Coinbase, one of the largest and most well-known cryptocurrency exchanges in the world, has earned a prominent place in the hearts of investors and traders since its inception in 2012. It was founded by Brian Armstrong and Fred Ehrsam. Its headquarters are located in San Francisco, California, USA With more than 89 million active users in over 100 countries, the platform has become synonymous with easy and secure cryptocurrency buying, selling and trading. In this review, we will take a detailed look at the key aspects of the platform that every user should consider before deciding to trade on Coinbase. We’ll evaluate the user interface, asset availability, security, fees, customer support, and overall platform offerings to help you make an informed decision.
Table of Contents
Key milestones in the Coinbase history
Founding and early days (2012-2013): Coinbase was founded to facilitate the buying and selling of Bitcoin. In October 2012, it launched a service that allowed users to buy and sell bitcoin through US bank accounts.
Growth and Expansion (2014-2017): Coinbase began adding support for other cryptocurrencies and expanded its services to international markets. In 2015, it launched Coinbase Exchange, which was later renamed GDAX and is now called Coinbase Pro, a platform for active cryptocurrency trading.
ICO and Beyond (2017-2020): During the ICO (Initial Coin Offering) boom in 2017, Coinbase saw a massive influx of new users. The company continued to expand its cryptocurrency offerings and services, including Coinbase Custody for institutional investors.
Public Market (2021): In April 2021, Coinbase conducted a direct public offering (DPO), becoming the first publicly traded cryptocurrency exchange in the US.
User interface and accessibility
Coinbase is renowned for its intuitive user interface that makes it easy to use for both beginners and experienced traders. The platform offers a simple registration and verification process, making it easy for new users to enter the world of cryptocurrencies. The Coinbase mobile app is also highly rated for its clarity and functionality, which allows trading on the go.
Asset menu
Coinbase offers a wide range of cryptocurrencies, including major currencies like Bitcoin and Ethereum, but also many altcoins and newer tokens. This diversity makes Coinbase an attractive platform for diversifying an investment portfolio. In addition, the platform regularly updates its offering with new cryptocurrencies, responding to market trends and user demand.
Coinbase features
Coinbase offers a wide range of features that will satisfy both beginners and experienced investors. The most important features include:
- Buying and selling cryptocurrencies: Coinbase makes it easy to buy and sell a wide range of cryptocurrencies. The platform also supports fiat currencies such as USD, EUR and GBP, so you can buy cryptocurrencies directly with your cash.
- Cryptocurrency trading: Coinbase allows more advanced users to trade cryptocurrencies on the Coinbase Pro exchange. Here, you can set limits and market orders, and view real-time charts and indicators.
- Coinbase Earn: Coinbase Earn allows users to earn cryptocurrency for watching educational videos and answering quizzes about cryptocurrencies.
- Coinbase Card: The Coinbase Card is a debit card that allows users to spend cryptocurrency at retailers around the world. The card automatically converts cryptocurrencies into fiat currencies at the time of payment.
- Coinbase Custody: Coinbase Custody is a storage service for institutional investors that offers safe and insured storage for large volumes of cryptocurrency.
Security
Security is key for any cryptocurrency exchange and Coinbase does not disappoint in this regard. The platform uses various security methods, including two-factor authentication (2FA), biometric authentication, and data encryption. In addition, a large portion of stored cryptocurrencies are held in offline storage, minimizing the risk of cyberattacks.
Security is important, give this a read: The most typical crypto scams
Fees
The fee structure on Coinbase can be confusing for some users as it varies depending on the payment method and transaction volume. In general, the fees are slightly higher compared to some other exchanges. This is important to consider when choosing a trading platform, especially if you plan to make frequent or large transactions.
Customer support
Customer support is a frequently criticized aspect of Coinbase, with some users reporting slow responses to inquiries. Although the platform offers an extensive help section and FAQ, direct support can sometimes be inadequate, which can be frustrating in the case of urgent issues.
Benefits of Coinbase
- Easy to Use: Coinbase is a very easy to use platform, even for those who have no experience with cryptocurrencies.
- Wide range of cryptocurrencies: Coinbase supports a wide range of cryptocurrencies, so you can choose the one that best suits your needs.
- High Security: Coinbase is considered one of the most secure cryptocurrency platforms in the world. The platform uses various security features such as two-factor authentication and cold storage encryption.
- Regulated by FinCEN: Coinbase is regulated by the Financial Crimes Enforcement Network (FinCEN) in the United States. This means that the platform meets strict compliance and AML requirements.
You might also be interested in: Simple Guide to Crypto exchanges
The Disadvantages of Coinbase
High Fees: Coinbase’s fees are quite high compared to some other cryptocurrency platforms.
Limited trading features: Coinbase Pro only offers basic trading features and therefore may not be sufficient for experienced cryptocurrency traders.
Unavailability in some countries: Coinbase is not available in all countries of the world.
Conclusion
Coinbase is undoubtedly a robust platform with a user-friendly environment for cryptocurrency trading. Its wide range of assets, strong security features and intuitive interface make it an ideal choice for many traders and investors. However, higher fees and occasional customer support issues could deter some users looking for alternative platforms.
It is important to consider your individual needs and priorities before making a final decision to use Coinbase. If you place a premium on ease of use and a wide range of assets, Coinbase may be a good choice for you. But if you’re more interested in a low fee structure and robust customer support, consider exploring other available cryptocurrency exchanges.
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