Coinbase Review 2021
Pros / Cons
- Very trusted US-based exchange platform
- Over 42 cryptos offered
- Never hacked so far
- Fees are higher than others crypto exchanges
Last Coinbase review update was on May 3, 2022 @ 6:38 am
What is Coinbase?
It is a user-friendly digital currency wallet hosting platform for people with little or no experience buying/selling, receive, send, or store crypto-assets.
In 2012, Brian Armstrong and Fred Ehrsam founded Coinbase in San Francisco, California, in the United States, and the business flourished following the blockchain hype train of 2017.
By trade volume, Coinbase has currently ranked the largest cryptocurrency exchange in the US. It is licensed and regulated in 40 states and territories in the United States.
Although They started with Bitcoin trading, over the years, it has extended to other cryptocurrencies.
Growing demand for cryptocurrencies in 2015 lead the company to an expansion into Coinbase exchange that’s US-based, which was later rebranded from GDAX to Coinbase Pro.
Why use Coinbase?
They provide a wallet, a digital solution that allows you access to a wide variety of decentralized innovations such as purchasing and storing ERC-20 tokens, gathering unique digital art, and other collectables.
With a Coinbase wallet, you can also shop at online or retail shops that accept cryptocurrencies and send/receive cryptos from and to everyone worldwide.
It provides a platform for investors (novice or professional) to get acquainted quickly with the crypto business. It is a sure platform for cryptocurrency investment.
This crypto exchange currently hosts over 30 other crypto-assets aside from Bitcoin, ranging from the fast-growing Ethereum, Litecoin, Wrapped Bitcoin, and Ethereum Classic etc.
The company promised the inclusion of more cryptocurrencies in its list as they meet requirements.
An example of compliance with the requirements is the Coinbase suspension of XRP-Ripple trading on January 19, 2021, meaning an investor cannot buy, sell or convert XRP on the platform.
The reason given by the California-based company was because of the lawsuit filed against Ripple Labs Inc by the SEC.
Coinbase is one of the safest within the industry.
Little wonder that security is the watchword of the game, as users can deploy multiple security measures such as multiple signatures, confirmation requests, two-factor authentication
One unique advantage of this exchange is that the security measures are set-up upon signing up. So, you can’t forget or skip that part of the registration process.
Just as the website provides optimum security, installing the Coinbase wallet on your device assures you a highly reliable and resilient technology for crypto protection.
Apart from the web-based application at coinbase.com, the US-based crypto exchange offers mobile apps for its clients.
You can download the Coinbase mobile app for Android and IOS devices.
The mobile application serves the following function:
- Easy Buying
You can own a digital currency without stress. Just with your bank account or debit card, you are ready.
- Constant Information
Clients have access to accurate real-time data when using any of the mobile or desktops applications.
The Coinbase mobile apps give clients access to live data feed while they commute or away from their desktops.
Information about your digital currency is readily available to you, and you can ride the ever-growing and descending tides in the crypto market.
You are eased off the trouble of always having to sign in using the website. At the dashboard, you get quick delivery of necessary information.
As mentioned earlier, this app is secure with different security options available for the user. You can lock the mobile app with a passcode, and you can disable access to the app remotely in case of theft or loss of your phone.
Trading Fees & Commissions
Coinbase fees are ranked on the high side in the industry; however, there is a workaround. Stick around, and we’ll show you how it works.
You have to know that at the point of putting these reviews together, Coinbase charges on crypto sales and purchases are at 0.50%.
The US-based crypto exchange also charges a Coinbase Fee, which is the greater of a varying percentage and a flat fee.
Coinbase – Flat Fee
For a total transaction amount less than 10USD, Coinbase will charge 0.99USD, 0.99EUR, and 0.99GBP.
For transaction amounts of more than 10USD and less than 25USD, the charges are 1.49USD.
For transaction amounts that are more than 25USD and less than 50USD, the charges are 1.99USD.
For transaction fees of more than 50USD and less than 200USD, the charges are 2.99USD.
Variable Coinbase Fees
Coinbase charges a 1.49% fee on both US Bank accounts and Coinbase USD wallet, and 3.9% on Debit card transactions.
A transaction fee scenario would be, let’s say, we want to do a 20USD transaction. Coinbase would charge us 1.49USD instead of the 3.99% from card payment since the flat fee is more significant than the 0.79SUSD from the 3.99%.
Fees on Coinbase Pro are charged based on a maker-taker model.
Let’s explain the idea of maker and taker.
If you want your order to get filled instantly, you will place it at market price, and you’ll be considered a taker.
Conversely, if you place a pending limit order, which means your order will not get filled immediately, then you’re considered a maker.
So, you pay the taker fee when your order gets filled instantly.
Below we highlight the percentage fee for maker and taker, which is based on the traded amount by users on one month, so it’s tier-based.
For 0USD to 10K, the Maker fee is 0.50%, and the Taker fee is also 0.50%.
For 10USD to 50K, the Maker fee is 0.35%, and the Taker fee is also 0.35%.
For 50USD to 100K, the Maker fee is 0.15%, and the taker fee is 0.25%
For 100K to 1M, the Maker fee is 0.10%, and the Taker fee is 0.20%
For 1USD to 10M, the Maker fee is 0.08%, and Taker fees are 0.18%
For 10USD to 50M, the Maker fee is 0.05%, and the Taker fee is 0.15%
For 50USD to 100M, the Maker fee is 0.00%, and the Taker fee is 0.10%
For 100USD to 300M, the Maker fee is 0.00%, and the Taker fee is 0.07%
For 300 to 500M, the Maker fee is 0.00%, and the Taker fee is 0.05%
For 500M to 1B, the Maker fee is 0.00%, and the Taker fee is 0.05%
For 1B USD, the Maker fee is 0.00%, and the Taker fee is 0.04%.
Coinbase does not charge clients for the conversion of one cryptocurrency to another using the Coinbase wallet.
For off-platform transactions, Coinbase incurs associated costs. For funding of your wallet or transfer from the Coinbase wallet to another wallet, Coinbase will charge a processing fee. It may vary based on your preferred payment method, location, and other circumstances.
While those in Australia or Canada may buy at a range of 3.99% processing fee, someone in the US may suffer an additional fee aside from the 3.99%.
Commission on Staking
Staking requires keeping funds to support the maintenance and activities of a blockchain network in a cryptocurrency wallet.
In simple terms, staking is sealing crypto to gain incentives. If you stake an asset with Coinbase, your reward will be distributed to you based on the applicable network, less a 25% commission.
How to Open an Account with Coinbase
- Type on the URL section: www.coinbase.com.
- At the top right side of the home page, click on Get started.
- The Create your account section will then pop up. Fill in your name, email, and password. For password creation, a combination of Uppercase, lowercase, numbers, and special characters will strengthen it for acceptance by Coinbase.
- You will receive a mail for verification. Open your email address and click on Verify Email Address.
- Set-up your two-step verification immediately.
- An option to Transfer crypto will appear. You can press the skip for now if you are not transferring from another wallet.
- Upon successful completion of that, your dashboard will open, showing the portfolio page.