Is This Centralized Exchange Legit and Safe for Beginners?

Coinbase is a popular cryptocurrency exchange for buying, selling, and storing cryptocurrencies like Bitcoin and Ethereum. It’s one of the biggest and most trusted crypto exchanges in the U.S., serving 108 million users in over 100 countries. It offers over 240 coins for buying and selling with both Simple and Advanced Trade platforms. The best features of Coinbase are Coinbase Staking, Coinbase Pro (Advanced Trade), Coinbase Card, Coinbase Wallet, Coinbase One, and the Coinbase mobile app.

Coinbase is a safe and legitimate crypto exchange because it uses strong security measures, such as keeping 98% of funds in offline cold storage, insurance, and 2FA for accounts. It also has licenses from trusted regulators, such as the US New York State Department of Financial Services, the UK Financial Conduct Authority, and the Central Bank of Ireland in Europe.

In this Coinbase review, we will explain what Coinbase is, what Coinbase trading fees are, and what the best features of Coinbase are. We will also elaborate on how to open a new account to buy and sell crypto on Coinbase.

Coinbase Review: What Is It?

Coinbase is a reputation crypto exchange in the United States that lets you buy, sell, and store digital coins like Bitcoin and Ethereum. It was started by Brian Armstrong and Fred Ehrsam in 2012 and has evolved into the U.S.’s largest crypto exchange in terms of volume, and was listed on Nasdaq in 2021. The exchange is fully remote, with no actual headquarters, and is available in over 100 countries. This trading platform is currently serving 108 million Coinbase verified users worldwide.

The exchange has a simple platform for newcomers and an upgraded version named “Coinbase Advanced” for more experienced traders. The standard platform allows you to trade over 240 cryptocurrencies, including well-known names like Bitcoin, Ethereum, Solana, and Dogecoin. Coinbase Advanced has additional tools such as live charts and order types, including market, limit, and stop orders. Coinbase accepts deposits in the form of bank transfers, debit cards, PayPal, Apple Pay, and wire transfers.

Coinbase also includes a separate Defi wallet app, which is a non-custodial wallet where you hold your private keys and keep coins safe. It supports thousands of assets, including NFTs, and you can connect with decentralized finance apps. There’s even a Coinbase Card, a debit card that allows you to spend crypto like regular money in shops and online stores. You can also stake over 100 coins to earn rewards, although Coinbase takes a 25% commission on those returns.

Platform	Coinbase Global, Inc.
Founded	2012
Founders	Brian Armstrong, Fred Ehrsam
Headquarters	None (Remote-first)
Trading Volume	Largest in U.S. (over $1B+ daily)
Features	Instant crypto buy/sell, staking, futures trading, Coinbase Wallet, Coinbase Prime, Coinbase One, and Coinbase Card
Cryptocurrencies	240+
Trading Pairs	500+
Trading Fees (Simple Platform)	0.99% – 2.99% per trade
Trading Fees (Advanced Trade Platform)	0.4% maker – 0.6% taker
Payment Methods	Bank Transfer (ACH), Debit Card, Wire, PayPal, Apple Pay, Google Pay, and more
US License	MSB License, New York State Dept. of Financial Services, VASP in Ireland, Financial Conduct Authority in UK

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How does Coinbase work?

Coinbase works as a trading platform where you can buy, sell, and store over 240 different cryptocurrencies. It’s really simple to use, particularly for a new crypto user. You need to begin by registering your name, email, and password on their site or the Coinbase app. Then, you need to link a payment source, such as a bank account or debit card, with which you deposit funds. Once your account is activated, you can purchase crypto by selecting an amount – such as $10 or $500 – and Coinbase will convert it to the coin of your choice.

Selling is the reverse of buying. You select how much crypto to sell, and Coinbase converts it into cash, then you can transfer to your bank. Coinbase also allows you to send crypto to other individuals or crypto wallets.

To protect the security of customers’ assets, Coinbase stores most of your cryptocurrencies securely in a digital wallet, with the majority held offline in “cold storage” to defend against hackers( over 98% of their assets are stored in the cold wallets).

What are the pros of Coinbase?

The pros of Coinbase are a user-friendly trading interface, 240+ supported coins, robust security measures, rewards for learning about crypto, and an advanced trading portal for experienced traders.

• User-friendly interface: The exchange has a simple interface that even new users can navigate – create an account, add a payment method, and purchase Bitcoin or Ethereum within a few minutes. Their app is equally intuitive, with all functions accessible.
• Multiple cryptocurrencies: You can access over 240 cryptocurrencies on Coinbase, ranging from a few less popular altcoins and meme coins to the most well-known ones.
• Robust security: Coinbase stores 98% of customer deposits in cold storage – offline and immune to hacking. They also insure up to $250,000 per individual through partners such as JPMorgan Chase.
• Learning rewards: You can watch brief videos regarding crypto and earn complimentary coins following a quick quiz. You can also stake 100+ crypto coins to gain additional rewards.
• Advanced trading option: Coinbase Advanced Trade allows you to trade with lower fees than their standard platform. With the advanced version, you are provided with advanced charting tools and can also set up automatic buying.

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What are the cons of Coinbase?

The cons of Coinbase are high trading fees on its “Simple” platform, weak customer support, and legal troubles with the SEC in the U.S.

• High charges: The standard Coinbase platform has high fees – such as you pay 1.49% for bank transactions and 3.99% for debit cards. A $200 Bitcoin purchase with a debit card would cost you almost $8 more, which is too much for a beginner.
• Weak customer support: Traders often complain about Coinbase’s customer service on X or Facebook. They say that their accounts are frozen, emails can take days to get a reply, and live chat isn’t always an option unless you’re a Coinbase One subscriber.
• Legal troubles: The SEC sued Coinbase in 2023 for operating as an unregistered national securities exchange. This uncertainty could shake trust and affect how the platform runs.

What currencies does Coinbase support?

Coinbase supports 240+ cryptocurrencies and several fiat currencies. You can buy and sell well-known crypto coins such as Bitcoin, Ethereum, Dogecoin, and many less popular altcoins. For fiat currencies, Coinbase supports USD, EUR, and GBP. Therefore, it’s convenient to purchase or sell crypto using traditional currency.

What are Coinbase trading fees?

The Coinbase trading fees are 0.4% maker and 0.6% taker for the Advanced Trade platform, and up to 3.99% per trade for the Simple platform. You will also pay a 0.5% spread and a variable crypto transfer fee.

Trading Fee

The trading fee is the transaction fee to buy, sell, or exchange cryptocurrencies on Coinbase. On the simple version, Coinbase charges a flat fee for small transactions and a percentage fee for large transactions, along with a spread (explained below). The trading fees are as follows:

Transaction Amount (USD)	Flat Fee (USD)
$10 or less	$0.99
$10.01 – $25	$1.49
$25.01 – $50	$1.99
$50.01 – $200	$2.99

Coinbase charges a variable percentage for larger transactions above $200. It charges 1.49% when using a bank account (ACH) or a USD wallet. When paying with a debit card, the charge increases to 3.99%. Now, Coinbase uses a maker-taker fee schedule on the “Advanced Trade” platform based on your 30-day trading volume history in USD. You pay smaller fees as you trade more volume. Here’s the fee structure

30-Day Trading Volume (USD)	Maker Fee (%)	Taker Fee (%)
$0 – $10,000	0.40	0.60
$10,001 – $50,000	0.25	0.40
$50,001 – $100,000	0.15	0.25
$100,001 – $1,000,000	0.10	0.20
$1,000,001 – $15,000,000	0.08	0.18

Spread Fee

A spread fee is an additional cost added to the buying or selling price when trading on the simple version. Coinbase applies a spread of around 0.50% on purchases, sales, and exchanges to cover market fluctuation. For instance, if you purchase $1,000 worth of BTC, the price could be $1,005 based on a $5 spread (0.50% of $1,000). You also pay the usual trading fee. You don’t see this fee as a separate line item; it’s only embedded in the quoted price.

Note: Coinbase does not charge a spread fee on the Coinbase Advanced Trade platform. You trade directly on the order book at current market prices.

Transfer Fee

The Transfer Fee is what you pay to move funds into or out of Coinbase. This is also called deposit and withdrawal fees. Deposits vary by method: ACH transfers are generally free, $10 for wire transfers, and debit card deposits with a 3.99% trading charge.

Withdrawals also vary by type. Again, ACH transfers are free, and wire transfers incur a $25 charge. Cryptocurrency withdrawals have network charges. These are paid to the blockchain miners and differ by asset and congestion. For instance, Bitcoin withdrawals generally run between $1 and $5, with Ethereum possibly slightly higher due to Ethereum network traffic.

Why are Coinbase fees so high?

Coinbase fees are high because the company prioritizes ease of use, security, and regulatory compliance, which increase operational costs that you ultimately cover. 

The company spends heavily on compliance with U.S. regulations, maintaining licenses, and offering FDIC insurance on USD balances up to $250,000. You get strong security features, such as cold storage of assets, but this contributes to their operational costs.

If you are looking for a low-fee crypto platform, you cannot ignore our guide on the zero trading fee crypto exchanges.

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What are the best features of Coinbase?

The best features of Coinbase are Coinbase staking, Coinbase Pro (Advanced Trade), Coinbase Card, Coinbase Wallet, Coinbase One, and the Coinbase mobile app.

Coinbase Staking

Coinbase Staking is a way for you to earn extra rewards by holding certain cryptocurrencies on the platform. These include Ethereum, Solana, Cardano, Cosmos, Tezos, and several others, but the availability of these staking coins will be determined by your region.

The staking rewards also differ by coin. Ethereum staking, for instance, can give you a maximum of 2-3% annual percentage yield (APY), whereas Solana can provide a little higher, around 6-7% APY. Naturally, these figures aren’t fixed – they fluctuate according to network rules and market conditions.

Coinbase also charges a commission on staking rewards, typically 25% of your rewards, as a charge for handling the process. You don’t need to do much to get started. You just need to purchase or transfer eligible crypto to your Coinbase account. Now, go to the staking section and click to join. There is also a waiting period for some assets before rewards are distributed, and unstaking takes days or weeks depending on the coin – such as 13 days for Ethereum.

Coinbase Pro

Coinbase Pro was an advanced crypto trading platform best for experienced traders, but it’s no longer a standalone service. Recently, Coinbase merged it into “Coinbase Advanced Trade”. Advanced Trade keeps the core ideas of Coinbase Pro alive – lower fees, more charting tools, and more control over trades. The advanced version also supports futures trading with up to 10x leverage.

On Advanced Trade version, you can exchange more than 500 crypto pairs, such as BTC/ETH or SOL/USDC. Fees are also not fixed but depend on the trading volume. You can also check real-time order books as well as charting facilities from TradingView. You can also use technical indicators such as RSI or Bollinger Bands within the Coinbase exchange.

The platform supports advanced order types like market orders, limit orders, and stop-loss orders. You don’t need a subscription – anyone with a KYC-verified Coinbase account can use it. You just need to toggle to the “Advanced Trade” option from the main app or website.

Coinbase Card

Coinbase Card is a prepaid Visa debit card that allows you to use your crypto as regular fiat money. It’s connected to your Coinbase account, so you can spend Bitcoin, Ethereum, or even stablecoins like USDC at millions of merchants globally, where Visa is accepted. 

Also, you won’t have to cash out to a bank first. The card draws money straight from your Coinbase crypto balance, converting crypto into fiat (such as USD or GBP) when you make a purchase. To obtain one, you need to apply from Coinbase. Also, there’s no annual fee, but there is a 2.49% conversion charge when you use crypto.

You can top up the card with any of the cryptos you own on the Coinbase exchange, and it comes in both physical or virtual form. The physical card gets delivered to your registered Coinbase address, whereas the virtual one functions instantly using Apple Pay or Google Pay. The card can be ordered in all states within the US, except for Hawaii.

Coinbase Wallet

The Coinbase Wallet is a self-custody crypto wallet, meaning you control your funds, not Coinbase. This is a separate wallet from your regular Coinbase exchange wallet. For this wallet, you hold the private keys (a 12-word recovery phrase), so basically, you’re fully responsible for the security of your digital assets. It’s designed to store crypto, NFTs, and connect to decentralized apps (dApps) on blockchains like Ethereum, BNB smart chain, Base, and more.

You can store millions of tokens in the wallet, plus NFTs from marketplaces like OpenSea. Sending and receiving crypto is also very simple: use a wallet address or simply scan a QR code. The wallet also supports staking for some assets like ETH and USDC. 

There is also a built-in dApp browser. You can trade on decentralized exchanges (like Uniswap), lend crypto via DeFi apps (like Aave), or join DAOs. The wallet is available on both mobile (iOS and Android) or as a Chrome extension for desktop.

Coinbase One

Coinbase One is a subscription service that enhances your Coinbase experience with some additional benefits such as no trading fees and live customer support. It is $29.99 per month, and you also receive a 30-day free trial to try it out.

The best part is zero-fee trading on the standard platform. For Advanced Trade, you do pay fees, but you also receive a 25% discount on them. The membership also comes with increased staking rewards. On tokens such as Ethereum or USDC, Coinbase One members receive increased APYs  – typically, this will be 1-2% above non-members. And, of course, there’s priority assistance. You can call or text the customer support team 24/7, simply by avoiding long wait times.

Coinbase Mobile App

The Coinbase Mobile App is your all-in-one tool for managing crypto wherever you are. It is available on both iOS and Android devices. The app is designed to be user-friendly, and it is very easy to buy crypto through the app. You just link a bank account, card, or PayPal and can start spending to buy crypto for as little as $2.

The Coinbase app displays real-time prices and charts. You can also set up recurring buys, such as buying BTC for $10 each week, to steadily grow your holdings. Staking is also integrated into the mobile app. You can stake crypto right away. If you prefer the advanced version, you can also switch to the Coinbase Advanced Trade within the app itself.

How to open a new account to buy and sell crypto on Coinbase?

To open a new account to buy and sell crypto on Coinbase, you need to create a Coinbase account, verify your identity, and link your bank account or credit card to buy crypto.

Step 1: Create a Coinbase Account and Complete KYC

First, go to the Coinbase website, or you can download the Coinbase app directly from your phone’s app store. Click the “Sign Up” button and enter your email address, a strong password with at least 8 characters, and your full name (the name must be similar to that in KYC documents). As a new user, you can use our Coinbase referral code or referral link to register on the exchange and get a $200 crypto sign-up bonus.

Next, Coinbase will send you an email to verify your address – simply open it and click the link. After that, you need to finish the KYC process by uploading a photo of your ID, which can be a driver’s license or your passport, and sometimes a selfie to prove it’s you. This usually takes around 5-10 minutes, and Coinbase will let you know when your account gets approved.

Step 2: Link Bank Account or Credit Card

Now that your account is set up, log in and find the “Payment Methods” section under your profile settings. Click “Add Payment Method” and choose either a bank account or a credit card. 

For a bank account, enter your routing number and account number. This may take some time to verify with small test deposits. If you pick a credit card, type in the 16-digit number, expiration date, and CVV code. Once linked, you’re ready to add funds or buy crypto directly.

Step 3: Buy Crypto on Coinbase

Finally, head to the “Trade” tab on the Coinbase dashboard. You need to pick a cryptocurrency from the list. Coinbase offers over 240 cryptocurrencies. Now, enter how much you want to buy, either in dollars (minimum $2) or crypto amount, and preview the purchase. 

Now, click on the “Buy Now” button to finish the transaction, and your crypto will show up in your Coinbase wallet within seconds. You can then hold it, sell it later, or send it somewhere else using the “Send” feature.

Note: If you want to buy crypto on a low-fee platform, you can also check out our guide about zero-fee crypto exchanges.

What is a Coinbase account?

A Coinbase account is a personal profile on the Coinbase platform where you can buy, sell, and store cryptocurrencies like Bitcoin and Ethereum. You sign up with an email and password, then verify your identity with an ID. Once set up, it acts like a digital wallet holding your crypto and a trading hub to make transactions. You can link your bank or card to add money and start buying coins.