Coinbase Review: IMPORTANT – Read Before Using

Finding a reputable, trusted and safe exchange to buy Bitcoin and other digital assets can be a challenging task with so many choices today.

One of the best trading platforms in the world with over 35 million verified users, supported in more than 100 countries and seen 320 Billion in total volume traded is Coinbase. 

While we aim to provide you with accurate and the latest information in this Coinbase review, we strongly suggest that you visit the website to keep updated with any changes that may occur afterward.

Key  Features:

  • Most popular Bitcoin platform in the USA
  • Coinbase Pro ranked #2 for traffic, trading volume and liquidity
  • Available to users in 100+ countries worldwide
  • Wide variety of deposit and payments methods
  • Supports 46 coins and major fiat currencies
  • Secure and stable online wallet to store funds

overall 

4.7/5

Ease of use

User interface

Fees

Security

This post contains affiliate links with our partners who may compensate us. However, this does not influence our review process or rating system. Read our disclaimer for further information.

Before diving into this review, it is highly recommended to use a hardware wallet such as the Ledger Nano X when buying cryptocurrencies. The ownership of crypto remains in the investor's possession and control, not the exchange. Read our guide on the best Bitcoin wallets for more information.

What Is Coinbase?

Coinbase is a digital currency brokerage that was founded in 2012 by Brian Armstrong and Fred Ehrsam. The platform provides legitimate financial services in the blockchain space and is backed by trusted and world-leading investors.

coinbase site

Coinbase has revolutionized the digital currency environment by providing a simple and easy to use platform for individuals and institutions to buy, trade, store and sell digital assets such as Bitcoin, Ethereum XRP, Litecoin and many others. It is a highly regarded exchange with insurance protection that is supported worldwide and support for popular cryptocurrency assets. 

coinbase stats

Headquartered in San Francisco, California, Coinbase is currently the largest cryptocurrency trading platform in the United States by volume and has expanded its operation to 100 countries such as Canada, the United Kingdom, South Korea, Hong Kong, Australia, New Zealand and Singapore.

EARN $132 With coinbase for learning!

Is Coinbase Safe?

Coinbase is one of the safest places to buy and store digital assets using their online wallet. The exchange features 'bank-like' security measures to ensure customer funds and personal information are kept safe at all times. Based on our research, there have been no reported hacks or compromises of the security systems and web wallets resulting in any loss of funds due to criminal activity.

Coinbase security measures include:

  • 98% cold storage of all customer funds
  • Bitcoin is located in safe deposit boxes and vaults around the world
  • Two Factor Authentication (2FA) on all accounts
  • Wallets and Bitcoin private keys are stored using AES-256 encryption.
  • Strong security culture and organization processes

Features & Services

Ease of use

Unlike other cryptocurrency trading platforms, Coinbase has been designed for beginners and introduce them to digital coins such as Bitcoin and Ethereum. The sign-up, verification and link to payment process takes only a few minutes to complete. Customers can then use a highly intuitive and elegant user-interface on the online and mobile trading app to purchase cryptocurrencies.

Payment Options

Coinbase is a popular trading platform due to its availability worldwide, support for multiple fiat currencies and a wide variety of ways to transfer funds to an account. The platform provides access for individuals to enter the cryptocurrency market using their local currency via a bank transfer, SEPA payments, wire transfer and credit/debit cards. 

Cryptocurrencies Offered

Coinbase supports 46 digital coins on its platform to buy, trade and sell. In comparison to other top platforms such as eToro, the number of available assets is double. Users on the Coinbase platform can trade well-known coins such as BBTC, ETH, ATOM, XRP, LTC, BCH, DAI, EOS, LINK, XLM and many others.

Insurance Protection & Secure Wallet

Coinbase uses a cold and hot wallet storage system to secure its client's funds. At least 98% of customer's digital currency funds are stored on cold wallets. This means that less than 2% of the user's funds are held on hot wallets to provide liquidity on the platform. Coinbase Insurance covers the number of funds stored in the hot wallets and will pay out to cover the cost of lost funds should a comprise or breach of the security systems were to occur.

Coinbase Earn

Users can earn additional income paid out in cryptocurrency by learning about blockchain projects offered on the platform. It is a fun and easy way for beginners to earn money for free by getting involved in the space and educating themselves about trading cryptocurrency and digital assets such as BAND, MKR, COMP, XLM, ALGO, XTZ, DAI and others.

how coinbase earn works

Coinbase Compared

Cutting-edge security measures, an intuitive user interface, the ability to earn crypto for free and a mobile trading app are important features on Coinbase. This comparison table lists alternate crypto exchanges like Coinbase for buying Bitcoin & cryptocurrency.

Exchange

Fees

Rating

Review

Promotion

Website

binance

0.1%

4.8/5

10% off trading fees

gemini

0.5%

4.7/5

None available at this time

etoro

Spread only

4.6/6

None available at this time

Your capital is at risk

cex.io

0.25% / 0.16%

4.2/5

None available at this time

Registration, Login & Account Verification

To buy, sell, send and receive cryptocurrency using Coinbase.com, users will need to verify their identity and add a bank account using the desktop website or mobile app. Customers must be at least 18 years or older. There are no fees to create or maintain a Coinbase account or wallet. 

coinbase account

Users will be prompted to provide a valid email address, mobile phone number, personal details, Government or state-issued ID, driver’s license, passport or passport card and link a payment method. Coinbase will proceed to verify the provided email, the phone number to complete the process. The ID verification process usually takes less than 24 hours to complete once the documents have been correctly uploaded. 

Related: Kraken Vs. Gemini Comparison: Which Crypto Exchange Is Better For Beginners?

Payment Methods

Coinbase supports several payment options for its customers located worldwide. The most popular method for buying cryptocurrency is using a debit card or bank transfer.  The options to deposit, withdraw, buy and sell do vary for each supported country. The deposit options include:

  • Bank account transfers
  • SEPA Payments
  • Wire transfers
  • Debit card
  • Faster Payments
  • 3D Secure Card
  • PayPal

For large investments, using a bank or wire transfer is the best way to buy cryptocurrencies which can take between 1 to 3 days to process depending on the bank. Users that are looking to make a smaller and instant purchase and prefer the convivence can use a debit card. The average speeds of each payment options is an important consideration and are listed below.

Payment

Speed

Bank account (ACH)

4-5 business days

Faster Payments

1-3 business days

Wire transfer

1-3 business days

SEPA transfer

1-3 business days

Debit card

Instant

3D Secure Card

Instant

PayPal

Instant

Instant Card Withdrawals

Instant

Supported Countries

Coinbase offers its financial services to 100+ countries globally including North America, South America, Europe, Asia, Australia, New Zealand and Africa. Citizens from all over the world can use the exchange and broker to buy, trade, store, earn and sell cryptocurrencies. The list of supported countries can be found on Coinbase's country page.

coinbase supported countries

Available Fiat & Cryptocurrency Assets

Coinbase allows users on the platform to buy & sell digital assets by supporting seven fiat currencies such as USD, GBP, EUR, CAD, SGD, NZD and AUD. Traditional currencies can be deposited into the exchange using a variety of payment methods for each country. 

Once the funds have arrived in the Coinbase wallet, users can view the live prices of the cryptocurrency assets before purchasing. The exchange supports 46 cryptocurrencies such as Bitcoin, Ethereum, XRP, Litecoin, as well as popular DeFi tokens like Yearn Finance. The exchange regularly adds new crypto assets to its trading platform which are announced via the social media channels of the Coinbase blog.

coinbase supported cryptocurrency

User's should be aware that the order book trading volume can vary across each country which can result in higher spread charges for low liquidity trading pairs.  For a full list of cryptocurrencies and tokens supported by Coinbase, visit the website. 

Not all cryptocurrency exchanges are the same.

COMPARE COINBASE WITH OTHERS

Coinbase User-Interface

Coinbase has been designed for beginners to get started with digital coins such as Bitcoin, Ethereum and XRP. The dashboard is presented in a way that is easy to use, elegant and simple. The navigation bar on the left provides quick links to the main features and options The home page can be customized to show favorite coins on a watchlist to monitor the prices quickly.

coinbase watchlist

A basic price chart shows the value of the asset which is represented as a line graph and the duration can be changed between daily, weekly, monthly and yearly time frames. There is no complicated charting system, order books, trade history and volume profiles that an advanced cryptocurrency trading exchange would normally show.

Users can click on the asset to view a larger chart with price information such as the overall market cap, recent trading volume in the previous 24 hour period, the circulating supply, its popularity among other investors on Coinbase and the estimated hold time. A great feature is the sentiment graph which shows the trading activity of other users on the exchange. 

coinbase buy bitcoin

This information can be useful for beginners to see whether other traders are adding to their buy or sell positions in the last 24 hours. Also, the sentiment value can provide insight for advanced traders to counter-trend trade when the market participants have overbought the market (i.e. FOMO).

Buying & Selling

Adjacent to the price chart, the order entry window has two options to buy and sell for the selected coin. Users can select the frequency of the transaction which can either be a one of purchase (or sell) or recurring order. Periodic buy orders are a great way for beginners to begin with a small amount and build a position over time while removing the stress of looking at the price every day. 

how to buy bitcoin using coinbase

Users can enter in the amount of fiat currency to spend, review the order and proceed to place a buy/sell order with the connected bank account, debit card or other payment type linked to the account.

Coinbase Fees

Coinbase fees are complicated to understand as it depends on the user's location, trading product and payment type. Generally, the fees range between 0.5% and 4.5% for individuals that use the platform to buy, trade and sell cryptocurrencies. There is no cost for using the Coinbase wallet service to store fiat and cryptocurrency coins.

Spread Fees

All cryptocurrency trades incur a spread charge of 0.5%, which can vary on market fluctuations and the difference between the exchange quoted prices and when the transaction is completed. 

Trading Fees

There are two (2) types of trading fees that will be applied to a cryptocurrency purchase being a flat fee between $0.99 and $2.99 or a variable percentage on the total amount, whichever is greater. The percentage-based fee depends on the user's location and payment type. The variable percentage fee for US payment types are as follows:

  • US Bank account - 1.49%
  • Coinbase USD wallet - 1.49%
  • Debit card - 3.99%

For example, a trader in the United States that purchases $1,000 of Bitcoin using a US bank account or Coinbase USD wallet will incur a variable percentage fee of 1.49% of the total transaction. This would equate to $14.90, which is higher than the flat fee amount of $2.99.  If a debit card was used for the cryptocurrency purchase, the fee would be 3.99%.

Order Amount

Fee

Less than $10

$0.99

Between $10 and $25

$1.49

Between $25 and $50

$1.99

Between $500 and $200

$2.99

Overall, the trading fees on Coinbase are higher compared to other cryptocurrency brokerages and are one of the main drawbacks on the platform. Lower trading platform alternatives such as Binance, Gemini, eToro and CoinZoom offer lower pricing to purchase crypto assets for US-based investors. For a list of country-specific payment charges such as Australia, Europe and the UK, visit the Coinbase pricing page.

Deposit Fees

Using a bank account (ACH transfer) for US investors does not incur a deposit charge. Similarly, it is free to deposit money into Coinbase via SEPA or Faster Payments for residents living in the United Kingdom. International customers can use a wire transfer USD which will incur a small deposit fee of $10.

Country

Method

Speed

Currency

Fee

USA

ACH transfer

3-5 work days

USD

Free

USA

Wire transfer

3-5 work days

USD

$10

USA

Debit card

Instant

USD

3.99%

Canada

Debit card

Instant

CAD

3.99%

Australia

Debit card

Instant

AUD

3.99%

New Zealand

Debit card

Instant

NZD

3.99%

UK

Debit card

Instant

GBP

3.99%

UK

Faster Payments

1 work day

GBP

Free

Europe

SEPA

2-3 work days

EUR

Free

Withdrawal Fees

There is a small cost between $0.55 and $25 for withdrawals from a Coinbase wallet for US users. Other rates apply depending on the withdrawal method and country. Withdrawals can take between 1 to 5 days to complete depending on the method as shown in the table below. The fastest way to withdraw funds from Coinbase is PayPal which is instant for users in the US, Europe, UK and Canada.

Country

Method

Speed

Currency

Fee

USA

ACH transfer

1-5 work days

USD

Free

USA

Wire transfer

1 work day

USD

$10

UK

SEPA

1 day

GBP

€0.15

UK

Faster Payments

1 work day

GBP

Free

Europe

SEPA

1-2 work days

EUR

€0.15

Europe

Instant Card

1-2 work days

EUR

2%

US, Europe, UK, CA

PayPal

Instant

USD, EU, GBP, CAD

Varies

Like other cryptocurrency exchanges, there is a miner's fee for cryptocurrency withdraws to other platforms or hardware wallets. The fee is determined by the blockchain network load at the time of the withdrawal and is displayed to the user before processing.

Security

Coinbase is one of the most secure platforms for cryptocurrency purchases and trading. The brokerage includes several safety measures to protect user's personal information and funds from external threats, internal error (e.g. human mistakes) and misuse of internal authority. Coinbase utilizes the following institutional-grade measures for secure Bitcoin storage:

  • 98% of customer funds are stored offline
  • Funds stored across geographically distributed locations in safe deposit boxes and vaults
  • Multi-signature scheme to eliminate single points of failure 
  • Coordinated actions from multiple employees with multi-factor authentication
  • 2 Step verification on all Coinbase accounts
  • Sensitive data is disconnected entirely from the internet
  • Staff are background-checked for criminal records and encrypt hard drives 
  • Encryption to protect user login and personal information

Coinbase Earn

Coinbase account holders can learn about cryptocurrency projects to earn free currency. The program is a new incentive by the company to attract beginners to the platform while becoming knowledgeable about supported blockchain projects. To earn currency in Coinbase, users need to create an account with Coinbase. 

coinbase earn

Coinbase Earn works by watching a series of videos about a selection coin and invite friends to earn more. Once the quiz at the end of each lesson is completed, the currency is deposited to the users wallet. The reward amount does vary depending on the specific coin and can be converted into Bitcoin using Coinbase Pro or cashed out to fiat money.

Customer Support

For customer service issues or questions, the best method to get in touch with Coinbase is using the ticket system. Users can choose the product or service and select a topic related to the issue such as:

  • Account compromised or unauthorized use
  • Login, authentication or verification issues
  • Account management
  • Taxes, reports and financial services
  • Trading and funding

In the event a Coinbase account has been hacked or is suspected of being compromised, there is the option to contact the support service via phone to immediately disable the account.  There is no phone support for other account issues experienced on the platform. Users will need to rely on the Help Section which is comprehensive or log a support ticket.

coinbase support

Frequently Asked Questions

Are Coinbase Fees Worth It?

Coinbase fees range between 0.5% to 3.99% depending on the market conditions, location and payment method. In comparison to other platforms to buy Bitcoin, the transaction costs are a little high but offers ease of use and convivence with its variety of accepted fiat currencies, supported countries and wide range of deposit methods.

Can You Buy Bitcoin With A Credit Card Using Coinbase?

Coinbase users in Europe and the United Kingdom can purchase Bitcoin and other digital currencies using a credit or debit card with 3D Secure. This payment method allows the purchase of cryptocurrencies without having to pre-fund a Coinbase wallet. Buying with a credit card is instant, compared to 3-5 days using a bank transfer.

What Are The Best Coinbase Alternatives In The USA?

Alternate cryptocurrency brokers and traders platforms like Coinbase that US investors can consider to buy Bitcoin are Gemini, Binance and eToro. These platforms have comparable trading fees, features, deposit methods and are reputable Bitcoin exchanges in the United States.

Is Coinbase Better Than Kraken?

Kraken is a popular crypto trading platform in the USA that offers a wide range of digital currencies to buy, trade and sell. The user interface is more suited to traders and can be a little confusing at first for beginners. On the other hand, Coinbase has been designed for new investors and provide a simple to use platform. High net worth individuals will benefit from the lower trading fees on Kraken which can add up over time.

Is Coinbase Available In Australia

Coinbase is a supported cryptocurrency exchange in Australia. Local residents can create an account with Coinbase and buy crypto in AUD using a debit card. Debit card purchases have a fee of 3.99% in addition to the trading fee of 0.5%. There is currently no option to withdraw funds back to AUD using Coinbase.

Is There A Coinbase Debit Card?

Coinbase has launched a Bitcoin debit card that can be linked to a Coinbase wallet to transfer funds to the card. The pre-paid cryptocurrency card is available to customers in the USA, UK and Europe or spending online, in-store or to withdraw cash from a supported ATM. Digital currencies such as Bitcoin, Ethereum and XRP can be quickly, easily and securely transferred using the website or Coinbase app to the card which will automatically convert the cryptocurrency into fiat currency (e.g. USD). The loaded debit card can be used to purchase goods and services at any VISA debit card merchant worldwide.

Conclusion

To conclude this Coinbase review, the trading platform is one of the easiest places to buy, sell, and manage a cryptocurrency portfolio effortlessly using the online web version or mobile app. Beginners that are not sure which exchange to use to invest in digital currencies such as Bitcoin have the option to use a reputable and safe brokerage such as Coinbase. 

Available in over 100 countries worldwide and with a variety of payment methods to fund an account, Coinbase is a top choice for Bitcoin enthusiasts and traders. The only negative point is the trading fees, which are a little higher than other exchanges.

You Might Also Be Interested In:

Exchange fees are a very important consideration for any prospective cryptocurrency investor. The following exchanges - in addition to the above exchange - provide very competitive trading, deposit and withdrawal fees (with no hidden charges) with a wide variety of deposit methods that will suit all types of cryptocurrency investors.

  1. Changelly
  2. Bitit
  3. bitFlyer
  4. CEX.IO
  5. OKEx
  6. KuCoin
  7. WazirX
  8. Crypto.com
  9. Phemex
  10. StormGain

Coinbase

4.7

Ease of use

5.0/5

Reputation

5.0/5

Trading fees

4.3/5

Security

4.8/5

Customer support

4.5/5

Pros

  • Reputable and trusted Bitcoin platform
  • Available in 100+ countries worldwide
  • Wide variety of deposit methods
  • Supports major fiat currencies
  • Earn crypto by learning about blockchain projects

Cons

  • Higher trading fees
  • No margin trading
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Kevin
Kevin is the founder of hedgewithcrypto and is passionate about blockchain technology. He has been involved with Bitcoin since 2016 after discovering it's potential as an alternative to fiat currency. He is also a trader with over 8 years of experience and is now trading crypto using various platforms. Now, he is focussed on helping others learn about cryptocurrencies via hedgewithcrypto.