Establishing a name as one of the well-acknowledged cryptocurrency exchanges in the US, Coinbase has turned into a common vehicle in investing by new crypto investors.
Coinbase is a licensed and fully regulated crypto exchange instituted in 2012 by Fred Ehrsam and Brian Armstrong as a fraction of Ycombinator. As of now, Coinbase stands as one of the largest and oldest crypto companies globally, having around 30 million customers in more than 100 countries.
On Coinbase’s initial opening, they only permitted Bitcoin trading. Yet, the company has become a go-to exchange for many crypto enthusiasts, making them quickly add other cryptocurrencies that suit their decentralized criteria.
Coinbase Services
Coinbase is an advanced platform that offers a wide array of products, including custodial accounts for institutions, crypto investing, wallet intended for crypto investors, and even its own dollar stable coin.
Although they have varieties of service to pick from, Coinbase highlights their main service, allowing users to sell and buy Bitcoin through debit card, credit card, and bank account.
Opening an account in Coinbase can be compared to opening an account in banks. Though you know the money is yours, you will not be privileged to have direct access to your coins (money), not get a private seed phrase or key. You will not have the privilege to possess full control over your funds.
Coinbase Pro
Coinbase Pro is a trading platform previously called GDAX.
Opposing the traditional method of Coinbase brokerage— which is simple and comprehensible— Coinbase Pro is a platform dedicated to more adept users, offering a more robust trade experience and charting.
Users of Coinbase can buy cryptocurrencies through market orders that have high fees compared to any other exchange options out in the market. Yet, with Coinbase Pro, the users can place stop, market, and limit orders requiring only low commission fees. Moreover, Coinbase Pro offers an option of margin trading, along with fancy charting capabilities.
Several cryptocurrencies are available to Coinbase Pro, including ETH, BTC, BCH, LTC, and ZRX.
Coinbase Wallet
Back in 2018, Coinbase launched their very own independent mobile wallet available in Android and iOS. This provides security for the user’s cryptocurrency assets. Unlike the wallet utilized in the Coinbase primary platform, Coinbase Wallet holds private keys for use.
The mnemonic phrase— called seed phrase— allows users to extract each key of cryptocurrencies within the wallet.
Coinbase Security
Coinbase provides various safety measures for its account holders. However, users should understand that an exchange account could only reach the highest security possible by securing it themselves. High security should start from the users by using strong passwords and employing other security features like two-factor authentication.
Other than 2-step verification, Coinbase also supports fingerprint logins, offline cold storage, and insurance in case Coinbase is breached. However, the insurance is only applicable if the users’ accounts are breached.
A solid amount of security is provided in Coinbase compared to other leading exchanges. This is the reason why Coinbase is a great platform for those who are looking for safety in crypto investing.
Coinbase Fee
The structure of the Coinbase fee is tricky. On Coinbase Pro, the market price asks 0.5% for the transaction fee. This is a flat fee for transactions below $200. However, most transaction fees are around 1.49% for standard buy, and credit card buys go around 3.99%.
Depositing money through ACH transfer is free but otherwise requires a cost of $10.
Coinbase to Coinbase transitions is free of charge. In contrast, transactions made outside Coinbase will require three confirmations before showing up in your account.
There is no linear answer on how much Coinbase charges for transaction fees, and even people in their community receive relevant complaints towards the company.
In cases of price shifts, Coinbase has the right to decline your purchase. Yet, despite all of the tricky charge rates of Coinbase, they still belong to crypto exchanges with the lowest fee structure— lower compared to CEX.io and Coinmama.
Coinbase Account
Creating a Coinbase account is a very easy and straightforward process. You can sign up by entering your email, name, and password you want to use. Subsequently, an email will be sent, verifying your account. Then Coinbase will ask you to enter your phone number to send you a verification code. Later, the number you put into their system will be used for the two-step verification process.
Just like how bank and investment accounts require proof of identity, Coinbase also needs one— it could be a state identification. If you are settling in the United States, you can use your Social Security Number (SSN). After the verification of your identity, your account will be created, and you can link your bank account, debit, or credit card to allow deposits and withdrawal.
Buying Limits
After setting up your account, you will be able to make small purchases of coins until you increase your buy limit. There are some things you carry out in order to raise your limits; you can start by verifying your phone number and your given photo ID.
If you are a US resident, you can extend to the highest limit, around $25K per day, if you get fully verified.
Limits may also be dependent on the payment method you used to buy cryptos. For instance, compared to credit card purchases, ACH transfers have a higher limit.
Customer Support
The knowledge base of Coinbase is large-scale. Nearly all standard requests could be found on the platform.
Submitting a support ticket takes around 48-72 hours before getting a response. Coinbase also has its own phone support line. However, according to user’s reviews, the quality of support they offer is not satisfying.
The support team doesn’t look into the issues reported on their initial response and receiving “canned responses” is common among users, which doesn’t really help in addressing the problem.
Many users claim that Coinbase is not “support-oriented,” having a lot of issues queued unexplained. If you plan to use Coinbase, take this into account before finally deciding to buy crypto using Coinbase.
Closed or Frozen Coinbase Accounts
One of the usual grudges held against Coinbase are probably closed or frozen accounts. Coinbase takes pride in its legislative compliance, having tight integration with banking rules.
Coinbase has KYC (Know Your Customer) and AML (Anti-Money Laundering) practices because they were the first exchange to acquire US regulatory approval. Coinbase can trace how you spend “coins and could shut down your account if you make violation such to the following activities:
- Transactions that are related to adult services.
- Contraband purchase on underground markets
- Coin resale, especially those without KYC and AML
- Bitcoin gambling
Getting your Coinbase account is rather easy. Although you could still get your money back, there will be an inconvenience, costly experience, and frustration on your side.
Coinbase Withdrawal
Withdrawals usually take place instantly from Coinbase. However, it may take around three days for banks to process the transfer. The withdrawal should appear within an hour.
If Coinbase suspects that you are not responsible for authorizing the transaction, Coinbase may delay your crypto transaction. If this happens, you can either stand by up to 72 hours till your transaction goes through or speed up your withdrawal by verifying your identity again.
In terms of usability, you will not encounter many problems dealing with Coinbase as the platform is designed for easy use to provide a smooth experience to users. However, Coinbase doesn’t allow full control of coins, and every transaction you make will get tracked.