Coinbase is one of the world’s largest and most trusted Bitcoin exchange broker. It wasn’t long ago that it was the best in the market. But it has since been knocked off its high horse by Binance as shown in Google Trends.
However, it still offers one of the largest diversity in terms of cryptocurrencies and payment methods, and also facilitates active trading.
Coinbase is a company from San Francisco and it has a vast range of trusted investors, including several high profile banks such as the Bank of Tokyo, and the New York Stock Exchange.
In this Coinbase review, I’ll give you an in-depth overview of Coinbase so that you can decide whether to use it to purchase cryptocurrencies.
- PART 1: Is Coinbase Safe and Legit?
- PART 2: How does Coinbase Work?
- PART 3: Which Countries is Coinbase Available in? What are the accepted Payment Methods?
- PART 4: What Transaction Fee does Coinbase charge?
- PART 5: Coinbase Compared (and other Alternatives)
- PART 6: How to Sign Up for Coinbase?
- PART 7: Transactions in Coinbase
- PART 8: Coinbase Customer Support
- PART 9: FAQs
- PART 10: Conclusion – Is Coinbase a Good Choice?
PART 1: Is Coinbase Safe and Legit?
Coinbase, being one of the world’s largest and most-trusted bitcoin exchange, is completely legit and trust-worthy. Having been founded in 2012, they’re also one of the pioneering vanguards of cryptocurrencies.
Is Coinbase Safe?
In recent years, people have grown skeptical about Coinbase, especially after the 2014 Mt. Gox hack in which 740,000 bitcoins (valued at €460 million), were lost.
However, Coinbase is still one of the safest platforms in operation right now. As it’s set up in the US, it complies with US State and Federal law, which is a lot more strict than its competing countries.
Furthermore, Coinbase is completely transparent about its storage methods as well, separating customer funds and company operational funds. In addition to that, 98% of all the cryptocurrency is stored in offline vaults and safety boxes. Even the funds stored online are insured so that the customers don’t need to worry about losing funds.
The cryptocurrencies are stored in a Bitcoin Wallet, controlled by Coinbase. As such, you have to trust them to keep them safe. However, it’s advisable to move the bitcoins into a wallet you independently control after making the purchase. This is because Coinbase reserves the rights to close your account and block access to your funds at any time.
If you have a large amount of bitcoins, you can also make use of the high security Coinbase Vault which can be secured through multiple accounts and users. If there are 3 approvers to a vault, they must all confirm a transaction. However, withdrawals from the vault take up to 48 hours to process. However, just like the wallet, even the Coinbase Vault is managed by the company and can be shut down at any time.
PART 2: How does Coinbase Work?
Coinbase has an extremely user-friendly interface and it’s easy for beginners to purchase cryptocurrencies. After creating an account, you can use your credit or debit cards or other valid payment methods (listed below) to purchase the cryptocurrencies of your choice.
PART 3: Which Countries is Coinbase Available in? What are the accepted Payment Methods?
Coinbase is available in 32 countries across the globe, and it offers a range of payment method such as credit and debit cards, bank account, PayPal, etc. However, they vary between different countries. You can check out a complete list of countries and their payment methods in the Coinbase Global page.
PART 4: What Transaction Fee does Coinbase charge?
The transaction fees for Coinbase varies between different countries. On the lower end, the transaction fee is just 1.49% for countries like Singapore and for SEPA Transfer in Europe. However, on the upper range, the fee is 3.99% for instant credit/debit card payments in the USA or Europe. You can check out a comprehensive list of fees in the Coinbase Pricing & Fees Disclosures Page.
PART 5: Coinbase Compared (and other Alternatives)
Coinbase, as we’ve already mentioned, is one of the most popular cryptocurrency exchange venues. It has a diverse range of functions available, along with a range of payment methods available, and it has perfect security.
Of course, if you’re engaging in active trading, then you might find the transaction fees to be high. In that case, you can also check out alternatives such as GDAX, Bittrex, or Poloniex, all of which have really low transaction fees.
|Coinbase Review||3.75%||Great||Email+ Coinbase “Community”||Buy|
|LocalBitcoins Review||1.0%||Good||Quick responses to online support tickets||Buy|
|Paxful Review||0% from buyer, 1% from seller||Good||Forum,live chat and email.||Buy|
|BitPanda Review||1.0% to 4.0%||Good||Buy|
|CEX.IO Review||0.5% to 2.0%||Great||Buy|
|Bitbond Review||1.0% to 2.5%||Good||Buy|
PART 6: How to Sign Up for Coinbase?
It’s quite easy to sign up and start using Coinbase. You can follow these steps to create an account and start buying cryptocurrencies.
- Create an Account with Coinbase using your name, email address, and password.
- Confirm your email address via the mail sent to you.
- You’ll be taken to a page wherein you’ll have to select the account type, be it individual or business.
- You need to verify your phone number so that you can create a 2-factor authentication means, so as to keep your account secure.
- You need to then create a payment method, either through credit/debit cards or through bank transfer. Verifying the credit card is easy. You need to simply send a screenshot. While verifying the bank transfer, they send a few small transactions to and from your account, which you have to verify.
- Finally, you can fund your account and start buying cryptocurrencies!
PART 7: Transactions in Coinbase
The transaction limits vary between different countries, payment methods, and the level of verification that your account has gone through. You can check out your personal limitations from your Account’s Limits page.
The weekly transaction limits for fully verified US or European residents are up to $50,000 or $30,000.
Trading with Cryptocurrencies
You can use Coinbase to easily send, receive, or simply store cryptocurrencies.
To send the cryptocurrency, you need to go to Send, choose the wallet, enter the recipient address, and simply hit ‘Send.’
To receive cryptocurrency, you need to retrieve your account wallet address from the Accounts Tab and send it to the concerned person so they can send cryptocurrencies to you.
Coinbase Shift Card
Coinbase Shift Card is a VISA card available to Coinbase users in the US. It costs an initial $10, and it can be used to make payments through Bitcoins anywhere VISA is accepted. Furthermore, it doesn’t incur any transaction fees or any conversion fees from Bitcoin to USD.
PART 8: Coinbase Customer Support
Like most of its competitors, Coinbase too works through an email support. However, it also has a vast knowledge base which you can use to have your questions answered. You can also avail of the Coinbase “Community” where you can post questions and have them answered by other users.
PART 9: FAQs
Is your privacy maintained while using Coinbase?
The Open Bitcoin Privacy Project’s Spring 2015 report gave Coinbase an 11 out of 100 in terms of privacy. This is because Coinbase stores your phone number, email, address, and other personal details for KYC purposes. They even track patterns on how bitcoins are spent by users. However, sensitive information, such as the address, isn’t revealed to other users.
Does Coinbase allow you to buy Bitcoins through PayPal?
PayPal is only accepted as a valid payment method for residents of the United States.
How fast can you expect to receive your Bitcoins?
How fast you receive the Bitcoins depends on the payment method. For Credit/Debit card payments, you receive them immediately. However, for Bank Transfers or SEPA Transfers, you have to wait 5-7 days or 1-3 days respectively.
Is an advance fee applicable for buying Bitcoins with a Credit Card?
There are no advance fees incurred on buying Bitcoins with a Credit Card. Please contact the support team if this happens.
Is it safe to link your bank account to Coinbase?
As we’ve mentioned above already, Coinbase is a completely safe and legit company. As such, it’s safe to link your bank accounts with it.
PART 10: Conclusion – Is Coinbase a Good Choice?
As one of the most trusted exchanges in the market, Coinbase is a great choice for those who want to start buying cryptocurrencies. Purchasing cryptocurrencies isn’t as straightforward here as in Coinmama. However, it makes up for that by having far more functionality.
However, it does incur a strong transaction fee. As such, for the purposes of active trading, you should use its more advanced manifestation GDAX.
I hope this article helped you decide whether to use Coinbase. If you have any other questions, please feel free to mention it down below.
As one of the most trusted exchanges in the market, Coinbase is a great choice for those who want to start buying cryptocurrencies.
- User-friendly and ideal for beginners.
- Insured online wallet.
- Tedious verification process.
- Available in only 32 countries.