How does it compare? Fees, pros and cons

Pros and Cons of Coinbase

professionals

  • Coinbase Pro for Advanced Trading
  • Over 180 cryptocurrencies available
  • self-custodial native wallet

Shortcoming

  • Higher trading fees for the standard platform
  • limited bet options

coinbase pros

There is a lot to like about Coinbase, and its repertoire of products only adds to its list of pros. Here’s why you should consider Coinbase:

advance trade

With Coinbase Pro, expert traders can manage orders and view real-time market data. If you don’t want to switch to Coinbase Pro’s high-performance trading but need a little more data when trading cryptocurrency, even its standard platform lets you toggle the view between standard and advanced. Is.

more than 180 currencies

Coinbase supports trading for more currencies than many other CeFi exchange platforms. While the number of cryptocurrencies listed on Coinbase is less than that offered by some of the best crypto exchange platforms, 180 currencies are more than that. This means that there are a lot of altcoins available for trading.

Self Custody Wallet

Coinbase’s Native Wallet is a self-custody wallet, which means you are in complete control of the keys that prove ownership of your coins. Also, you don’t need to use Coinbase Wallet if you don’t want to, as the exchange supports external wallet connections.

Coinbase Cons

While there are many benefits to using Coinbase, there are some drawbacks that investors should consider before choosing it.

high trading fees

Coinbase follows typical maker-taker fees, but starts at a higher limit for small trades compared to other platforms. For comparison, Binance.US and FTX.US both charge 0.10% in taker fees for 30-day trading volumes under $50,000 and $100,000, respectively, while Coinbase’s 0.10% take fees for more than $100 million. is for 30-day trading volume.

limited bet options

Unfortunately, betting options on Coinbase are limited compared to competitors. Other platforms typically have options for dozens of tokens and stablecoins, but Coinbase only offers staking rewards for eight. This severely limits the options of investors to earn rewards on their held cryptos.

Who is Coinbase Best For?

With a plethora of products available to investors, Coinbase is one of the best options for almost anything. Whether you want to earn rewards by betting the coins you hold or need to send and receive money securely, you can do so on Coinbase. Plus, its interface makes it easy for beginners to learn and break the ropes in the world of cryptocurrency.

  • Crypto novices and beginners will enjoy Coinbase’s streamlined, sleek interface with minimal visual noise. And once investors feel more comfortable with cryptocurrency investments and exchanges, they can turn on the advanced trading view to view candlestick graphs and order books for token-fiat pairs.
  • Advanced traders can use Coinbase Pro to view even more data and execute trades with real-time analytics. Plus, Coinbase Pro operates with slightly lower maker-taker fees than Coinbase’s standard trading platform.
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Key Features of Coinbase

One of the main features of Coinbase is that users have the opportunity to earn crypto without actually buying it. Add to this your basic wallet, which doesn’t really require a Coinbase account, and is tailored for all levels of investors, and it beats out a lot of the best crypto exchanges.

  • Learn & Earn: Users can earn free coins and tokens simply by learning more about crypto. As of July 2022, required courses are available to earn $4 in GRT and $1 in AMP after completion. It’s not much, but it’s definitely a great incentive.
  • Self Custody Wallet: Coinbase boasts its wallet as a self-custodial wallet, and you don’t even need a Coinbase account to open it. The keys to the wallet are entirely in the hands of the user, so investors can have more control over the coins while operating on the CeFi platform.
  • Toggle Trading View: The standard “simple” trading view includes the top coins, their prices, recent changes in value, and total market cap. But traders can turn on the “Advanced” view to view the order book.
  • Referrals and Bonuses: As of July 2022, Coinbase offered lots of referrals and bonuses to entice new investors to get started on its platform. For example, customers can receive $10 BTC when they refer a friend who buys or sells $100 worth of crypto on Coinbase. Users can earn between $3 and $200 in BTC upon completing account setup and $50 when they bet ETH for the first time.

crypto lending rates on coinbase

Unfortunately, Coinbase offers limited options for placing coins on the held cryptos and earning yields. In addition, the earning rate is significantly lower than that of its competitors, which can stunt your earnings growth. Live Crypto Lending Rates Below:

Fees for using coinbase

Coinbase uses a standard maker-taker fee schedule for trade execution, just like its competitors. Unlike its competitors, which typically charge a 0.40% taker fee to get started, Coinbase charges a 0.60% taker fee, which is the difference between paying $4 and $6, respectively, on a $1,000 purchase. . Here’s what you can expect to pay when using Coinbase’s standard exchange platform:

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action coinbase fee
$10K. trades under Taker: 0.60% Manufacturer: 0.40%
$10K to $50K . trades up to Taker: 0.40% Manufacturer: 0.25%
Trades $50K to $100K Taker: 0.25% Producer: 0.15%
$100K to $1M . trades up to Taker: 0.20% Producer: 0.10%
$1M to $20M . trades up to Taker: 0.18% Manufacturer: 0.08%
$20M to $100M . trades up to Taker: 0.15% Manufacturer: 0.05%
$100M to $300M . trades up to Taker: 0.10% Manufacturer: 0.02%
$300M to $500M . trades up to Taker: 0.08% Manufacturer: 0%
$500M. business of more Taker: 0.05% Manufacturer: 0%
Instant Cash Amount Under $10K 1.5%
Instant Cash over $10K $150
ACH Deposit/Withdrawal free

options to consider

PayPal: Good for low-volume, low-maintenance beginners

If you are only interested in buying Bitcoin, Ethereum 2, Bitcoin Cash and Litecoin and already have an account on PayPal, you do not need to go through any other sign-up process. PayPal is a good alternative to Coinbase if you don’t want to open another account somewhere else and want to fund that account just to buy a few hundred in BTC. In addition, if you already have an account with PayPal, you will need to verify your address, birthday and social security number in the app to get started in cryptocurrency.

Uniswap: Good for Experienced DeFi Traders

For those interested in exploring the world of decentralized finance, Uniswap is the place to start. Instead of operating similarly to an exchange, it actually has hundreds of liquidity pools where users can swap one coin for another, funding the wallet with fiat currency and then eliminating the process of buying crypto. Furthermore, Uniswap is on the verge of upgrading its platform and is already integrated with a lot of dApps.

FTX.US: Good for high-volume traders

FTX.US is great for high-volume traders because its maker-taker fees are lower than Coinbase’s fees. For example, FTX.US charges a 0.10% maker and 0.20% taker fee for 30-day trading volume of less than $100,000, while Coinbase charges a 0.15% to 0.40% maker fee and a 0.25 percent taker fee for the same 30-day trading volume. % to 0.60% taker charges. range. Even though you will find lower fees for high-volume traders on FTX.US, keep in mind that FTX.US only offers 20 cryptocurrencies to trade.

Is Coinbase Right For You?

Coinbase may be right for you if you are a beginner who wants the advantages of a sleek interface, self-custody wallet, and lots of other products to explore. Furthermore, its long list of backing assets and tradable tokens make it attractive to a variety of people interested in more than just popular coins.

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However, its slightly higher fees and limited staking options mean there is a limit to your growth with Coinbase. Once you get past the initial learning curve and outgrow Coinbase’s capabilities, you’ll either have to switch to Coinbase Pro or jump to a different exchange depending on what you’re looking for. But with its wide range of products and its wallet dApp integration, this limit could be quite high for the average, low-volume investor.

methodology

DeFiRate.com reviews CryptoCompare and Web3 products, services and operators based on five quantitative metrics to help crypto users understand how they compare based on similar metrics. For the best centralized exchanges, our editorial team compared customer support, 30-day trading volume, fees, cryptocurrencies available to trade, and average mobile app ratings from each operator to rate the top competitors in the space.

Final Thoughts on Coinbase Exchange

Coinbase is known for being one of the easiest options for first-time cryptocurrency buyers, significantly streamlining the onboarding process, removing knowledge barriers, and enabling credit or debit card purchases. For beginners who want to step into crypto investing for the first time and learn the ropes while earning crypto to gain knowledge, Coinbase is a great place to start.

frequently asked questions

  • Is My Crypto Safe When Using Coinbase?

    Whether Coinbase or any other platform, storing your crypto in a 24/7 online exchange is not inherently 100% secure, as any internet connection opens your crypto to the risk of cyber threats. However, Coinbase says that it stores 98% of its assets in offline cold storage that is protected and monitored. For added security, users can access a vault on Coinbase that goes through additional security steps before withdrawing crypto.

  • Is Coinbase Good for Beginners?

  • Do I own my crypto on Coinbase?

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