whether others are experiencing similar issues.

Is Coinbase Right for You?

Ease of Use and Educational Resources: If you are new to cryptocurrency or prefer a straightforward, user-friendly trading experience, Coinbase is likely a good match. The platform is renowned for its intuitive interface and extensive educational content, which can significantly ease the learning curve for new users. Coinbase provides guided experiences through Coinbase Learn, helping users understand complex crypto concepts and trading techniques, making it ideal for beginners.
Security and Compliance: Safety-conscious users will find Coinbase appealing due to its strong commitment to security and regulatory compliance. With most of its assets stored in cold storage, robust personal account security features, and compliance with U.S. regulations, Coinbase offers a secure environment for trading and storing cryptocurrencies. This is crucial if you prioritize the safety of your investments and prefer a platform that adheres to high regulatory standards.
Advanced Trading Needs: For more experienced traders, Coinbase offers Coinbase Pro, which features more advanced trading options, including detailed charting tools, comprehensive order types, and lower transaction fees. However, if your trading needs involve a vast array of altcoins or extremely low-fee trading, you might find Coinbase limited compared to other platforms that specialize in these areas. Evaluate whether the available features and cost structure of Coinbase align with your trading frequency and sophistication level.

In conclusion, Coinbase is particularly well-suited for beginners to intermediate traders who value ease of use, educational support, and security. However, it’s also capable of serving more advanced traders through Coinbase Pro. Your specific needs and trading style will ultimately dictate whether Coinbase is the right choice for your cryptocurrency endeavors.

Coinbase compared to other crypto exchanges

Threenvest score

4,9

Fees

US Legal

Yes

Security

High 4,9/5

On the exhange website

Threenvest score

4,8

Fees

US Legal

Security

High 4,9/5

Gemini

Threenvest score

4,9

Fees

US Legal

Yes

Security

High 4,9/5

Available cryptocurrencies and countries available

Available Cryptocurrencies and Countries on Coinbase

Available Cryptocurrencies: Coinbase supports a broad selection of the most popular cryptocurrencies, which caters to the needs of both newcomers and experienced traders. The platform regularly updates its offerings, but major cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP) are consistently available. Users can also trade various altcoins like Chainlink (LINK), Stellar (XLM), and Cardano (ADA), among others. This diverse range of crypto assets makes Coinbase a versatile platform for trading and investing.
Notably Unavailable Cryptocurrencies: Despite its extensive catalog, Coinbase does not list some emerging or less mainstream cryptocurrencies. For instance, smaller or newer DeFi tokens and certain privacy coins like Monero (XMR) might not be available due to regulatory considerations or the platform’s listing criteria.
Available Countries: Coinbase operates in over 100 countries worldwide, offering services across the United States (excluding Hawaii), Canada, the United Kingdom, and much of Europe. This wide reach demonstrates its global appeal and ability to serve a diverse international user base.
Important Countries Not Supported: However, there are significant omissions in its geographical coverage. Notably, residents of countries like China and Russia are not supported due to local regulatory environments that conflict with cryptocurrency trading. Additionally, other regions may have limited access to certain Coinbase services due to local laws or financial regulations.

By understanding the availability of cryptocurrencies and the geographical reach of Coinbase, potential users can better assess whether the platform suits their trading needs and legal circumstances. This overview highlights Coinbase’s broad accessibility while also noting its limitations, ensuring users are well-informed before creating an account.

Main cryptocurrencies available

Bitcoin (BTC)
Ethereum (ETH)
XRP (XRP)
Cardano (ADA)
Polkadot (DOT)
Bitcoin Cash (BCH)
Litecoin (LTC)
Chainlink (LINK)
Stellar (XLM)
Uniswap (UNI)
Dogecoin (DOGE)
Ethereum Classic (ETC)
EOS (EOS)
Aave (AAVE)
Tezos (XTZ)
Cosmos (ATOM)
Algorand (ALGO)
Dash (DASH)
Zcash (ZEC)
Maker (MKR)
Compound (COMP)
Decentraland (MANA)
Yearn.finance (YFI)
Basic Attention Token (BAT)
Enjin Coin (ENJ)
SushiSwap (SUSHI)
Synthetix (SNX)
Kyber Network (KNC)
Storj (STORJ)
Orchid (OXT)
UMA (UMA)
Band Protocol (BAND)
Ren (REN)
Loopring (LRC)
Balancer (BAL)
Numeraire (NMR)
OmiseGO (OMG)
The Graph (GRT)
Avalanche (AVAX)
Solana (SOL)
Filecoin (FIL)
Polygon (MATIC)
SKALE (SKL)
Celo (CELO)

Main countries where you can open an account

United States (excluding Hawaii)
Canada
United Kingdom
Andorra
Austria
Belgium
Bulgaria
Croatia
Cyprus
Czech Republic
Denmark
Estonia
Finland
France
Germany
Greece
Hungary
Iceland
Ireland
Italy
Latvia
Liechtenstein
Lithuania
Luxembourg
Malta
Monaco
Netherlands
Norway
Poland
Portugal
Romania
San Marino
Slovakia
Slovenia
Spain
Sweden
Switzerland
Australia
New Zealand
Singapore

FAQs

1. What cryptocurrencies can I trade on Coinbase?

On Coinbase, you can trade a variety of cryptocurrencies including major names like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC), as well as a diverse range of altcoins such as Cardano (ADA), Polkadot (DOT), and Chainlink (LINK). The platform continuously evaluates and updates its cryptocurrency offerings, so check back regularly for new additions.

2. Is Coinbase available in my country?

Coinbase operates in over 100 countries including the United States (excluding Hawaii), Canada, the United Kingdom, and many countries in Europe and beyond. Restrictions may apply based on local regulations, so please visit the Coinbase website or contact support to confirm availability in your specific location.

3. What are the fees for trading on Coinbase?

Coinbase fees vary depending on the transaction type and the payment method. Typical fees include a flat per-transaction fee and a spread of about 0.50% for cryptocurrency purchases and sales. Additional fees may apply for transactions made via debit card or other instant transfer methods. For detailed fee structures, please refer to the Coinbase pricing and fees disclosures on their website.

4. How do I open an account on Coinbase?

Opening an account on Coinbase is straightforward: Visit the Coinbase website and click on ‘Get Started’. Fill in your email address, create a password, and complete email verification. Provide additional personal information and verify your identity using a government-issued ID. Once verified, link a payment method to start trading.

5. What security measures does Coinbase use to protect my funds?

Coinbase uses several robust security measures including: Storing 98% of customer funds in secure offline cold storage. Implementing two-factor authentication (2FA) for all accounts. Using encrypted SSL (HTTPS) to secure website connections. Offering a digital wallet with multisig and biometric login features for added security.

6. Can I use Coinbase on my mobile device?

Yes, Coinbase offers a user-friendly mobile app available for both iOS and Android devices. The app allows you to manage your account, send and receive cryptocurrencies, and buy or sell assets on the go, just as you would via the desktop platform.

7. What should I do if I have a problem with my account?

If you encounter any issues with your Coinbase account, you can contact customer support via email, the automated chatbot for quick questions, or through the dedicated phone line for urgent issues related to account security. Additionally, the Help Center on the Coinbase website provides comprehensive guides and FAQs that might help resolve your query.

Final opinion on Coinbase

As Threenvest reviews Coinbase, it is evident that this platform stands out as a robust and user-friendly gateway into the world of cryptocurrency trading. Ideal for both novice and experienced traders, Coinbase provides an intuitive interface, extensive educational resources, and a suite of trading options that cater to a broad spectrum of investment strategies. The security measures employed by Coinbase are commendable, with best practices like cold storage of funds, insurance, and stringent compliance with regulatory standards, ensuring a secure environment for digital asset trading.

However, despite its many strengths, Coinbase does exhibit some limitations when compared against the broader landscape of cryptocurrency exchanges. The fee structure, particularly for small transactions and casual traders, can be notably higher than some of its competitors, which might deter those seeking more cost-effective trading options. Additionally, while Coinbase offers a substantial range of cryptocurrencies, it may not match the sheer volume of trading pairs available on platforms like Binance or Kraken.

Nevertheless, Threenvest believes that for users who prioritize a secure, straightforward, and well-regulated trading experience, Coinbase remains an excellent choice. Our comprehensive review finds that while no platform is without its flaws, Coinbase’s commitment to security, ease of use, and continuous improvement align well with the needs of most cryptocurrency enthusiasts and investors.

How do we review crypto exchanges?

At Threenvest, we conduct a thorough review process to evaluate and rank the world’s leading crypto exchanges. Our goal is to offer an unbiased assessment, providing you with the information you need to make informed decisions on which ones best suit your needs. We strictly adhere to the guidelines of our editorial policy.

We collect data directly from exchanges through detailed questionnaires and conduct first-hand testing and observations during crypto exchange demonstrations. Questionnaire responses, combined with demonstrations and hands-on research from our experts, feed into our proprietary evaluation process that scores each provider’s performance on more than 15 factors. The end result produces star ratings ranging from poor (one star) to excellent (five stars).

For more details on the categories considered when rating brokers and our process, read our full methodology.

Risk Disclaimer

Investing in cryptocurrencies is very risky, you should only invest the money you are willing to lose. Also you should not expect to be protected if something goes wrong.

Neither Threenvest, nor the author, are recommending you to invest with this article.

Alejandro Borja Fuentes

Economist | Cryptocurrency exchange analyst

The author of the review

Alejandro Borja is an accomplished economist with a distinguished career spanning various facets of the financial industry. His academic journey began with a degree in Economics, laying the foundation for his deep understanding of financial markets.

Over the years, Alejandro has honed his skills by working with some of the largest financial media outlets, analyzing and reporting on economic trends and investment opportunities. His expertise in financial analysis has made him a respected voice in the economic community.