In this Coinbase review, I will share my own personal experiences and you will learn a lot more about this platform. I’ve personally used them for over 3 years and find them to be very reliable and trustworthy. There are some negative reviews out there though and even some people saying they are a scam.
Is Coinbase a Scam or Legit?
Coinbase (https://www.coinbase.com/) is known as one of the oldest cryptocurrency exchanges. It first went live in 2012 founded by Brian Armstrong, company COO and Fred Ehrsam, co-founder of Paradigm. Coinbase initially offered brokerage services for Bitcoin; now, is a hugely popular cryptocurrency company with a wide variety of services.
Coinbase Headquarters And Regulations
Coinbase is headquartered in San Francisco, CA. It is a fully-regulated and licensed cryptocurrency company with ties to investors like Andreessen Horowitz, The NYSE and Rabbit Capital. And because of its popularity, it has become one of the go-to companies for anything Bitcoin-related and cryptocurrency services.
How Many Customers Do They Have And From Where?
As of May 2020, Coinbase supports more than 100 countries and has 30+ million customers worldwide. Coinbase offers crypto trading and other services to countries that other crypto traders won’t consider. Among these are African, Caribbean and Asian countries.
Here is a really nice Coinbase review video;
What Are The Types Of Coinbase Accounts?
Coinbase brokerage services are their primary service. It has two types of accounts: a regular account and Coinbase Pro. A basic brokerage account is like a shell account as you don’t have access to your funds. You don’t have a seed phrase or a private key for transactions as well. Transactions come with a premium price. Coinbase keeps your coins in a simple, easy to manage the basic account.
Meanwhile, Coinbase Pro is for experienced users. It allows you to trade using different kinds of cryptocurrencies such as Bitcoin, Ethereum, Litecoin, Bitcoin Cash and ZRX.
What To Expect With Coinbase?
Here are very features that you must consider before you consider Coinbase:
- Account Sign Up And Verification
Signing up for a new account is easy and very straightforward. You can do this at Coinbase official website https://www.coinbase.com/. Register with your name, email and a nominated password. You need to follow the prompts to complete account verification.
If you don’t completely verify your account, you will only be able to purchase only a small amount of BTC. To increase your limits, you must verify your account by providing and verifying your personal information, phone number and your identity using a photo ID.
A US resident can enjoy the highest limit of $25,000 daily. Also, transaction limits may vary depending on the payment method you selected to buy crypto.
- Account Closure
Take note of account closures which is one of the downsides of using Coinbase. This is because of its integration with regular banking laws; nevertheless, the company prides on its compliance with baking legislation.
Coinbase will track the way you spend your crypto and can shut down your account if you use your funds for adult services, gambling, products from the black market, the resale of coins in other crypto exchanges and other reasons that they may suspect that affects their algorithm.
- Trading Platforms
Trading and brokerage services are done primarily through Coinbase’s official website.
- Other Coinbase Products
Other products include Coinbase Wallet, Coinbase Merchant accounts/solutions, and other services like USD Coin (a stablecoin), custodian services, Coinbase Index, Paradex, Earn.com and Coinbase Ventures.
- Supported Cryptocurrencies
Coinbase is a cryptocurrency brokerage company that supports a variety of cryptocurrencies including Bitcoin, Litecoin, Bitcoin Cash, Ethereum Classic, USD Coin, Ox, Z Cash, Dash and Cosmos among others.
- Deposits And Withdrawals
Payment methods supported are wire transfer including SEPA in the EU and ACH in the United States, credit cards, debit cards, PayPal only for withdrawals and crypto deposits and withdrawals. It will take three confirmations before an outside transaction shows in your account.
Coinbase market price at Coinbase Pro is +0.5% and comes with transaction fees for transactions lower than $200. Transaction fees for standard buy are 1.49%, and credit card buys are 3.99%. Deposits are free using ACH, but all other methods will cost $10. Free transactions between Coinbase accounts.
- Tools And Training
Coinbase can help beginner traders learn more about crypto trading through their knowledge base. You may also find answers to your questions from this tool, but you may submit a ticket if you cannot.
- Customer Support
You can contact customer support via chat, email or by their support phone line. But according to users, Coinbase has poor customer support by phone. You may be better off getting things done through email or by submitting a ticket.
What Are The Advantages Of Transacting With Coinbase?
The following are good reasons to trade with Coinbase:
- Account sign up is easy; verification is easy to accomplish to ease restrictions.
- Comes with a variety of products.
- Trades using a wide variety of cryptocurrencies.
- Has many payment methods available
- With helpful knowledge base tool ideal for beginners.
- Secure and trustworthy, with many years of experience in the industry.
- Offers crypto brokerage services to most countries.
- With merchant accounts available
- Accepts PayPal withdrawals
Some Coinbase disadvantages to consider
- Although minimal, there are fees for almost everything you do.
- The basic account does not have much freedom.
- Account closures possible as Coinbase tracks your crypto spending.
- Not helpful phone customer service by phone
We recommend Coinbase but not the basic account. Open an account and go Pro to ease restrictions. As far as buying crypto and trading, it is safe and secure. It has a variety of fast and secure payments, and while there are fees, these are minimal fees compared to other crypto brokerage firms. Also, use your cryptocurrency wisely as Coinbase can find out if you are spending your newly withdrawn funds on illegal, dangerous and inappropriate means.
If you enjoyed this post then you may also like our best bitcoin investments in 2020 post.
I’m Jon, owner of Trade Wise at https://tradewise.community/ and https://www.youtube.com/channel/UC7VmOx8DbvX4Rbrac2pPcjw
I review forex and crypto trading products and services to find the best of what’s out there for creating a passive income without becoming a full-time trader.