Coinbase Review: Features, Fees & Our Verdict

Coinbase might be a popular household name in the crypto industry but it does have its shortcomings. 

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Our Takeaway

Coinbase is a reputable and well-regarded cryptocurrency exchange known for its strong regulatory compliance, making it a suitable choice for most casual investors and traders. The platform offers a user-friendly mobile app, integrated educational resources, and an intuitive interface, providing a convenient and secure option for individuals looking to start investing in cryptocurrency.

In addition to its core features, Coinbase includes a simple NFT marketplace and a straightforward method for earning interest on select coins, although these functionalities are currently limited. It's worth noting that Coinbase tends to have slightly higher fees compared to some of its competitors. As a result, more experienced cryptocurrency traders seeking advanced features and lower fees may find better alternatives outside of Coinbase.

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‍Coinbase Pros:

• Straightforward to grasp and use.
• Provides a low barrier to entry into the crypto world.‍
• Minimalist UI/UX

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Coinbase Cons:

• Its fee structures are hard to comprehend even though trading fees are disclosed during the transaction. 
• Not as robust as other exchanges and lacks specific blockchain support.
• Downtime during high traffic (bull market) periods
• Strict -- been known to freeze accounts on a dim

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Here’s What We Thought About Coinbase

Coinbase advanced trade

Coinbase is well-known for the simplicity of its interface. But it attempts to bridge the gap with more sophisticated platforms with its Advanced trading interface.

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Coinbase's Advanced trading interface allows users to utilize charting tools, various order types, and a wide range of new trading pairs. There are live order books, watchlists, and advanced candlestick charting, including some basic overlays and technical indicators, albeit fewer than TradingView's charts. 

The Advanced Trade platform on Coinbase allows users to fine-tune their trades with more detail than the standard Coinbase platform offers. However, while these tools offer added flexibility, they need to be improved compared to dedicated trading platforms such as Binance, Kraken, and KuCoin which we’ve also tested out.

Related: How does Coinbase compare to Binance?

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Coinbase Wallet

Coinbase provides a convenient digital wallet that supports a wide range of digital currencies. This "hot wallet" lets users securely store, transfer, and trade cryptocurrencies. It also grants access to decentralized apps (DApps) that can be linked to external wallets. 

By using the Coinbase wallet, users can easily and securely manage their initial cryptocurrency investments without the complexities of handling their own wallets and private keys.

The Coinbase Wallet is widely recognized for its security. It can be downloaded for free on iOS and Android mobile devices and added as a web browser extension, such as Google Chrome. 

Related: The best cryptocurrency wallets to pick from.

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Coinbase Card

Coinbase offers a Visa-supported debit card that allows users to access and spend their cryptocurrency balances and USDC. By linking the card to their account, users can make purchases with the card, and Coinbase will handle the conversion of the cryptocurrency to traditional currency in the background.

The Coinbase card provides cash-back rewards in cryptocurrency, giving users the option to choose their preferred cryptocurrency for earning rewards. While there are no spending or monthly maintenance fees for the card, users should know that a spread fee applies when converting cryptocurrency to cash.

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Coinbase Earn

Coinbase Earn is accessible through its Advanced trading interface. At the time of writing, users can earn up to 13.15% Annual Percentage Yield (APY) on ten digital currencies, such as Cosmos (13.15%), Polkadot (11.68%), and Polygon (3.51%).

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Coinbase NFT marketplace

Coinbase has an NFT marketplace that offers a 0% fee (excluding gas fees) and allows users to use the platform without creating an account. 

The platform is limited, as it only supports Ethereum NFTs and uses ETH as the sole currency. While creators still need to mint NFTs, they can list and sell them. 

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Coinbase Learn

Participants can acquire complimentary cryptocurrency by familiarizing themselves with the blockchain projects available on the platform. This presents an enjoyable method for users to earn money without cost by engaging in the field and educating themselves on trading cryptocurrency and digital assets.

Although the rewards aren’t great, they are better than nothing, and they highlight Coinbase's commitment to catering to a wide audience.

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Supported Deposit Methods

Cryptocurrency traders using Coinbase can deposit various fiat currencies such as USD, GBP, EUR, and AUD. When converting currencies, a conversion fee is applied based on percentage points, and there are no fees for sending USD to fund a real-money trading account.

Customers worldwide can access various payment options on Coinbase. The most popular methods for purchasing cryptocurrency include using a debit card or bank transfer (SEPA, Faster Payments, etc.). Additionally, Coinbase allows users to deposit funds using debit/credit cards and PayPal.

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Using a bank or wire transfer is considered the most optimal approach for purchasing cryptocurrencies for larger investments. Processing times for these transactions typically range from 1 to 3 days, depending on the bank. 

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Coinbase Fees Explained

Deposit and withdrawal fees

Coinbase charges minimal fees for its fiat deposit and withdrawal services. 

Using a bank account (ACH transfer) does not incur a deposit charge for US investors. Similarly, residents of the United Kingdom can deposit money into Coinbase for free via SEPA or Faster Payments. 

International customers can use a wire transfer USD, which will incur a small deposit fee of $10. However, there is a $25 fee for withdrawing via wire transfer. US users have a small cost of between $0.55 and $25.

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Trading fees

Coinbase uses a spread fee system, which temporarily fixes the transaction price. This means users will only find the exact fee when confirming the trade. Typically, spread fees are around 0.5%, but they decrease significantly for larger trade volumes.‍

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Our Experience Using Coinbase 

Coinbase is known for its user-friendly interface, making it easy for the general public to navigate. The platform features a modern dashboard with a sidebar for quick access to key features. Users can customize their homepage and create a watchlist to track their favourite cryptocurrencies. 

Overall, the user experience is fairly straightforward, and customers should be able to navigate the platform's features and services with relative ease. 

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Our Final Coinbase Verdict

Coinbase shines as a low-barrier-to-entry option for those who only need the basics in a cryptocurrency exchange. However, it lacks the ecosystem that more advanced platforms provide and some users will quickly outgrow it and move on. 

But, for those who aren’t too fussed with advanced trading features and markets, Coinbase is a viable option, if you can get past the spreads and convoluted fees.

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We aim to publish factual and accurate information as of the publication date. For specific information about a cryptocurrency exchange or trading platform please visit that provider's website. This information is general in nature and is for educational purposes only. We do not provide financial advice, nor does it take into account your personal financial situation. We encourage you to seek financial advice from an independent financial advisor where appropriate and make your own inquiries.

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