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Coinbase Review 2022: Is Coinbase Legit? Coinbase Pros & Cons

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Coinbase Review

coinbase logo

Coinbase is a cryptocurrency exchange platform where you can buy, sell and store your cryptocurrencies. The platform is based in the USA and has been around since 2012, operating wholly digitally without a physical location. The platform also has one of the largest selections of cryptocurrencies available for users to trade, with over 4500 different cryptocurrencies that you can choose from.

Rating

4.8

Legit & Safe

Service Fees

Min Investment

Payout Process

Pros

  • Widest selection of cryptocurrencies – the platform enables users to trade over 4500 different assets, one of the largest catalogs available.
  • Low minimum deposit amount – you can start buying cryptocurrency assets starting from just $2, making cryptocurrency trading accessible to anyone.
  • Sign up bonus – get a bonus of $10 the first time you create an account on the platform and purchase at least $100 of any cryptocurrency asset.
  • High referral bonus – get $10 for each friend you refer who completes a purchase of at least $100 worth of cryptocurrency assets on their account.

Cons

  • Not available in all US states – the platform is currently only licensed and available in 42 US states, as well as the US territory of Puerto Rico.
  • High transaction fees – transaction fees for cryptocurrency purchases start from 0.5% per trade but can go up to 3.99% for credit card purchases.

Jump to: Full Review

Compare to Other Investment Apps

Acorns

Acorns logo

Invest your spare change in a diversified portfolio built by experts

Expect up to 7.5% annually returns with plans starting from $3 a month

Earn bonus investments from 350+ Acorns Earn partners

Fundrise

Fundrise logo

Invest in real estate properties with a $10 minimum initial investment

Historical annual return varies from 8.8% to 12.4% (2019 – 9.47%)

Low annual fees: advisory – 0.15%; management fee – 0.85%

Public App

Public App logo

Invest in stocks and funds from $1 (no membership or commission fees)

Over 5000 stocks and ETFs to choose from (dividend stocks available)

Follow other investors, see their portfolios, and exchange ideas

What is Coinbase?


Coinbase is a popular crypto trading platform that has been around since 2012. You can use the platform to buy and sell different cryptocurrencies. The platform is available in over 100 countries, and it has over 89 million active users.

Coinbase users trade over $547 billion worth of crypto stocks each quarter. If you are looking for crypto to invest in, creating an account on Coinbase can be a great option.

The company’s mission is to make it easy for anyone to easily and securely send and receive Bitcoin.

How Does Coinbase Work?


Buying and selling bitcoin stocks and other cryptocurrencies on Coinbase is a straightforward and quick process.

Here are some steps that you can follow to start trading crypto on the platform:

  1. Sign in to your Coinbase account using the Coinbase mobile app or via the website.
  2. Click on the Buy/Sell button and select the crypto asset you want to trade.
  3. Input the amount of crypto that you want to buy or sell.
  4. Provide your payment method.
  5. Check that the details of the transaction are correct before confirming the transaction.

Who is Coinbase Best for?


Coinbase has various features that allow it to cater to the needs of crypto investors at any skill level.

The platform can be suitable for beginners with no prior experience in investing in cryptocurrencies. It has a learning program that teaches new investors about the basics of investing in cryptocurrency stocks.

Moreover, experienced traders can also benefit from the Coinbase Pro account, which features more trading features than the basic version.

How Much Can You Earn With Coinbase?


Your earnings with Coinbase may vary significantly depending on the particular digital currency stocks you buy. You could earn up to 50% returns or more on your investments.

However, like all investments, there is always the risk that you may lose money on your investments. Thus, you need to do your research and due diligence when looking for the best coin to invest in.

Coinbase Fees: How Much Does it Cost to Invest With Coinbase?


Coinbase charges a 0.5% fee on the spread, which is a difference between the bid and ask prices of the cryptocurrency you want to buy or sell. Additionally, Coinbase also charges a variable fee depending on the amount of cryptocurrency you are trading.

Total Trade AmountFee
$10 or less$0.99
Between $10 to $25$1.49
Between $25 to $50$1.99
Between $50 to $200$2.99

There is also an additional payment method fee that you will need to pay depending on the payment method you use.

Payment MethodFee
US bank account or Coinbase wallet1.49%
Debit card3.99%
Instant card withdrawalUp to 1.5% (minimum fee of $0.55)
ACH transferFree
Wire transfer$10 ($25 outgoing)

Nonetheless, you will only need to pay one of the two fees, depending on which one is higher. If you sign up for a Coinbase Pro account, there is a different fee structure. You can visit the Coinbase website to check out the fees for Coinbase Pro accounts.

Coinbase Features: What Does Coinbase Offer?


Apart from being a cryptocurrency exchange, Coinbase also offers a wide range of different features for its users.

Some of the platform’s features include:

  • Wallet
  • Earn
  • Learn
  • Coinbase Pro
  • Coinbase for Businesses

Wallet

Coinbase provides a Wallet feature that enables you to store your cryptocurrencies. You can conveniently access this feature via the Coinbase mobile app.

In addition, you can also use the Coinbase wallet to send money to your friends and family members who also use the app.

Earn

Coinbase also enables new users to earn free cryptocurrencies while they learn how the platform works.

Here are the steps that you can follow to start earning cryptocurrency:

  1. Watch educational videos about cryptocurrencies
  2. Complete a quiz after each video to test what you have learned
  3. Receive crypto in your Coinbase Wallet for every quiz you complete

You can earn up to $7 worth of cryptocurrency by completing these simple steps. While this may not seem like much, it is a free bonus that does not require a significant time commitment from you.

Learn

Learn is Coinbase’s education program that teaches new users how cryptocurrencies work and how to trade them on the platform. This feature makes Coinbase one of the best platforms for beginners looking for crypto to buy.

Some of the different resources that you can access on Coinbase Learn include:

  • Beginner’s guide to blockchain and cryptocurrencies
  • Crypto resources that you can read, watch, or stream
  • Video tutorial on how to set up your crypto wallet
  • Weekly market updates so you are always in the know about how your crypto assets are performing

Coinbase Pro

Coinbase Pro is the company’s premium product that is designed for experienced traders and crypto enthusiasts. The Pro version of Coinbase’s trading platform provides additional fees to help users trade professionally, including a unique feature known as Coinbase Websocket.

Coinbase Websocket provides a feed of real-time market data, and it has an advanced API that lets you develop secure, programmatic trading bots.

Coinbase for Businesses

Coinbase also provides cryptocurrency services for businesses.

Some of the business services that the platform provides include:

  • Prime brokerage
  • Asset hub
  • Commerce
  • Custody
  • Ventures

Prime Brokerage

Prime Brokerage services enable business owners to help their clients buy and sell crypto. This service is designed for individuals and businesses that regularly invest on behalf of other people, such as asset managers and hedge funds.

Asset Hub

If you are an asset issuer, Coinbase’s Asset Hub feature enables you to list, launch, and grow your assets.

Using this feature, you can:

  • List your crypto across Coinbase products
  • Grow your project with a range of toolsets
  • Promote your vision to more than 89 active Coinbase users and let them trade your crypto

Commerce

As more businesses start to accept digital payment methods, Coinbase also enables you to start accepting payments via cryptocurrencies. Coinbase does so using its Commerce feature, which is designed to cater to the needs of business owners.

Some of the benefits of Coinbase Commerce include:

  • No fees to accept crypto
  • Easily convert your crypto to cash or USD Coin
  • Accept price-stable cryptocurrencies like USD Coin and DAI

Custody

Coinbase Custody functions as a qualified custodian, operating as a standalone business to Coinbase. 

Ventures

Coinbase Ventures is a feature that enables entrepreneurs to raise funds for their crypto-related startups.

Some of the projects you can raise money for include:

  • Stablecoin-based ideas
  • Wealth preservation
  • Global payments
  • Financial services for crypto companies
  • Developer tools

Coinbase Requirements


Here are some of the requirements for you to create a Coinbase account:

  • Be at least 18 years old
  • Have a government-issued ID
  • Own a smartphone or computer with internet access
  • Have a phone number connected to your smartphone

Coinbase Payout Terms and Options


Coinbase supports the following payment methods:

  • Wire transfer (ACH or SEPA)
  • Debit and credit cards
  • Cryptocurrency deposit and withdrawal 
  • PayPal

In general, it take between one to two days for you to receive your earnings after you request a withdrawal.

Coinbase Risks: is Coinbase Safe to Invest With?


Coinbase takes a variety of safety measures to ensure the safety of your crypto assets. 

However, when it comes to securing your account, it depends on you how secure you make it. Coinbase recommends you to use strong passwords and utilize additional security features like two-step verification or biometric fingerprint logins.

How Does Coinbase Protect Your Money?


Since digital currency is not a legal tender, the government does not insure crypto under the FDIC or SIPC schemes.

Nevertheless, Coinbase prioritizes the security of your digital currency and offers both online and offline storage options. Coinbase stores most of its coins in offline storage options which are more secure than the online storage options that some other cryptocurrency trading platforms use.

If you have any cash balances with Coinbase, they will be insured by the FDIC for up to $250,000.

Coinbase Review: is Coinbase Legit?


Review WebsiteCoinbase Review
Trustpilot1.6 out of 5 stars
Sitejabber1.44 out of 5 stars
G23.99 out of 5 stars for Coinbase Commerce
Apple App Store4.7 out of 5 stars
Google Play Store4.1 out of 5 stars

Coinbase is a legitimate and licensed cryptocurrency marketplace that you can use to trade crypto stocks. The platform has received mixed reviews from its users.

Many users have had positive experiences with the Coinbase mobile app and platform. Reviewers praise the platform for its user-friendly interface and efficiency. In addition, users were also pleased with the wide selection of different cryptocurrencies that you can buy and sell on Coinbase.

However, some users have complained that the platform’s app is laggy and that they are unable to load and view their portfolios.

What Are the Coinbase Pros and Cons?


Coinbase Pros

  • Trade over 10,000 different crypto stocks and assets
  • Buy cryptocurrencies starting from just $2
  • Get a $10 sign-up bonus the first time you purchase $100 worth of any cryptocurrency
  • Earn up to $7 of free crypto just by completing the tutorial

Coinbase Cons

  • Only available in 42 states in the US
  • Potentially high transaction fees of up to 3.99%

How Good is Coinbase’s Support and Knowledge Base?


Coinbase has a comprehensive and detailed knowledge base with a wide range of FAQS. You can browse the knowledge base to find answers to any questions about the platform’s products and services that you might have.

If you are unable to find an answer to your question on the Coinbase knowledge base, you can also contact customer support directly by creating a support ticket on the Coinbase website or calling the support hotline.

Coinbase Review Verdict: is Coinbase Worth It?


If you are looking to invest in the next Bitcoin, Coinbase is one of the best cryptocurrency marketplaces that you can join. The platform has the largest selection of crypto stocks and assets that you can trade, with over 10,000 options for you to choose from.

In addition, it also has a low minimum investment amount of $2. Thus, this makes it an ideal crypto trading platform for beginners who do not want to commit large sums of money to crypto yet.

Moreover, new users can also earn up to $7 worth of free cryptocurrency using the Coinbase Learn feature.

How to Sign Up With Coinbase?


Signing up for a Coinbase account is a straightforward process.

Step 1: Sign Up

First, start creating your account by entering your name and email address. You will also need to select a password that you want to use to secure your Coinbase account. After clicking the Create Account button, you will receive an email with the activation link that you need to follow to activate your account.

Step 2: Verify Your Phone Number

Next, Coinbase will ask you to enter your phone number so they can send a code that you’ll need to enter to move to the next step. Coinbase will later use this number to send you two-step verification codes to protect your account.

Step 3: Verify Your Identity

You will then need to enter your identification information, such as your legal name and date of birth. You will also need to prove your identity by submitting state identification. If you are a US citizen, you will need to provide a social security number along with your state ID, driving license, or passport.

The company uses this information to verify your identity.

Step 4: Enable Deposits & Withdrawals

After your identity has been verified, your account will then become active. To start making deposits and withdrawals on the platform, you will need to enable these features by adding your bank account or credit/debit card information.

Once you have added your financial information, you can then start trading cryptocurrencies with Coinbase.

Sites Like Coinbase


ComparisonCoinbaseRobinhoodBinanceBlockFi
Service FeesStarting from 0.5% per trade$0 commission25% spot trading fee1% spreads
Min Investment$2$1$500
Best ForWidest range of cryptocurrenciesGeneral stock tradingHigh APYBeginner traders

Coinbase vs. Robinhood


Robinhood Summary

  • $0 commission on all stock trades
  • Invest in fractional shares from just $1
  • 3 different trading options to choose from
  • Get 0.3% APY on your uninvested cash

If you are looking for a platform with the lowest crypto trading fees, Robinhood is a great alternative platform that you can consider.

Robinhood enables users to trade not just cryptocurrencies, but also stock and exchange-traded funds. Robinhood also enables users to earn 0.3% returns per annum on their uninvested cash.

However, Robinhood withdrawals take up to five days, compared to Coinbase, which typically processes withdrawal requests within just one to two days.

Coinbase vs. Binance


Binance Summary

  • Low fees
  • Offers stocks, futures, and options
  • Powerful tools to learn active trading
  • Eide range of products for passive income

Unlike Coinbase, Binance does not offer fiat trading features. This means that you can only fund your Binance account with cryptocurrencies. One option for you to do so is by converting your cash into a stablecoin such as USDC before transferring it to your Binance account.

In contrast, you can fund your Coinbase account using cash, wire transfers, and even credit or debit cards. Binance also has a higher minimum deposit amount of $50.

Thus, Coinbase may be a better platform to trade cryptocurrencies if you are a beginner and want to start with a lower amount.

Coinbase vs. BlockFi


BlockFi Summary

  • Get a $10 bonus for every referral
  • Get up to 3.5% cashback on card purchases
  • Borrow money from as low as 4.5% APR
  • Earn up to 9.5% APY on your deposits

BlockFi is a cryptocurrency exchange platform that provides a great alternative to Coinbase. Like Coinbase, BlockFi is highly reputable and has over 1 million verified clients and over 250 institutions regularly using it to buy and sell crypto assets.

While BlockFi has a lower selection of crypto assets that you can trade, it maintains its competitiveness by offering zero commission fees and low spread rates. It also provides other features such as crypto-backed loans and wealth management services.

Other Sites Like Coinbase


Coinbase FAQs


What digital currencies can you buy on Coinbase?

Coinbase supports and lets you buy over 10,000 different crypto stocks and assets, including:

  • Bitcoin (BTC) 
  • Ethereum (ETH) 
  • Ripple (XRP) 
  • Litecoin (LTC) 
  • Tether (USDT)
  • And many more
  • Bitcoin (BTC) 
  • Ethereum (ETH) 
  • Ripple (XRP) 
  • Litecoin (LTC) 
  • Tether (USDT)
  • And many more

You can visit the Coinbase website to view the full list of cryptocurrencies that you can trade.

What countries are Coinbase available in?

Coinbase is available in more than 100 countries around the world, including the USA and Canada.

You can view the full list of available countries on the Coinbase website.

How does the Coinbase referral program work?

The Coinbase referral program lets you earn a $10 cash bonus for each friend you refer to the platform. 

To refer your friends, simply sign in to your Coinbase account and navigate to the referrals page. You will find a referral link that you can share with your friends via an email invite.

Once your friend signs up with your referral link and buys or sells at least $100 worth of cryptocurrency within 180 days of opening their account, you will both receive a $10 bonus.


Is it safe to buy and store crypto on Coinbase?

Yes, Coinbase is a safe platform to buy crypto from that also provides a secure wallet to store your crypto funds.

Does Coinbase report to the IRS?

If you meet a certain threshold, Coinbase will report your crypto trading activity to the IRS. However, it is important to remember that regardless if you receive a 1099 or not, you are still required to report all your cryptocurrency income to IRS.

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