Pros and Cons – Forbes Advisor UK

With its easy-to-navigate tools and sleek design, Coinbase makes it a snap to buy and sell cryptocurrencies. Thanks to these benefits, Coinbase has become one of the most popular crypto platforms in the UK. Despite its popularity, the platform’s fees can be very high, meaning that most investors will be best served by using its low-cost service, Coinbase Pro—or another trading platform entirely—as soon as it is available. They will feel comfortable.
*The fee amount varies depending on the purchase amount and method of purchase. For orders over £200, purchases with a debit card incur a 3.99% fee, while purchases via UK bank transfer only incur a trading commission of 1.49%.

professionals

  • Wide selection of cryptocurrencies to trade
  • low account minimum
  • convenient user experience

Shortcoming

  • Expensive and difficult to understand fee structure
  • Getting Low Fees Requires Using a Different Coinbase Platform entirely

Who Should Use Coinbase?

Those who are new to the world of crypto will appreciate how easy it is to buy cryptocurrency using Coinbase. But novices may not fully appreciate how much that feature can cost. Small transactions can easily collect fees as high as 15% of their value, severely impeding your investment’s ability to grow.

That’s why we suggest that even novices consider moving to Coinbase’s trading platform, Coinbase Pro, as soon as they are able. This reduces the fee to a more reasonable, though relatively high, 0.60% for transactions up to £7,701 ($10,000).

You can go up to 0.10% on competing platforms like Binance.com or up to 0.30% on the beginner-friendly Gemini’s Active Trader.

Aside from the above-average fees, there’s a lot to like about Coinbase. It enjoys a solid reputation for security and stores most customer assets offline to reduce the risk of hacks. It also offers a unique educational platform called Learn & Earn which rewards users with crypto as they progress through lessons.

coinbase fees

Coinbase’s most consumer-friendly offering, its namesake Coinbase Platform, charges more for its convenience and simplicity than you might find elsewhere – even on its sibling crypto trading platform, Coinbase Pro.

First is the so-called “spread fee,” which Coinbase says is typically 0.50% of your transaction. This is essentially the difference between the price Coinbase pays for a crypto and selling it for it.

Then there is the aptly named “Coinbase Fee”, which is dependent on the size of your purchase, the fiat currency you use to make it, and how you pay. This fee is either a flat fee or a variable percentage plus, which can be a bit confusing to understand.

Here’s how the flat fee works for UK buyers:

  • For transactions less than or equal to £10, the fee is £0.99. Is
  • For transactions greater than £10 but less than or equal to £25, the fee is £1.49. Is
  • For transactions greater than £25 but less than or equal to £50, the fee is £1.99
  • For transactions greater than £50 but less than or equal to £200, the fee is £2.99. Is

Once you exceed £200, the fee structure changes on a percentage basis, determined by how you pay for crypto:

  • 1.49% for UK bank transfer
  • 3.99% for debit cards.

Fees for purchases over £200 can run up to 1.5% of any transaction with a minimum fee of £0.55.

Coinbase Pro’s fees are very low and simple and follow a standard maker/taker model. A taker fee is applied when you place a trade and is filled immediately, reducing the overall liquidity available on the exchange. Maker fees are charged for orders that are not filled immediately, thereby creating liquidity – you may get lower fees.

It is possible for part of your order to be counted as a taker and the rest to be considered a maker, depending on how much of your order Coinbase is able to transfer at one time. It’s good to keep these charges in mind, but you won’t have a choice about how to fill your order. You may also get a discount depending on how much you traded in the last 30-day period.

In any case, the 0.50 fee for trades less than £10,000 is far less than the 1.49% (plus spread) you pay on Coinbase.

*Note: Rates are effective from April 2022.

Coinbase Features

With its above-average fees, why has Coinbase become one of the most popular destinations to buy cryptocurrencies? Here are some reasons:

ease of use

Coinbase is incredibly easy to use. It takes absolutely no time to sign up, and you can then link a UK bank account to your account, the recommended method to reduce trading costs.

The interface is bright and easy to navigate. A search bar helps you sift through the myriad crypto offerings available, from bitcoin to teller, and set you up to make purchases on an ongoing basis.

For those a little deeper in the weeds, Coinbase allows you to trade select crypto into other cryptos, meaning you can convert your Litecoin to Augur, for example. Keep in mind that this conversion comes with a fee of 2% of the transaction.

Security

Coinbase built its reputation as a safe place to buy and sell crypto. This was a particularly prominent claim after the Mount Gox incident, when around 850,000 bitcoins were stolen in 2014. Coinbase has never had such a disaster.

The platform claims that 98% of consumer funds are stored offline in various locations around the world, which helps provide even greater security for the digital asset. Coinbase keeps your crypto in its free wallet service, although you can choose to keep your crypto in a third party wallet.

You’ll need to complete two-factor authentication to sign in to your account. There is also a biometric fingerprint and AES-256 encryption on the private keys.

Coinbase also offers crime insurance that will protect a portion of your digital assets from theft and cyber security breaches. However, this insurance only applies if the Coinbase platform is compromised, and does not cover personal accounts.

In addition, cryptocurrency held in your accounts is not covered by the Financial Services Compensation Plan protection.

education

Through its Learn platform, Coinbase rewards users with cryptocurrency as they complete lessons. The interactive, Instagram Stories-like lessons take less than 10 minutes each, and the reward typically ranges from $1 (£0.77) to $5 (£3.85), depending on what Coin users are learning.

staking rewards

People who hold certain coins in their Coinbase accounts are eligible to earn rewards if they allow Coinbase to stake them, or as collateral to verify transactions for proof-of-stake cryptocurrencies such as Ethereum. use in. Coinbase charges 25% of the staking profit as a fee.

coinbase pro

While Coinbase is designed for newcomers, more advanced traders may be interested in Coinbase Pro. You can use the same credentials on both Coinbase and Coinbase Pro.

Coinbase Pro provides a comprehensive crypto trading experience, complete with advanced charting capabilities and a wide variety of order types for stop and limit markets. And, perhaps most importantly, it charges significantly lower trading fees and allows free transfers between Coinbase and Coinbase Pro Wallet.

Cryptocurrencies Available on Coinbase

Currently, you can trade the following major cryptocurrencies on Coinbase:

  • bitcoin (btc)
  • Ethereum (ETH)
  • Cardano (ADA)
  • Dogecoin (DOGE)
  • Tether (USDT)
  • Bitcoin Cash (BCH)
  • Litecoin (LTC)
  • Uniswap (UNI)
  • Chainlink (Link)
  • Stellar Lumens (XLM)
  • USD Coin (USDC)
  • Polygon (MATIC)

The full list of cryptocurrencies available on Coinbase can be found on its website.


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