Your capital is at risk
Coinbase, one of the world’s largest Bitcoin broker, operated by Coinbase Inc, which has its headquarters located in San Francisco, U.S. It is fully licensed to do money-based transactions not only in the UK, EU and U.S. (registered as MSB with FinCEN) but also in other countries in the world. Having recently received an E-Money License from the FCA (Financial Conduct Authority) of the UK, this further substantiates the fact that it is a reputable exchange.
Coinbase Exchange is fully compliant with consumer protection laws like The Bank Secrecy Act as well as the local money transmission laws and regulations of the U.S. states. It protects customers’ digital assets with an insurance policy so that they can claim their funds if the exchange loses its coins in cases of unforeseen hacking or security breach.
The following Coinbase review attempts to analyse several aspects to provide you with an all-rounded detailed overview of the exchange and its services. Although Cryptimi does its best to provide you with accurate and to up-to-date information, we strongly recommend that you to visit Coinbase.com for any updates which might occur afterwards.
When it comes to security, Coinbase takes extensive security measures to protect the customers’ funds. It states that it stores more than 98% of the customer’s funds on offline cold storage wallets to tackle potential thefts and hacks. Additionally, it offers an insurance policy to cover the losses that may happen as a result of employee theft or other kinds of security breaches. In fact, Coinbase even states this on their site:
The policy insures against theft of digital currency that results from a security breach or hack, employee theft, or fraudulent transfer.
To guarantee data privacy, all sensitive information (such as bank account numbers) provided by customers, is stored only after it is encrypted using the AES-256 encryption.
Coinbase offers 2FA (Two Factor Authentication) to protect customers’ accounts from unauthorised access. In case you lose access to your account, Coinbase offers support to recover the account after verifying your identity. It is also possible to update your 2FA authentication device, if the current device is lost or broken.
Even though Coinbase allows its customers to buy or sell decentralized digital currencies, it functions as a centralized broker. How? The trading value of the cryptocurrencies is set at a fixed price by Coinbase and users have no control over it. Irrespective of this, many traders find this feature beneficial as it helps them to quickly complete their purchases when compared to the P2P or other kinds of trading platforms.
With its user-friendly interface, Coinbase makes it easy for first-time buyers to quickly purchase Bitcoins or Altcoins without encountering any issues.
Coinbase provides two types of wallets to store your cryptocurrencies: Standard Wallet and Vault.
The standard Coinbase wallet is ideal for storing a small number of Bitcoins or other cryptocurrencies. Coinbase will generate a new wallet address for every transaction or whenever the funds are moved between the wallet and cold storage.
To find your wallet address to deposit crypto in your Coinbase account, navigate to the Addresses page after logging on to your account. To receive cryptocurrency, you must provide the given wallet address. Similarly, you can also send cryptocurrency from your wallet to another Coinbase wallet or to an external wallet.
Generally, the standard wallet can be used to store the following cryptocurrencies: BTC, BCH, ETC, ETH, LTC, and ZRX. Nevertheless, there might be some restrictions based on your geographical location.
The vault is the best option if you want to store a large number of digital currencies. Although, you can also use the vault to receive funds (like the standard wallet), but you would need to complete some additional security steps in order to withdraw funds from your vault.
Coinbase offers two types of vaults namely: Individual and Group. As the name implies, an individual vault requires only a single person’s approval to withdraw funds, whereas a group vault requires approval from 2 or more persons. Whichever type of vault is chosen, it will take at least 48 hours to withdraw funds. Currrently, Coinbase vault can be used to store BTC, LTC, and ETH.
Last year, Coinbase had withdrawn the support for Multisig Wallet so it is good to point out the fact that new members are unable to use this wallet.
Coinbase offers two types of accounts for its users: Individual and Business.
To create an individual account on Coinbase, do the following:
After completing the captcha and agreeing to the terms, click the ‘Create Account’ button.
Congratulations! You have successfully created your account on Coinbase!
To log in to your Coinbase account, follow the below steps:
Since Coinbase strictly abides by the KYC/AML laws in the US, all the users need to verify their identity by providing passport, driving license or other photo ID issued by their government. You should upload the documents via webcam, mobile camera or file upload because Coinbase will not accept scanned images or emailed copies of the documents.
While uploading the required documents, you should ensure that the entire ID is fully visible and the image is without any distortions. Otherwise, it will not be accepted and you have to resubmit them again. Once your ID is verified, you will be able to buy and sell cryptocurrencies using your Coinbase account.
Coinbase allows its users to buy any of the following cryptocurrencies listed below:
Credit or debit cards can be used to make instant purchases, whereas a bank transfer or SEPA payment will take 2 to 4 business days, depending on your location. Generally, digital currency purchases can be made using any one of the fiat currencies like USD, EUR, CAD, GBP and AUD depending on your country. The fees for your purchases vary based on the payment method.
Your screen should show the message ‘Your Purchase was Successful’ and you will receive the Bitcoins on your wallet instantly, if you have made the purchase using the card option. Otherwise, the processing time varies depending on your bank.
Now, your screen will show the message ‘Your Purchase was Successful’ and you will receive the Ethereum on your wallet instantly depending on the payment method.
Now, your screen will show the message ‘Your Purchase was Successful’ and you will receive Ethereum Classic on your wallet soon, depending on the payment method.
Now, your screen will show the message ‘Your Purchase was Successful’ and you will receive your Litecon on your wallet soon, depending on the payment method.
Now, your screen will show the message ‘Your Purchase was Successful’ and you will receive Bitcoin Cash on your wallet soon, depending on the payment method.
Follow the below steps to sell or cash out Bitcoin or other digital currencies on Coinbase.
Once your digital currency is sold, the funds will be automatically transferred to the chosen payment method while placing the order.
Coinbase currently allows users to buy any of the following cryptocurrencies listed below:
Coinbase accepts users from more than 30 countries worldwide.
Buying or selling of cryptocurrencies is available only in the following countries:
United Kingdom, United States, Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Finland, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Malta, Monaco, Netherlands, Norway, Poland, Portugal, San Marino, Slovakia, Slovenia, Spain, Sweden and Switzerland.
Currently, only the buying option of the cryptocurrencies is allowed in the following countries: Australia, Canada, and Singapore. You will not be able to sell digital currency in these locations; however, you will be able to send them to other wallets or exchanges.
If a country is not listed in the above section, then it is not possible to buy or sell cryptocurrency from Coinbase. Other kind of services like fund transfer, Coinbase Vault and so on, are available to anyone located anywhere in the world. If your country is not listed, we recommend you that check out Coinmama.
Every cryptocurrency exchange will have its own fee structure and spending limits. Coinbase is no an exception.
Coinbase exchange does not charge any fee to store the USD or digital currency on its wallet or to transfer cryptocurrency from one your Coinbase account to any other crypto wallet you own. It will charge a flat fee or variable percentage fee, depending on your transaction amount, payment method and location. For US-based customers, Coinbase charges a 3.99% base rate for all exchange transactions.
Coinbase will always display the market price of a digital asset after adding a 0.50% or a spread of 50 basis points. For example, if the market price for Bitcoin was $6,000, then the price on Coinbase will be $6,030.
UK and EU: Standard Buy or Sell – 1.49%, Credit/Debit card (Instant Buy) – 3.99%
Australia: Credit or Debit Card Buys – 3.99% (Selling not allowed)
– Coinbase USD Wallet/ U.S Bank Account – 1.49%
– Credit or Debit Card Buy – 3.99%
UK: Bank Wire – Free (Deposit), 1 GBP (Withdrawal)
EU: Bank Transfer (SEPA) – Free (Deposit), 0.15 EUR (Withdrawal)
– ACH Transfer – Free (Deposit)
– Wire Transfer – $10 (Deposit), $25 (Withdrawal)
There are different levels in your Coinbase account and the buying or spending limits vary based on your level. For example, Level 2 members will be allowed to buy up to $25,000 per day using their bank account. Coinbase also allows customers to sell their full available balance of digital currencies without any restrictions.
Navigate to the ‘Limits’ section on your account page to know not only your current level, but also the instructions on how to increase your account level.
Coinbase provides different types of payment methods for its users based on their geographical location.
After selecting your desired payment method, it should be linked to your Coinbase account. Once you add the payment method, Coinbase will send two small verification amounts to your bank account or card. You should enter those two values correctly on the payment settings section of your Coinbase account. Only then, will the verification process for your payment method will be completed.
Coinbase exchange aims to provide maximum protection to customers’ accounts by enforcing several security factors like two-factor authentication, device verification, and strong passwords. By default, 2FA is enabled for all transactions and the user can opt to receive the authentication code via SMS or using the authenticator apps like Google Authenticator and Authy.
The exchange uses the concept of device verification to eliminate cyber-attacks. When you create your new Coinbase account from a computer or mobile device, it will store the IP address of the device. In the future, if any attempt is made to log in to your account from other devices, you will receive an email notification. You should click the confirmation link on that email to authorise your new device. This feature will help to protect your account from hacking or other kind of theft attempts.
With regard to the password, Coinbase ensures that you create an extremely strong password during the account creation process. It’s good to point out that it will not accept a weak password. We strongly recommend you using this free service to generate a strong password.
In case you experience any issues with your account, you can contact the Coinbase Customer Support via email or phone. Coinbase has two separate lines, one for its UK-based customers and the other for US/International customers. The phone support is available for 24/7, all year round. Alternatively, you can ask your general account related questions to the Coinbase support bot called Ada, to get quick answers. Otherwise, you can create and submit a request using the form available on the Support page of their website, by simply clicking here and scrolling to the bottom of the page.
Customers can also ask questions on Reddit, as Coinbase has created an exclusive subreddit (r/Coinbase) especially for them. Due to security concerns, Coinbase doesn’t recommend its users to ask their personal account related queries on Reddit.
To buy or sell cryptocurrencies on the go, you can download the Coinbase mobile app which is available for both iOS and Android platforms, where you are an Apple or Android user.
Coinbase has stated that it will be introducing a new asset listing process on its exchange to allow the addition of new assets rapidly.
Recently, Coinbase exchange has added the support for the new cryptocurrency ZRX so that users can buy, sell, send or receive ZRX on both web and mobile platforms.
This Coinbase review clearly indicates that this exchange is an excellent choice for novice traders as they can buy and sell cryptocurrencies much faster than with other exchanges. Storing and having quick access to your coins on this exchange is relatively secure, however, it depends on the individual to decide whether to own a personal hardware or paper-based wallet or to keep them on Coinbase.
A multifaceted London-based cryptocurrency exchange, CEX.io was launched in 2013. This exchange is one of the very few which supports FIAT payments and has a built-in margin trading functionality. Read this review to learn more.
One of the world's oldest Bitcoin Broker, Coinmama has its headquarters situated in Slovakia. It accepts buyers from the US and has 8 of the popular cryptocurrencies you can choose from, including ADA & XRP.