Xapo and Coinbase are both popular exchange platforms, though Coinbase has a wider global reach than Xapo. Both of these platforms are user-friendly, ideal for beginners, and they offer a range of exchange and wallet services.
As such, it can be hard to determine which of these platforms you should use. In this article, we’ll compare all the features and specifications of both platforms so you can come to a safe decision about which one to use.
PART 1: Xapo VS Coinbase Key Features: What’s the Difference?
Both Xapo and Coinbase are designed for the same purpose. They’ve both been created in a way so as to smoothly help you transition from traditional currency to cryptocurrencies. As such, you can use either platform to purchase cryptocurrencies with your fiat currency.
However, the major difference that pops up between them is in terms of the cryptocurrencies you can buy or sell in these platforms. In Coinbase, you can trade in Bitcoin, Ethereum, and Litecoin. You can purchase these coins using USD, GBP, or EUR currencies, either through bank transfers or credit cards, the latter of which incurs a heavy fee.
However, in Xapo you can only trade in Bitcoins. This is frustrating for those who want to expand their bandwidth of cryptocurrencies. However, you can purchase bitcoins using your local fiat currency as well, which helps you avoid hefty currency conversion charges later.
Both of these are great platforms, however, Coinbase also ranked #1 in our list of top 20 cryptocurrency exchange platforms.
In the table below, you can go through a comparison of their prime features.
|Reviews||Xapo Review||Coinbase Review|
|Exchange Type||Easy Cryptocurrency Buying/Selling||Easy Cryptocurrency Buying/Selling|
|Fees||Variable, but low||1.49% to 3.99%|
|Cryptocurrencies Supported||Bitcoin||Bitcoin, Ethereum, Litecoin|
|Payment Methods||Bank Transfer, Credit Cards, Cryptocur-rency, Cash||Bank Transfer, Credit Cards, Cryptocurrency|
|Ease of Use||Great||Great|
|Limits||N/A||Up to $50,000/week|
|Check Website||Xapo Website||Coinbase Website|
PART 2: Xapo VS Coinbase Trading: Which one is better?
Coinbase supports Bitcoin, Ethereum, and Litecoin. Xapo only supports Bitcoins.
Coinbase supports fiat currencies such as USD, EUR, and GBP. Xapo, in comparison, supports all of those currencies, but also other local currencies.
Coinbase is available in 32 countries across the globe. Xapo is available all across the globe, depending only on the country’s domestic laws regarding cryptocurrency trading.
Coinbase incurs transaction fees on all trades of about 1.49%. However, it also draws a fee on all withdrawals and deposits, the maximum going up to 3.99% for credit card deposits. Xapo draws a very low fee on withdrawals and deposits. Furthermore, it doesn’t charge any transaction fee at all and you can buy Bitcoins at market value.
PART 3: Xapo VS Coinbase Trust: Which one is more reliable?
Coinbase has been around since 2012, and as such they are considered to be pioneers in the world of cryptocurrency exchange. The company was launched by Brian Armstrong and Fred Ehrsam in San Francisco, and since then they haven’t ever suffered a major breach in security.
Xapo doesn’t have as much of a track record as Coinbase. They were established in 2014 in Hong Kong, and they’ve steadily risen in popularity. If you look at the graph below, you’ll see that Xapo has maintained its popularity in the last year, initially having been as popular as Coinbase. However, a sudden spike in Coinbase’s popularity has again thrown them back in the race.
Security is one of the most important components of any cryptocurrency exchange platform. And both Coinbase and Xapo excel in this field.
Coinbase makes use of state-of-the-art security technology to ensure that they cannot be breached. Furthermore, they store most of their funds in cold offline wallets so that they don’t get lost due to a hack. Furthermore, users can also make use of the 2-factor authentication system to keep their accounts safe. In case there is a hack and funds are lost, they’re all FDIC insured so that you can expect a compensation of up to $250,000.
Xapo is also similarly secure, however they offer more flexibility in terms of coin storage. You can choose between online methods and vault storage as well. Furthermore, like Coinbase, the accounts can also be secured with 2-factor authentication.
Coinbase is well reputed as having one of the most efficient customer support systems in place. Considering the fact that most of their demographic aren’t made of professional traders, customer support is necessary to help people acclimatize to cryptocurrencies. You can contact Coinbase support through an email, and they generally respond within 24-48 hours.
Xapo doesn’t have a very useful or efficient customer support. For starters, they don’t have a lot of information in their website and their FAQ fails to answer even some of the most basic questions you might have. After signing up, you can send them an email query as well, but their response time is pretty poor.
PART 4: Xapo VS Coinbase Conclusion
Both Xapo and Coinbase are ideal platforms for beginners who want to start collecting cryptocurrency. However, I would personally recommend you use Coinbase because it offers more flexibility in terms of the number of cryptocurrencies supported and they’re also far more established and reputable.
However, the choice is all yours. Whichever platform you decide to eventually use, do comment down below and let us know about your experiences with it.
Conclusion: Coinbase offers a wider range of cryptocurrencies to choose from, and as such it’s better for those who want to expand their range.