There are many popular crypto exchanges but the simplest place to invest in is Coinbase. It has the simplest interface, you can buy cryptocurrencies using your debit or credit card and not get confused by all the complicated charting of some other exchanges. But just like buying commodities, there are small nuances on products or services that we need to take note of. Coinbase is no exception. In this blog post, we’ll discuss the pros and cons of Coinbase and then you decide if it’s the right cryptocurrency exchange for you.
Quick Summary
Pros
- Has a wide selection of cryptocurrencies (100+)
- Can cater for beginner (Coinbase) and advanced users (Coinbase Pro)
- Has resources to learn trading and the in and outs of crypto
- Low minimum. Great place to start your crypto investing. ($2)
- Cryptos are insured in case of major hack on Coinbase
Cons
- Confusing and relatively high fees
- Lacks altcoins for more advanced users
If you’re new to investing and would like to start your crypto journey, then Coinbase might just be the best place to start. You can download the Coinbase app and start buying and selling from the convenience of your mobile phone. Want to buy Bitcoin? It’s as easy as shopping on an e-commerce website. It’s that easy. The interface is clean and free from the clutter of your usual crypto exchange.
It’s a user-friendly crypto exchange to get you started. Of course, the drawback here is that it doesn’t have the most sophisticated charting tools for more advanced users.
Coinbase Fees:
| Total trade amount | Fee |
|---|---|
| $10 or less | $0.99 |
| More than $10 and up to $25 | $1.49 |
| More than $25 and up to $50 | $1.99 |
| More than $50 and up to $200 | $2.99 |
| Payment method | Fee |
|---|---|
| U.S. bank account or Coinbase wallet | 1.49% |
| Debit card | 3.99% |
| Instant card withdrawal | Up to 1.5% (minimum fee of $0.55) |
| ACH transfer | Free |
| Wire transfer | $10 ($25 outgoing) |
Coinbase Pro Fees:
| Pricing tier | Taker fee | Maker fee |
|---|---|---|
| Up to $10K | 0.50% | 0.50% |
| $10K – $50K | 0.35% | 0.35% |
| $50K – $100K | 0.25% | 0.15% |
| $100K – $1M | 0.20% | 0.10% |
| $1M – $10M | 0.18% | 0.08% |
| $10M – $20M | 0.18% | 0.08% |
| $20M – $50M | 0.15% | 0.05% |
| $50M – $100M | 0.15% | 0.05% |
| $100M – $300M | 0.1% | 0.02% |
| $300M – $500M | 0.08% | 0.00% |
| $500M – $750M | 0.06% | 0.00% |
| $750M – $1B | 0.05% | 0.00% |
| $1B – $2B | 0.04% | 0.00% |
| $2B+ | 0.04% | 0.00% |
Why is that when they’re just the same company? Why should people who value simplicity pay at a premium?
Insurance Note:
Although Coinbase insures your investments. It’s only from an attack on the website and not on your individual coin wallet. That means that if you get hacked, your money is not secure.
Customer Support
Coinbase’s simplicity is shadowed by its lack of customer support. There is no direct way to contact them via phone. In case of an emergency, you’re going to have to fill out a form on their website in order to talk to someone. For everything else, customer support is only reachable via email or Twitter.
Should I go for Coinbase?
Like using a lot of banks to spread our fiat deposits, or having a lot of different credit cards for different uses, we think you should carefully weigh whether Coinbase is right for you. If you want the simplest platform and would like the most straightforward user interface, then Coinbase is for you. Of course, that’s assuming you won’t mind the extra charges versus using its CoinbasePro app where you can readily swap with a flick of a finger or mouse pointer. If you just want to invest in the most popular cryptocurrencies, Coinbase has you covered. Invest-and-forget is still a great option. But if you’re a risk-taker and would like to try some of the more “speculative” investments, then it would be better to go for the other exchanges like Binance (400+) and Kucoin (500+). In terms of safety, Coinbase is the 2nd biggest exchange and is the only one offering insurance on website hacks.
If you want a more advanced and decentralized (NO KYC) cryptocurrency exchange, check out our BitForex review here.
Start You Coinbase Journey Here:
You’ll get $10 in free Bitcoin when you buy or sell $100 or more in crypto using the link above!