Coinbase Review for 2021

Investing
Updated: 23rd Feb 2021
Written by Drew Cheneler
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Since its founding, Coinbase has emerged as the largest U.S.-based cryptocurrency exchange.

With competitive rates and a wide variety of secure crypto products, Coinbase continues to operate at the forefront of blockchain technology.

Coinbase is a licensed and regulated cryptocurrency exchange in the United States.

To date, Coinbase is available in all 50 U.S. States except Hawaii and 100+ countries. Due to its focus on security, low-fees, and easy-to-use platform, Coinbase has attracted a legion of 13.3+ million loyal users.

Keep reading our Coinbase Review to see if this cryptocurrency exchange can help you invest in bitcoin and other altcoins and be of service to you.

Coinbase Overview

Features: Details
Account Minimum: $2
Fees:0.50% - 4.50%, Coinbase Pros has "Maker" and "Taker" Fees
Account TypesCoinbase, Coinbase Pro, Coinbase for Businesses
Customer Support:Email, Phone
Mobile App:iOS & Android
Availability:All U.S. States and Territories Except Hawaii, 100+ Countries
Tradeable Securities:Cryptocurrencies (40+ Supported Coins)

Pros:

  • 40+ Supported Cryptocurrencies
  • Beginner Friendly Platform for New Crypto Investors
  • High Liquidity
  • Strong Industry Reputation
  • Robust Advanced Trading Platform for Experienced Crypto Investors (Coinbase Pro)
  • Secure Platform: AES-256 Bit Encryption, Two-Factor Authentication, Identity Verification, and Data Backups
  • iOS and Android Mobile App (Decentralized)
  • Simple Sign-Up Process
  • Coinbase Digital Wallet
  • Business Solutions

Cons:

  • Fee Structure is Complex
  • Private Wallet Keys are not Controlled by Users. However, this is not as important if you have your own cold storage elsewhere.

What is Coinbase?

Founded in 2012, Coinbase is headquartered in San Francisco, California, and is a U.S.-based cryptocurrency exchange that serves over 13.3+ million users.

On the secure Coinbase platform, you can easily buy and sell bitcoin, Ethereum, and Litecoin.

Coinbase is the best cryptocurrency exchange.

But that’s not all. Coinbase supports over 30+ cryptocurrencies. This allows you to diversify your crypto investments into safe altcoins.

According to multiple databases, Coinbase is currently the third-largest cryptocurrency exchange in the world. This is derived from the websites overall traffic, liquidity, and trading volume.

Coinbase Review: What Do They Offer?

Apart from primarily serving as a trusted cryptocurrency exchange, Coinbase offers multiple products that enable consumers and businesses to tap into blockchain technology’s sheer power and benefits.

Coinbase currently offers custodial services to store cryptocurrency, a USD Coin, a payments platform for businesses, venture capital, and an advanced trading platform (Coinbase Pro).

Coinbase Products

Consumers can rest easy knowing Coinbase has there back in any situation. Whether you are a beginner learning how to trade cryptocurrency or a burgeoning business adapting to the world of blockchain and bitcoin, Coinbase is armed with the resources you need to succeed.

Standard Platform

This secure platform is designed with the end-user in mind – you. On the standard Coinbase platform, you can buy, sell, and use cryptocurrency (30+ supported coins). It is straightforward, easy-to-use, and most importantly, safe.

Coinbase Wallet

The Coinbase wallet is truly innovative. It is amazing what a little bit of Silicon Valley talent and American ingenuity can produce.

This digital wallet allows you to store your cryptocurrency on your device and use decentralized apps available on iOS devices and the Google Play Store. Moreover, the Coinbase Wallet enables you to pay friends and is protected with Secure Enclave and biometric authentication technology.

USD Coin

USD Coin (USDC) is Coinbase’s flagship cryptocurrency. More commonly referred to as stablecoin, you can redeem 1 USDC for $1.00. This stable price is unheard of in the crypto industry.

Powered by the Ethereum token, USDC is backed by U.S. Dollars and is designed to let dollars flow from one person or entity to another seamlessly.

Coinbase Earn

This revolutionary product allows you to earn cryptocurrency while you learn about crypto. Simply watch videos, complete quizzes, and earn crypto. Who doesn’t love to make more money while simultaneously learning valuable information?

Coinbase Pro

As they tout, “the most trusted platform for trading cryptocurrency.” Coinbase Pro gives more power and control to serious crypto traders with their industry-leading API, insurance protection, and competitive fees. For real, this platform is world-class and continues to get better each month.

Business Solutions

Coinbase connects businesses with innovative blockchain technology. Currently, Coinbase offers “Prime,” which is a cryptocurrency trading platform for institutions.

They also provide companies with custodial services to store crypto, and a robust payments solution to accept cryptocurrency and digital assets. And finally, they also have a venture arm where they deploy capital towards promising crypto startups.

Whether you are a consumer learning how to invest in cryptocurrency, a small business, or an institutional investor, Coinbase is more than capable of serving your needs. This is the beauty of the platform they created – it is a one-stop-shop.

Security

Coinbase is one of the most secure cryptocurrency exchanges on the market. Unlike a few of their competitors, they have never been hacked.

On the security front, Coinbase employs AES 256-bit encryption, SQL injection, two-factor authentication, biometric fingerprint logins, and copies over all data onto FIPS-140 USB drives and paper documents.

Furthermore, all sensitive data is taken off the Coinbase server and is disconnected entirely from the internet. And finally, all information stored on paper documents and USB drives is distributed geographically in safe deposits and vaults.

Coinbase also utilizes third-party cybersecurity companies and products to monitor their infrastructure for potential adversary interaction if that was not enough. Coinbase also has a bug bounty program. They pay individuals or entities a sum of money to tell them about vulnerabilities on the platform.

While Coinbase gives you a fighting chance, you still have a role to play in information security. You need to make sure you utilize two-factor authentication, set strong passwords, and invest in a digital wallet that is not correlated to Coinbase.

Those who are serious about cryptocurrency security typically withdrawal their money from Coinbase and put it into cold storage. These additional steps will ensure your cryptocurrency is truly safe, secure, and out of harms way from nefarious actors.

Coinbase Supported Coins

Coinbase currently supports over 30+ cryptocurrencies on their platform including Bitcoin, Litecoin, and Ethereum. Here is a complete list of what cryptocurrencies are supported on the Coinbase platform.

  • ALGO
  • ATOM
  • AAVE
  • BAL
  • BAND
  • BAT
  • Bitcoin (BTC)
  • BCH
  • BNT
  • BSV
  • Celo (CGLD)
  • COMP
  • CVC
  • DAI
  • DASH
  • DNT
  • EOS
  • Ethereum (ETH)
  • ETC
  • FIL
  • GRT
  • GNT
  • KNC
  • LINK
  • LOOM
  • Litecoin (LTC)
  • MANA
  • MKR
  • NMR
  • NU
  • OMG
  • OXT
  • REP
  • SNX
  • USDC
  • UMA
  • UNI
  • WBTC
  • XLM
  • XTZ
  • YFI
  • ZEC
  • ZRX

It is important to note that on Coinbase.com, you may see more coins than what they offer. This is normal for most cryptocurrency exchanges. They provide you with additional information so you can compare asset prices and movements.

Trading on Coinbase

Whether you are a beginner or an experienced crypt investor, Coinbase is the perfect platform. Coinbase allows you to:

  • Buy Cryptocurrency
  • Sell Cryptocurrency
  • Convert Cryptocurrency

Investors can easily view their performance in specific time frames: 24-hours, one week, monthly, and annually.

Furthermore, those who sign up for Coinbase Pro can view real-time quotes, advanced charts, and detailed analysis. All customers can easily transfer their cryptocurrencies to private wallets offline (if they have one) and convert their crypto to fiat currency or another digital asset.

Coinbase also has a mobile app for Android and iOS devices, this allows you to trade cryptocurrency anywhere, any time. Ultimately, the services Coinbase afford its customers are second-to-none. It is hard to find another platform that is this easy-to-use, secure, and beginner-friendly.

Coinbase Fees: How Much Does It Cost?

Coinbase has a complex fee structure; however, we did the research for you. Here is how much you will pay for using Coinbase.

To start, Coinbase charges a “spread” fee for every cryptocurrency you buy and sell. This fee is about 0.50%. Here is additional information provided by Coinbase:

  • If the total transaction amount is less than or equal to $10, the fee is $0.99 | €0,99 | £0,99 | C$.99
  • Total transaction amount is more than $10 but less than or equal to $25, the fee is $1.49 | €1,49 | £1,49 | C$1.49
  • If the total transaction amount is more than $25 but less than or equal to $50, the fee is $1.99 | €1,99 | £1,99 | C$1.99
  • If the total transaction amount is more than $50 but less than or equal to $200, the fee is $2.99 | €2,99 | £2,99 | C$2.99

That said, this isn’t the only fee. ☹ While fees will vary depending on geographical location, here are a few more fees to take note of. The data below represents fees for the United States of America.

Payment MethodFee
US Bank Acct1.49%
Coinbase USD Wallet1.49%
Debit Card 3.99%
Instant Card Withdrawalup to 1.5%, minimum fee of $0.55
ACH TransferFree
Wire Transfer$10 ($25 Outgoing)

Finally, Coinbase Pro also has “maker” and “taker” fees. However, those who are Coinbase Pro members are rewarded with lower fees.

This is because they have larger accounts and trading constantly. The Coinbase Pro fees are represented below:

Pricing TierTaker FeeMaker Fee
Up to $10k0.50%0.50%
$10k - $50k0.35%0.35%
$50k - $100k0.25%0.15%
$100k - $1m0.20%0.10%
$1m - $10m0.18%0.08%
$10m - $50m0.15%0.05%
$50m - $100m0.10%0.00%
$100m - $300m0.07%0.00%
$300m - $500m0.05%0.00%
$500m - $1b0.04%0.00%

Are Coinbase Fees Worth It?

In our opinion, Coinbase’s fees are worth it. Why? Coinbase is one of the most trusted and reliable cryptocurrency exchanges on the market.

It is used by 13+ million customers and institutional investors. The user interface is easy-to-use, the platform is secure, and the services they afford their users are hard to beat.

How to Open a Coinbase Account

Opening a Coinbase account could not be easier. Follow these steps to open your Coinbase account and start trading cryptocurrency today.

  1. Head Over to Coinbase.com
  2. Enter Name (First, Last)
  3. Enter Email
  4. Select a Strong Password (We recommend 16+ Letters and Characters)
  5. Select State
  6. Verify you are 18+ Years of age or Older
  7. Click “Create Account”

After you complete these 7-steps, Coinbase will send you an email. From here, you will have to enter your phone number. They will then send you a confirmation code that you will have to enter. This step is key because it sets up two-factor authentication.

Now that you created your account and verified your phone number and email, the next thing you have to do is verify your identity. Those in the United States can either enter their Social Security Number (SSN), photo I.D., passport, or driver’s license.

Again, this is an added layer of security and is for tax purposes. Finally, after your identification is verified, you can now sync your bank account, credit card, or debit card information to your Coinbase account and begin buying and selling cryptocurrency.

Coinbase Alternatives

#1. Gemini

As one of the newest crypto exchanges to debut, Gemini is disrupting the industry.

They offer low fees, the most secure platform, and are regulated by the New York Department of Financial Services.

Additionally, they obtained the coveted ISO 27001 certification and passed the SOC 1 Type 1, SOC 2 Type 2 Exams.

Learn More: Gemini Review

#2. BlockFi

Another US-Based Crypto Exchange, BlockFi, is more than just a platform to buy and sell digital assets. BlockFi is rolling out a bitcoin credit card and crypto-backed loans. So, if you are bullish on Blockchain Technology, then check out this crypto exchange.

Learn More: BlockFi Review

#3. Binance

Coinbase’s main rival is Binance. This is the largest crypto exchange in the world; however, it is not a U.S. based company, which is why we urge you to look elsewhere.

That said, they offer a dynamic platform, competitive rates, and ample selection of altcoins to invest in.

Is Coinbase a Legit Company?

Yes, Coinbase is a legit company. In 2019, Coinbase posted revenues north of $2 billion.

Additionally, they have $7 billion Assets Under Custody, 13,000,000 users, a healthy business vertical, and employ 1,100 people worldwide.

Bottom Line: Coinbase Review

Coinbase is one of the best cryptocurrency exchanges around. From its competitive rates to its standout customer services, and everything in between, there is a lot to like here as a crypto investor.

Drew Cheneler
Drew Cheneler
Drew is a recognized Credit, Small Business, and Personal Finance Expert. He has been quoted in CNBC, Fox Business News Section, The Huffington Post, Business.com, Moneyunder30, US Chamber of Commerce, and more. He is known for breaking down complex personal finance topics into action-oriented advice, so you can make the most of your hard-earned money.