In this Coinbase review, we take an in-depth look at this leading exchange, including its fees, security, features, and more, so you’ll know if it’s the best choice for you in 2020.By
Coinbase is one of the world’s largest cryptocurrency exchanges and was one of the pioneers in popularizing cryptocurrencies and making them accessible to the general public for investments and transactions.Here’s our extensive Coinbase review for 2020
In this new Coinbase review for 2020, we cover everything you need to know about Coinbase’s flagship exchange (Coinbase.com).
Coinbase allows its users to buy and sell a variety of cryptocurrencies including Bitcoin, Ethereum, Litecoin, EOS, Tezos, Stellar Lumens, Bitcoin Cash and many others.They also have a recurring buys feature which allows users to invest in cryptocurrency at a scheduled interval.
They were one of the first exchanges to allow staking with Tezos as the first and currently only cryptocurrency staking on their platform.After coinbase added staking, a number of exchanges have since implemented it, including Binance, Kraken and Bitfinex, to name a few.
Coinbase’s mission is to be the most trusted and the easiest to use cryptocurrency exchange.
It has been very successful in achieving this so far and is today one of the leading on-ramps to the cryptocurrency world.
As an exchange, Coinbase has focused on introducing consumers to the world of cryptocurrency and allowing them to purchase major cryptocurrencies, store them on exchange supported wallets and use them to perform transactions.“At Coinbase, our first priority is to ensure that we operate the most secure and compliant digital currency exchange in the world.” Brian Armstrong , Co-founder & CEO of Coinbase
Coinbase enables users from select jurisdictions around the world to buy cryptocurrencies with their local fiat currency as well as sell cryptocurrencies and withdraw fiat currency.This, in combination with its trusted and well-known brand, has made Coinbase immensely popular.
As many cryptocurrency exchanges do not support fiat currency deposits or withdrawals, Coinbase often acts as a bridge between a user’s fiat-based bank account and other crypto-to-crypto exchanges.
Source: Coinbase
This focus on the average consumer, adherence to US financial regulations and oversight, and the provision of fundamental cryptocurrency transactions have made Coinbase one of the most profitable cryptocurrency exchanges.
Coinbase also has the backing and support of some high-profile investment firms, hedge funds, and sovereign wealth funds .Note: Coinbase is currently valued at $8 billion after raising $300 million in a Series E funding round.
Coinbase’s focus on accessibility, simplicity, and compliance has, however, limited the scope of what Coinbase users can do in terms of fiat-to-crypto and crypto-to-crypto trading and advanced investing.
Coinbase currently only offers a small number of trading pairs (compared to some other leading exchanges such as Binance ), limited trade order types, and analytical tools meaning that Coinbase’s flagship platform is best suited for beginner cryptocurrency investors.
However, Coinbase also has an alternate platform for more advanced cryptocurrency investors called Coinbase Pro (or Coinbase Prime for institutional investors).
Coinbase Pro offers a much more comprehensive trading platform, with advanced trading tools, a larger number of fiat-to-crypto and crypto-to-crypto trading pairs and lower trading fees.
Coinbase users can easily upgrade their accounts to get access to Coinbase Pro and are able to send funds between Coinbase and Coinbase Pro instantly and for free.
If Coinbase sounds like it could be the cryptocurrency exchange that suits your needs, then please read on for further details.Number of Fiat Currencies Traded: 1 – 2 (depending on jurisdiction) Number of Cryptocurrencies Traded: Number of Fiat Currencies Supported: 50+ 0.5% spread for fiat-to-crypto trades, 1% spread for crypto-to-crypto conversions Deposit/Withdrawal Fees: Free in some cases, check our ‘Fees’ section below.Headquarters: San Francisco, California, United States Incorporated: United States The History of Coinbase
Coinbase shared humble origins with cryptocurrency in general when its founders, Brian Armstrong , and Fred Ehrsam , first established the company in 2012 as a simple way for people to buy and sell Bitcoins using bank transfers.Photo of Coinbase Founders Fred Ehrsam and Brian Armstrong back in 2014 – Source: Coinbase
At the time this was an enormous leap in terms of cryptocurrency accessibility, as previously Bitcoin transactions required a certain degree of technical know-how and the use of more sophisticated financial payment systems, such as offshore wire transfers, or the use of less than reputable financial intermediaries.
This early focus on accessibility and security then continued in each successive step as the company grew into a massive global exchange for the world’s largest cryptocurrencies.
The next big leap in Coinbase’s development occurred in 2014.Coinbase further expanded the popular awareness of Bitcoin and cryptocurrency in general by working with major service providers to accept Bitcoin as a direct form of payment.
2014 was also the year where Coinbase began working with newer financial intermediaries, such as Stripe and Dish, to enable Bitcoin payments on their systems.
We’re excited to support Dish and their current and new subscribers for their Bitcoin transactions.This is a large step forward in the growing momentum of customers paying companies in Bitcoin for things we do every day, like watching premium TV.
Fred Ehrsam, co-founder of Coinbase
However, it was in 2015 that Coinbase profoundly transformed the crypto space when it unveiled its new licensed U.S.Bitcoin exchange.
After extensive efforts to establish themselves as a regulated US financial institution, Coinbase launched as the first regulatory approved cryptocurrency exchange .
While many of the more libertarian crypto enthusiasts saw this effort as a ‘sell-out’ to the traditional financial forces that cryptocurrency was meant to disrupt, the effort helped to catapult Coinbase to the extreme customer numbers and valuations that define it to this day.
Coinbase’s Features
As a platform for cryptocurrency investments and transactions intended for new and basic users of cryptocurrencies, Coinbase’s features are designed to be simple and accessible for the needs of its core customers.A selection of Coinbase’s features and user interface image – Source: Coinbase
These main features include buying and selling cryptocurrencies, performing transactions with cryptocurrencies, crypto-to-crypto conversions, cryptocurrency storage, and extensive educational resources.Coinbase is our flagship app, available at coinbase.com and on iOS and Android.It is the most trusted and easiest to use on-ramp to cryptocurrency, and the place that you can refer your friends and family members who are new to the world of crypto.We’ll introduce the most proven features here, with a real focus on education and quality.Brian Armstrong, co-founder of Coinbase Buying and Selling Cryptocurrency
You can buy and sell cryptocurrencies by clicking the ‘Buy/Sell’ tab when you log into your account.
You can also buy and sell cryptocurrencies by either going to a cryptocurrency’s page directly or going through your account’s wallet for that cryptocurrency.
Each cryptocurrency will have some basic historical price data displayed as well as the option to either buy or sell this cryptocurrency.
Coinbase currently offers 5 major cryptocurrencies for investing in all supported jurisdictions, and up to 10 more with varying levels of support depending on the jurisdiction.
Cryptocurrencies can also be purchased on mobile devices through the Coinbase iOS and Android applications.
A range of payment methods can be used, including credit/debit cards, banks transfers, and wire transfers using fiat currency.
Crypto-to-crypto conversions are also possible, as explained in detail below.Cryptocurrency Transactions
Coinbase offers account holders several different methods for using their cryptocurrency for transactions, including physical goods, digital products, gift cards, and donations or gifts.
Most cryptocurrency transactions will be handled using merchant-hosted software, requiring only some basic account information to confirm the transaction from Coinbase.
However, Coinbase also supports manual payments from your cryptocurrency wallets and direct cryptocurrency transfers using cryptocurrency addresses.Crypto-To-Crypto Conversions Source: The Coinbase Blog
Coinbase offers customers the option of direct crypto-to-crypto conversions without the need to buy and sell the coins using USD or fiat currency as an intermediary.
Instead, these conversions rely on other cryptocurrencies as the primary unit of account.However, Coinbase does display the value of conversions in your chosen fiat currency to make the process user-friendly.
Currently, Coinbase offers conversions between 15 different cryptocurrencies.
All conversions are automatic and instant using the given exchange rates at the time.What Cryptocurrencies Are Listed on Coinbase?
Coinbase.com currently has a minimum of 5 and a maximum of 15 cryptocurrencies available for direct buying and selling using fiat currency, the amount available to you will depend on the jurisdiction you are based in.However, all 15 cryptocurrencies are tradable in crypto-to-crypto conversions for all supported jurisdictions (US, EU, UK, AU, CA, and SG)
The supported cryptocurrencies are Tezos (XTZ) , Basic Attention Token (BAT) , Bitcoin (BTC) , Bitcoin Cash (BCH) , Dai (DAI) , EOS (EOS) , Ethereum (ETH) , Ethereum Classic (ETC) , Chainlink (LINK) , Litecoin (LTC) , Augur (REP) , USD Coin (USDC) , Stellar Lumens (XLM) , XRP (XRP) , Zcash (ZEC) , and 0x (ZRX) .
Coinbase Pro, on the other hand, has a minimum of 9 and a maximum of 11 cryptocurrencies available to trade with fiat currencies, depending on the region you are from.The total amount of supported cryptocurrencies is higher with up to 20 available for crypto-to-crypto trades.
It’s worth noting that the number of tradable cryptocurrencies on both Coinbase and Coinbase Pro is expected to continue to rise.Cryptocurrency Storage
To accommodate for security concerns associated with online accounts, Coinbase offers a ‘vault’ feature that acts as an extra secure wallet for storing any of the cryptocurrencies that are supported by Coinbase in your jurisdiction.
Coinbase Vault features – Source: Coinbase
The vault has additional optional layers of security, such as multiple email account checks, and a critical 48 hour waiting period during which the withdrawal process can be canceled at any time.
The vault option allows users to store the bulk of their cryptocurrency assets securely, while only releasing funds to their main account wallets as necessary.Educational Resources
As a cryptocurrency exchange focused on accessibility and the popularization of cryptocurrencies, Coinbase offers an extensive list of educational resources for its users.
For complete beginners, Coinbase has created a learning resource that answers every question about cryptocurrencies that a newcomer could possibly have.
Coinbase also recently unveiled Coinbase Earn, which gives users the opportunity to learn about cryptocurrencies while also earning them at the same time.
Currently, Coinbase Earn has courses available on 0x (ZRX), Basic Attention Token (BAT), and Zcash (ZEC).
Coinbase also has a blog that is regularly updated with both company and industry related news and articles.
It is also worth mentioning that Coinbase has one of the most extensive customer support systems, including a frequently asked questions page that covers practically everything that a user would need to know about Coinbase itself.Coinbase Card
Coinbase also allows its users to acquire a ‘Coinbase Card’ which can be used to spend your crypto holdings instantly worldwide.
This physical Visa Debit card automatically syncs with your Coinbase account balance and allow contactless payments as well as ATM withdrawals.
The card can be easily managed and tracked via the Coinbase Card app that is available for Android and iOS Devices.
Since the launch of Coinbase Card in early April 2019, it has already facilitated its customers in spending over $1 million.Our first milestone.Here’s to many more.pic.twitter.com/Quoibwm0KY
— Coinbase Card (@CoinbaseCard) June 26, 2019 Registration and Authentication Process
Coinbase has a substantial process for registering and authenticating accounts, which is either a major positive or negative depending on the nature of the customer.
First, you need to register using your name, email address, and legal jurisdiction after confirming that you have read all the assorted terms and conditions.
They will then send you a verification email to the given address to ensure that you are using your own email address.
Once your email address is confirmed, the two-step identification process will require that you submit a randomized code that is forwarded to your mobile device after inputting your mobile number.
This will establish your Coinbase account, but you still need to verify your identity before you can fund your account and begin making transactions.
For US customers, Coinbase requires an extensive list of personal information, including your address, employer and the last 4 digits of your SSN number.
They will then ask you to upload an image of your photo ID.
You will then be prompted to add the details of your payment methods, including options for bank accounts, wire transfers, debit/credit cards, and PayPal .Go to Coinbase Coinbase Fees
Coinbase has a range of fees for its various services, as well as fees when moving fiat currency in and out of your Coinbase account.Buying and Selling Fees
Coinbase’s fees for buying and selling cryptocurrencies are slightly complicated.
First, in all cases, there is an approximately 0.5% spread that Coinbase places on the current market rate for any cryptocurrency, and the size of this spread can fluctuate depending on current market circumstances.
This means that any purchase of a cryptocurrency will be at a 0.5% higher price than the actual market price at the time of the transaction, and 0.5% lower in the case of a sale.
Coinbase also charges its ‘Coinbase Fee’ on all transactions, which is the greater of either a flat rate or a percentage rate depending on location and payment type.
The flat fee only applies to amounts less than $200 to account for the costs of processing.In most cases, Coinbase’s rate of 1.49% per transaction will apply (3.99% for credit and debit cards).
Cryptocurrency Conversions
For conversions between supported cryptocurrencies, Coinbase does not charge a fee but rather implements an approximately 1% market spread.The size of this spread is also subject to current market forces.
This means that you will be paying 1% more than the market rate for the purchased cryptocurrency in terms of the cryptocurrency that you are spending to complete the purchase.Deposits and Withdrawals US Customers Deposits and withdrawals via wire transfer take business 1-3 days, and bank account (ACH) deposit or withdrawals take 4-5 business days.European Customers Deposits and withdrawals via SEPA transfers take 1-3 business days.
United Kingdom Customers Deposits and withdrawals via GBP bank transfers usually complete within a business day.EUR withdrawals via SEPA transfers take 1-3 business days.Canadian and Australian Customers Coinbase doesn’t have CAD or AUD wallets on its platform so it cannot support the selling of cryptocurrencies in Canada and Australia.However, these users can sell their cryptos through Coinbase using PayPal, but the funds will go directly to their PayPal accounts and cannot be held on Coinbase .Selling or withdrawals using PayPal: Customers in the USA, Europe, UK, Canada, and Australia are able to withdraw funds instantly using PayPal.Buy Cryptos.
