Coinbase review 2024 (2024)

About Coinbase

Coinbase is one of the world’s largest cryptocurrency exchanges. It’s also the only major exchange to trade publicly, listed on the Nasdaq since April 2021.

It boasts an easy-to-use platform that offers a simple fiat on-ramp for investors to enter the blockchain world. It also offers more than 240 tradeable coins and a popular crypto wallet.

Coinbase may not have the lowest fees on the market or provide as many features as some rivals. But its status as a publicly traded exchange provides increased transparency and regulation.

Its public status, strong suite of educational resources and longevity in the market make Coinbase one of the most popular options for investors and institutions.

Pros and cons

Like any exchange, Coinbase has pros and cons.

Some traits will be more relevant to you than others. That’s because each customer wants different things.

This is especially true since Coinbase is the only major dedicated cryptocurrency exchange that’s publicly listed. So it’s in a unique position compared with competitors.

Coinbase overview

Coinbase does its job well. It mainly serves as a fiat on-ramp where customers can purchase crypto. It’s straightforward and offers perhaps the most intuitive experience of all crypto exchanges. The website and app have a minimalist feel but pack in many popular features. That’s the sign of a well-designed product.

The platform has become an ecosystem. Yes, you can trade crypto. But Coinbase also provides a wallet, a non-fungible token marketplace, advanced trading tools, staking, educational resources, a crypto-linked debit card and bitcoin-backed loans. And Coinbase is as good as any exchange for buying crypto with fiat. It even offers free ACH deposits and withdrawals.

The exchange also runs a learning program to teach beginners about crypto. While crypto investing often resembles gambling, Coinbase tries to educate users on the basics of crypto assets. It even offers rewards for completing lessons.

Finally, the peace of mind afforded by its publicly traded status on a major exchange can’t be understated. Coinbase must meet stringent disclosure requirements and is subject to regular audits. That gives it greater transparency than opaque, now-defunct entities like FTX.

Key perks

New and advanced crypto investors will enjoy Coinbase’s competitive fee structure. The initial maker/taker fee of 0.40%/0.60% aligns with industry averages. But the company also offers volume-based discounts. So you stand to save if you trade more.

Another big draw is the breadth of offerings. More than 240 coins are available for trading, including bitcoin, ethereum, tether, solana, USDC, XRP and dogecoin.

Coinbase has you covered even if you have niche objectives. NFT enthusiasts can browse collections like Bored Ape Yacht Club via a dedicated marketplace. Yield-chasing investors can stake more than 120 coins to earn rewards. And the Coinbase Card offers a crypto-backed Visa debit card that gives you crypto back on every purchase.

Don’t forget the Coinbase Wallet. It’s one of the most accessible and secure options for managing crypto and NFTs. It supports significant networks like bitcoin, ethereum, solana and dogecoin.

Disadvantages

The flip side of Coinbase’s jack-of-all-trades approach is that it might not be the best at any one thing. Some exchanges offer lower fees. Others have broader selections of coins, more attractive staking rewards or superior mobile app experiences. So there might be better choices than Coinbase if you want to optimize a particular trait.

Also consider the regulatory landscape. The Securities and Exchange Commission hasn’t exactly been lenient toward crypto. And Coinbase has been in the spotlight.

The SEC filed a lawsuit against Coinbase in June 2023. It accused the company of listing unregistered securities and operating as an unregistered exchange, broker and clearing agency. Coinbase’s attempts to dismiss the case have been unsuccessful. The SEC is pressing forward.

This ongoing legal uncertainty is a clear disadvantage for potential Coinbase users. It’s a significant factor if you’re considering Coinbase as your crypto exchange.

User experience

Coinbase’s user experience is excellent. The site is easy to use. It’s matched by a smooth-functioning app with high ratings in the Google and Apple app stores.

While the customer service is far from perfect, it’s better than other exchanges.

Customer reviews are generally strong. ACH deposits and withdrawals are free and straightforward. But there’s a fee to wire U.S. dollars.

Coinbase’s security features are simple to set up. Two-factor authentication is recommended and can be implemented with a few clicks of your mouse. There are several options to choose from. You can also whitelist withdrawal addresses for increased security.

Commissions and fees

Coinbase’s fees are higher than those of certain rivals. There are two fee mechanisms on the platform.

The first is the fee charged when you place buy and sell orders. While the process is simple, the mechanism is complex. It involves a spread charged by Coinbase to lock in your price, which you’ll see on the screen before finalizing the transaction.

The second allows you to interact directly with the order book via the advanced trade feature. This fee is more straightforward. It’s calculated on a tiered basis based on your total trading volume and whether you provide or take liquidity.

ACH deposits and withdrawals are free for U.S. customers. But wire transfers carry a $10 deposit fee and a $25 withdrawal fee.

SEC charges against Coinbase

If you’re a Coinbase user or considering becoming one, staying informed about the company’s ongoing legal issues is crucial.

In June 2023, the SEC filed suit against Coinbase for operating as an unregistered exchange, broker and clearing agency. It also charged Coinbase with engaging in an unregistered securities offering through its staking-as-a-service program.

The agency said that by failing to register these services, Coinbase has deprived investors of protections like recordkeeping requirements and safeguards against conflicts of interest.

In March 2024, a federal judge denied Coinbase’s motion to dismiss the lawsuit. This means the case will proceed. It could have significant implications for Coinbase and its customers.

How Coinbase compares

_{*Maker/taker fees cited are for the lowest-volume trade or lowest tier.}

Who is Coinbase good for?

Coinbase is helpful for people who are looking to bridge into crypto from the fiat world. That’s partly thanks to its lack of fees for depositing U.S. dollars via ACH.

The exchange is easier to use than most, particularly for beginner and less tech-savvy investors. Coinbase does many important things well: security, ease of use and transparency. The wallet, staking rewards, NFT marketplace and Visa debit card are also incredible value-adds.

How to open a Coinbase account

Opening a Coinbase account is straightforward. You must be at least 18 and in a supported country, such as the U.S. Before you start, make sure you have:

• A government-issued photo ID.
• A smartphone with a valid phone number.
• An updated browser (Chrome is recommended) or the latest Coinbase app.

Then, you can open an account by following these steps:

1. Create your account.
   • Visit Coinbase.com on your computer or download the Coinbase app.
   • Click “Get started” or use your Google account to sign in.
   • Provide your legal full name, email address, password and state.
   • Read and agree to the user agreement and privacy policy.
   • Select “Create account” on your computer or “Sign up” on mobile.
   • Verify your email by clicking the link sent from Coinbase to your email.
2. Verify your phone number.
   • Log in to Coinbase and add a phone number when prompted.
   • Select your country.
   • Enter the mobile number and click “Send code.”
   • Enter the code Coinbase texts you.
3. Add your personal information.
   • Enter the information as it appears on your government ID.
   • Answer questions about how you use Coinbase, your source of funds, your occupation and employer, and provide the last four digits of your Social Security number.
4. Verify your identity.
   • Sign in to Coinbase and complete the ID verification process.
   • Recommended: Set up two-factor authentication for added security.
5. Link a payment method.
   • Options for U.S. customers include ACH, debit, wire transfers, PayPal, Apple Pay and Google Pay.

Our take

Coinbase is an incredibly well-rounded platform. You can engage in a variety of crypto-related transactions. These include trading more than 240 coins, staking to earn rewards, using a dedicated wallet, trading NFTs and earning rewards on a Visa card that draws from your crypto holdings. If you’re keen on learning while earning, Coinbase rewards you with crypto for completing educational lessons.

Yes, you might find competitors that excel in one or more of these areas. But few can match Coinbase’s comprehensive offering. Its closest competitor, Binance.US, is currently entangled in its own legal issues. And Binance.US lacks Coinbase’s transparency and regulation, as it isn’t publicly traded.

Ultimately, the biggest selling point for Coinbase is peace of mind. Unlike other platforms, Coinbase is listed on the Nasdaq. This listing brings stringent reporting and auditing requirements. It provides an extra layer of security and reliability that’s hard to find elsewhere in the crypto space.

Frequently asked questions (FAQs)