Unlike all other companies, a lot both positive and negative can be revealed about Coinbase. In this review article, we aim to provide you detailed information about the platform so that you can evaluate for yourself if the platform is worth investing.
You have to stick to the article until the end if you are eager to know all the important information.
Supporting 33 countries and over 20 million customers, around the world, Coinbase stands as one of the biggest Cryptocurrency enterprises. Though Coinbase provides you with a wide range of services, the main service of Coinbase is to permit the users to transact Bitcoin through their bank account and the debit and credit cards.
Coin base Summary
Coin base is one of the oldest exchanges which were established in the year 2012 by a duo, Brian Armstrong and Fred Ehrsam as a part of Ycombinator. Primarily, Coinbase has started as a Bitcoin brokerage service that includes selling of the Bitcoins to the customers directly. The additional services were added along its journey. The best part is that Coinbase is completely regulated and licensed. The company is successful in raising over $200 million from the leading investors Like The NYSE, Rabbit Capital and Andreessen Horowitz.
Services of Coin base
- Brokerage Service: The basic or the primary service that Coinbase provides is brokerage services to buy and sell cryptocurrencies. It has been seen that most of the newbie who wants to purchase their Bitcoin in such platform chooses Coinbase due to its reputation, marketing strategy and user-friendly User Interface. One of the cons of Coinbase and probably the main topic of the complaint is the lack of control over the funds of the users. Unlike any other true wallets, Coinbase does not provide you with any private key or unique seed phrase. The formula of Coinbase is pretty much like storing your funds in the bank where you do not own it but Coinbase does.
- Coin base Pro: Coinbase Pro is formerly known as GDAX is a Cryptocurrency trading platform. The traditional Coinbase is only a brokerage platform while the Coinbase Pro is for the more experienced users. The Coinbase Pro is a platform that allows its users to trade various Cryptocurrency that includes BTC, LTC, BCH, ETH and ZRX. Comparing the brokerage service of Coinbase and the services provided by Coinbase Pro, the fees for the services in Coinbase Pro is considerably lower than that of the Coinbase. Also, the Coinbase Pro provides you with additional services.
- Coin base Wallet: Lately, in 2018, Coinbase introduced their independent mobile wallet for the mobile Operating Systems, iOS and Android. The wallet stockpiles all the private keys on the user’s device and they only have the access to the funds. The Coinbase initially started as a wallet and in the middle only carried out exchange services and now they are again offering their wallet services as well.
- Merchant Solutions: Coin base provides online merchants with the ability or accepting the cryptocurrencies on their website through a dedicated plugin. The plugin is backed up by some of the biggest content management system (CMS) like Magento, WooCommerce, Shopify etc.
- Additional Projects: As already discussed, Coinbase provides some additional services like:
- Coinbase Index – Tracks the financial performance of all Coinbase listed assets.
- Custodian Services – Safeguards cryptocurrencies for institutional investors.
- com – Filters out spam emails.
- Paradex – A platform aids in the direct trading from a user’s wallet.
Currencies and Payment Methods
The following coins are supported by Coin base:
- 0x (ZRX)
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Ethereum Classic (ETC)
- Litecoin (LTC)
The following payment methods are accepted by Coin base:
- Credit cards
- Debit cards
- Wire transfer (including ACH in the US and SEPA in the EU)
Coin base Pricing
The pricing for Coin base is a little difficult. We have tried all possible ways to break it down so that it becomes easier for you to grab the pricing of Coinbase. The Coinbase price you pay while purchasing Bitcoins consists of the following thing:
- The market price of Coin base Pro + 0.5%
- Transaction fee (depending on the amount transacted) under $200 or a percentage of the transaction (the greater of the both).
Most of the transaction fees are 1.49% as standard for purchasing and 3.99% for purchase through credit cards. If you want to deposit money via ACH transfer, it is free. Else it costs $10. You can also check out the full fee structure on the internet.
It becomes a bit tricky to provide a perfect answer as to how much you need to pay with Coin base which is a downside of this platform. In case of extreme price shifts (which already have happened many times), Coinbase can decline your purchases. When compared to the other platforms like Coinmama and CEX.io., Coin base has the lowest fee rate. While transactions between the Coinbase accounts are free, transactions made outside the Coin base accounts require three confirmations before being reflected in your account.
As soon as you set up your Coin base account, you will be able to purchase a small number of Bitcoins till you raise your limit. For example, US residents having a credit card on file in their Coinbase account as a backup will be able to buy up to $1000 worth of the Bitcoins per week.
If you want to raise the limit you have the follow the below-mentioned steps:
- Provide and verify your personal information.
- Provide and verify your photo id.
- Provide and verify your contact number.
In case you are a fully verified US resident, you will be able to reach the highest limit which at present is $25K per day. The upper limit can also be set based on the payment method you select to purchase the cryptocurrencies. As for e.g., purchasing Bitcoins with a credit card on Coinbase is relatively lower than buying Bitcoins on Coinbase through ACH transfer.
Countries Supported by Coinbase
Coinbase widens its service to offer them in the following countries:
- Czech Republic
- San Marino
- The United Kingdom
- The United States
Customer Reviews and Feedback
Since Coin-base is an extensive knowledge-based platform, most of the answers will be available here. But the only thing is that if you submit a support ticket through email, you have to wait for 48-72 hours for the reply. Coinbase can also be reached through the phone line support but as per the user feedback, it has been found out that it becomes a real tough time to get your hands on a support person to solve your problems.
Considering the quality of the support, Coinbase provides you with an overall negative impression. Most of the time, you would not be able to receive direct response addressing to your problems and you will be receiving canned responses which is nowhere related to your problems. The users in the community have stated that many times issues are not explained properly to the customer. Moreover, BBB has rated Coinbase “F” as Coinbase has been a failure in responding to hundreds of complaints.
Summing up the whole thing, there is a strong controversy about Coin base within the Bitcoin community. If you are a newbie, you should take this into account before you jump to any decision for purchasing Cryptocurrency through Coinbase. In the following section, we will discuss more on this matter.
- Discontinued or Frozen Accounts: One of the most pathetic things that people face while using Coin base is discontinued accounts. The account closures in Coin base are inevitable because of the Coinbase’s rigid integration with the traditional banking laws. Coin base boasts on its legislative compliance which is either for better or worse as stated by the users in the forums.
Coin base was the first-ever platform that receive d US regulatory approval. As a result of this, unlike the banks Coin base too has Anti Money Laundering (AML) and Know Your Customer (KYC) practices. Coinbase tracks down your transactions with “their” coins and might shut down your account on inspection of the following activities:
- Gambling of Bitcoins that includes skill-based gaming.
- Any transactions associated with adult services.
- Coins resale on other exchanges, particularly on those exchanges those are devoid of AML and/or KYC.
- Purchase or sale of contraband via darknet markets.
Thus it can be seen that your account is likely to get frozen anytime. But you will be refunded with your money. Still, it is an inconvenient thing to experience and pretty frustrating.
- Supplementary Criticism: Apart from the above-mentioned inconveniences, Coin base also participates in the supplementary criticisms which are discussed below:
- Abuse of Affiliate Reward – Coinbase provides a referral program although they do not conduct payouts to its partners always as per what is stated.
- Taking Position in Bitcoin Debates – Internal debates are common in each and every platform and Bitcoin community is no different. It has been seen that Coinbase has voiced their opinion on these matters where they are supposed to be neutral and focus on the natural market movements.
- Blockchain Patenting: Coinbase possesses 9 patent filings for the Cryptocurrency related innovations that include Bitcoin exchange, hot wallet for holding the Bitcoin and tips button. These types of patents are not exactly Coinbase innovations and definitely clash with the philosophy and open-source nature of Bitcoin. Coin base as a platform expects its users to trust them and keep away from using any such kind of patents to block competition. To be very honest, no company, entity or agency can or should be trusted completely with legal authority over any part of the Bitcoin Bitcoin, on the other hand, was designed for the need of such trusted parties.
Coinbase versus Other Exchanges
- Coinbase versus Binance: Currently, Binance is strict crypto to crypto exchange platform that refers to the fact; it does not accept fiat currency, while Coinbase Pro accepts the major currencies like USD, EUR and GBP. This makes it pretty hard to compare Binance and Coinbase. Taking crypto to crypto exchanges into consideration, Binance supposedly wins the competition having an extremely low fee of 0.1% where the Coinbase Pro charges a fee of 0.3%. Additionally, Binance offers a broad spectrum of cryptocurrencies.
- Coinbase versus Coinbase Pro: If you are a newbie, it is recommended that you go with Coinbase which is a brokerage service and not with the Coinbase Pro which is an advanced platform. Coinbase Pro is for experienced users who know the ways to handle advanced trading methods. But if you are an experienced one, you can simply dive into the world of Coinbase Pro that offers you services with a fee of 0.3% at the maximum. The fee of Coinbase Pro accounts of only one-fifth of Coinbase.
- Coinbase versus Gemini: Gemini is a Cryptocurrency exchange established by the Winklevoss brothers that have a fee structure pretty complex and higher than that of Coinbase Pro. The starting point of Coinbase Pro is 0.3% while for Gemini is 1%. To beat that the users of the Gemini platform will need to trade over $50K in 30 days. But there can always be some differences in the rate and thus you should always check the market exchange rate of both the exchanges. Most of the time the prices are more or less the same but there are times when there may be some differences.
- Coinbase versus Robinhood: The Robinhood trading app is specially meant for US investors to invest in Cryptocurrency. In this trading app, they will not be able to have direct access to the coins. This refers to the fact that they will not be able to withdraw Bitcoins or any other cryptocurrencies from the app. Thus, Robinhood is ideal for trading cryptocurrencies and not holding them. The best part is that Robinhood has 0% trading fees and is available in 25 US States. This event is very competitive to Coinbase Pro. Additionally, Robinhood permits you to trade traditional stocks.
Conclusion – How Safe is Coin base?
Coinbase is easy to use platform having the simplest user interface. Though the coins do not stay in your control and all your transactions are tracked, yet the company has tried to put in place all the glitches to make the user experience better. Lately, it has been found out that Coinbase is focussing on their growth and not on satisfying their existing customer. Although the prices can be a little competitive if you do not face any issues.
Coinbase is safe for purchasing cryptocurrencies. But it is recommended that as soon as you purchase your coins, you should transfer them to any hardware wallet where you have the complete control on your coins or cryptocurrencies and not the platform.