Coinbase is one of the first cryptocurrency exchanges launched by Fred Ehrsam and Brian Armstrong in 2012. It is the second-largest crypto exchange in the world on trading volume. Coinbase began as a Bitcoin brokerage service (selling Bitcoin directly to consumers), but it has since expanded to include various other services. Coinbase had its Initial Public Offering (IPO) in April 2021, making it the first publicly traded cryptocurrency exchange in the United States.
Coinbase standard desktop and mobile compatibility mean that users of Windows, macOS, iOS, and Android can access the platform.
Coinbase has a Pro edition for advanced users, available on desktop and mobile. A solo wallet for mobile users is also available from the company. With the right guidance, the Coinbase mobile app is an excellent place for new crypto users to begin.
Getting started with Coinbase
Coinbase registration is similar to setting up a new bank account online. To open a fully verified account, you’ll need to input your personal contact information, including your Social Security number for US citizens.
The KYC process requires new account holders to submit a photo of a government ID to confirm they are who they say they are. If you consider cryptocurrency transactions anonymous, it is not the case here. Coinbase may track your transactions for tax reporting and other regulatory purposes.
You can purchase and trade cryptocurrencies up to your Coinbase account limits once you’ve set up your account and validated your information.
Coinbase users can trade on a variety of platforms. It offers a wide variety of digital assets, up to 100+ cryptocurrencies. The initial Coinbase platform provides a primary interface that allows customers to buy cryptocurrencies quoted in the user’s preferred fiat currency. With Coinbase Pro’s advanced charting features, users can execute crypto-to-crypto trades and place orders which include limit, market and stop orders. With a tool called Advanced Trade, Coinbase has just extended some of Coinbase Pro’s features and cheaper pricing to its original UI.
Since 2022, when Coinbase deleted precise cost figures from its pricing and fees page, Coinbase has become slightly more evasive about its price structure.
Although accurate prices may be similar to previous Coinbase fees, the amount paid is unknown until the order formation procedure is completed. This cost is determined by your payment method, order size, and market conditions.
Coinbase’s previous fee schedule features a 1.49 per cent fee for most transactions and a 3.99 per cent cost for bank card purchases as a general approximation.
Trading costs for Coinbase Pro (for actively trading cryptocurrencies) start at 0.60 per cent and go down depending on your trading volume and whether you place a “maker” or “taker” order.
Deposits and withdrawals in fiat currency are free via ACH; however, USD wire deposits and withdrawals cost $10 and $25, respectively. At €0.15, SEPA deposits and withdrawals are nearly free. GBP deposits are free, but withdrawals cost £1.
Deposits and withdrawals
Coinbase customers have many options for deposits and withdrawals to trade cryptocurrencies. While the possibilities vary slightly by location, a wide range of withdrawal methods are available worldwide. Below are some of the options.
Methods of making deposits and withdrawals:
- Bank Deposits/Withdrawals (ACH)– This type of deposit or withdrawal is suited for different amounts and takes up to 4-5 working days.
- Wire Transfer- This type of deposit or withdrawal is appropriate for huge sums and is processed in 1-3 working days.
- Cryptocurrencies- Coinbase allows users to trade, deposit, and withdraw cryptocurrencies. They include Bitcoin, Ethereum and other tokens.
Liquidity and limits
Users are rewarded with high limits if their accounts are appropriately validated. The amount of money bought and sold on the exchange is limited depending on the user accounts authentication. Customers in the United States who have been successfully verified can purchase up to $50,000 in Bitcoin daily. Verified users in Europe can purchase up to €30,000 at any given time.
Security and Privacy
The exchange keeps 98 per cent of its consumers’ digital assets in cold storage to protect users’ cryptocurrency from fraud or theft. Assets held in cold storage are kept in vaults and safe deposits worldwide. All communication on the Coinbase exchange website is secured with SSL (HTTPS), and users’ information and wallets are encrypted using the AES-256 encryption technology. Traders can also ensure the safety of their digital accounts by using 2FA authentication, email validation, and other top-notch security precautions as part of Coinbase’s security.
Features and services
- Pro version of Coinbase
Coinbase Pro, formerly known as GDAX, is a crypto trading platform geared for more experienced consumers, as opposed to the conventional Coinbase brokerage service, which streamlines the purchase of cryptocurrencies at a premium.
Coinbase Pro users can trade various cryptocurrencies, including BTC, ETH, LTC, BCH, and ZRX. Fees are significantly lower than those charged by brokerage firms, and complex trading options are available.
- Staking on Coinbase
Coinbase also offers a simple staking service that allows customers to earn staking rewards on various Proof-of-Stake cryptocurrencies. Although individuals can stake these coins independently, Coinbase simplifies the process and eliminates the need for technical knowledge or specialized hardware.
- Coinbase Commerce
Coinbase provides a specific plugin that allows online retailers to accept cryptocurrencies on their websites. Some of the most popular content management systems (CMS) like Shopify, Magento, and WooCommerce support the plugin.
Projects at Coinbase
Coinbase also offers the following services:
- USD Coin (USDC) – Coinbase assisted in the development of this stable coin.
- Earn.com – Coinbase acquired it, and it enables email users to earn rewards.
- Coinbase Ventures: It is a part of Coinbase and aims to invest in startup firms in the crypto space.
- Coinbase Card: A debit card that allows users to spend cryptocurrency. It can be done while also earning cryptocurrency incentives.
- Coinbase Borrow: Borrow fiat currency with BTC as collateral via Coinbase Borrow.
If traders or new customers have any queries or problems, they can go to Coinbase’s customer service page, which includes various articles and FAQ pages. Users can also submit a support ticket and wait for a response from Coinbase support personnel. Because of the spike in users, response times can be pretty slow. The help page, on the other hand, is well-organized and comprehensive, with a good theme and a search bar.