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Coinbase is one of the largest U.S.-based cryptocurrency exchanges for trading hundreds of popular coins and tokens. Sophisticated crypto-traders can use Coinbase's user-friendly interface, secure wallet storage, and powerful trading tools. However, its fees are high and may be confusing for beginners.
Coinbase
On Coinbase's website
Insider’s Rating
4.35/5
Account Minimum
$2
Fees
0.50% spread for buy/sell transactions; transaction fee from $0.99 to $2.99; up to 0.60% for Coinbase Pro and Coinbase Advanced Trade
Pros
- Buy, sell, or store more than 170 cryptocurrencies like bitcoin and dogecoin
- Educational investment resources, mobile access, digital storage, and customer support
- Low account minimums
- Can earn rewards for certain cryptocurrencies
- Coinbase card lets you spend crypto or USD anywhere and earn crypto rewards; can deposit your paycheck into your account and convert from USD to crypto with no fees
Cons
- Pay more for lower balances
- High trading and transaction fees
- Limited staking options
Insider’s Take
Coinbase is one of the best investment platforms for crypto trading, staking rewards, and crypto storage. The crypto exchange offering nearly 250 coins and tokens and is great for active real investors who can utilize Coinbase's services, account options, and investment tools.
Product Details
- Promotion: Get $5 of bitcoin when you join Coinbase; earn up to $200 when you set up a new account and make your first purchase
- Features: Coinbase Earn rewards, Coinbase Pro advanced account, user-controlled storage, stablecoins, staking, and institutional trading tools.
- App store rating: 4.7 iOS/ 4.1 Android; Coinbase Pro: 4.7 iOS/ 4.1 Android
- Awards: Named Best Prime Broker in Hedgeweek's annual European Digital Assets Awards
Introduction to Coinbase
Coinbase is a comprehensive digital trading platform and one of the best cryptocurrency exchanges for investors interested in buying, selling, and managing 200+ cryptocurrencies. It offers earning rewards, private client services, an advanced trading platform, and an NFT marketplace.
In an individual brokerage, business, or retirement savings account, you can explore Coinbase's selection of powerful analytical tools, such as real-time book orders and sophisticated charting capabilities. Staking is available on a handful of tokens, like ethereum, cosmos, and cardano (not available in all U.S. states).
A Coinbase Advanced or Coinbase One membership gives you access to even more offerings. The platform's self-custody crypto wallet provides users access to decentralized exchanges to earn yield, borrow crypto, and collect NFTs.
The US Securities and Exchange Commission (SEC) is currently investigating Coinbase on charges of breaking securities rules, which the company has denied.
Coinbase: Overall Rating
| Feature | Insider rating (out of 5) |
| Fees | 2.50 |
| Investment selection | 4.50 |
| Security | 4.00 |
| Ethics | 2.00 |
| Access | 3.00 |
| Customer service | 3.00 |
| Overall score | 3.20 |
How Coinbase Works
A standard Coinbase brokerage account gets you access to over 200 popular cryptocurrencies, including bitcoin, ethereum, and dogecoin. It has a relatively straightforward interface for buying and trading digital assets. Plus, users get access to secure cold-wallet storage.
The learning rewards feature allows you to earn free crypto assets by learning about cryptocurrency topics. You'll watch short educational videos and take a short quiz on the context to earn crypto rewards. Earnings are deposited into your Coinbase wallet.
Coinbase additionally offers USD Coin (USDC), a stablecoin backed by the US dollar with reward-earning potential.
Alto CryptoIRA
Coinbase is partnered with Alto, an alternative retirement platform, to offer a self-directed Roth CryptoIRA. Retirement-focused crypto traders can access tax-free growth, withdrawals, and Coinbase's entire crypto selection. Additionally, you don't have to report crypto trades on your annual taxes when you invest through an IRA.
However, you must open an account through Alto if you want to open a self-directed CryptoIRA with Coinbase's offerings.
Coinbase Advanced
Coinbase Advanced (formerly Coinbase Pro) is designed for sophisticated traders who want access to more advanced features, such as 550+ spot pairs, lower maker fees, crypto derivatives, and TradingView charts. Its maker and taker fees are lower.
Coinbase Advanced gets you access to an advanced API to help you automate trades and stop-limit orders, access real-time market data, increase reward opportunities, and more.
Coinbase One
Coinbase One is a subscription service offering lower trading fees, priority customer support, and a limited-time partner deal. Coinbase also helps you navigate tax season for your crypto assets with a pre-filled Form 8949, plus member-only sweepstakes and $1 million account protection.
Frequent crypto traders interested in zero trading fees on hundreds of digital assets and access to 24/7 priority customer support will get the most out of a Coinbase One membership.
Coinbase Wallet
Coinbase Wallet is a user-controlled web3 wallet for storing and managing various digital assets, such as crypto, NFTs, and other crypto wallets. It includes access to borrow and supply crypto through DeFi liquidity pools, trade assets on decentralized exchanges, and join a DAO.
The Coinbase Wallet also supports NFTs. Users can easily buy, sell, and create different NFTS, including Audio NFTs with custom playback controls.
You get a secure 12-word recovery phrase, or "seed," only you can use to access your Coinbase Wallet. Coinbase does not have access to this secret code. Additional security features include spam token management, token approval alerts, and transaction previews. Coinbase Wallet's browser extensions support Ledger hardware wallets, providing additional protection.
Private Client
Coinbase's Private Client services are available for high-net-worth individuals and family offices wanting professional advice and guidance from crypto experts. A dedicated account manager provides personalized support and tailored execution strategies for trusts and other personal investment vehicles.
You can also access institutional research, integrated custody for segregated cold wallet storage, multi-user access and controls, and enhanced security measures.
Coinbase Prime
Coinbase also gives businesses and institutions various investment options, including the Prime trading platform. Coinbase Prime is a full-service prime brokerage that executes large-scale crypto trades, deploys institutional trading strategies through financing solutions, and provides access to both hot and cold wallet storage.
Asset Hub lets businesses and issuers list crypto assets across the Coinbase platform to gain growth and exposure. Coinbase's commerce offerings help crypto-oriented businesses set up hosted checkout pages, invoices, payment buttons, and more. The venture's feature allows new companiesto raise money for expansion.
Coinbase Fees
Coinbase charges trading fees that vary depending on the asset, payment method, and transaction size. However, Coinbase is not transparent about its fee structure before making a transaction. Users receive information regarding their fees after a transaction is filled. Transaction fees tend to range from $0.99 to $2.99.
Coinbase Advanced is more transparent about its fee offering, with maker fees ranging from 0% to 0.4% and taker fees ranging from 0.05% to 0.6% based on a 30-day trading volume. A Coinbase One subscription costs $29.99 per month. Credit transactions cost a flat 2% on some orders.
Pros and Cons Coinbase
| Pros | Cons |
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Coinbase Trustworthiness
Coinbase has received a B+ rating from the Better Business Bureau. The BBB gives businesses a numerical rating from A+ to F, depending on how well a business interacts with its clients. A B+ rating indicates that Coinbase has overall good interactions with its clients.
The BBB considers several factors when evaluating companies. These include time in business (and type of business), customer complaint history, licensing, government actions, and more. The bureau also says that its ratings don't guarantee that a company will perform well or exhibit trustworthiness.
On June 6, 2023, the SEC opened an investigation into Coinbase, claiming that the company has allowed sales on its crypto asset staking-as-a-service program and offered crypto trading on its unregistered national securities exchange, broker, and clearing agency. The SEC is currently investigating Coinbaseon this matter. Brian Armstrong, the CEO of Coinbase, has denied the SEC's claims.
Coinbase vs. Other Crypto Exchanges
Coinbase vs. Crypto.com
Coinbase and Kraken are comprehensive exchanges offering large cryptocurrency selections and similar services and fees.
Kraken may be better suited for beginners and intermediate investors interested in learning the ropes. Its interface is more intuitive and beginner-friendly than Coinbase's. Plus, it offers strong customer support across the entire platform (with Coinbase, you need a One membership for priority support). However, Kraken's beginner platform charges higher fees than its pro trading platform.
Coinbase offers more cryptocurrencies than Kraken and more advanced trading products and features. Coinbase offers an Advanced trading platform and a Coinbase One membership for lower trading fees and greater earning opportunities. Moreover, private clients can get curated services, dedicated support, and enhanced security.
Kraken review
Coinbase vs. Crypto.com
Crypto.com is another reputable crypto exchange with similar offerings to Coinbase. Both exchanges offer hundreds of cryptocurrencies, digital wallet storage, advanced trading tools, and an NFT trading platform. Similar to Kraken, Crypto.com and Coinbase offer almost identical features and services.
U.S.-based investors are best off with Coinbase, as Crypto.com limits them to its mobile app, which doesn't include margin trading, staking, or advanced trading features and tools. Coinbase does offer margin trading. Sophisticated investors can unlock customizable charts, market orders, and more with Coinbase Advanced and Private Client services.
On the other hand, Crypto.com offers a wider selection of cryptocurrencies (350+), so investors who prioritize having access to many different coins and tokens may prefer Crypto.com over Coinbase.
Crypto.com review
Coinbase FAQs
Is Coinbase safe?
Coinbase is regarded as a safe online cryptocurrency exchange with industry-standard security features and data encryption. However, the SEC is currently investigating Coinbase on charges of offering and selling unregistered securities through its staking program.
What are the fees on Coinbase?
Coinbase's maker/taker fee structure varies based on asset type, payment method, and transaction size. In general, Coinbase is not transparent about its fees. Its Advanced trading platform offers lower maker/taker fees based on a user's 30-day trading volume.
Does Coinbase offer staking or rewards?
Coinbase offers various staking and rewards opportunities. Staking is only available on a handful of tokens, like ethereum, cosmos, and cardano (not available in all U.S. states). However, you can still earn rewards through Coinbase's learning rewards program, Visa debit card, and member-exclusive events.
Why You Should Trust Us: How We Reviewed Coinbase
We examined Coinbase using Business Insider's rating methodology for investing platformsto compare pricing, account flexibility, ethics, security, and overall customer experience when reviewing investing platforms. Platforms are given a rating between 0 and 5.
Cryptocurrency exchanges offer multiple assets, trading tools, fees, and other resources. Some exchanges are better for more advanced or active investors, while others may better suit beginner investors and passive investors. Coinbase was evaluated with a focus on how it performed in each category.
Investing and Retirement Reporter
Tessa Campbell is an investing and retirement reporter on Business Insider’s personal finance desk. Over two years of personal finance reporting, Tessa has built expertise on a range of financial topics, from the best credit cards to the best retirement savings accounts.ExperienceTessa currently reports on all things investing — deep-diving into complex financial topics, shedding light on lesser-known investment avenues, and uncovering ways readers can work the system to their advantage.As a personal finance expert in her 20s, Tessa is acutely aware of the impacts time and uncertainty have on your investment decisions. While she curates Business Insider’s guide on the best investment apps, she believes that your financial portfolio does not have to be perfect, it just has to exist. A small investment is better than nothing, and the mistakes you make along the way are a necessary part of the learning process.Expertise:Tessa’s expertise includes:
- Credit cards
- Investing apps
- Retirement savings
- Cryptocurrency
- The stock market
- Retail investing
Education:Tessa graduated from Susquehanna University with a creative writing degree and a psychology minor.When she’s not digging into a financial topic, you’ll find Tessa waist-deep in her second cup of coffee. She currently drinks Kitty Town coffee, which blends her love of coffee with her love for her two cats: Keekee and Dumpling. It was a targeted advertisem*nt, and it worked.
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