Coinbase Review

Coinbase Ratings at a Glance

Coinbase is a prominent cryptocurrency platform where users can buy, sell, and store crypto assets, including NFTs. As of Q4 2022, Coinbase operates in over 100 countries with 110 million verified users. The platform offers over 10,000 assets, catering to beginners and advanced traders. Users can trade popular cryptocurrencies like Bitcoin and Ethereum, as well as lesser-known coins such as SUI and MAGIC. Known for its intuitive user interface, Coinbase simplifies the conversion between crypto and cash. In June 2022, Coinbase transitioned from Coinbase Pro to Coinbase Advanced Trade, enhancing its suite of services for large-volume traders. This review explores Coinbase's features, user experience, and recent upgrades.

Coinbase Features

Coinbase Exchange

The main Coinbase exchange has an easy-to-use layout, making it simple for anyone to trade cryptocurrencies without needing advanced knowledge. You can access Coinbase through its website or mobile app, available on the Apple App Store and Google Play Store. To start, you need to link your bank account, which allows you to deposit cash or withdraw crypto as cash quickly. Your crypto holdings can be viewed by clicking the "Dashboard" tab. For security, Coinbase sends periodic emails about significant changes in your asset values unless you disable these notifications. Like other exchanges, Coinbase operates 24/7, allowing you to trade anytime.

Coinbase Wallet

Coinbase offers a wallet perfect for users who prefer a more interactive mobile platform. Unlike the main website, the wallet is non-custodial, meaning you must securely manage your login details to avoid losing access to your assets. Additionally, since Coinbase.com is unavailable in some regions, the Coinbase Wallet provides an alternative for those who still want to use Coinbase's services.

Advanced Trade

Advanced Trade is Coinbase's built-in trading platform tailored for advanced users, offering enhanced tools and security for their transactions and access to real-time order books. It marks a significant improvement over the previous Coinbase Pro platform. Advanced Trade boasts more market pairs, integration with TradingView, and improved staking rewards compared to the old Pro platform.

Coinbase L(Earn)

Coinbase is more than just a cryptocurrency exchange; it's an educational institution. The platform offers educational videos and online exams to help users learn crypto trading independently. By completing Coinbase's educational materials, users can earn money through basic trading strategies. Additionally, learning about new cryptocurrencies and methods sponsored by Coinbase can be highly beneficial.

Coinbase PRO

Coinbase Pro is an advanced version of Coinbase tailored for experienced traders and investors. While the basic Coinbase platform is aimed at newcomers to the crypto space, Coinbase Pro is designed for those with trading experience. It offers a variety of advanced tools and features not available in the regular version and supports trading over 240 cryptocurrencies directly for fiat, Bitcoin (BTC) or Ethereum (ETH).

When using Coinbase, users encounter various fees associated with trading, depositing, and withdrawing cryptocurrencies. Understanding these fees is crucial for managing costs effectively on the platform.

Trading Fees

Coinbase employs two main fee mechanisms for trading. The first involves a spread fee, which is a percentage charged on the buy and sell price to lock in the transaction. This spread is visible before completing your order. The second mechanism applies to users who use the Advanced Trade feature. This fee is simpler, based on a tiered structure that depends on your trading volume and whether you're providing or taking liquidity. Fees for makers generally range from 0.00% to 0.40%, while takers are charged between 0.05% and 0.60%, with the possibility of reductions based on trading volume.

Deposit Fees

ACH deposits are free for U.S. customers. However, wire transfers incur a $10 deposit fee.

Withdrawal Fees

Withdrawing funds via wire transfer carries a $25 fee. ACH withdrawals are typically free.

Crypto Fees

Additionally, you must pay other fees besides the network and fixed crypto trading fees. For example, if you want to withdraw your crypto, you must convert it to cash for a 1.0% charge before proceeding.

For a detailed view of Coinbase's trading fees, please refer to the table below.

Coinbase is highly regarded for its robust security measures, earning a solid rating of 4.5 out of 5. Here's a breakdown of how the platform safeguards user information and assets:

Asset Security

Coinbase ensures that customer assets are held 1:1, meaning they do not lend or use your funds without explicit permission. This commitment to asset integrity reassures users that their cryptocurrencies remain their own.

Personal Data Protection

The platform collects only essential personal information and is transparent about its use and sharing. This respect for user privacy is crucial for maintaining trust.

Advanced Encryption

Coinbase employs state-of-the-art encryption and security technologies to protect data. Their dedicated security team works tirelessly to safeguard the platform against emerging threats.

Account Protection Tools

Coinbase offers comprehensive security features, including auto-enrolled two-factor authentication (2FA), password protection, and multi-approval withdrawals via Coinbase Vault. These tools add layers of security, ensuring that unauthorized access is minimized. 

Overall, Coinbase's focus on rigorous security practices and user protection places it among the top platforms for secure cryptocurrency trading.

Coinbase generally fares well in terms of user experience and ease of use. The platform is known for its intuitive interface, designed to accommodate beginners and experienced traders.

However, despite its user-friendly design, Coinbase has faced criticism for its customer service and security issues. Users have reported difficulty resolving account problems, such as hacks and locked accounts. This has led to a notably low rating on Trustpilot, where Coinbase holds a disappointing score of 1.8 out of five stars from over 9,300 reviews. These reviews reflect ongoing concerns about accessibility and operational issues, impacting overall user satisfaction.

Additionally, Coinbase has faced scrutiny from regulatory bodies, including fines from the Commodity Futures Trading Commission and numerous complaints filed with the Consumer Financial Protection Bureau. These issues highlight significant areas for improvement in customer support and regulatory compliance.

While Coinbase is recommended for its ease of use and efficient sign-up process, prospective users should know its customer service challenges and regulatory history.

The Coinbase mobile app stands out for its ease of use and convenience, embodying the platform's dedication to accessibility. It enables users to manage their cryptocurrency portfolios anytime, anywhere, with features similar to those on the desktop version. The app boasts a sleek and intuitive design, making it user-friendly for beginners and experienced traders. Features such as price alerts, buying, selling, and converting cryptocurrencies enhance the mobile trading experience. Overall, the app earns a solid four out of five for its functionality and user experience, reflecting its effectiveness in providing a comprehensive mobile trading solution.

Coinbase's customer support has received mixed reviews, reflecting both strengths and weaknesses in its service. Users can access support channels, including live chat, social media assistance, and a ticketing system. However, many customers report issues with nonhuman communication and slow response times, which can be frustrating when trying to resolve problems.

While available, the live chat feature often leads to automated responses rather than direct human interaction, which can slow down issue resolution. The social media support platform offers another avenue for assistance, but response times can still be sluggish. The ticketing system allows users to submit requests, but the process can be more self-service and less interactive.

Overall, we rate Coinbase's customer support two out of five. The limited options for direct, personalized support and the frequent complaints about responsiveness highlight the need for improvement in this area.

Coinbase vs. Competitors

Coinbase faces competition from several notable platforms, including Binance, Kraken, and Gemini, when considering cryptocurrency exchanges. Each of these competitors offers unique features, appealing to different user preferences and needs.

Binance is known for its extensive range of cryptocurrencies and advanced trading features. It often attracts users looking for lower trading fees and a broader selection of assets. Binance supports many coins and tokens, providing options beyond what Coinbase offers. However, Binance operates with a more complex interface than Coinbase, which may be a consideration for less experienced traders.

Kraken is another major player that offers robust security features and a comprehensive trading platform. It is recognized for its high liquidity and competitive fees. Kraken also supports cryptocurrencies and provides advanced trading options like Coinbase's Advanced Trade. The platform's interface is somewhat less intuitive than Coinbase's, which may affect users who prioritize ease of use.

Gemini closely mirrors Coinbase regarding functionality and regulatory compliance within the U.S. Both platforms offer features such as crypto earning opportunities and a user-friendly interface. However, Gemini stands out with a more favorable fee structure and its pro trading platform, ActiveTrader, which offers advanced trading tools akin to Coinbase's Advanced Trade.

While Coinbase is a popular choice for its ease of use and strong security measures, users might find value in exploring or using it alongside other exchanges like Binance, Kraken, or Gemini to optimize their trading experience and access a wider range of features and assets.

Coinbase stands out for its user-friendly design and extensive support for over 10,000 cryptocurrencies, making it an appealing choice for beginners and experienced investors. Its intuitive interface simplifies the often-complex process of buying, selling, and storing digital assets, making cryptocurrency accessible to a broader audience.

However, Coinbase's overall rating is tempered by several factors. The platform's fee structure is relatively high compared to some competitors, which can impact the cost-effectiveness of trading. Additionally, customer service has been a recurring issue, with users frequently reporting slow response times and challenges in resolving account problems.

Despite these drawbacks, Coinbase remains a powerful and accessible tool for cryptocurrency investing. Its robust security features and comprehensive asset support provide significant value, making it a solid choice for many users. However, there is room for improvement in customer service and fee competitiveness.

Frequently Asked Questions