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 GDAX being the other. Coinbase is more focused on retail consumers that want to buy Bitcoin with fiat currencies, whereas GDAX is a more advanced cryptocurrency trading platform. As Coinbase is an America cryptocurrency exchange, US-investors are naturally permitted.
There are only a few coins available at this exchange (many more are available at GDAX). 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
As Coinbase does not offer trading between cryptocurrency trading pairs, we can’t really apply the “maker taker”-fee model. When buying cryptocurrency from the exchange, however, the purchase price offered by the exchange is usually a bith higher than the market price. The mark-up is not specified anywhere. This is potentially a risk for you as an investor. Accordingly, we strongly urge you to make you own analysis of the fees and price differences at this particular exchange before executing any transactions there and before concluding that it is the best cryptocurrency exchange site for you.
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: