Thinking of using Coinbase cryptocurrency exchange? Here’s our review for everything you need to know.
As Bitcoin grows in popularity, investors all around the world are flocking the crypto market to purchase some of these highly profitable assets.
To buy, sell and trade cryptocurrency including Bitcoin, you need to use a crypto exchange.
The space is on fire. More and more crypto exchanges have sprung up to offer a myriad of services to meet this demand.
Some are specially catered for beginners while others are better for advanced traders.
So, where should I purchase Bitcoin? Which exchange is the best for buying Bitcoin?
Coinbase is one of the more user-friendly choices for you if you’re new to cryptocurrency…
- Is Coinbase safe to use?
- Can Coinbase be trusted?
- Are Coinbase fees follow industry standard?
In this article, I’ll answer your most pressing question and everything there is to know about Coinbase.
Now let’s get to it:
What is Coinbase?
Coinbase is a California-based cryptocurrency exchange that offers its users a simple way to securely buy, sell, trade, store Bitcoin and cryptocurrencies.
Founded in 2012 by Brian Armstrong and Fred Ehrsam as part of Ycombinator, Coinbase is one of the oldest and most recognizable trading exchanges present today.
The platform has the world’s largest customer base, supporting over 43 million users across 100 countries worldwide. And recently, the exchange even files for IPO as Bitcoin is surging.
Coinbase Features
Currently, Coinbase offers two main products:
1. Coinbase Pro (formerly known as GDAX): a professional trading platform
2. Fiat-to-crypto exchange: an instant crypto exchange with a user-friendly interface
What is more, Coinbase also offers advanced features such as:
- Staking – Earn rewards on your crypto (i.e. Tezos staking annual return ~5%). Eligible crypto for staking: ALGO, ATOM and XTZ
- Custody – You don’t need to move funds to trade with the Coinbase vault
- Payments – Coinbase Commerce allows merchants to accept payment directly in Bitcoin and other crypto
- Spending – Coinbase Debit Card to spend funds from your Coinbase cryptocurrency wallet, anywhere in the world – without having to wait for withdrawals to hit your bank accounts.
- Crypto tax calculator -simplify your filling without needing to port into a third party tax program.
- Learn and earn – Coinbase Earn lets you earn up to $40+ in crypto by learning how they work. (Valid in certain regions only)
Every Coinbase account comes with a free built-in wallet which you can use to buy, send and store your Bitcoin. This is great if you want to get hold of some Bitcoin quickly but don’t have a personal wallet yet. But it’s highly recommended to use a self-hosted Bitcoin hardware wallet like Ledger or Trezor to store your precious coins for long-term.
Important: Keep in mind that Coinbase is only good for buying Bitcoins and not for storing them. No matter where you purchase crypto, Don’t store your Bitcoin on any crypto exchange or platform any longer than you need to.
Always move your Bitcoin to your own wallet (which you control the private key) every time you complete a transaction. Here’s a list of the top 3 Bitcoin hardware wallets.
How to Buy Bitcoin using Coinbase
Coinbase makes buying and selling cryptocurrency easy.
If you’ve never dabbled with cryptocurrency exchanges before, you do so within minutes on Coinbase.
Step 1: Sign up for a free Coinbase account
Head over to Coinbase and create your free account with your email ID.
You can choose to create an individual or business account. Once you enter your name and email, verify the capture and agree to the terms and conditions, click on the “Create Account” to get started.
Note: Even if buys and sells aren’t yet available in your country, you still can register a free account and take advantage of Coinbase features such as:
- Sending and receiving crypto funds
- Keeping your funds with 2FA (Two–factor authentication)
- Coinbase Vault
- Recurring payments
Step 2: Verify your email address
Next, Coinbase will send a confirmation email to the email address you used when creating your account.
All you need to do is open the email, click on the link and Coinbase will guide you through the setup process in a few easy steps.
You’ll be taken to a page where you can connect your phone number to your Coinbase account. This will secure your account by verifying your phone when making large transactions.
Then, a code will be sent to your mobile phone. Once you enter the code, you will be able to log in to your dashboard.
This is how your Coinbase account would look like:
Step 3: Set up your profile
Now, let’s setup your profile. Go to “Settings”, upload your picture, change your password, and enable 2FA for extra security.
Step 4: Verify your identity
Before you can start using Coinbase, you’ll need to verify your account by submitting personal documents such as national ID, passport or driver’s license.
The specific verification requirement may differ depending on the country.
Follow the instructions, select the verification method, take a selfie of you holding the document to complete the verification process.
In general, you’ll get your account approved within 1 day.
Step 5: Start buying Bitcoin
After your account is approved, you can start buying Bitcoin, Ethereum and other top cryptocurrencies using a variety of payment methods.
The cheapest way to buy Bitcoin on Coinbase is using bank transfer.
So, add your bank details on the payment method page. You may need to submit a copy of your latest bank statement for verification purposes.
Next, transfer fiat money from your bank account to your Coinbase account and start buying your first (tiny fractions of) bitcoin!
- Credit card
- Debit card
- Cryptocurrency
- Bank transfer (ACH in the US and SEPA in the EU)
- Instant buys via Credit/Debit Card: 3.99%
- US Bank Transfer: 1.49% (0.15 USD)
- Bank transfer (SEPA or ACH): Free
As you can see, funding your Coinbase account using bank transfer is the cheapest method. While buying Bitcoin instantly using debit/credit card will incur a higher fee of 3.99%.
When it comes to trading fees, Coinbase charge a flat fee for total transaction amount below $200.
| Total Transaction Amount | Fee |
| Less than $10 | $0.99 |
| Between $10-$25 | $1.49 |
| Between $25-$50 | $1.99 |
| Between $50-$200 | $2.99 |
If you trade above $200, Coinbase charges a variable percentage fee of 1.49%.
All in all, Coinbase is a good option if you’re looking to buy small amount of crypto.
If you’re planning to buy, sell or trade large volume of crypto (>$10,000), it’s better to use Bitcoin Over The Counter (OTC) trading services which are better at handling large volumes with more competitive rates. Here’s a list of the top 5 Crypto OTC desks.
Coinbase Earn
One notable feature of Coinbase is that it allows you easily earn crypto while learning about crypto.
If you’re not ready to put your hard-earned money into crypto, don’t worry.
Coinbase Earn offers a fun and easy way to earn cryptocurrency for free!
With Coinbase Earn, all verified users are able to earn extra income paid out in cryptocurrency by learning about cryptocurrency projects.
Here are the different types of cryptocurrency you can earn on Coinbase Earn:
Compound (COMP)- Stellar Lumens (XLM)
- Maker (MKR)
- Dai (DAI)
- Zcash (ZEC)
- Basic Attention Token (BAT)
- 0x (ZRX)
- Orchid (OXT)
- NuCypher (NU)
- The Graph (GRT)
- Celo (CGLD)
- Filecoin (FIL)
- Band Protocol (BAND)
- Algorand (ALGO)
- Kyber Network (KNC)
- Tezos (XTZ)
- EOS (EOS)
- And more cryptocurrencies will be added in the future.
How to Earn Free Crypto with Coinbase
To start earning cryptocurrency on Coinbase, you’ll need to create an account with Coinbase. It’s free!
Choose any crypto-related courses that interest you, and click “Start Course”.
Spend 1-2 minutes to watch a short educational video about the selected cryptocurrency. After watching the video, you complete a simple quiz testing what you’ve learned.
That’s it. You receive crypto directly into your Coinbase wallet for each completed quiz.
If you like earning crypto in your spare time, check out this 10 legit ways to earn free Bitcoin.
Is Coinbase Safe and Legit?
Choosing a reliable exchange is an important decision to make, as you need to trust the company to keep your personal information and money safe at all times.
Coinbase is considered one of the safest places to buy and sell cryptocurrencies. They offer top-notch security and insurance to protect your funds.
Now, let’s see what makes Coinbase safe and legit:
- 97% of cryptocurrency are stored in encrypted, geographically separated, offline storage.
- All of the bitcoins stored in online computers are insured.
- The policy insures against theft of crypto that results from a security breach or hack, employee theft, or fraudulent transfer.
- Store your funds securely with 2-step verification
- Your funds will be insured by the FDIC up to $250,000 (for US residents)
While Coinbase is safe to use, it’s your responsibility to practice basic crypto security to protect yourself against human errors and potential attacks.
Is Coinbase regulated?
Yes. Coinbase is fully regulated and licensed.
Coinbase is a registered company with FinCEN as a Money Services Business. Which means that it is required to complies with the Bank Secrecy Act and the USA Patriot Act as well as assist governments with detecting and preventing money laundering.
That explains why all new users are required to complete the Know-Your-Customer (KYC) procedure.
Coinbase Supported Countries
Coinbase is widely used in the the United States, the United Kingdom, Singapore, Canada and Australia for Bitcoin trading and investing.
It also serves customers in the following European countries:
|
Andorra Austria Belgium Bulgaria Croatia Cyprus Czech Republic Denmark Estonia Finland |
France Gibraltar Greece Guernsey Hungary Iceland Ireland Isle of Man Italy Jersey |
Latvia Liechtenstein Lithuania Luxembourg Malta Monaco Netherlands Norway Poland Portugal |
Romania San Marino Slovakia Slovenia Spain Sweden Switzerland |
Coinbase Pros
- Highly trusted cryptocurrency exchange with great reputation
- Beginner-friendly
- Great user interface
- More than 30 different cryptocurrencies available to trade
- Two-factor authentication
- Bank-level security and insurance
- Transparent and competitive fees
Coinbase Cons
- Strict verification rules
- Average customer Support
Conclusion
Coinbase is a great crypto exchange to buy Bitcoin and top cryptocurrencies, especially for a newbie in the crypto market. For more advanced and experienced traders, Coinbase Pro offers a simple platform with highly intuitive trading interface.
Although you can use Coinbase to store your cryptocurrency, you don’t control the private key. For this reason, if you’re owning a significant amount of crypto, it’s best to use a hardware wallet which you have complete control of your funds.
Are you ready for crypto investing?
Not ready to take the plunge?
What do you think?
Would you use Coinbase to buy, sell or trade cryptocurrency? Why or why not?
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I’ve handpicked a few guides for you to read next:
- Crypto 101: The Ultimate List of Cryptocurrency Resource
- How to Invest in Bitcoin: The Ultimate Guide for Beginners 2022
- How to Sell Bitcoin – The Ultimate Beginner’s Guide 2022
- FAQ: Everything You Need to Know About Bitcoin Before You Buy
- 10 Best Bitcoin Wallets You Should Use to Protect Your Crypto Investment
- 10+ Bitcoin Security Tips For Beginners
- How to Secure your Cryptocurrency? Cold Wallet vs Hot Wallet
- 7 Best Ways to Earn Passive Income with Cryptocurrency
- 10+ Legit Ways to Earn Free Bitcoin (#3 is My Favorite)
- 10+ Easy Ways to Make Money with Bitcoin and Cryptocurrency
- How to Buy Bitcoin Easily Without Fees?
- 7+ Best Bitcoin Lending Sites to Earn Bitcoin Interest
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P.S: This Bitcoin resource is One of – if not the most – comprehensive resources for learning about Bitcoin with over 20 categories ranging from history to buying BTC, setting up a wallet, technical information, mining, security, and trading. Enjoy!
