A trading cryptocurrency guide must provide reviews of all of the top crypto exchanges out there, so that you can find the best cryptocurrency exchange site for you. This review of Coinbase consists of four parts: general information, fees, deposit methods and security.
Coinbase is an American cryptocurrency exchange which is actually one of the biggest cryptocurrency exchanges in the world. The exchange conducts its business under two different brands, Coinbase being one, and Coinbase Pro being the other. Coinbase is more focused on retail consumers that want to buy Bitcoin with fiat currencies, whereas Coinbase Pro is a more advanced cryptocurrency trading platform. As Coinbase is an America cryptocurrency exchange, US-investors are naturally permitted.
Coinbase is regulated in the United States by the Financial Crimes Enforcement Network (FinCEN). This adds a layer of security and comfort to its users.
There are only a few coins available at this exchange (many more are available at Coinbase Pro). The available coins are the major ones. BTC, BCH, ETH and LTC. This shows that the service is primarily aimed at individuals who are not that comfortable with cryptocurrency trading and maybe are just taking their first step into the crypto world. If you would like to buy or sell any of the smaller cryptocurrencies (Woodcoin, XPA Coin, Yashcoin, Ybcoin, Zatgo Token, or any cryptocurrency with a similar market capitalization to those), you would simply have to choose another exchange.
Coinbase also has a referral program. The referral program awards you USD 10 when you invite a friend who in turn trades for USD 100 or more. There are both advantages and disadvantages with referral programs that only have one time fixed fees instead of an on-going revenue share system. You’ll have to decide for yourself if this is attractive to you or not.
Coinbase Trading View
Different exchanges have different trading views. And there is no “this overview is the best”-view. You should yourself determine which trading view that suits you the best. What the views normally have in common is that they all show the order book or at least part of the order book, a price chart of the chosen cryptocurrency and order history. The “trading view” here is much simpler and more intuitive than at a normal centralized exchange. The below is a picture of the introductory interface at the Coinbase-platform:
Coinbase Trading fees
This exchange has a quite complex method of charging fees. It sort of feels as if it is intentionally complex. This is how they describe their trading fee model when it comes to crypto-to-crypto trades:
"Coinbase charges a spread margin of up to two percent (2.00%) for Digital Currency Conversions. The actual spread margin charged varies due to market fluctuations in the price of Digital Currencies on Coinbase Pro between the time we quote a price and the time when the order executes. We do not charge a separate Coinbase Fee for Digital Currency Conversions."
When buying or selling crypto (i.e. fiat to crypto or crypto to fiat), Coinbase charges the higher of its flat fee, and the percentage fee (normally 1.49%).The different flat fees are as follows and are only relevant for minor trades:
Coinbase Withdrawal fees
Considering how this exchange operates, withdrawal fees are irrelevant.
At Coinbase, you can deposit through both wire transfer and credit cards. This can be helpful especially for newer crypto investors.
One should generally look out for the different deposit fees charged by exchanges for deposit of fiat currencies via wire transfer or credit cards, and whereas it might be indifferent to you whether you should deposit via wire transfer or credit card, it might be very different fees. When depositing funds through credit card to this exchange, you will most likely incur deposit fees amounting to 4%. This is a lot of money. When funding your account through wire transfer, the deposit fee is 1.5% which is also very high relative to the market competitors’ fees.
Coinbase’s security score is B, when performing the test at Observatory by Mozilla (https://observatory.mozilla.org/). This is far above average when it comes to top crypto exchanges and definitely to Coinbase’s advantage.
Finally, there are only a few exchanges that – like the above exchange – receive Mozilla Observatory-scores of B or higher. The following list includes 10 such exchanges with very impressive security scores: