Coinbase - 2022 Review Review

Coinbase began offering cryptocurrency exchange and trading services in 2012. This regulated company has an excellent safety record and has several features that make it one of the safest places to trade, sell and buy cryptocurrencies.

In addition to adding new currencies regularly, the platform has expanded its operations to cover jurisdictions other than the United States. This includes the UK, the EU, and Asia. This Coinbase review provides a detailed overview of the platform, including supported payment methods, security, and trading options.

Comparing Coinbase 

Coinbase is a major cryptocurrency exchange that offers a wide range of cryptocurrency trading products, with a solid claim to being the best of the US-based cryptocurrency companies. However, there are some aspects of the platform that may make you wonder whether or not it is right for you. Perhaps you are looking to invest in a cryptocurrency that is not available on Coinbase or feel that you can pay less fees.

Coinbase: Regulation and Security 

Coinbase is a registered and fully regulated company based in the United States. The exchange is one of the few that seeks regulatory approval in every jurisdiction in which it operates. 

On the international stage, Coinbase has regulatory approval in the UK and EU, with the team continually applying for and obtaining licenses in every jurisdiction it seeks to operate in.

As one of the most well-established cryptocurrency exchanges, Coinbase has earned the name of one of the safest. The reason is not only its regulatory status in the US. Coinbase has attracted a huge investor base and backers, including names like Andreessen Horowitz, Blockchain Capital, and Bank of Tokyo.

Other than that, the security of user funds is one of Coinbase's biggest advantages. The company keeps customers' funds in custodial banks, separate from the company's money.

In addition, the exchange stores 98% of its customers crypto assets in cold storage, including vaults and safe deposit boxes. The remaining funds in online wallets benefit from Lloyd's of London policy coverage, while the FDIC covers US residents with insurance up to $250,000.

Coinbase also has a fully encrypted website with Secure Sockets Layer (SSL) (https). AES-256 encryption protects customers' wallets, while users strengthen their security using 2FA. All of these features mean that Coinbase provides an environment with one of the highest security scores in the industry.

Is Coinbase safe?

As a new user, the main advice is to find out as much as you can about its safety or security.

While the general opinion is that you should treat each platform you use to buy, sell or trade cryptocurrency individually, it is reassuring to note that Coinbase is too established and regulated to come up with an exit scam. The reason Coinbase is considered one of the safest bets is its constant engagement with regulators in every jurisdiction it operates in, and the way Coinbase protects users' funds proves how safe it is for users.

Is Coinbase good for me?

Coinbase is available for both the beginner and the advanced trader. The features and functionality of the platform make Coinbase one of the first entry points into buying cryptocurrency. 

I am a beginner

Most people who buy their first Bitcoin do so on Coinbase. The company offers a good cryptocurrency buying and trading platform. Start with an easy signup process and buy cryptocurrency, hold or sell. You can also use the excellent cryptocurrency resources as you learn and earn. Do it all on the main Coinbase.com platform.

I am an Expert

If you are a professional, Coinbase Pro has what you need. The platform formerly known as GDAX is the exchanges dedicated interface for advanced traders. Use the intuitive interface to explore a full range of trading options, including real-time order books and charting tools.

Exchange Wallets: Features, Supported Cryptocurrencies, and Security

Users have access to an integrated wallet application called Coinbase Wallet. Unlike when funds are held on an exchange, users hove control over private keys as this is a non-custodial wallet.

The wallet supports iOS and Android devices. After downloading the wallet, you have the option to link it to your account to get easy access to crypto transfers from/to the app.

Supported cryptocurrencies

Coinbase initially offered only Bitcoin and only later added Ethereum, Litecoine Bitcoin Cash. These four were the only cryptocurrencies available for a long time, as the exchange did not want to list assets that could later be classified as securities.

In recent years, however, the exchange has added support for a number of ERC-20 coins and tokens.

The number of cryptocurrencies available on Coinbase.com and Coinbase Pro has increased significantly. You can now buy, sell or trade BTC, ETH, LTC, BCH, ETC and a number of Ethereum-based tokens totaling more than 100, including Chainlink, Algorand and most recently Band Protocol.

For the security of users on the platform, the company follows the Data Protection Act 2018 and the General Data Protection Regulation. This means that the company has an obligation to protect the personal data of its users. If you end up signing up for the Coinbase card, your data will be safe, as the issuer Paysafe Financial is regulated by the FCA.

How to Transfer Your Cryptocurrency Funds to/from Coinbase

You can easily send cryptocurrency from your Coinbase wallet to an external wallet. Simply login to your account and click the Send tab. The next step is to select the cryptocurrency you wish to transfer. Enter the amount, the receiving address, and send.

If you want to transfer cryptocurrency from an external wallet to your Coinbase account, go to the Accounts tab and select the wallet to send funds to and press 'Receive'. Use the wallet address provided to transfer cryptocurrency to your Coinbase account.

Coinbase Fees and Costs

Coinbase offers some of the most competitive fees in the cryptocurrency exchange space. Costs vary and some competitors may offer lower fees.

Deposit and Withdrawal Fees

Coinbase's fees range from 1.49% to 3.99%, with costs varying depending on the payment method used. Credit card costs are the highest, but are generally within the industry average.

Trading Fees

Fees for cryptocurrency trading are generally charged on two bases: a 0.5% spread fee for fiat-to-crypto purchases and sales, and a flat 1% fee for crypto-to-crypto trading.

Payment Methods and Limits

Coinbase supports multiple payment methods including local currency payments.This is one of the reasons why people prefer the platform. However, support for some of the payment options is not universal. There are restrictions and it is good to know which payment method is allowed in your country or locality.

• Bank deposit
• Debit card
• Credit card
• Paypal
• Crypto

Fees associated with these payment options may vary. 

Trading Limitations

Coinbase offers some of the highest limits in the industry if an account is verified. Unverified accounts have very low limits. US residents have up to $50,000 in daily BTC purchases, while EU residents have a daily limit of up to €30,000.

Final thoughts on Coinbase

No cryptocurrency exchange can be considered perfect, not even the highly regulated Coinbase. However, when it comes to comparisons, Coinbase was and remains one of the most user-friendly exchanges on the market, with its trading platform designed to offer users an easy experience while buying or trading the most popular digital assets. When it comes to security measures, it is arguably the most secure of all cryptocurrency exchanges.

No matter which exchange you are using, avoid keeping all or most of your crypto assets in exchange wallets as much as possible. Always try to transfer coins to a wallet whose private keys are under your control. This is especially important for those who have a long-term strategy planned for their investments.