Coinbase Review 2024: Pros, Cons and How It Compares

what is coinbase

Let's purchase a fraction of a bitcoin since that's the one you've probably heard of most. But this process is the same for all the currencies offered on the Coinbase platform. These are among the biggest reasons that while Coinbase is useful for beginners, it is not for everyone. If you want to avoid Coinbase’s high fees and long processing times, there are plenty of other ways to buy cryptocurrencies such as Bitcoin. The downside to this approach is it requires you to remember your own password, also known as a private key. If you have heard reports of people losing millions because they got locked out of their cryptocurrency wallet, they probably have a non-custodial wallet.

How to buy cryptocurrencies on Coinbase

NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance. Instead, the company offers crime insurance, which covers some of the digital currencies within its system, offering protection against theft and cybersecurity breaches. Note that the insurance does not cover unauthorized access to user accounts, such as if someone obtains your login credentials.

What Does Coinbase Offer?

Generally, users with account issues like hacks and locked accounts find it challenging to resolve them. To have enough money for your transaction, it’s essential to estimate all the fees you will pay on a particular transaction beforehand. Coinbase operates a tier-based system for its maker and taker fees, allowing users transacting with larger volumes to pay less in fees. Coinbase’s entire fee schedule is not available on a single page but instead available on different pages within their Help Section. While makers pay 0.00% to 0.40% of their transactions as fees, takers pay a higher percentage, which could range from  0.05% to 0.60%. These fees can be reduced according to your tier and the amount you transact.

  1. In a short period of time, cryptocurrency has gone from a small, alternative investment to one worth hundreds of billions of dollars collectively.
  2. Coinbase’s fees are also a bit complex, ranging from a flat $0.99 to $2.99 for trades under $200.
  3. Transaction and trading costs on Coinbase range from 0.5% to 4.5% depending on the cryptocurrency, transaction size and payment method.
  4. Coinbase is an app that lets you buy and sell all sorts of cryptocurrencies, like bitcoin, ethereum, litecoin and about 50 others.
  5. Our full cryptocurrency exchange methodology, including the review process and weighted data points, is available for review.
  6. Institutional clients can also use Coinbase Prime, a trading platform built specifically to handle the unique needs of institutions.

Customer Service

Coinbase has a lot of ways you can pay for crypto, and they can carry different fees that are at times hard to understand. While Coinbase discloses fees to users before completing a transaction, they are difficult to look up ahead of time. This can make life difficult for people who are choosing an exchange for the first time and who are sensitive to fees. We believe everyone should be able to make financial decisions with confidence. Founded in 2012 just three years after the creation of Bitcoin, Coinbase has since become the largest cryptocurrency exchange in the U.S. by trading volume, with more than 73 million verified users in over 100 countries. And if you do choose to invest in cryptocurrency, make sure it’s part of a diversified investment strategy.

Coinbase is a cryptocurrency brokerage that simplifies the process of trading and storing cryptocurrencies, ideal for beginners with little crypto knowledge and advanced users needing something less complicated. With this exchange, users can trade crypto 24/7 and deposit and withdraw fiat through a variety of methods such as SWIFT and ACH transfers. Despite Coinbase’s “bank-grade” security, users have lost their assets using the exchange. In March 2023, a Coinbase user sued the exchange after losing 90% of his life savings, about $96,000, to a hacker after his phone was hacked and his account accessed. Another user lost $2 million worth of cryptocurrency after his account was compromised and he could not get any meaningful help from customer support when the incident occurred.

A quick search online reveals reports of Coinbase users having their accounts drained overnight. If you’re a more advanced trader, Coinbase Pro may be worth considering. With Pro, you’ll find additional trading options and upgraded charting features. Coinbase Pro also offers a more straightforward (and lower) fee structure, too. The offers that appear on this site are from companies that compensate us.

what is coinbase

The final output produces star ratings from poor (one star) to excellent (five stars). Customers can use their own crypto wallets, and Coinbase has some insurance against cybercrime. Many or all of the products featured here are from our partners who compensate us. This influences which products we write about and where and how the product appears on a page. You can use Coinbase in combination with other exchanges for an enhanced experience.

This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Multiple types of taxable income can what is the statement of retained earnings be generated from activities on Coinbase, including capital gains from buying and selling crypto and interest income from things such as staking. U.S. customers should visit Coinbase Taxes to get everything they need to report taxable income from Coinbase. With more than 500 crypto exchanges, users have many alternatives to Coinbase.

For example, another centralized exchange might be good for frequent purchases, while Coinbase securely stores your crypto. Whenever someone asks about how to begin investing in cryptocurrency, Coinbase is usually mentioned as a good place to start. You'll be dropped off on the main page of Coinbase now, where you can get started buying cryptocurrencies. Here's how to get started and how to buy and sell cryptocurrencies with Coinbase.

what is coinbase

The idea behind these different types of wallets is that you aren’t relying on Coinbase to store your money. They allow you to store your own crypto using an app, software, or hardware. So even if someone gains access to your Coinbase account, that won’t give them access to the wallet, where your cryptocurrency is actually stored.

While this method is more secure, the onus is on you to ensure you can access your wallet. All you have to do is enter how much you want to sell (or select “sell all”). Then indicate which coin you want to sell and how you want to be paid. Keep in mind that when you buy using a bank account, the transaction typically takes 3 to 5 business days to complete, according to Coinbase.

We also considered if the exchange is regulated by a proper agency or entirely decentralized. Our full cryptocurrency exchange methodology, including the review process and weighted data points, is available for review. Investopedia is dedicated to helping those interested in cryptocurrency investing make informed and safe decisions. We are committed to providing our readers with unbiased reviews of the top cryptocurrency exchanges for investors of all levels.

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