Why Coinbase Is The Best Cryptocurrency Exchange Platform Today

coinbase2 - ratewise
by Daniel Ekow Enos

An in-depth review aiming to explore why Coinbase can be considered the best platform for cryptocurrency investment.

What is Coinbase?

Founded in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase is currently the largest cryptocurrency exchange platform striving to create an open financial system for the world.

United as a team, Coinbase acts in service of its mission to use cryptocurrency as a platform to bring economic freedom to people all over the world. Helping to establish an infrastructure for the crypto economy, Coinbase’s mission looks to create more equality of access for people all over the world, pushing the cryptocurrency industry further forward. To achieve this goal, Coinbase strives to build great products, source amazing talent for its workforce, offer fair talent practices, and creating an environment where all employees feel welcome regardless of background, sexual orientation, race, or gender.

With over 13.3 million active users, Coinbase offers its users a selection of products that include – cryptocurrency investment, custodial accounts for institutions, a wallet made for retail investors, and its very own stable-coin. Held in esteem in the industry for maintaining high security levels that have allowed it to have never been hacked, Coinbase has remained on the right side of the law by complying with existing regulations and law enforcement.

Operating as a fully regulated and licensed cryptocurrency exchange platform, Coinbase’s good standing with the law enabled it to scale the ranks of the industry by securing $217M in equity financing from some of the biggest-name VCs. For individuals looking to purchase established cryptocurrencies with fiat money, Coinbase remains one of the most secure exchange platforms in the market.

Operating in 190 countries, Coinbase has evolved from a simple Bitcoin trading stage into a multi-crypto exchange platform that fits its new decentralised criteria. Since launching, this list has expanded to trading over 30 cryptocurrencies, including Ethereum, Litecoin, Ripple XRP and Stellar. Utilizing an easy-to-use interface, Coinbase is a great platform for new traders who want to take their first step into the world of cryptocurrency.

How does it work?

Prioritising accessibility, Coinbase offers a streamline pathway into the world of cryptocurrency trading. Operating in 32 currencies, Coinbase can be divided into four primary lines of business:

  • Coinbase
  • GDAX
  • Custody
  • Toshi

Coinbase & GDAX

Coinbase operates as both an order book exchange, called the Global Digital Asset Exchange (GDAX), and a brokerage, called Coinbase. Adopting this structure, advanced traders such as crypto asset hedge funds can buy and sell cryptocurrency on GDAX and determine the mid-market price.

Coinbase (the brokerage) then allows traders to buy and sell cryptocurrencies at these mid-market prices.

Custody

Designed for institutional investors, Custody offers financial controls and storage solutions for institutions that are looking to trade cryptocurrencies. This service is mostly geared toward high-valued investors with an initial set up fee of $100,000, a monthly management fee, and a minimum starting balance of $10M.

Toshi

A long-term project developed by Coinbase, Toshi is a mobile app used for browsing decentralised applications, storing Ethereum, and managing identity and reputation systems. This subsidiary looks to offer users more access to decentralised apps that are built using Ethereum blockchain.

Providing different avenues of service, Coinbase’s use of these four lanes of operation allows them to interact with a variety of clients with different goals and financial standings.

How to start trading

To begin trading, users are required to provide information regarding their bank account, credit/debit card, address, and ID. This information is used to set a cap on users buying options to ensure customers do not spend over their means.

Coinbase offers a variety of purchasing methods, each with differing fees depending on transaction processing times and region. Banking accounts offer the lowest rate but take the longest time to process at 4-5 days. Wire transfer via PayPal takes 1-3 days to process while credit/debit cards are instantaneous, however, both payment methods come at a higher fee.

Upon choosing their desired payment method, users can begin their cryptocurrency journey. To help with this journey, Coinbase allows users to input the amount of money they would like to invest in a cryptocurrency and see how much of that chosen currency they are likely to get back.

This service allows users to buy coins in fractions, something that is considered especially useful for young beginners who want to invest in high-value cryptocurrency like Bitcoin. Similarly, selling cryptocurrency on Coinbase is just as easy as buying.

Users simply choose which coin they would like to sell, how much of that cryptocurrency they would like to sell and how much that translates into a chosen form of fiat money. After that, users simply select the payment method they would like to use and simply sell.

What popular cryptocurrencies does Coinbase support?

With increased knowledge of cryptocurrency, many cryptocurrencies have witnessed a growth in popularity by acting as cheaper alternatives to Bitcoin. To meet this new demand in alternative cryptocurrency, Coinbase allows users to exchange some of the most popular cryptocurrencies. These include:

Bitcoin

The poster boy of cryptocurrency, Bitcoin recently broke the $30,000 barrier to register the highest price valuation in crypto history. Amassing a 170% increase in valuation within a year of stock market turmoil, the adoption of Bitcoin as a viable form of payment continues to grow as recognised organisations such as PayPal show their support.

This shift in cryptocurrency acceptance has allowed Bitcoin to maintain its status as cryptocurrency market leader and remains the highest cryptocurrency traded on Coinbase.

Ethereum

Launched in 2015, Ethereum is considered one of the first “alt coins” and is seen as a close second to Bitcoin in terms of popularity as well as status in the cryptocurrency community. Enabling the deployment of smart contracts and decentralized applications to be built and run without downtime or fraud, Ethereum has gained the support of many companies including video game giant Ubisoft and Dutch bank ING.

Coinbase’s Toshi program makes use of Ethereum blockchain and acts as an Ethereum wallet for users.

Ripple XRP

A cryptocurrency token derived from the Ripple system used to settle payments, currency exchange and remittance for banks, Ripple XRP has gained popularity in recent years thanks to its roots and connections to the banking industry. With existing settlement systems incurring exchange fees for the conversion of currencies.

The conversion of currency into XRP, has begun trialling in Banks including Santander and the Commonwealth Bank of Australia as elimination of exchange fees and faster payment processing speeds becomes more appealing.

Litecoin

Considered the 3rd largest cryptocurrency after Bitcoin and Ethereum, Litecoin’s main function is operating as an online payment system. Like online banking, Litecoin allows users to transfer currency to each other.

While Litecoin reportedly has fewer than 250,000 users, many analysts suggest that as cryptocurrency gets more readily accepted this user count could rise to a point where Litecoin becomes a standard currency of the digital realm.

Stellar

Relatively new to the scene, Stellar has gained a lot of support in recent years due to its prioritisation of global exchanging. Operating as a global exchange network, Stellar has the capability to host multiple exchanges between fiat currencies and crypto tokens in a matter of seconds.

As a result of this capability, Stellar has amassed popularity around the world for offering swift and cheap exchange rates for cryptocurrencies and/or fiat currencies.

How does Coinbase make money?

Considered a cryptoasset kingmaker for investors, assets listed on Coinbase see a substantial price appreciation. This approach is the result of Coinbase’s understanding and beliefs that cryptocurrency would eventually evolve into a vehicle of investment.

By taking this initiative, Coinbase has been able to build a reputation so strong that if it were to give a cryptocurrency its “stamp of approval”, value would see a surge in price as millions of users are provided access to trade it.

Acting as a cryptocurrency broker, Coinbase brings in revenue on every trade that occurs on its platform. Encouraging users to “buy and sell digital currency”, Coinbase customers are incentivised to trade and invest frequently. To generate capital from this action, Coinbase makes use of a fee structure system that takes into consideration trade volume and transaction process.

Additionally, Coinbase charges a fee based on a flat fee or a variable percentage fee. With the presence of these fees, an average 3% fee for Coinbase transactions can generate revenue in excess of $1.5B depending on the volume of cryptocurrency trading.

What about fees?

Established to generate revenue while encouraging cryptoasset trading, Coinbase charges a 0.50% spread for cryptocurrency purchases and cryptocurrency sales.

In addition to this spread, Coinbase charges a Coinbase Fee, which is the greater of a flat fee or a variable percentage fee determined by region, product, and payment type. The flat fee criteria are as followed:

  • Total transaction at or below $10.99- Fee of $0.99/€0.99/£0.99/C$.99
  • Total transaction between $11 and $25.39 – Fee of $1.49/€1.49/£1.49/C$1.49
  • Total transaction between $25.40 and $51.99 – Fee of $1.99/€1.99/£1.99/C$1.99
  • Total transaction between $52.00 and $200 – Fee of $2.99/€2.99/£2.99/C$2.99

Variable location and payment method fees are as follows:

AustraliaCredit/Debit Card Transactions 3.99%
CanadaDebit Card Transactions 3.99%
EuropeBank Transfer Free/€0.15 Standard Buy/Sell 1.49% Debit Card Transactions 3.99% Instant Card Withdrawal Up to 2% fee with a minimum fee of €0.55
SingaporeCredit/Debit Transactions 3.99%
UKFast Payment Free Bank Transfer Free/£0.15 Standard Buy/Sell 1.49% Debit Card Transactions 3.99% Instant Card Withdrawal Up to 2% fee with a minimum fee of £0.55
USAUS Bank Account 1.49% Coinbase USD Wallet 1.49% Debit Card Buy 3.99% Instant Card Withdrawal Up to 1.5% fee with a minimum fee of $0.55

Adopting this fee structure, users are required to pay the highest fee depending on transaction size, payment method and location. For example, if a UK user wants to buy £200 of bitcoin and pay with a debit card, the flat fee would be calculated as £2.99.

However, the variable percentage fee would be 3.99% of the total transaction, or £7.98. Since the variable fee is greater than the £2.99 flat fee, the user would be charged a fee of £7.98 for the transaction.

Why use Coinbase?

After Bitcoin broke the $21,000 barrier, the cryptocurrency market has witnessed an upsurge in activity and value over the past week.

For this reason, it is important that newcomers interested in the cryptocurrency market have access to the best tools to capitalise on this boom.

Showcasing a drive to improve customer accessibility, Coinbase allows everyday individuals to take their first steps into the cryptocurrency market.

The platform offers a variety of services that include cryptocurrency investment, custodial services for institutional cryptocurrency storage, an easy to access payment platform, fiat money acceptance and its own cryptocurrency named USD Coin.

Unlike other exchange platforms, Coinbase does not require users to trade on a market but instead provides the flexibility to trade cryptocurrency at a set price dependent on its market value.

This approach to trading allows users to purchase cryptocurrency at a faster rate than other competitors. Adopting this approach has enabled Coinbase to remain one of the market’s oldest and most reliable trading platform in the world.

The current products available to traders include:

  • Coinbase Brokerage
  • Coinbase Pro
  • Coinbase Wallet
  • Coinbase Card
  • Coinbase Commerce
  • USD Coin
coinbase product - ratewise

Coinbase brokerage

Identifying the demand for quick service needed to meet the hustle and bustle of modern life, Coinbase’s brokerage service allows users to buy and sell cryptocurrencies easily.

Equipped with an “Instant Exchange” feature, customers can reduce the length of trading processes by instantaneously sending cryptocurrency to a user’s receiver upon completion of a purchase.

Differentiating from the approach other competitors take, this allows users to simply pay with fiat money and convert that payment into the desired cryptocurrency.

A useful tool that many new investors often rely on when buying their first crypto, this feature has enabled many users to quickly invest in positive price movements at no additional cost.

Coinbase Pro

Differentiating from the traditional Coinbase brokerage service, Coinbase Pro is a paid cryptocurrency trading platform aimed at more experienced users who want to know more than just the basics of market fluctuations related to cryptocurrency pairs.

Priding itself on being the most trusted platform designed to trade cryptocurrency, this FDIC insurance backed service offers users real-time orderbooks, trade histories, and charting tools so that users have the necessary tools to deeply understand the crypto market.

Coinbase Pro utilises a maker-taker model for fees. Maker traders are classed as individuals who place orders that are not filled immediately by matching to an existing order.

As a result of this approach to trading maker traders do not pay any trading fees when using the service. Taker traders juxtapose this approach by placing an order at market price that is filled immediately.

Due to this shorter transaction approach, taker traders are charged a fee of up to 0.30% depending on pricing tier.

The use of this advanced service has enabled many customers to improve their crypto portfolios and identify potential trends unknown to regular Coinbase users.

While the regular Coinbase service remains an excellent tool for new traders trying to understand the intricacies of cryptocurrency purchasing, storage and movement, Coinbase Pro, can be considered the more rewarding exchange platform for individuals that want to actively trade or invest in cryptocurrencies at a lower competitive fee.

Coinbase wallet

Identifying the difficulties of managing cryptocurrency on mobile devices, Coinbase offers a user controlled non-custodial digital currency wallet and decentralised app browser.

Available on iOS and Android platforms, Coinbase Wallet is designed to store private keys directly on a user’s mobile device. This action allows users to control the funds in their account and freely send as well as receive tokens.

In addition to this, the wallet incorporates a multi-coin support system that allows users to manage and trade different cryptocurrencies.

Integration with a range of decentralised apps means that customers can also use the wallet to interact with online game services, marketplaces, and certain decentralised financial projects like Augur.

With easy accessibility in mind, Coinbase Wallet offers a slick interface with great security that makes use of biometric authentication and Secure Enclave software to ensure clients are protected.

The coinbase card

Developed earlier this year, the Coinbase card is a prepaid card designed to combine the features of credit and debit cards with those of cryptocurrencies.

With the search for mainstream adoption remaining the central theme in the cryptocurrency space, many exchange platforms have sought o develop a solution that allows users to make use of their crypto for everyday payments.

Coinbase’s answer to this is a card system that allows users to convert cryptocurrency into fiat money that can be spent. Accepted in over 50 million retail stores, the card allows for easy use in the UK.

coinbase card - ratewise

Authorising ATM withdrawals, Coinbase’s card makes use of a two-factor authentication system and MasterCard’s SD secure protocols to ensure that customer funds are safe. Integration with the Coinbase Wallet system allows for further security and control.

Coinbase commerce

For this product, Coinbase supplies online businesses with the ability to accept cryptocurrencies on their website via a dedicated plugin. Supported by some of the biggest content management systems like Shopify and WooCommerce, this dedicated plugin helps to promote the advancement of cryptocurrency as a form of payment.

With payment systems such as PayPal showcasing an acceptance of cryptocurrency as a viable form of payment, Coinbase’s Merchant Solutions feature continues to promote the advancement and accessibility of crypto payment methods.

USD coin

Coinbase supports and promotes the investment of the USD Coin (USDC) cryptocurrency available on its platform. Defined as a “stable coin” USDC is an ERC-20 token with a price pegged to the price of the US Dollar.

Operating on this structure, users are given the opportunity to invest in a cryptocurrency with a less volatile state that is determined by a country’s financial success rather than market demand.

Fully transparent and working within US money transmission laws, USDC acts as a safe alternative for newcomers who are afraid to invest large sums of money in the extremely volatile market of cryptocurrency.

Any other projects?

  • Custodian Services: Operating as an independently capitalised business, Coinbase is a qualified custodian that can offer custody for institutional cryptocurrency assets. Aimed at banks and hedge funds, this service offers insurance and a segregated cold storage system that ensures asset safety. In doing this, Coinbase creates an environment that encourages cryptocurrency investment from institutional bodies.
  • Coinbase Ventures: Expanding on the Coinbase Commerce concept, Coinbase Ventures is a project that looks to invest in companies building open financial systems. Providing financial support to promising early-stage companies, this project looks to push the development of stable coin-based ideas that could help the cryptocurrency market grow to greater heights. 

Is it safe?

Although cryptocurrencies are considered secure in 2021, reports of hacking, exit scams, and lost funds in previous years continue to linger in the cryptocurrency community. The most infamous event of exchange hacking occurred in early 2014 when Mt. Gox announced hackers had stolen over 850,000 bitcoins worth $450M at the time.

To prevent a similar event from occurring, Coinbase makes use of cold storage and hot wallet security infrastructure to prevent any losses. Utilising this structure, 99% of assets are placed in a segregated offline cold storage system which prevents external access from hackers.

The other 1% of assets is stored in an insured hot wallet system, meaning that any money stolen can be easily retrieved and reimbursed by Coinbase. Using this approach has allowed Coinbase to remain one of the industry’s most reliable exchange platform in the industry.

Valuing the safety of its customers, Coinbase has continued to make security its top priority, ensuring users have nothing to worry about when using their platform. If users still share concerns, Coinbase offers helpful advice that can be implemented to ensure user accounts are secure.

These include:

Using a stronger password

Coinbase suggests that users refrain from using the same password across multiple online accounts. Instead, they recommend customers make use of password managing services or phrases instead of singular words.

Utilising 2-Step Verification

To add an extra layer of security to a user’s account, Coinbase recommends that users enable the 2-step verification function available in the security setting section of the account. This feature ensures that users must complete a 2-step verification process for all send of cryptocurrency to prevent fraudulent transactions and hacking.

Bookmark Coinbase

If users do not have the Coinbase app, Coinbase recommends users bookmark https://www.coinbase.com/ in their browser and only use the link to access their account. This reduces the risk of encountering any malware on the journey to their website.

Protecting Cloud Storage Accounts

With the advancement of cloud technology, Coinbase suggests that user should aim to improve the security of their loud storage accounts. Since many people make use of cloud storage accounts to create backups of the data saved on their devices.

The data stored in the cloud often contain user messages, contacts, emails, apps and even passwords. In the event that a hacker gains access to a user’s cloud storage account, attackers can restore device backups on devices under their control.

To prevent this scenario from occurring Coinbase suggests using:

  • A strong password for cloud storage accounts
  • A strong form of 2-step verification if the option is made available for the account

Utilising the Coinbase Vault

For users that plan to store their cryptocurrency investments rather than actively trade them, Coinbase offers the ability to store cryptocurrency in a ‘Vault’. Vaults require multi-email approval to start a withdrawal that takes 48 hours to process.

This delayed time is used to allow users to cancel withdrawals if they change their mind or if the withdrawal was initiated by an unauthorised party.

Address Book and Whitelisting

For extra security, Coinbase Pro users are given the option to make use of the Address Book and Whitelisting features made available to them. The Address Book feature enables Coinbase Pro users to add and store crypto addresses they have interacted with before. This allows cryptocurrency to be sent easily and safely to the address of reliable sources.

Users can:

  • Add a crypto address to any of the cryptocurrencies Coinbase Pro supports
  • Assign nicknames to addresses, allowing for easy search options when withdrawing crypto.
  • Save new addresses to the Address Book after withdrawing crypto to an unknown address

Expanding on this, Whitelisting is a security feature that works in tandem with the Address Book. This security service restricts cryptocurrency withdrawals to only addresses that are registered to the user’s address book. Requiring a 2-step verification to enable/disable the feature, Whitelisting allows users to more safely withdraw to verified addresses.

Contact Customer Support

If at any time a user has concerns about account security or a question about Coinbase’s system, users can contact Coinbase Support. Due to the constant threat of fake customer support numbers and websites, the Coinbase website has a ‘Contact Us’ page that offers a direct link to its email support system.

Currently, Coinbase does not offer any phone support with a live agent. Instead, users can call Coinbase Support to immediately disable their account if they suspect their account has been compromised.

Additionally, Coinbase uses Twitter to provide status updates regarding Coinbase products and services. This allows users to stay up to date with Coinbase services, however, due to security and privacy reasons, this feature cannot assist users with account-specific issues.

As a result of this, Coinbase makes it clear that is staff will never:

  1. ask for user passwords, 2-step verification codes, or email access
  2. ask users to install remote sign-in or remote support software on their computers
  3. ask user to send money for resolving issues with their account
  4. call users directly to handle account support or troubleshooting issues

How is Coinbase Regulated?

Registered with FinCEN as a Money Service Business, Coinbase is 1 of only 4 exchange platforms that have a license under the BitLicense program. This license requires Coinbase to adhere to strict ‘Know Your Customer’ rules which ensure that the trading platform remains compliant with rules and regulations.

This set of rules and regulations prevents Coinbase from being used anonymously as users are required to provide government-issued ID and billing address before users can trade.

In addition to this, Coinbase is required to comply with several financial services and consumer protection laws, including:

  • The Bank Secrecy Act, which requires Coinbase to verify the identity of its customers, maintain records of currency transactions for up to 5 years, and report any suspicious transactions.
  • The USA Patriot Act, which requires Coinbase to designate a compliance officer to ensure compliance with all applicable laws, create procedures and controls to ensure compliance, conduct compliance training to ensure staff operate within the law, and periodically review the compliance of the program.
  • Coinbase must also adhere to all the different money transmission laws and corresponding regulations associated with all the states and countries it operates in.

Is Coinbase Insured?

As previously highlighted, Coinbase prioritises the security of their user’s digital currencies. To achieve market-leading security, Coinbase makes use of a Cold Storage + Hot Wallet security infrastructure. Digital currencies stored in Coinbase’s hot wallet are insured in the event of any cyber-attacks.

If hackers were to breach Coinbase’s hot wallet, the insurance policy in place would pay out any customer funds lost in the attack. However, this insurance policy doesn’t cover any losses made by attacks on individual Coinbase accounts.

The insurance policy used by Coinbase only covers any losses from Coinbase’s hot storage resulting from a breach of Coinbase’s physical security, cybersecurity, or employee theft. Since digital currency is not legal tender, it cannot be backed by the government or federal insurance companies.

In addition to “hot storage”, Coinbase pools the cash balance of its U.S. customers and holds those funds in either:

  • USD custodial accounts at U.S. banks;
  • USD denominated money market funds; or
  • Invests them in liquid U.S. Treasuries.

Working in accordance with state money transmitter laws, these pooled custodial funds are stored as USD in U.S. banks insured by the FDIC. This provides insurance coverage of up to $250,000 per individual cash balance account present on the fund.

For customers that do not live in the United States, funds are pooled and held as fiat money in insured dedicated custodial accounts, ensuring the safety of customer money.

What countries does Coinbase support?

With the increased exposure of cryptocurrency, Coinbase offers its services in over 100 countries around the world. These include:

North America

Aruba, Barbados, Canada, Curacao, El Salvador, Honduras, Mexico, Panama, United States, Bahamas, Bermuda, Costa Rica, Dominican Republic, Guatemala, Jamaica, Nicaragua, Trinidad and Tobago, Virgin Islands

South America

Argentina, Chile, Ecuador, Peru, Brazil, Colombia, Paraguay, Uruguay

Europe

Andorra, Belgium, Croatia, Czech Republic, Estonia, France, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Malta, Montenegro, Poland, Romania, Serbia, Slovenia, Sweden, Turkey, Austria, Bulgaria, Cyprus, Denmark, Finland, Gibraltar, Guernsey, Iceland, Isle of Man, Jersey, Liechtenstein, Luxembourg, Monaco, Norway, Portugal, San Marino, Slovakia, Spain, Switzerland, United Kingdom

Asia

Armenia, Brunei Darussalam, India, Jordan, Republic of Korea, Kyrgyzstan, Maldives, Nepal, Philippines, Taiwan, Bahrain, Hong Kong, Indonesia, Kazakhstan, Kuwait, Macao, Mongolia, Oman, Singapore, Uzbekistan

Africa

Angola, Botswana, Ghana, Mauritius, Rwanda, Tunisia, Zambia, Benin, Cameroon, Kenya, Namibia, South Africa, Uganda

Australia

Australia, New Zealand

How to open an account

  1. Go to the Coinbase website and click the “Get Started” button
  2. Enter your name, email, and a password of your choice
  3. Verify your email
  4. Enter your phone number to receive a code from Coinbase
  5. Use the code to complete a two-step verification Process
  6. Provide identification information (Due to ‘Know Your Customer’ rules, you must provide a valid form of identification or you will not be able to begin trading on Coinbase).

The Pros and Cons of Coinbase

After discussing the essential details of Coinbase, it is time to crunch down that info into an easy to digest Pros and Cons list so you the reader can decide if it is the platform for your cryptocurrency journey.

Pros

  • Security

When it comes to safety, Coinbase takes the throne for cryptocurrency exchange security. Providing users, a range of security features that stretch from 2-step verification systems to the use of cold and hot storage, Coinbase places the security of its users at the forefront of its business practice. Ensuring both digital and fiat assets of users only serves to highlight this point further.

  • Accessibility

The design of Coinbase was developed with new traders in mind. Acting as a place where anyone from a wide range of countries can dip their toes into the world of cryptocurrency, Coinbase offers an intuitive and easy-to-use interface that can be learned in a short time.

  • Support and Information

Coinbase offers an extensive customer support system and a wide range of information guides that can teach new beginners everything they need to know about cryptocurrency trading. The adoption of social media as a means of communicating with customers means that users can stay up to date with the latest information. When it comes to support, Coinbase offers an incomparable level of information and guides that can help clients of all experience.

  • Payment Options

Just like the bullet point says, Coinbase offers users a full range of payment methods that can be tailored to their desires. From bank accounts to PayPal payment, Coinbase breaks the hurdle many aspiring cryptocurrency traders have had to face which prevented them from investing in cryptocurrency because they did not have the appropriate payment options.

  • Fiat Support (Currency Support)

Due to its global exposure, Coinbase supports a number of currencies meaning that users can use their own fiat currency to invest in cryptocurrency. Not having to worry about exchange rates and fees, the opportunity for users to use their native fiat currency allows for even easier accessibility.

  • High Liquidity

Coinbase has a track record of consistently ranking among the highest liquidity exchange platforms. This means investors and traders are protected from suffering serious price slippages in a market that is already volatile.

Cons

  • Limited Cryptocurrencies

While Coinbase does offer access to major cryptocurrencies, an inability to invest in less popular altcoins can be considered a huge drawback for traders that want to invest in the “next big thing”. Though Coinbase Pro offers a wider range of coins, the options available can still be considered small when compared to the selection available to users on a competitor’s platform.

  • Costs

For some users, Coinbase can be considered a bit expensive because of its fees and spread charges for fiat-to-crypto and crypto-to-fiat transactions. Some turn to cryptocurrency trading as an avenue to build their portfolio and make some passive income, the price of some of these fees can be considered off-putting.

  • Lack of Control of Wallet Key

Though this is prominent on most exchange platforms, users who purchase cryptocurrency on an exchange platform do not have complete control over their assets despite investing in them. This is due to the fact that virtual wallets remain the property of Coinbase. To deal with this issue some traders withdraw their currency to their own personal hard wallet.

Verdict

Designed for beginners in mind, Coinbase is the ideal platform for new crypto investors who might have no prior investment experience. With options to invest in stable coin currency, Coinbase provides an alternative environment for beginners to learn and understand the complexity of the cryptocurrency market.

Features such as Coinbase Pro provide experts and experienced investors with the necessary tools to fine-tune their crypto portfolio so that they remain optimal and successful.

The option to receive a debit card that makes use of crypto and fiat money payment is an extra-bonus as it offers users a tangible sense of money that was once not associated with cryptocurrency.

Showcasing an ambition to change the perceptions of cryptocurrency, Coinbase is an excellent exchange platform that can help you enter the lucrative world of cryptocurrency.

How can I get better at personal finance?

To get better at personal finance you should quantify your money habits by tracking your spending and income.

Next, make a goal for yourself to better your savings rate or start investing. Commit to your goal and check in with yourself each month to make sure you are on track. Try to keep your spending within your budget to keep it sustainable.

What is the best way to manage money?

The best way to manage your money is to see it as a tool to help you through life. Take a look at your finances and see where your weaknesses or vulnerabilities may lie.

Then set goals to get your finances back on track to where you want them to be. Budgeting will be how you achieve those goals and some of your goals may be saving for retirement, establishing an emergency fund, or paying off debt. Check in with yourself to make sure you are on track to accomplish your goals. 

How much should I have in savings?

It’s a good idea to have three to six months’ worth of expenses saved in case of emergencies. For example, if your monthly spending is usually around £5,000 try to keep your savings account balance above £30,000.

Once you have your emergency fund full, you can use your savings as a place to build up funds for big purchases like a house or car down payment.

How much money should I save each month?

Usually, it is recommended that you save at least 20% of your income each month. If you can stick to this, you’ll have a nest egg for emergencies or down payments on any large purchases to keep borrowing at a minimum and your interest rates low.

How much is too much in savings?

You should try to have three to six months’ worth of your average living expenses, including rent, utilities, food etc. saved in case of emergencies.

Any more savings that that might be useful for a down payment on a home or car. If you don’t foresee any large purchase in your future, then you should allocate that extra money into something that gains a bit more interest than your savings account might, for example invest in a stock portfolio.

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Categories: Personal Finance
Tags: cryptocurrency