Coinbase review of cryptocurrency exchange 2022

What is Coinbase?

Cryptocurrency exchange Coinbase is the best solution for anyone who wants to get reliable access to the crypto asset markets, trade them safely without the risk of hacking or other problems. There are a number of reasons for this:

• Security. Working since 2012 with full legality and regulation, which allows you to use the most advanced encryption algorithms and work openly with companies in the field of digital security. Coinbase has a hefty insurance policy covering all the assets of the company’s clients in the event of an unlikely but theoretically possible hack. So all funds are 100% protected not only by the owners of the company, but also by the United States.
• Convenience. The interface is intuitive, there is no clutter of elements, news or super offers that distract the user from the main activity of the site. The tools for novice traders in the educational block deserve special attention. So, newcomers to the crypto industry will not feel unnecessary, in addition, support is active and fast.
• Opportunities. More than 70 cryptocurrencies available for trading, which have proven their reliability and trading activity among traders and investors.

What services does Coinbase offer?

For those who are just now looking for their first crypto exchange or are looking for an additional platform for diversification and safe trading, it is difficult to make a decision, since there are a lot of offers. Let’s take a look at the key services and how they can be used to maximize the benefits of the Coinbase crypto exchange.

• Simplicity + reliability. A simple registration and verification procedure sometimes confuses new users, since Coinbase does not have complex verification with the need to submit a large number of documents. On the other hand, providing a social security number will allow the state to track the movements of the accounts associated with this number and, possibly, lead to the need to pay income taxes;
• Insurance. Coinbase holds all funds not involved in current deposits and withdrawals by customers, which is more than 98% of assets in cold storage. Such vaults are inaccessible for hacking remotely, but are physically under serious protection, which excludes the possibility of taking possession of them. The remaining funds cover the current trading margin.

Moreover, all funds deposited on the Coinbase crypto exchange are 100% insured against any losses not related to the user’s trading activity. If the platform is hacked and funds are withdrawn from current accounts, Coinbase will refund everything without additional proceedings. Reputation for cryptocurrency platforms has become a determining factor in recent years.

• Security. 2FA authorization for each user, the possibility of authorization through a fingerprint or FaceID. Additional data encryption, USB drives, additional storage with hard copies. Geographical location around the world and other points provide maximum protection for all assets. Employees who get a job in the company have an impeccable reputation and are tested at all stages. Being under the permission of US government agencies, the most extensive requests to the relevant authorities are used to verify job candidates, showing even indirect links with possible threats to the site. The personal information of each employee is stored on a separate hard drive under a complex cipher.
• Opportunities. The top 70 cryptocurrencies showing the highest trading activity are summarized in over 200 trading pairs. Being the TOP 1 in terms of liquidity in the US, Coinbase accepts for listing only those cryptocurrencies that are in stable demand by traders and investors, without being distracted for the sake of hype by tokens, the life cycle of which is bright, but short.
• Coinbase Earn. Giving away first balance in cryptocurrencies for exploring industries with Coinbase. Beginners ask a lot of questions and often make a lot of mistakes due to haste in making decisions or incompetence in a particular issue. The answers to all the basic questions are summarized in a series of videos about the exchange and the crypto industry as a whole, for which Coinbase pays to watch with traded tokens on the exchange.
• Mobile applications. Mobility plays an important role for profitable trading and profitable investment at the right time. Not all crypto platforms offer a mobile application due to the need to constantly update the security level, as well as due to difficulties in authorizing users of mobile devices. Coinbase apps have over 10M downloads with 500K+ reviews and an average rating of 4.4.
• Coinbase Pro. An extended version of the Coinbase exchange, which was previously positioned as GDAX. A separate platform where all transactions take place only between users, and the platform works as a guarantor of the transaction. In fact, this is a classic trading scheme through a broker, only in the crypto industry. The functionality has been significantly expanded towards the automation of transactions. More tools for market analysis, as well as trade orders and stop orders familiar to traders. The main benefit for traders is the reduced commission of Coinbase Pro.
• FinCEN. Coinbase is a U.S.-registered market player providing money transaction services. Besides. The crypto platform complies with a number of US regulations:

1. Bank secrecy law. Requires the platform to verify the identity of customers, and also store the transaction history of each customer for at least 5 years. It is required to report transactions of a certain kind to the appropriate department immediately upon completion of the transaction.
2. USA Patriot Law Compliance Program. Coinbase, in accordance with its requirements, appoints employees, and also controls their compliance with the position held and the personal information provided. In addition, controls need to be updated and improved to meet new government requirements.
3. Coinbase operates in all states except Hawaii, so its activities comply with the local laws of each of the states.

Coinbase Wallet

You can store money with Coinbase either directly on the exchange accounts, having constant access to them from a PC or smartphone, or on a special wallet. The Coinbase Wallet is not a classic vault, but a growing ecosystem that allows you to store ERC-20 tokens, take advantage of Airdrop and ICO offers, collect NFTs, pay for purchases, and many other functions.

Coinbase Fees

Compared to other sites, Coinbase charges a noticeably higher commission on customer transactions. If this question is fundamental when making a profit, it is recommended to switch to Coinbase PRO or spread the deposit across several crypto exchanges. The size of the commission is dictated in part by the fact that the company operates 100% officially and its expenditure payments in the form of taxes and fees are much higher than other sites.

Coinbase Deposit Fee

The primary purchase of cryptocurrency for fiat funds is available in two formats.

The first is payment with fiat money for cryptocurrencies from a card or payment system.

The second is to replenish the fiat balance on the exchange and purchase directly through the transaction window.

Account replenishment options:

• ACH Transfer – allows you to replenish your account without commission at all;
• Bank transfer – takes a little longer to be credited and is subject to a commission fee of $ 10.

Coinbase Trading Fees

Buying cryptocurrencies on Coinbase is subject to a “double” commission. The first point pays a 0.5% spread commission, then an additional Coinbase commission is charged in excess of the commission amounts indicated in the tables.

Coinbase Withdrawal Fee

Withdrawals are subject to fees on a split basis. Coinbase withdrawal fees depend on the payment system to which the withdrawal is ordered, the country (state), as additional taxes and fees may be charged under local law. For the United States, the conclusion most often comes down to two directions:

• SEPA transfer – with a commission of 0.15 Euro;
• Classic bank transfer in US dollars – commission 25 USD.

Important! A number of countries, such as Australia and Singapore, prohibit the withdrawal of funds in fiat currencies, that is, only cryptocurrency can be withdrawn from Coinbase. The list of countries may change depending on the adoption of certain laws regulating the crypto market, both in the United States and in other countries.

Coinbase Pro Fee

As already mentioned, Coinbase Pro is a different exchange, on a separate server, actually having a different accountability. The principle of calculating commissions here is based on the formation of a 30-day trading volume. Trading must be conducted with any coins other than Stablecoin. The higher the trading volume during the last 30 days, the lower the site commission will be.

This applies to both types of transactions:

• Taker – a trader who places his order at the current, market price in the expectation that it will be accepted by another market participant;
• Maker is a trader who creates an order with a pending execution, the price of which differs from the current one. Such an order is placed in the order book and will be executed when the price reaches the mark indicated in it.

Coinbase Bonuses and Promotions

Since government regulation also extends to methods of attracting new customers and exposing them to all the information about the industry, Coinbase does not crumble into promotional or bonus offers, but does not completely avoid it either:

• “Paid” training – for watching videos from the Coinbase crypto exchange knowledge base, you are paid in new tokens, which can be immediately exchanged for any currencies, or held until they grow. This motivates beginners to devote more time to learning, to generate additional capital and not to make unforgivable mistakes in the early stages.
• Airdrop is a classic crypto exchange customer support program where new coins are placed or presented. Thus, the site draws attention to a new market and forms a pool of traders who create liquidity. Free coins – a bonus for activity and loyalty to the company;
• ICO – the opportunity to participate in an initial offering can be very profitable with the right approach. For the cryptocurrency market, this opportunity is no longer closed, as in classic promotions, so all participants can get a high profit.

Is Coinbase exchange safe?

Absolutely safe. For those. Anyone who aims to receive legal income from transactions with cryptocurrencies Coinbase is an ideal option to get started. Full verification of state documents will exclude access of third parties to accounts.

Full additional deposit insurance allows you not to worry about hacking or other problems.

Storage of 98% of assets takes place outside the trading platforms, which nullifies all attempts to hack services. The benefit from such an action will not cover the resources expended, and therefore is useless.

The legality of work in the United States extends the entire legal framework of the relevant codes to the actions of all parties on the exchange.

Pros and cons of Coinbase

Despite all the attempts of Coinbase format companies to create ideal conditions, you can always highlight the positive and negative aspects of working with the project.

Negative

1. Payment commission is higher than that of competitors;
2. Complicated payment method;
3. Transparency of the movement of funds for government agencies;
4. Support works only by e-mail, there is no chat or hotline for prompt resolution of issues.

Positive

1. Simplicity and convenience of the interface, intuitive clarity of what is happening;
2. Registration and verification are very simple, just a few minutes and the account is ready to go;
3. Additional insurance for all deposits is an independent decision by Coinbase, and not a requirement of regulators. Funds are insured against hacking or fraud by a third party;
4. Wide range of assets for trading;
5. High reliability and safety of work.

Verdict

Coinbase is the most popular crypto exchange in the US. Legal and safe service for trading and exchanging cryptocurrencies with great benefits for new traders. 70+ crypto assets for investment and active trading. Ability to deposit and withdraw funds in fiat currencies.

A high level of security, including the storage of assets off the exchange, full insurance against any illegal withdrawals, the ability to use government resources to monitor activity, and other points make the company’s security almost absolute.

The only thing that lowers the overall rating is a slightly overpriced commission for trading. On the other hand, there is always the option to lower the fees by switching to Coinbase Pro. It is also worth understanding that a competent trading strategy always takes into account commissions and additional fees of trading platforms and profitable traders are not particularly worried about this variable.