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The Coinbase platform offers a number of pros and cons which should both be heavily weighed. Starting with pros, the platform offers high-security levels. In fact, 98% of the total cryptocurrency stored on the platform is stored offline in paper wallets and hardware wallets, potentially providing higher security. However, Coinbase users should be aware of the fact that as of August 2021, numerous users had their accounts hacked, as reported by CNBC; as such, it’s highly recommended that all users use complex passcodes and the like.
When it comes to using Coinbase, it’s imperative that you know about the different options available to you – and luckily, today, we’ve come up with this guide to help you find out more about what Coinbase is and whether it could be an excellent option for you to consider! We’ve considered a wide variety of different aspects in today’s Coinbase review so you can decide, once and for all, whether the Coinbase exchange could be what you’ve been looking for.
Coinbase is an online cryptocurrency exchange that was founded in 2012 in San Francisco. Over the years, it has grown to become one of the largest United States cryptocurrency trading platforms based on the website’s total traffic, trading volume, and overall liquidity (based on research carried out by CoinMarketCap.com). It offers numerous custodial services for cryptocurrency storage, as well as managing a payments platform and exchange, and its own cryptocurrency: the USD coin, or USDC. As such, it’s fair to say that Coinbase has numerous specialties and areas of expertise, and you may want to consider it for your own trading needs.
How does the Coinbase exchange work? The Coinbase exchange is one of the most widely used features of the platform, and is widely available in the United States in all states except for Hawaii. There are two choices of platform for users to choose between: the standard Coinbase platform and the Coinbase Pro platform, the latter of which allows users to enjoy advanced charting functions that make it easier to
Coinbase offers a massive selection of over fifty different Cryptocurrencies, in addition to its own Cryptocurrency, USDC. This offers many different solutions alongside just the common choices such as Bitcoin, Dash, Ethereum, Litecoin, and the like.
The pricing structure is one area that the Coinbase platform falls down on, with the pricing structure being more complicated than for many other platforms.
The price for using the Coinbase platform starts from $0.99 for transactions valued at $10 or less, representing approximately 10% of the total trade value – an incredibly high rate. The rate for transactions becomes more affordable as transactions become more valuable in nature, with a fee of $1.49 for transactions between $10 and $25; $1.99 for transactions between $25 and $50; and finally, $2.99 for transactions between $50 and $200. Nevertheless, even for transactions valued at $200 (representing the best value in terms of percentage), the fees for using Coinbase are still over 1%, and many other trading platforms offer far better value for money than this.
However, using Coinbase Pro is much more affordable compared to using the standard Coinbase platform, although the pricing structure still varies depending on the pricing structure.
A notable benefit of the Coinbase and Coinbase Pro platforms is that they are incredibly easy to use, with a simple UI that makes the platform one of the best online for both new and experienced users. Of course, the Coinbase Pro platform has much higher transaction limits so it’s likely that new users wouldn’t be worried about using the platform regardless.
The Coinbase platform features multiple security solutions, which makes the platform somewhat more secure that platforms offered by others. Some of the security features that are in place for the Coinbase platform include two step verification and biometric fingerprint logins. Moreover, as a unique feature of the Coinbase platform, the company offers insurance for all users in case of hacking attacks – something that many other platforms are not able to provide.
In addition to this, Coinbase is very open and clear regarding its methods for storing funds, with customer funds being stored separately from the business’s operational funds, and 98% of the total cryptocurrency stored on the platform is stored offline in paper wallets and hardware wallets, potentially providing higher security.
Unfortunately, Coinbase’s reputation is not perfect, and despite the security features it has to offer, the app has experienced issues in the past. As recently as August 2021, numerous users had their accounts hacked, as reported by CNBC; as such, it’s highly recommended that all users use complex passcodes and the like. Evidently then, while Coinbase offers effective and reliable security solutions, particularly in comparison to some other platforms, it’s still not impervious to a hacking attack, and all users should be aware of this and stay vigilant where possible.
Some of the top features of Coinbase include its primarily offline storage of funds, which ensures that the vast majority of funds are protected in the event of a hack, and the remaining 2% of funds that are stored online are insured by the company themselves. Moreover, the Coinbase wallet is also incredibly effective for crypto storage and provides a simple option for those looking to store their crypto. An additional feature of Coinbase that’s worth considering is the Coinbase Earn feature, which directly incentivizes individuals to learn more about cryptocurrency trading through short videos and the like.
One of the biggest drawbacks of the Coinbase platform is that the customer service for the platform is often poor, and this can leave many people struggling to get responses from the customer support team. In addition to this, many people often report that the account verification process can be drawn out, and oftentimes, nothing appears to happen at all; in cases such as these, individuals can be waiting months, if not a year, for a response about their account verification.
To this end, we recommend that users wait to deposit funds into their account until your account has been verified, so as not to lose the funds in “limbo” while the account is being approved.
The Coinbase and Coinbase Pro apps offer a number of benefits and drawbacks alike, and it’s important to carefully consider these to determine whether or not the Coinbase platform could be suitable for your needs.
When it comes to choosing an online exchange platform, it’s definitely worth looking initially at what each platform does well to see what your chosen site may be able to offer you! Indeed, not every website will be created equally, and some exchanges will excel in areas where others could fall down.
Some of the most notable pros of the Coinbase exchange are as follows:
While the Coinbase platform offers plenty of benefits, there are a few drawbacks that you may want to consider. We’ve summarized the majority of these below.
At this point, we’ve considered all of the different features, pros, and cons of the Coinbase exchange, but you shouldn’t just have to take our word for it. As such, we’ve also summarized what some past users think about the Coinbase exchange, to help you make the right choice for your needs.
Overall, the Coinbase exchange receives relatively mixed reviews, with a large number of negative reviews for the platform – although upon analyzing these, the legitimacy of many reviews can appear to be questionable. Alternatively, there are often cases of reviews provided by dissatisfied customers who have made poor trading choices and lost money through the Coinbase exchange – which is something important to consider before using any exchange platform for trading cryptocurrencies.
Among the legitimate negative reviews, there is one common thread: customer service with the Coinbase platform is highly variable. Some past users have had great experiences, but the majority of seemingly legitimate negative customer reviews for the platform are in relation to poor customer service. Indeed, on the whole, response times are very slow, even for serious and urgent enquiries. Meanwhile, account verification can often be slow too, so this is something to consider before investing any money in the platform.
With the above being said, there are also plenty of people who have made wise investment decisions through the Coinbase platform and who have left positive reviews of the service. Meanwhile, the platform has actually received numerous praising reviews from key investment websites, and while there are some concerns about security through the Coinbase platform based on past mistakes, the exchange generally receives positive and praising reviews from investors overall.
Indeed, trading crypto is risky, and while there is the potential that you could make big money, there is also every possibility that you could lose out and find yourself in a worse financial position than when you began. As such, before you go into trading crypto, make sure you’ve considered the experiences of these dissatisfied customers carefully; there are risks involved with crypto trading, and you must make all decisions incredibly carefully to prevent falling into the same trap.
Coinbase is one of the most popular online cryptocurrency exchanges on the market, but it’s absolutely essential that you take some time to consider how it works, its pros and cons, and the like to decide on whether or not it might be a valuable option for your own trading needs. So, don’t leave things to chance; hopefully, today’s Coinbase exchange review and guide will have given you the information you need to make a reliable and informed decision. And don’t forget – if you need any further support or ideas, please make sure you contact our team and we’ll do our best to connect you with the content and support you need!
