Coinbase is one of the most popular cryptocurrency exchanges in the world and is well known because, unlike other exchanges, it is based on and subject to US regulations. exchange is divided into several categories, Coinbase – for retail users. , Coinbase Pro – your professional trading platform for individuals, Coinbase Prime – for institutional clients. In this review we highlight each of its various features and controversies that you need to know about.
Key benefits of Coinbase
- Regulated under United States law.
- One of the few exchanges available to US citizens.
- Maintains an insurance policy against theft or piracy.
Key features and functions
One point to keep in mind is that Coinbase only offers spot trading, unlike other exchanges that offer other products like derivatives, futures trading, etc.
Exchange is divided into several categories that cater to different types of users. Coinbase is for retail users, Coinbase Pro for individual professional traders, and Coinbase Prime for institutional clients. This distinction is due to the fact that each one has different functions to serve the user. As an example, the main difference between Coinbase and Coinbase Pro is that Coinbase Pro offers charting tools, real-time order books, among other tools to help the advanced trader get the most out of the exchange. Coinbase Pro and Coinbase Prime offer cheaper transaction fees and more compatible cryptocurrencies. However, they are still substantially less than other exchanges out there.
interface Coinbase Pro
Even though it only offers spot trading, Coinbase has its own suite of products to help users get started. For example, it has its own wallet and allows users to earn cryptocurrencies by participating in its courses.
Coinbase launched in October 2012 and is based in the United States. Its headquarters are in San Francisco, California. It is also being used widely in Europe, where it has an operating license. It currently has more than 30 million users and more than USD $ 150 billion is traded on the Exchange.
Currently, Exchange has expanded to more than 100 countries around the world.
Coinbase is available in more than 100 countries. Most notably in the US, which many exchanges are unable to support due to regulatory issues. However, although Coinbase says it is “available” in some countries, it may not offer the full suite of services, meaning that it can “convert” between different cryptocurrencies and “buy and” sell “them. Check here for services available for your specific country.
Coinbase supports 91 cryptocurrencies, relatively less compared to other major exchanges like FTX or Binance. Also, the availability to buy, sell, send and receive a particular cryptocurrency depends on (a) whether you are using Coinbase or Coinbase Pro; and (b) your location.
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See here the complete list of cryptocurrencies supported by Coinbase.
We can see that Coinbase is actively striving to list more cryptocurrencies. While their current cryptocurrency support is sufficient for most average traders, they lag behind their competitors in this regard. So unless we see more listings in the future, we’ll keep our score of 3.8 / 5 for cryptocurrency support… for now.
Coinbase provides a variety of payment methods and, most importantly, allows merchants to pay in their local currency. However, there are regional restrictions for payment methods. Below is a helpful list of accepted payment methods for various countries.
- Bank deposit: Europe, US, UK
- Debit card: available for most countries, including Australia, Canada, Chile, Europe, Mexico, the UK, and the US.
- Credit card: Australia, Singapore
- Paypal: Canada, Europe (most countries), USA and UK
You can check here to see the accepted payment methods for your specific country. Although we note that the information about the supported payment methods is slightly different from the information on your other page.
Exchange also has its own Coinbase Card – a Visa-based debit card that allows customers to make purchases online and in store using cryptocurrencies. However, currently only available to UK and European customers.
Deposit and withdrawal fees
re are no fees for cryptocurrency deposits on Coinbase. As for withdrawals, Coinbase will only charge you the relevant network fees required to send your funds.
Not all fiduciary deposits or withdrawals are free and the amount depends on the method used. Coinbase supports fiat deposits / withdrawals via ACH, Wire (USD), SEPA (EUR), and SWIFT (GBP).
Coinbase charges different fees depending on whether you are on Coinbase, Coinbase Pro, or Coinbase Prime. rates are cheaper for the last 2 due to the higher volume of these traders.
Coinbase charges its fees based on a manufacturer-receiver fee caral. Placing an order in the market that is executed immediately generates a taker fee of between 0.04% and 0.50%. Conversely, if you place an order that does not match immediately, the order is placed in the order book. When another user places an order and it matches yours in the book, they are charged a manufacturer fee of 0.00% to 0.50%. Policyholder and manufacturer fees are reduced if the negotiated value is higher.
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For stablecoin pairs specifically (for example, USDC / USDT to DAI / PAX, or fiat, etc.), Coinbase charges 0.01% and 0.00% for taker and maker fees respectively.
In late February 2020, Coinbase was identified as one of the entities working with Clearview AI, a controversial facial recognition technology provider facing legal threats from Apple and Google for lack of scrutiny of its practices. Coinbase admits to having tested Clearview’s software, but denies that customer data was used in any of those tests.
exchange has come under fire from users during the Bitcoin price dump on May 10, 2020. On May 10, 2020 at 5:26 PM PST, the Exchange website and mobile app experienced outages. Ten minutes later, Coinbase came out with a notice saying it was still investigating this outage, at 6:14 p.m., the service had been restored. However, during this time, the price of Bitcoin fell from $ 9,500 to $ 8,100, leaving users only able to watch the collapse helplessly and unable to trade.
Coinbase is quite infamous for crashing during big Bitcoin price fluctuations. On April 29, 2020, the exchange suffered a blackout as Bitcoin prices soared to just under $ 9,000. AND AGAIN on May 10, 2020.
Needless to say, users are unhappy with the situation, with some pointing out that Coinbase “crashes” when there is a big change in Bitcoin prices. And while some attribute this to the Exchange being overloaded with users, others are dissatisfied with the way that Coinbase has failed to fix this over the years considering the high fees charged to users.
As for the latest drop on June 1, 2020, Coinbase says that Bitcoin’s price surge triggered a 5-fold increase in traffic in just 4 minutes. As a result, their autoscaling system was overwhelmed and lagged, which meant that new survey requests were either discarded or exhausted. However, Coinbase alleges that they are working to reduce the impact of price-related traffic spikes.
Coinbase experienced a brief outage on Monday, June 1. While we were able to quickly restore service, here’s a deeper look at what went wrong, how we fixed it, and how we’re improving our processes to better serve our customers. https://t.co/5E5jhUfFqS
– Coinbase (@coinbase) June 5, 2020
Is Coinbase safe in 2021?
Exchange has high-end security features. Additionally, by being licensed in the United States, users have additional protection as federal laws apply.
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In terms of the Exchange method of storing funds, only 2% of client funds are held in active portfolios. other 98% are kept in secure cold wallets in different parts of the world. So far, it hasn’t been hacked… yet. Additionally, Coinbase has an insurance policy that insures against cryptocurrency theft resulting from security breaches, hacking, employee theft, or fraudulent transfer.
Regarding account security, Coinbase advises its users to use two-factor authentication. system supports short messages sent to the registered mobile phone number, Google Authenticator, among other reliable ways to prevent malicious account login.
HOWEVER, it is not recommended to store substantial assets on exchanges as exchanges are prone to attack. Best practice is to leave only enough assets for day trading on exchanges, the rest should be stored offline in hardware wallets for.
For more information on hardware wallets, check out our reviews on the Ledger Nano X and Trezor Model T.
Conclusion: pros and cons of the Coinbase exchange
- Coinbase has remained one of the safest and most reliable cryptocurrency exchanges.
- Exchange maintains an insurance policy against piracy and theft, which puts users at ease.
- Generally available in many countries including the US With many payment options.
- fee structure is very confusing and it is not the cheapest there is.
- Lack of functions.
- re are not many supported cryptocurrencies compared to other exchanges.
- It seems unable to handle user surges and has a history of failure during periods of high price volatility.
Services offered: 3/5 Cryptocurrency support: 3.8 / 5 Fees: 3/5 Security: 4.5 / 5 Final score: 3.6