Coinbase Review

Coinbase Review
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Coinbase is often referred as the most popular cryptocurrency exchange in the world. One way or another, Coinbase is one of those exchanges that is able to boast really high volumes and a large number of traffic. Our Coinbase review will help you find out what kind of a cryptocurrency exchange Coinbase is, what are the exchange’s advantages and disadvantages, and whether this exchange is trustworthy at all.

 

Coinbase Review: General Overview of the Cryptocurrency Exchange

Foundation Year2012
LocationSan Francisco, California, United Sates.
Websitehttps://www.coinbase.com/
Available CryptocurrenciesBitcoin, Bitcoin Cash, Ethereum, Litecoin
Deposit MethodsCredit cards, bank transfers
Withdrawal MethodsBank transfers, PayPal
SecurityGood
FeesAverage
Customer SupportGood
Community TrustVery good
Beginner FriendlyYes
Mobile AppYes
Trustworthiness5/5

Coinbase has a reputation of the largest cryptocurrency broker in the world, and this cryptocurrency exchange serves customers in 32 countries at the present time. In particular, Coinbase is available in the following countries: European countries, Australia, Singapore, Canada, the United Kingdom, and the United States. All in all, this table shows payment methods available in those countries and fees charged when depositing fiat money:

CountryPayment methodCurrencyFeesWhen funds available
EuropeCredit/debit cardEUR1.49%Instant
EuropeSEPA transferEUR3.99%From 1 to 3 days
CanadaCredit/debit cardCAD3.99%Instant
USCredit/debit cardUSD3.99%Instant
USBank transferUSD1.49%From 5 to 7 days
UKCredit/debit cardGBP3.99%Instant
AustraliaCredit/debit cardAUD3.99%Instant
SingaporeXfers transferSGD1.49%Instant

Over the time of Coinbase’ existence, this cryptocurrency exchange helped the users to exchange as much as $20 billion worth cryptocurrencies. But what differs Coinbase from other cryptocurrency exchanges is the principles of how this company functions. While other major exchanges (such as Kraken) allow customers to trade between each other, Coinbase sells or buys cryptocurrencies to/from users on its own. The price of purchase/selling is based on the current market price of a certain cryptocurrency. Such a principle of the exchange’s functioning allows users to buy and sell large volumes of cryptocurrencies far quicker.

Once a user has signed up for Coinbase and verified his/her account, he/she immediately becomes eligible for trading cryptocurrencies at Coinbase. Many major exchanges tend to avoid providing an ability of deposit funds with credit/debit cards due to feasible fraudulent chargebacks. Such a possibility of chargeback frauds and a commission of banks raises the fees up to 4%. Therefore, one is able to save up to 2.5% simply by depositing money via bank transfers.

Yet, there is another important aspect – which is often regarded as a disadvantage by many clients of this exchange – you should be aware of: Coinbase allows trading only with 3 cryptocurrencies: Bitcoin, Ethereum, and Litecoin. Even though the exchange plans to add more cryptocurrencies in the near future, you need to look elsewhere if you want to have more assets for trading. Besides, Coinbase does not support trading with altcoins at the present time as well.

At the same time, Coinbase is often mentioned as the best place for beginners to start trading at. And it tends to be truly so, as Coinbase is able to boast user-friendly interface, which makes the experience of trading bitcoins smooth and painless. Though, the company invested really large amounts of money and time into creating such a user-friendly interface.

Sum-up of this Coinbase review section: Coinbase is regarded as one of the best crypto exchanges for beginners, whereas its trading platform is fairly simple. But a lack of trading tools and complex charts make this exchange barely suitable for advanced traders. The relatively high fees also come as a disadvantage.

Is Coinbase Safe for Trading?

This Coinbase review will help you to get to know in which aspects Coinbase is safe. First of all, one should say that the company has successfully served all its customers since 2012. Yet, there have been frequent claims of fraudulent account blocking by Coinbase, and this section of our Coinbase review aims to address all these issues.

First of all, let’s start with the aspect of company’s legitimacy. Considering that the company is based in the United States, it should comply with the American regulations, laws, and regulatory bodies. At the present time, Coinbase complies with the following regulatory bodies and laws:

  • Regulations and laws on state money transmission.
  • USA Patriot Act.
  • Bank Secrecy Act.
  • FinCEN.

The other countries in which Coinbase operates don’t have any particular laws for cryptocurrency trading companies. Yet, more legitimacy to the company can be added thanks to a number of reputed investors, including Digital Currency Group, Blockchain Capital, Bank of Tokyo, and a co-founder of Reddit Alexis Ohanian.

The other aspect of this safety issue is, actually, whether Coinbase appears to be safe for keeping funds. First of all, it must be pointed out that Coinbase separates its operational funds from the funds of customers, deposited to their accounts. The company’s policy explains that those funds cannot be claimed by creditors or investors in a case of the company’s default, as well as those funds cannot be used for the company’s operations.

It is quite noteworthy that 98% of all the users’ funds at Coinbase are stored in cold storage wallets (read more about the types of wallets in our article). This ensures that all those funds are stored safely. The remaining 2% of the funds are stored online, but they are fully insured by Loyd’s of London.

is coinbase safe?

The interface at Coinbase

One way or another, however, we highly recommend to store your funds in cold storage wallets (check the article for that purpose). Otherwise, you may be compromised to losing your money. But even if it happened to you to store small amounts of money online (for the sake of convenience and paying small sums fast, for example), we recommend you to enable to 2-step verification at Coinbase.

Sum-up of this Coinbase review section: This cryptocurrency exchange has been present on the market since 2012, and there have never been reports about successful hacker attacks. Coinbase also complies with the number of regulatory bodies and laws. The security system of this cryptocurrency exchange appears to be relatively strong.

Coinbase Review: Criticisms of This Exchange

As it has been mentioned, Coinbase has faced a lot of criticism for blocking accounts. You can read what operations you shouldn’t carry out with cryptocurrencies in order not to get your account blocked in the next section of our Coinbase review. Here, we have collected the most frequent reasons for criticizing Coinbase:

  • Closed and frozen accounts due to “suspicious activities.”
  • High volumes of complaints make it barely possible to get a reply from support within a short period of time.
  • Abuse of affiliate rewards, when Coinbase changed the affiliate policy without notifying the affiliates (and they, in result, lost their money).
  • Notorious blockchain patents, such as “tips buttons,” “hot wallet for holding bitcoin,” “Bitcoin exchange.”

Sum-up of this Coinbase review section: While this cryptocurrency exchange appears to be among the most respectable on the market, there are also numerous problems, such as frozen accounts, a large number of complaints from the customers, and blockchain patents registered by this crypto exchange.

How to Avoid Getting an Account Blocked/Frozen

Even though in the majority of the situations when the users got their accounts blocked they were refunded, getting your account blocked is not something nice in any case. In order to avoid the blockage of your account, it is better to avoid the following types of activities with the bitcoins you have purchased at Coinbase:

  • Purchase or sale contraband items via darknet markets.
  • Sending or receiving bitcoins to/from gambling sites.
  • Transactions that are anyhow connected with adult services.
  • Sending cryptocurrencies to LocalBitcoins.
  • Resale of cryptocurrencies on other exchanges, especially those that don’t have AML/KYC.

Sum-up of this Coinbase review section: Many users have complained about getting their accounts closed on Coinbase, but there are a few things to keep in mind: you have to verify your account, don’t send your cryptocurrencies (or receive them from) to the gambling sites, resale them, or send to the LocalBitcoins service.

Coinbase Review: Buy/Sell Limits and Countries Supported

Buy and sell limits at Coinbase vary by the verification status, payment method, and user location. If you have already signed up for Coinbase, you are able to view your limits on your account’s page (the “limits” section).

Typically, verified customers from the United States receive the following limits:

  • $50,000 for selling per week.
  • $50 for buying via credit/debit card per week.
  • $5,000 for buying via bank transfer per week.

At the present time, Coinbase is available in the following countries:

United States, United Kingdom, Switzerland, Spain, Sweden, Slovenia, Slovakia, Singapore, San Marino, Portugal, Poland, Norway, the Netherlands, Monaco, Malta, Liechtenstein, Latvia, Jersey, Italy, Ireland, Hungary, Greece, Finland, Denmark, Czech Republic, Cyprus, Croatia, Canada, Bulgaria, Belgium, Austria, and Australia.

Sum-up of this Coinbase review section: The trading limits depend on the country where you live. On the other hand, you could also learn from this section of our Coinbase review that the services of this cryptocurrency exchange are available in only very few countries.

Pros and Cons

At the end of this Coinbase review, we would like to summarize the advantages and disadvantages of this cryptocurrency exchange. So, the advantages of Coinbase are the following ones:

  • Allows you to purchase bitcoins and other cryptocurrencies faster than elsewhere.
  • You are able to purchase cryptocurrencies with debit and credit cards.
  • The company appears to be quite trustworthy and regulated.
  • Allows you to store your funds and cryptocurrencies safely.
  • Features user-friendly interface, which makes this exchange a perfect one for beginners.

At the same time, there are the following disadvantages of Coinbase:

  • Higher fees than in a number of other major exchanges (such as Kraken).
  • The exchange monitors where your bitcoins and other cryptocurrencies will be spent.
  • Doesn’t support altcoin trading.
  • Only 3 cryptocurrencies are available for trading.

Sum-up of this Coinbase review section: Coinbase is, indeed, a great place for beginners where they can trade several cryptocurrencies. On the other hand, trading on this exchange comes with a number of drawbacks, including relatively high fees, only a few cryptocurrencies available for trading, and a strict control over where you send your cryptocurrencies.

How to Trade in Coinbase

As you could have already understood from this Coinbase review, this crypto exchange appears to be quite a friendly one towards beginners. Yet, you may find yourself struggling to start trading on this cryptocurrency exchange in either case. While Coinbase appears to be among the most beginner-friendly exchanges, you may need step-by-step guides on how to get started on Coinbase.

This section of our Coinbase review shows not only how to register an account on Coinbase, but also a variety of other things you will need for trading on this crypto exchange. For instance, you will learn how to make orders on Coinbase or deposit cryptocurrencies. All in all, follow the instructions of this part of the Coinbase review.

How to Sign Up for Coinbase

Before you will be able to start trading on Coinbase, the first thing you should do is to register an account on this cryptocurrency exchange. This part of our Coinbase review will demonstrate you how to sign up for Coinbase. All you need to do is to stick to the following instructions:

  • In the first place, you should launch your browser and copy the following URL into its address line: https://www.coinbase.com/. Then, you should hit the “Enter” button.
  • Right after that, you will get to see the main webpage of Coinbase. In the right-upper corner, you will notice the “Sign Up” button. Click on that button.
  • Now, you have just got to see the page where you can create an account on Coinbase. In order to do that, you should complete the sign up form that you have just got to see.
  • Enter your first and last name in the first two fields. Then, you should enter your email address and password of the future account in the remaining two fields. After that, check the box near “I’m not a robot”, place a tick near “I certify that I am 18 years of age…,” and click on the “Create Account” button.

how to register coinbase account

  • After doing so, you will get to see a notification that will urge you to verify your email address.
  • Now, go to your email address and open the inbox. Find a letter sent by Coinbase and open it.
  • In the letter that you have just opened, you should click on the “Verify Email Address” button.
  • Following it, you will be redirected to the page where you will get to see a notification that your email address has been verified.
  • Right after that, a page where you will be asked to enter your mobile number will be displayed. On that page, you should choose your country in the first field, enter your phone number in the second field, and click on the “Send Code” button.
  • Then, you will receive a 7-digit code onto your mobile phone. Enter it in the provided field and click on the “Submit” button.
  • Right after that, you will receive a welcome SMS message from Coinbase. That means that you have just succeeded to create an account on Coinbase.

How to Verify Your Coinbase Account

Before you will start trading on Coinbase, we highly recommend you to verify your Coinbase account. First of all, it will increase the trading limits of yours. And, secondly (but not any less important), it will also highly minimize the risk of your account getting frozen. This is how you can verify your Coinbase account step by step:

  • First of all, you have to open your browser and go to the following webpage: https://www.coinbase.com/.
  • Once you have entered the Coinbase website, you should click on the “Sign in” button, placed in the right-upper corner.
  • Then, you have to enter your email address and password in the provided two fields. Click on the “Sign in” button.
  • Following it, you will receive an SMS verification code onto your smartphone. Enter it in the provided field and click on the “Verify” button.

how to verify coinbase account

  • Now, you have just successfully logged in to your Coinbase account. At the top, you will get to see a menu, in which you have to select “Settings.”
  • In the submenu of your account settings, you have to click on the “Limits” option.
  • Now, you have just got to see the page where you can verify your Coinbase account. There, you have to click on the “Upload ID” button.
  • After it, you have to upload your ID in a good quality (Coinbase will provide you with the tips on how to do it).
  • Once you have done that, click on the “Upload” button.
  • The ID that you have just submitted will be reviewed by the Coinbase customer support team. If everything has been done correctly, your account will be verified right after your ID will be reviewed.

How to Make Buy/Sell Orders on Coinbase

Once you have verified your account on Coinbase, you can actually start trading on this cryptocurrency exchange. Considering that this exchange is aimed at beginners, it appears to be quite natural that the entire process is pretty simple. Yet, this part of our Coinbase review provides you with instructions on how to make buy and sell orders on Coinbase:

  • The first thing you should do is to launch your browser and access the following website: https://www.coinbase.com/.
  • Once you have got to see the main webpage of Coinbase, you will notice the “Sign in” button, placed in the right-upper corner. Click on that button.
  • Following it, you will get to see the log in form. There, you should specify your email address in the first field, your password in the second field, and click on the “Sign in” button.

how to make orders on coinbase

  • Right after doing so, you will receive a verification code onto your mobile number. Type it in the given field and click on the “Verify” button.
  • After you have got to see the dashboard of your Coinbase account, you should click on the “Buy/Sell” menu option, placed in the menu at the top.
  • Now, you have just got to see a page where you can either buy or sell cryptocurrencies. Let’s suppose that you want to buy cryptocurrencies. In such a case, you should click on the “Buy” tab.
  • After doing so, you should specify which cryptocurrency you want to buy in the first place. Just click on the cryptocurrency you want to buy in the first field.
  • Then, select a payment method you want to apply and provide your credentials.
  • Following it, you should specify how much fiat money you want to spend on the selected cryptocurrency in the last field. In the field next to it, you will get to see how much of the selected cryptocurrency you will get in exchange.
  • Once you have checked everything and all the details seem to be alright, you should click on the “Buy…” button.
  • After doing so, the money will be deducted from your bank account or credit card. As soon as the transaction will be validated by the blockchain, you will receive bitcoins onto your wallet in Coinbase.

How to Receive Cryptocurrencies onto Your Coinbase Wallets

Even if you haven’t verified your Coinbase account, you still can receive cryptocurrencies from other wallets. The entire process is very simple and this section of our Coinbase review will show you how to do it. This is the way how you can receive cryptocurrencies onto your Coinbase wallets step by step:

  • In the first place, you have to open your browser and copy the following URL into its address line: https://www.coinbase.com/. Then, you should hit the “Enter” button.
  • Following it, you have to click on the “Sign in” button, which is placed in the right-upper corner of that webpage.

how to receive cryptocurrencies on coinbase

  • Now, you have just got to see the sign in form on Coinbase. You have to enter your email address in the first field, your password in the second field, and click on the “Sign in” button.
  • After doing so, you will receive a verification code onto your mobile number. Enter in the given field and click on the “Verify” button.
  • Following it, you will get to see the dashboard of your Coinbase account. On that page, you have to click on the “Accounts”option in the menu of your Coinbase account.
  • That action has opened a page where you can manage your accounts. At the present time, you can see the following wallets there: BTC wallet, BCH wallet, ETH wallet, and LTC wallet. Click on the “Receive” button under the wallet of cryptocurrency you want to receive.
  • Then, you will get to see another window, in which you should click on the “Show Address” button.
  • Following it, you will get to see the public key of your wallet. The public key is displayed in two forms: as a QR code (so you can scan it and send the cryptocurrencies to this wallet) or as a standard set of digits and letters (so you can copy it and send the cryptocurrencies to the wallet).

How to Close Your Coinbase Account

If you have used the service Coinbase for a while and decided that this service is not suitable enough for you, you may opt to close your Coinbase account. Closing your account on Coinbase means that no one else will be able to access it, even if the hackers get to know your password. So, this can be quite a viable option.

On the other hand, we highly recommend you to check well before closing your account on Coinbase. Make sure that you have transferred all the funds and cryptocurrencies to your bank account or the other wallets respectively.

how to close your coinbase account

This part of our Coinbase review shows how to close your account on Coinbase step by step:

  • First of all, you have to launch the browser of yours and access the following website: https://www.coinbase.com/.
  • Once you have got to see the main webpage of Coinbase, you should notice the “Sign in” button, which is placed in the right-upper part of that page. Give a click to that button.
  • Following it, you will get to see the Coinbase sign in form. You need to type your email address in the first field and your password in the second field. Then, you should click on the “Sign in” button.
  • Right after that, you have to use the 2-step verification feature in order to log in. You will receive a verification code onto your mobile phone, and you should enter it in the provided field. Then, you have to click on the “Verify” button.
  • After doing so, you will get to see the dashboard of your Coinbase account (if you have done everything correctly, though). There, you will get to see a menu placed at the top of the page, and you have to click on the “Settings” option there.
  • After accessing the page of your account’s settings there, you will get to see the “My Profile” page. In the submenu of the settings, however, you need to click on the “Security” option.
  • Now, you have just accessed the page where you can terminate your account on Coinbase. There, you need to scroll down till the very bottom of the page.
  • At the bottom of the security page, you will get to see the “Close Account” button, placed under the “Close Account” section as well. You should click on that button.
  • In the new window that has just appeared, you will be asked to enter your password. So, type the password in the given field and click on the “Close Account” button.
  • Following it, you will be redirected to the page that will display whether you have any funds left in your wallets or any pending activity. If there is a green checkpoint next to every line, you can proceed further and close your account. For that, you should scroll down and click on the red “Close my account” button.
  • Immediately after that, you will get redirected to the main webpage of Coinbase. That implies that you have just succeeded to close your Coinbase account (and this part of our Coinbase review showed you how to do it). You will also receive a confirmation of your Coinbase account deletion onto your email address.

Summary

All in all, Coinbase is a great place for the beginners in bitcoin trading. Also, it is a fairly good option for those traders who want their money to be deposited instantly and be able to trade basic cryptocurrencies. If you are seeking for more cryptocurrencies to invest in, this exchange is not for you.

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