Coinbase is a crypto exchange based in the US, founded in 2012. With the crypto world increasing each day, the exchange grows each day in relation to its users, and it becomes a concern whether the exchange is safe to trade with. The crypto exchange has traded over $150 billion of digital assets. It is now a publicly-traded company on the Nasdaq stock exchange, which in a way, tells of its safety and trust among users.
But how well does the exchange represent the buying and selling of crypto?
Coinbase Review
Coinbase comes in the mix as a well-known crypto exchange that makes it easy for crypto enthusiasts to buy, sell, and exchange crypto. Additionally, it makes buying Bitcoin as easy as buying a stock through an online brokerage. It allows users to buy, sell, and exchange over 200 tradable cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin.
As we know, crypto comes into the space as relatively risky and volatile, which does not sit well with investors. However, if you are interested in crypto, Coinbase can be an optimal option for newbies and veterans.
The company was founded in 2012 as a platform to send and receive Bitcoin. With more than 4700 employees worldwide, the company continues to grow to support dozens of unique cryptocurrencies. It is a decentralized company and thus has no main headquarters.
Coinbase runs two separate trading platforms and a standalone crypto wallet service.
Coinbase Pros and Cons
Pros
It has an extensive crypto selection
Offers simple and advanced trading
One can earn free crypto
Offers educational content
It has a top-rated mobile app
Cons
The exchange has potentially high transaction fees
Experiences customer service issues
Users have no access to trade many altcoins.
Cryptocurrencies Offered by Coinbase
Coinbase supports trading over 200 cryptocurrencies and constantly adds new ones to the list. However, there is the presence of the most popular digital currencies on Coinbase:
Bitcoin (BTC)
Ethereum (ETH)
Cardano (ADA)
Solana (SOL)
Polkadot (DOT)
USD Coin (USDC)
Dogecoin (DOGE)
Uniswap (UNI)
Litecoin (LTC)
Shiba Inu (SHIB)
Stellar Lumens (XLM)
Polygon (MATIC)
Coinbase offers good options for both beginner and advanced traders. Additionally, the Coinbase platform is optimal for traders with experience.
Coinbase Key Features
The platform comes as a mainstay in the crypto sphere. Since its inception into the crypto world in 2021, it maintains its spot in the public eye. Coinbase has an easy-to-use platform but a complicated fee structure. Here are its main features.
Fees- The primary Coinbase platform has a highly complex fee structure. One does not have to pay taker/maker fees or a flat fee but a spread fee that temporarily locks in the price for the transaction. Coinbase spread fees typically run around 0.5%.
Security- The platform’s security protocols include checking the dark web for customer passwords, recommending a third-party security key, and offering insight security prompts.
Trading experience- The company runs two different platforms; Coinbase and Advance Trade. Each allows one to buy, sell, and trade crypto but offers unique features.
Opening a Coinbase Account
Signing up for Coinbase is a reasonably quick and easy process, like opening a new bank or brokerage account online. For you to open a Coinbase account, you must be at least 18 years or older and have a government-issued ID, an internet connection, and a phone number. Like most crypto exchanges, Coinbase does not charge fees for opening an account.
To open a fully verified account, entering your contact info, including your social security number, should be a consideration.
On the Coinbase homepage, click the “get started” button.
Enter your legal name, email, and password. You also have to provide proof of your location. A verification email will then be sent to you. After verifying the email, you must verify your phone number for two-factor authentication.
In setting up an account, you will have to answer a few questions relating to your employment and source of funds and verify the user’s identity using photographs of an ID. Once the step is done, you can link to a payment method and begin funding your account.
Coinbase Crypto Wallets
Crypto wallets come in many shapes and varieties. As such, Coinbase offers more than a one-size-fits-all wallet for crypto storage needs. The exchange offers three different types of hot/online wallets.
Coinbase wallet- It is a self-custody wallet that supports many crypto assets. Besides, it is optimal as it does not require you to open an account on Coinbase. You can also park your non-fungible tokens (NFTs) in the wallet.
Coinbase exchange- The option carries out trades on the Coinbase platform. However, remember that your private keys are stored on the exchange, making them susceptible to attacks.
Coinbase dApp wallet- This wallet stores ERC-20 tokens on the Ethereum network.
How Does Coinbase Compare to Other Crypto Companies
The cryptocurrency marketplace is evolving quickly with new competitors. Coinbase faces competitors like Gemini, Binance, KuCoin, Kraken, and many others.
Your cryptocurrency is safe with Coinbase, as it is one of the most secure exchanges. It stores over 98% of client funds in cold storage, meaning those assets are stored in devices that are not connected to the internet. This provides greater security against hackers, making it the method of choice for secure cryptocurrency storage.
Final Thoughts
It is vital to note that Coinbase features a top platform for anyone to buy, sell, store, and exchange. Additionally, the platform is perfect for new crypto users who want a simple buying and selling experience without worrying about the complexities of external wallets and decentralized exchanges.
The only downsides of Coinbase are its pricing structure and customer service. If you can handle your account independently and agree with the fees, Coinbase becomes an excellent choice for anyone interested in crypto.
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