Coinbase Review 2024: Is It The Best Beginner-Friendly Crypto Exchange?

Coinbase overview

Coinbase is a crypto exchange platform for buying, selling, transferring, and storing cryptocurrency. Coinbase says it’s a “one stop shop” for crypto investors, which means they won’t necessarily have to use multiple products to successfully trade crypto.

Coinbase also offers a Pro version for experienced investors who want to be able to do more active trading. The service offers advanced charting features and the ability to track exponential moving averages.

Is Coinbase good for beginners?

Yes, it is. Coinbase is best for new crypto investors or those who want to have access to a very wide variety of cryptocurrencies and altcoins, particularly traders who live in the U.S.

Once crypto traders feel confident, they can consider upgrading to Coinbase Pro to unlock more advanced trading and charting features.

Coinbase features at a glance:

•        Coinbase’s education program teaches new traders the basics about different types of cryptocurrencies and explains the best ways to use Coinbase. Although it’s not as in-depth as education programs offered by other crypto exchanges, such as Binance, it does give users a good understanding of what they’ll be trading.

•        There are limitations to some Coinbase trading features. There is no futures trading, no leverage trading, no margin trading, no long selling, no short selling, and no staking.

•        With more than available 60 pairs, crypto-to-crypto trading is easy with Coinbase.

•        Coinbase secures any of its assets that are held online to prevent any losses from data breaches.

•        Its successful mobile app has turned many people on to crypto trading.

How Coinbase works:

Coinbase is a centralized cryptocurrency exchange that allows users to purchase cryptocurrency and store it in a digital wallet.

Users can either log on to Coinbase on a desktop computer, or download a mobile app to their Apple or Android device for trading on the go.

How to use Coinbase:

Coinbase has a simple user interface that makes it easy to buy, sell, and trade cryptocurrencies with little previous experience. For total beginners, there’s also a learning program that pys users to complete courses that teach them about how cryptocurrency works.

When you log on to your Coinbase account, you immediately see your portfolio balance and how it’s performed over time. There are also options to “Buy crypto” where you enter an amount of fiat currency and place an order for the type of cryptocurrency you choose from the selection available.

There are also options to sell crypto or set up recurring orders for longterm traders.

Countries where Coinbase is available

Coinbase is available in more than 100 countries and in 49 U.S. states. Coinbase is the largest crypto trading platform in the U.S. and offers more features for U.S. traders.

Coinbase supports USD, EUR, CAD, AUD, GBP, CHF, and JPY currencies.

How many coins and altcoins are available?

Coinbase supports 51 coins on its regular platform and 57 on the Coinbase Pro.

Is Coinbase safe?

Coinbase is a well-established crypto platform that is safe to use. However, Coinbase says users still need to be careful about keeping their account information secret and secure. They suggest using a password manager to keep track of your log in information and setting up 2-factor authentication for added projection.

Is Coinbase legit?

Coinbase is a well-established cryptocurrency exchange platform that hosts legitimate trading activity.

Coinbase vs. Coinbase Pro

Coinbase is a cryptocurrency trading platform and it offers Coinbase Pro, which is a premium service. With Coinbase Pro, users can make crypto-to-crypto transactions and participate in more advanced trading activity.

Coinbase Pro fees are also easier to understand and cheaper than normal Coinbase fees. Pro users have unlimited trade and balance levels. There is an initial daily withdrawal limit of $25,000, though users can request an increase to that limit for larger withdrawals.

Are Coinbase and Coinbase Pro linked?

Yes, Coinbase and Coinbase Pro are offered by the same company. Coinbase Pro is a more advanced option for traders to move to when they feel ready to up their trading games. Coinbase pro allows users to place market, limit, and stop orders. Pro users can also participate in margin trading, which usually isn’t advised for beginners.

Coinbase Security

Coinbase has 2-step verification via the Google Authenticator app or SMS, biometric fingerprint logins and liability insurance if the platform is compromised. The company stores about 98% of user funds in cold storage offline. Coinbase insures assets by pooling balances and holding them in USD custodial accounts, USD money market funds, or U.S. Treasuries.

Coinbase also offers physical security keys that users can insert into their computer drives to authenticate their login and get a one-time passcode. Users do not control their own wallet keys, which is common for centralized exchanges.

Users can choose to withdraw their currency and save it on a personal hard wallet for longterm savings.

Can Coinbase get hacked?

Coinbase told The New York Times in March 2021 that the platform had never been hacked, but about .004% of its users reported account takeovers in the past year where a third party was able to gain access to their accounts. In response, the company said it has worked harder to educate users about keeping their accounts secure from hackers.

Coinbase also offers online and phone assistance for anyone who has found out that their account was compromised. It also offers step-by-step measures to take to secure your information and prevent hackers from gaining any more of your personal information in the event of an attack.

Verification process

Users create a Coinbase account, verify their email address, and set up a two-step authentication process via SMS. Each new user needs to verify his or her identity using an official form of identification. After that, they can add a payment method and start trading right away.

It is safe to upload a driver’s license and Social Security Number to Coinbase, and it’s a necessary step to get an account verified. Users need to provide their real names and accurate contact information when setting up their accounts.

Can you get scammed on Coinbase?

Coinbase takes steps to keep users safe, but scammers can attempt to gain user information through a variety of tactics. For example, a scammer may post as tech support and ask for your account information.

If someone who claims to be from Coinbase contacts you, customer support can be easily reached at security@coinbase.com to verify whether or not it’s a legitimate Coinbase representative.

Coinbase user experience

Coinbase is the preferred exchange platform for many beginners partly because of its easy-to-understand interface. It also gives traders a wide variety of coins and altcoins to choose from, so there’s a good amount of options available. The one downside many users face are relatively high fees for trades, but Coinbase has lower fees for its Pro users. 

Is Coinbase user friendly?

Yes, Coinbase is designed to be very user friendly. Beginner investors will likely not find a simpler platform to learn crypto trading on, and Coinbase’s learning program gives them an extra incentive to educate themselves about crypto.

Are Coinbase deposits instant?

Coinbase deposits do take some time to process depending on where you are in the world.

U.S. customers enjoy instant purchases using a debit card or USD wallet. When transferring to a bank, it will take about 3-5 business days. Funds are immediately debited from your bank account, but the funds are not transferred to your wallet until the payment clears Coinbase’s bank account.

European customers have access to instant standard purchases. Deposits to an EUR Wallet take 2-3 business days.

U.K. customers have instant purchases and deposits to a GBP Wallet usually take 1 business day.

Coinbase fees explained

Coinbase has higher fees compared to other exchanges in its class, such as Binance, but Coinbase Pro does offer some lower fees on larger transactions.

Fees vary in different countries and regions. In the U.S, there is a 0.50% fee per trade, a 3.99% fee for credit card purchases, a 1.49% fee for Coinbase wallet or bank account purchases, and wire transfers are $10 for a deposit and $25 for a withdrawal.

Coinbase Pro fees are not as steep. Deposits and withdrawals are free on digital assets and ACH transfers. Wire transfers are $10 to deposit and $25 to withdraw. 

Click here to see more details about Coinbase fees.

Are Coinbase fees tax deductible?

Since fees are part of your cost basis, they are deductible on annual taxes.

Payment methods supported by Coinbase

Coinbase supports fiat currencies including USD, GBP, and EUR.

Users can use fiat money or other crypto to buy assets from your mobile dashboard. You can also sell or convert your crypto and create recurring orders from your dashboard.

Coinbase withdrawal methods and fees

Users can send crypto out of their Coinbase wallets on the mobile dashboard.

Some Coinbase users can use Instant Card Withdrawals to withdraw funds from fiat wallets to Visa Fast Funds-enabled credit and debit cards. Instant Card Withdrawals are only available for users in some countries, and allows users to withdraw at least $0.55 at one time. There are no limits to the amount you can withdraw, but your card may have its own limits.

Does Coinbase have a wallet?

Coinbase has a free wallet extension you can use to store crypto assets and NFTs without needing a Coinbase account. The wallet is available as a mobile app or desktop extension through Google Chrome. Check our Best NFT Games in 2021

But, is it safe to keep money in Coinbase?

Coinbase uses its Secure Enclave technology, biometric authentication and optional cloud backups to keep your wallet keys secure.

Coinbase app: What to know

Coinbase has a free mobile app available for iOS and Android devices.

How safe is the Coinbase app?

Coinbase has a very secure mobile application, though the company does advise users take extra precautions to protect their information. For example, users can enable a security passcode in the app settings to add an extra layer of security.

Understanding how the Coinbase app works:

The Coinbase app is very similar to the desktop version.

Setting up the application requires that you verify your email address, phone number, and personal information. You’ll also need to link your bank account to your account to use the app.

Once your account information is verified, you can get started buying and selling crypto assets right on the app. The app allows users to preview each purchase before completing the transaction.

Coinbase pros and cons

Coinbase customer service is reachable via email and live online chat.

Coinbase said it boosted its customer support staff by 2,000 employees in early 2021 before the company went public.

Coinbase Pros:

•        Offers a wide range of cryptocurrencies

•        Tight security and private insurance help protect you from hackers

•        Allows users to withdraw crypto from their own private wallets

•        Transitioning to Coinbase Pro is easy once users become more confident and want to make bigger trades while enjoying lower fees

Coinbase Cons:

•        Higher fees than other similar crypto exchanges

•        Funds are stored on Coinbase, so users don’t control their wallet keys. Users can choose to withdraw their crypto to their own personal wallets.

•        Users will have to transition to Coinbase Pro to do more in-depth trading and analysis.

Coinbase review summary:

Coinbase is a very beginner friendly crypto exchange that makes it easy to buy, sell, and trade crypto assets. More advanced traders may want to look into Coinbase Pro for its extra features, but the normal version of Coinbase is intuitive enough to get started as an investor.