Search
Close this search box.

Coinbase Review: Is it worth giving a try

Coinbase is one of the top crypto exchanges out there. Since they kicked off operations several years ago, they have become the go to platform for many crypto enthusiasts for a variety of reasons. To start with, Coinbase supports a variety of cryptocurrencies. So if you’re looking for a platform with tons of digital assets you can invest in, you’ll certainly love Coinbase.

Coinbase is available in 55 countries as of 2021. In this article, we will thoroughly review Coinbase. After reading our unbiased Coinbase, you’ll be able to decide if the platform is worth giving a try or not. Let’s kick things off by taking you through some pros and cons of this exchange.

PROS

  • A high level of liquidity and purchasing power
  • Buying bitcoin is easy for new users

CONS

  • Limited payment options
  • It may track how Bitcoin is spent by its users

Now that you know some pros and cons of Coinbase, we are sure you’ll be asking a lot of questions like, is Coinbase safe? Are there any fees associated with Coinbase? Does it offer a safe and reliable place to purchase cryptocurrencies, or are there other options available?

Continue reading to learn more!

Coinbase: Is it safe?

Yes, Coinbase is backed by trusted investors, and it is based in S.F. Coinbase has raised $547 million in funding to date. Also, Coinbase is publicly traded on the NASDAQ and listed on the New York Stock Exchange. You can make offers on Coinbase Pro to other users, and Coinbase takes a portion of your earnings.

The brokerage method involves buying crypto directly from Coinbase at their list price (there is no bidding on the brokerage side).

Top Recommended Platforms

MIN. DEPOSIT

$50

EXCL. OFFER

USER RATING

9.8

4.9/5

78% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

MIN. DEPOSIT

$100

EXCL. OFFER

USER RATING

9.7

4.8/5

Trading forex or CFDs on margin involves a high degree of risk and may not be suitable for all investors. There is a possibility that you may suffer a loss equal to or greater than your entire investment.

MIN. DEPOSIT

$250

EXCL. OFFER

USER RATING

9.6

4.5/5

CFDs are complex instruments and involve a high risk of losing money quickly because of the leverage effect. 68% of retail investor accounts lose money trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

In this article, we’ll take a closer look at Coinbase’s security, but you’ll also learn the answers to all your questions about Coinbase’s products throughout this review.

Coinbase: Is it legitimate?

The popularity of Coinbase has caused many people to wonder if it is a safe place to buy, sell, and store cryptocurrencies. This article aims to review the different kinds of safety Coinbase provides.

There is no doubt that Coinbase is a legitimate cryptocurrency exchange and a broker. The high-profile investors and the highly regulated environment (San Francisco) are the reasons for this.

See also  Crypto.com: Everything you need to know

There is very little chance that Coinbase will disappear with your money. Although Coinbase holds many customer funds, hackers have never tried to steal them. Coinbase appears to do an excellent job keeping customer funds safe on its platform. Coinbase’s security systems are so robust that it can protect its users from scams that occur off the platform:

But for it, to prevent cyber-attacks such as these from happening, users need to give up some privacy and control over their digital assets.

Coinbase, like many Silicon Valley companies, has a poor privacy record. You might be able to get better results with almost any other major US exchange if privacy is your biggest concern. Coinbase freezes customers’ accounts when anything looks suspicious. Typically, this is meant to prevent unauthorized users from accessing your account. Still, there have been cases where customers have been unable to log in due to privacy-enhancing technologies like Tor or CoinJoins.

So Coinbase is entirely trustworthy (maybe the best) regarding account security. However, Coinbase does poorly when it comes to privacy. Coinbase is a good option for buyers of bitcoin who do not care about privacy. 

Are coins stored on Coinbase safe?

It’s always a good idea to never store your cryptocurrency on any exchange (not only Coinbase). You must move the cryptocurrency you purchase from Coinbase into a wallet that you control and is separate from Coinbase.

After buying coins from Coinbase, we recommend storing them in the Ledger Nano X.

Why?

Because there are a lot of hackers who are eager to steal coins from Coinbase (and every other exchange), even though Coinbase has never been hacked, that does not mean it will never be. It is unlikely you will get your digital assets back if they are hacked. You can easily remove them from the exchange when you buy them.

Let’s look at Coinbase’s platform in more detail before finding out how to open an account on the platform or how to buy cryptocurrency.

Coinbase: How Does It Work?

First-time buyers will find Coinbase’s interface simple and easy to use, allowing them to make purchases of bitcoins using standard payment methods.

For Coinbase customers, debit cards and bank transfers are the most popular payment methods. However, the use of Coinbase varies from country to country. We discuss below which countries Coinbase supports, what payment methods it accepts, and what kinds of fees each resident will pay for crypto purchases depending on the payment method.

What countries does Coinbase support?

Coinbase is available in the United States, United Kingdom, Canada, and Singapore. Furthermore, Coinbase offers support for the following European countries:

Andorra, Austria, Belgium, Bulgaria, France, Sweden, Switzerland, United Kingdom, etc.

Coinbase is also available in North America, including Canada, the U.S., and Mexico.

Coinbase only accepts debit card payments in Chile in South America. Depending on your location and purchase size, fees may vary.

Coins that Coinbase supports.

There are dozens of coins that Coinbase supports, but which ones are available to you is determined by the country you live in.

Limits & Liquidity

Coinbase has very high limits. Depending on how much information you have verified, you will have varying account limits. You can buy bitcoin worth up to $50,000 a day if you are a fully verified United States customer.

See also  Changelly Review: Should you give them try

An E.U. customer can have a maximum of 300.000 euros in their account at any time.

Methods of payment on Coinbase

Coinbase charges high fees. For credit and debit card purchases, there is a 3.99% fee, and for bank transfers, there is a 1.49% fee.

Deposit Fees and Deposit Times

Nearly anyone can convert cryptocurrencies through Coinbase, but they can’t exchange local currency for cryptocurrencies.

Withdrawal Fees and Withdrawal Times

Your country and payment method will determine how long it takes for Bitcoins to reach your wallet and be usable.

Customer Support

Support is available via knowledge base and email on Coinbase. To get help and answer questions, you can also use Coinbase “Community.”

Crypto to Crypto Trading

Trading crypto-to-crypto is available to customers in over 100 countries. Coinbase recently added this feature.

Coinbase: A Step-by-Step Guide

Creating an account, adding funds, and buying currency can still be challenging even though Coinbase is beginner-friendly.

Read on to learn everything you need to know about creating an account, adding funds and buying cryptocurrency on Coinbase.

Creating an Account

  • Click on “Sign Up” on the Coinbase website to set up an account.
  • Fill in the details requested by Coinbase. You must complete the captcha, verify your age, and agree to the Coinbase terms of service and privacy policies.
  • Follow the verification link in your email after you continue.
  • Add your phone number and select your country.
  • Then you will be directed to enter the 7-digit code sent to your phone.
  • Your ID may be verified after you enter the code. In case it is not, your account setup is complete. Your next step will be to verify your I.D if instructed.
  • You should still verify your I.D., even if you are not prompted for it now, because you will need it to continue purchasing cryptocurrency.

Coinbase Verification Levels

Different levels of vetting affect the amount of money you can invest and how it is sent and received on Coinbase.

Optional: Set up additional security measures. You should enable 2-Factor Authentication (2FA) after verifying your I.D.

It is not mandatory to take this step, but we strongly recommend that you do it to prevent hackers from accessing your account. 

  • The first step is to press the settings tab and navigate the security tab.
  • Ensure the verification code for any amount of digital currency is set under the “Two-Factor Authentication” section. Click “Enable Authenticator.”
  • You will receive a code (7-digit code)on your phone.

Coinbase SMS Verification

The Coinbase authenticator code will be generated after you enter the SMS code. You can then use 2-Factor Authentication.

Please keep a record of your authenticator secret code and store it safely. For your 2FA codes, you will need this code if your phone is lost or stolen or if it is a new phone. A 2FA setup will significantly enhance the security of your account.

How to Use Coinbase to Buy and Sell

You must first add a payment method before you can purchase cryptocurrency. Coinbase accepts three types of payments: debit card, bank account, and wire transfer.

Adding Payment Methods

  • Adding a payment method is as simple as clicking the “Settings” tab and selecting “Add payment method.”
  • And then select the “Linked Accounts” button.
  • To link a new account, click “Link a New Account.”
  • After that, you can choose which payment method to use.
See also  BlockFi Review: Features, Pros and Cons

Purchasing Cryptocurrency

You’re finally ready to buy some cryptocurrency now that you’ve set up your account!

  • At the top, click “Buy/Sell.” Pick the cryptocurrency and payment method you want and the price in dollars. The next step is to confirm your purchase.
  • The purchase may also require a 2FA code.
  • There is a lot of similarity between buying and selling cryptocurrency. There is one big difference between selling cryptocurrency with a credit card and buying with one (unless you are a resident of the U.K. or E.U.). Your money must be held in a bank account or a USD account on Coinbase if you want to sell.

Depositing/Sending Cryptocurrency

  • First, select the “Accounts” tab and “Add Cryptocurrency.”
  • Choose “Receive” when you want to deposit currency.
  • You can then send cryptocurrency to the address that Coinbase provides. Send only those cryptocurrencies to that wallet. 
  • If you would like to send funds to another address, click the “Send” button.
  • Afterward, enter the dollar amount and the recipient’s address.
  • To complete the transaction, you will need to input your 2FA code. You’ll also see a different miner fee for sending funds. This fee is not paid to Coinbase; instead, it is distributed among the network’s miners.

You should have all the information you need to start purchasing and trading bitcoin now that you understand how to create an account, buy/sell, deposit/withdraw, etc.

Privacy on Coinbase

It’s the most user-friendly exchange on Earth. As well as helping you to stay safe from mistakes and hacks, it also protects you from errors.

Here, we discuss what you must sacrifice for these benefits: your privacy.

Does Coinbase protect your privacy?

To create a Coinbase account, you need a name, address, phone number, and email address. If you plan to use a debit card, you will need to take a photo of your driver’s license or passport. As a regulated crypto exchange like Coinbase, where KYC and AML requirements must be met, all of this is normal.

At all times, Coinbase has access to your address and balance and can link it to your identity and I.P. address. To verify transaction data, you have to rely on Coinbase’s servers.

To prevent users from connecting Bitcoin addresses, each payment request has a unique address. In its Spring 2015 report, the Open Bitcoin Privacy Project rated Coinbase’s privacy as 11 out of 100.

Since 2014, Coinbase has tracked how its users spend bitcoin. In 2019, Coinbase acquired Neutrino, which confirmed this suspicion. The company Neutrino analyzes blockchains to identify who is behind addresses in those chains. To ensure Bitcoin users’ privacy, Coinbase acquired the company.

Several Neutrino’s employees also co-founded a spyware company known as Hacking Team. Furthermore, Coinbase recently attempted to sell its data to the Drug Enforcement Agency (DEA) and the Internal Revenue Service (IRS). The data was sold to the Secret Service after winning the contract.

If you want to buy cryptocurrencies discreetly, Coinbase is not the ideal choice. Coinbase is an excellent option if you need coins fast and efficiently.

 

More to explore

Related Articles

67% of retail investor accounts lose money when
trading CFDs with this provider.

eToro: Best Trading Platform - 0% Commission to Trade Stocks & ETFs

eToro: Best Trading Platform - 0% Commission to Trade Stocks & ETFs

67% of retail investor accounts lose money when
trading CFDs with this provider.