What’s Different about Coinbase?
One year after its inception, Coinbase was the highest funded Bitcoin startup in the world with the most volume of exchanges. Coinbase sets itself apart by giving users the freedom to trade their cryptocurrency at a set price. The set price is based on their market value which enables faster purchase of cryptocurrency as compared to other exchanges. Coinbase is also one of the rare few exchanges that accept credit cards and bank transfers instead of just cryptocurrency.
How to Sign Up on Coinbase?
1. Sign Up: As you visit Coinbase to create an account you will be asked for your name, email address and a password.
2. Choose Account Type: After confirmation of your email address, you will be taken to the startup page where you have to choose an account type (individual or business account.)
3. Phone Number Verification: Next you will verify your phone number for two-factor authentication that ensures security.
4. Establish Payment Method: Coinbase gives the choice between two payment methods namely bank transfer and credit card. Choose your payment method and go through the verification process to get started.
As Coinbase is a regulated financial service company in the US, they are required to identify their users. This ensures compliance with the KYC and AML laws that are necessary for its operation in several jurisdictions. This entails that Coinbase will require proof of identity submitted in the form of pictures of your ID card and selfies with the ID to complete the verification process.
How to Buy on Coinbase and the Supported Payment Methods?
Once you have signed up, verified and added funds into your account, buying currency is pretty straightforward. Just follow the steps below to start buying.
• Ensure that you are on the right tab within your account to purchase your desired currency.
• Before transaction confirmation, Coinbase will present details about the service fee and amount purchased by you.
• Once you confirm the transaction, you will receive the amount in your relevant Coinbase wallet.
Coinbase Trading Fees & Charges
Coinbase offers lower fees as compared to its counterparts. The fee varies according to which payment method you choose and only applies to fiat transfers. Credit card transactions result in higher fees of 3.99% while SEPA is 1.49%.
Maker and Taker fee
A maker taker fee model is used to calculate the trading fee in Coinbase Pro. Maker orders are those which provide liquidity whereas the orders that take liquidity are called taker orders. Both are charged different fees by Coinbase Pro.
|Pricing Tier||Taker Fee||Maker Fee|
|$10 – 50K||0.35%||0.35%|
|$50 – 100K||0.25%||0.15%|
|$100K – 1M||0.20%||0.10%|
|$1 – 10M||0.18%||0.08%|
|$10 – 50M||0.15%||0.05%|
|$50 – 100M||0.10%||0.00%|
|$100 – 300M||0.07%||0.00%|
|$300 – 500M||0.06%||0.00%|
|$500M – 1B||0.05%||0.00%|
Deposit and Withdrawal Fee
|Deposit Fee||Withdrawal Fee|
|Wire (USD)||$10 USD||$25 USD|
|SEPA (EUR)||€0.15 EUR||€0.15 EUR|
|Swift (GBP)||Free||£5 GBP|
Coinbase pro doesn’t charge any fees for signing up on the website and having an account. Holding funds in the account is also free of cost.
How Secure is Coinbase?
Coinbase is known to be the most secure exchange platform available. Here are some reasons why:
• Under Strict US Regulations. Coinbase is based in the US and comes under strict Federal laws that it must comply with. This gives it an advantage over competitors based in countries with lighter regulations.
• Powerful Backing. Coinbase is backed by some high-profile entities such as the Bank of Tokyo which enhances its reputation and legitimacy.
• Full Transparency. Coinbase is transparent about how it stores and handles funds. Coinbase claims that 98% of customer funds are stored offline in hardware wallets spread out around the world in vaults and safety deposit boxes. The remaining funds which are stored online are insured to protect customers from losing money in case of a breach.
• Two-Factor Authentication. Two-factor authentication is available for customers through SMS or trusted third party applications.
• Security Notifications. Coinbase informs the user of any new device or IP address accessing the account through security notifications.
Coinbase is the top cryptocurrency platform that is a go-to for many users around the world. Its reputation precedes itself and builds trust among beginners in the cryptocurrency exchange world, encouraging newcomers to experience cryptocurrency trading through an easy to use interface.
|Pros of Coinbase||Cons of coinbase|
|• Supports fiat deposit and withdrawal unlike many other exchanges||• Limited currencies as compared to other exchanges.|
|• The Bitcoin deposit is FDIC insured for maximum financial security.||• Lack of anonymity due to monitoring.|
|• Good reputation and security mechanisms.||• Targeted towards beginners and not suitable for cryptocurrency exchange veterans or ones taking part in the crypto revolution.|
|• Intuitive, user-friendly interface ideal for beginners. Provides desktop and mobile version.||• Reports of delays in fund transfer.|