Coinbase is among the most reputable crypto exchanges in the United States, and it provides a straightforward on-ramp for newbie cryptocurrency investors to purchase their first coins, also a variety of client educational resources, and a simple mobile application. In addition, Coinbase provides a sophisticated trading platform, as well as its own crypto wallet. Essentially, Coinbase is among the most efficient platforms for cryptocurrency investors & traders.
Coinbase
Coinbase is a crypto exchange where traders may buy and sell the available cryptocurrencies. Coinbase additionally allows customers to “stake” particular coins, which compensates them for depositing and maintaining their coins on the platform. Coinbase presently supports more than 100 coins, with many being introduced on a weekly basis.
Getting Started with Coinbase
Traders can get started with Coinbase by providing an email address and a password. After that, the platform will send the user a verification email to validate their details. Following that, users must provide their private information, i.e their complete name, location, and SSN (social security number).
Before users start purchasing or trading cryptocurrency, they must first verify their identity using a government-issued photo ID by submitting a photo of it to the website or the app. This adheres to contemporary KYC (Know Your Customer) security rules in the United States. Once authenticated, users may add a bank account, debit, or credit card to begin buying cryptocurrency right away.
Platforms
Coinbase has 2 trading platforms available: Coinbase & Coinbase Pro. The regular Coinbase platform is ideal for newbies who are still getting their feet wet in the world of crypto investments. It provides informative videos as well as easy-to-use mobile software to assist traders purchase, sell, and trade cryptocurrency. With enhanced charting, additional order types, and reduced trading costs, Coinbase Pro is particularly equipped for experienced traders.
Offering of Cryptocurrencies
Various coins have various trading limits as well as withdrawal restrictions. Certain coins are only traded for fiat currencies such as the USD or switched to/from other cryptos. Users can also be prohibited from exchanging some cryptocurrencies dependent on the nation or state in which they reside in. The Coinbase website provides a summary of these limits for each of the coins it supports.
Below is a list of the most prominent cryptocurrencies available on Coinbase:
- Aave (AAVE)
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Cardano (ADA)
- Dash (DASH)
- Dogecoin (DOGE)
- Ethereum (ETH)
- Litecoin (LTC)
- Tether (USDT)
- Uniswap (UNI)
- USD Coin (USDC)
Fees
Among Coinbase’s major disadvantages when contrasted with other platforms is its high fee structure. When users execute a crypto trade on Coinbase, such as purchasing BTC or converting the Ethereum for USD, they are charged a spread as well as a platform fee.
The spread is described as the gap (or difference) between the market price & the amount paid or received for a sale. Users may contrast it with the commission or trading charge they might pay if they use a broker account to trade.
The platform’s spread is around 0.50 percent of users’ cryptocurrency sales and purchases, however, it might vary depending on the market. Determined by market swings, crypto conversions, such as trading BTC for ETH, may incur a maximum spread of 2.00 percent. There is, though, no platform fee for transferring existing cryptocurrency holdings to different cryptocurrencies.
The platform’s fee varies based on users’ payment methods, region, and other variables. It might be a flat rate or a percent of the transaction, but it will always be the higher one of the two options.
Users may also transfer cash to their Coinbase U.S dollar wallet and then acquire cryptocurrency from that wallet afterward (for the 1.49 percent fee). Since cryptocurrency values fluctuate so rapidly, maintaining U.S dollars in a Coinbase wallet might help prevent traders from getting into potentially long bank transactions – if users want to respond to a fast price decline, for instance.
There are flat rates on transactions below $200 USD. Below is a rundown of the minor transaction fees:
- $10 or under : $0.99 (charged)
- $11 – $25 : $1.49
- $26 – $50 : $1.99
- $51 – $200 : $2.99
Security
Coinbase has a slew of security measures that place it among the safest cryptocurrency platforms on the market. Coinbase provides a safe means to buy, trade, and store cryptocurrencies, from FDIC-insured accounts to encrypted servers to cold storage. They provide 2-factor authentication and also hold 98 percent of all cryptocurrency assets in “cold storage,” meaning the cryptocurrency is kept on servers that aren’t linked to the internet. Coinbase provides a digital wallet for bitcoin storage that includes biometric access restrictions for further protection.
Customer Service & Satisfaction
Till now, Coinbase exclusively provided email assistance and support on its website. It introduced 24/7 phone help in August 2021, but solely for users who require their accounts to be instantly shut due to possible fraudulent activity. The platform does provide a large collection of support manuals and also a digital chat assistant to aid customers in finding the information they are looking for.
Most cryptocurrency exchanges provide relatively far less regarding customer support teams, and Coinbase’s services are comparable to the majority of the sector.
Coinbase has a lot of negative customer ratings, with many concerns regarding vanishing coins, being unable to log in, and having trouble moving funds off the platform.
Although Coinbase newly introduced phone assistance for users with potentially fraudulent activity, these ratings may raise questions about the company’s customer care.
Help, like other crypto exchanges, is primarily self-service through help guides and chatbots, so individuals who want actual human assistance must think twice when joining Coinbase.
Verdict
Coinbase offers a diverse range of cryptocurrencies, an easy-to-use interface, and useful instructional information. It also provides its more complex Coinbase Pro platform to even more seasoned crypto traders. The platform is one of the top global cryptocurrency exchanges due to these perks and its improved security.
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