Coinbase is one of the world’s largest cryptocurrency exchanges and the first cryptocurrency-related company to get a public listing on NASDAQ, an authorized US stock exchange.
We’ll give you a thorough rundown of the Coinbase business and closely examine the services they provide. All the information you need, such as the features, costs, acceptable payment methods, and benefits and drawbacks of the company’s products, are available in this review.
We’ll also check to see if Coinbase adheres to the legal ethics of blockchain technology. Ultimately, you should know whether to consider Coinbase as your go-to provider for crypto dealings or look elsewhere.
What is Coinbase?
Coinbase is a popular cryptocurrency exchange that is simple to purchase, trade, and swap cryptocurrencies. Using Coinbase, purchasing Bitcoin and other cryptocurrencies is as simple as buying stocks online.
Coinbase was established in 2011 by Brian Armstrong and Fred Ersham at the very beginning of blockchain technology. Since its 2012 service launch, it has provided bitcoin brokerage services.
Coinbase is the most well-known of the “compliant exchanges” and a publicly traded business operating under the scrutiny of US regulators; Coinbase has benefited as the cryptocurrency market has developed and regulators have become more involved.
It was given $75 million in funding in 2015 by different financial institutions, with the New York Stock Exchange serving as the organization’s primary backer. This grant significantly aided in its expansion during the years that followed.
Coinbase quickly became one of the top exchanges for virtual currencies worldwide. It trounced the competition regarding the trading volume and user base, at least before Binance‘s arrival.
With more than 70 million verified members and a quarterly traded volume of more than $300 billion, Coinbase continues to be the biggest cryptocurrency exchange in the US. Overall, it’s as legitimate as crypto businesses can be.
Next, in this Coinbase review, let’s talk about the safety features offered by the company. So, that brings us to the following question:
Is Coinbase Safe?
Yes, when you deposit money or other assets on Coinbase, they are very secure. It is one of the world’s safest cryptocurrency exchanges and one of the biggest.
Unlike cash in the bank, federal regulations do not protect cryptocurrency. Still, Coinbase was the first US cryptocurrency exchange for completing an initial public offering successfully. According to Coinbase, 98% of customer cryptocurrency assets are safely stored in cold, offline storage, making it one of the most regulated and secured exchanges in history.
The exchange also has an insurance policy to safeguard its cryptocurrency assets. According to experts, a well-known exchange like Coinbase might be worth the additional costs.
Although the platform has insurance, you can still lose your money if your cryptocurrency is stolen in a significant security breach. There is no guarantee that your coins will return to your wallet if overall losses exceed insurance reimbursements.
Also, the insurance policy does not cover damages brought on by unauthorized access to your account. In other words, you might not be able to recover your lost funds if your identity gets stolen or if someone discovers your Coinbase account password and steals it from your wallet.
Coinbase wants you to provide a code they text you to verify your phone number. You should set up a two-factor authentication mechanism after verifying your phone number to keep your Coinbase account secure. Data encryption and biometric logins are some additional security measures.
Choose a “Self-custody wallet” if you want complete control over your coins without the involvement of a third party. While you don’t have to worry about the hacked third party, you still need to remember your password or risk losing your cryptocurrency.
The ability to engage in more advanced activities, such as yield farming, which enables cryptocurrency owners to lend out their assets to produce greater profits, comes with having a non-custodial wallet. So customers of Coinbase have the option of downloading the non-custodial wallet independently from the app, giving them complete control of their assets.
Furthermore, when you delete your account with Coinbase, you can ask them to remove your data from their servers.
Make use of all the security tools that Coinbase provides because more is usually better when it comes to security. Always use strong passwords, avoid using the same password across several accounts, use two-factor authentication, and keep a close eye on your accounts for any suspicious behavior to protect your security.
Pros and Cons of Coinbase
Pros π
- Offers more than 200 cryptocurrencies
- Provides an NFT market
- Provides accounts for institutional investors
- Based in more than a hundred nations.
- Gives access to a derivatives market
- The Visa card for Coinbase has benefits.
- Offers tutorials and educational materials
- Enables borrowing of money
- New in 2022 are advanced trading features.
- Withdrawals in crypto are speedy.
- Low minimum for account funding.
Cons π
- APY for staking coins is low.
- More KYC and ID documentation are required.
- Higher trading fees compared to alternative cryptocurrency exchanges
Services Provided by Coinbase as of 2023.
1. NFT Marketplace on Coinbase.
The NFT marketplace, a brand-new feature of Coinbase, debuted in May 2022. NFTs could once be kept in your Coinbase wallet. However, the platform now allows for the collection and creation of NFTs, allowing you to diversify your portfolio with a new digital asset class.
For the time being, buying and minting NFTs on Coinbase’s NFT marketplace is also commission-free. You can also look through many popular collections to discover your next NFT.
If you prefer to use more well-known marketplaces, you can purchase NFTs on sites like OpenSea, then transfer them to your Coinbase wallet.
2. Coinbase Pro Account.
For investors who want to acquire and collect lesser amounts of cryptocurrency while also learning as they invest, Coinbase provides its primary account. But there is Coinbase Pro for aggressive traders who want to execute more significant trades and pay reduced costs.
You can trade a few more cryptocurrencies with Coinbase Pro than with the free plan, as dozens of trading pairings are available for cryptocurrency and cash.
Thus, you can trade one cryptocurrency for another without exchanging it for US dollars or another fiat currency. The US dollar, the euro, and the British pound are examples of fiat currencies.
Anyone who meets the requirements for a Coinbase account can use Coinbase Pro. It provides a user-friendly interface, a straightforward ordering procedure, charting tools, trade histories, and real-time order books. It is accessible in a few different nations in addition to the US and UK.
Coinbase is one of the 5 best crypto exchanges in the UK.
3. Coinbase Advanced Trading.
Coinbase enables simple spot trading for novice traders to get started. To get started, select the cryptocurrency you wish to purchase. Then input the desired quantity, and choose whether to pay in fiat or cryptocurrency.
To address the needs of more experienced traders on Coinbase’s common platform who aren’t using Coinbase Pro, the company has launched Advanced Trading.
It consolidates the most excellent charting and trading capabilities from Coinbase Pro with your primary Coinbase account. Advanced Trading combines the best of Coinbase with Coinbase Pro to help you trade and manage your money all under one roof.
Coinbase Fee
Like Coinbase Pro, fees start at a 0.60% taker fee and a 0.40% taker fee. You can use all the trading pairs that Coinbase Pro offers while placing market, limit, and stop-limit orders.
Beginner traders can still spot trade using the straightforward trading interface. But if you want more technical freedom, you can use Advanced Trading.
4. Coinbase Earn.
You can learn more about particular cryptocurrencies using the library of courses offered by Coinbase. Many of those courses let you make money while learning about cryptocurrency.
For instance, you may get up to $3 in MATIC tokens by enrolling in the Polygon (MATIC) course on resolving Ethereum‘s scale challenges by creating an internet of blockchains.
Even though this isn’t much, you can earn $20 to $30 or more in free cryptocurrency just by finishing these little classes.
5. Staking Rewards.
For proof-of-stake coins, locking up your cryptocurrency will assist the blockchain in validating transactions. You receive free cryptocurrency as payment for validating transactions.
Many exchanges have staking services, so you can use your cryptocurrency to generate passive revenue. Fortunately, Coinbase does as well, and you may presently stake six different assets and earn up to 5.75%.
This rate is less than what you would get on lending marketplaces like BlockFi or Nexo. However, it’s comforting to know that if you use Coinbase frequently, you can get extra benefits via their staking program.
6. Coinbase Card
Coinbase gives you a Visa debit card and your account, much like a bank. Your account’s cryptocurrency balance serves as the funding source.
With the card, you may make regular transactions using your earned cryptocurrency balance, just like a debit card. Or use an ATM to withdraw money using the card.
Additionally, using your Coinbase Card to make purchases earns you incentives. You currently receive 4% back in lumens or 1% back in bitcoin.
How to use Coinbase more Safely
Although Coinbase takes numerous security precautions to keep your account and investments as secure as possible, security is ultimately a shared responsibility. Here are some concrete actions you can take to protect your money and prevent illegal access to your account.
1. Use the strongest form of 2-step verification.
Protect your internet accounts, including Coinbase, Gmail, Facebook, Dropbox, Instagram, Twitter, and YouTube, using a very powerful security key.
The next best choice is Time-based One Time Password (TOTP) with mobile authenticator software like Duo or Google Authenticator if you’re not ready to invest in it or don’t want to utilize a security key.
You significantly reduce the likelihood of compromising your account by using TOTP. You can enable security keys and TOTP under your account’s security settings.
Additionally, consider setting up two-step verification for any cryptocurrency transaction to offer additional security to your account. The security settings for your account also allow you to enable this capability.
We advise you set up a security passcode in the security settings of the Coinbase mobile app if you use it to access your Coinbase account. The passcode can be made available for both opening the app and sending money through it.
2. Protect your cloud storage accounts.
Many smartphone users frequently use cloud storage services like Google Drive or iCloud to create backups of the information stored on their portable devices. This data often includes messages, contacts, emails, photographs, and other data.
The device backup will be restored onto a device under the attacker’s control if they acquire access to your cloud storage account. At that point, they will have access to a wealth of data that will enable them to compromise your different online accounts. Do not undervalue the capability of an attacker who has access to this data!
You can turn off backups in your cloud account settings to eliminate the chance that an attacker can back up your data on their mobile device.
3. Secure your email.
Your email address is one of the essential things that connect your Coinbase account to you. Make sure it is safe! Coinbase interacts with you via email if you need support, confirm new devices, or send crucial account alerts.
Check if your email address has ever been exposed to a third-party data breach. If that’s the case, reset any passwords connected to that email address. Your email account should also have two-step verification enabled.
