Cryptocurrency attracts amateur and seasoned investors alike. Its digital nature and potential for big gains appeal to anyone who’s sitting on a little extra money.
How are you supposed to trade crypto? While you can try a traditional trading platform like Robinhood, you’ll experience some real limitations.
Why not try a dedicated crypto exchange like Coinbase? It’s one of the most well-known crypto exchanges, so it’s often investors’ starting point.
You’re probably wondering, What is Coinbase? Is Coinbase safe? What can I expect from using this platform? Can I use Bitcoin?
In our Coinbase exchange review, we’ll answer all of these questions. We’ll cover how to use coinbase and help you determine if it’s the right tool to meet your financial needs.
Who Is Coinbase For?
Can you benefit from our Coinbase review? The answer is likely yes, as this platform is for anyone who wants to buy cryptocurrency. It serves:
- Individual investors (non-professionals)
- Professional traders
Coinbase Company Information
This platform was founded in 2012 by Brian Armstrong and Fred Ehrsam. The Coinbase IPO went into effect on April 14, 2021, so now anyone can buy Coinbase stock.
- Low trading minimums: You only have to trade $2 at a time.
- Low initial deposit: You only have to invest $50, not thousands of dollars, to get started.
- Various altcoins to buy: You can buy various altcoins like BCH, BAT, BAND, AAVE, and LINK. The platform plans to continue to add even more.
- Safe to use: If you’re main concern is safety, we can say that Coinbase is safe with confidence. The platform is safe to use, as FinCEN monitors it. Plus, all cash that you store here is FDIC insured up to $250,000.
- Poor customer service: One con of our Coinbase review is that there’s no live person to chat with to work out problems. You can only inquire about account-specific issues over email.
- High fees: This platform charges higher fees than some other crypto exchanges available.
- No credit cards: The platform’s users can no longer use credit cards to fund their accounts.
Coinbase Trade Experience
One thing we can’t neglect to mention in our Coinbase review is the trade experience. It’s incredibly simple and designed for even beginners to use with ease.
How does Coinbase work? Through simple and manageable trading. Users create an account and fund it with money from their source of choice. Then, they can buy, sell, send, and receive many types of digital currencies.
Coinbase App For Mobile
The Coinbase app is accessible on both iOS and Android devices. You cannot download software, as you need to use it on a browser.
Coinbase Deposits and Withdrawals
You must make a minimum deposit of $50 to open your account. You may withdraw up to $25,000 per day, but customers can request increases if they have a Pro account.
As convenient as the platform is, it isn’t free to use. No Coinbase review would be complete without talking about the fees involved.
It charges half of a percent for cryptocurrency purchases and sales. It also charges a variable or flat fee (whichever is greater) depending on the payment type and how much you purchase.
It provides information on fees for the following trades:
- Transactions less than $10 — $0.99
- Transactions between $10 and $25 — $1.49
- Transactions between than $10 and $50 — $1.99
- Transactions more than $10 — $2.99
You’ll also pay $10 for a wire transfer (and $25 for an outgoing one).
Coinbase Educational Resources
The platform offers educational resources on specific cryptocurrencies. When you watch the videos, the company will reward you with a couple of dollars of the coin you learned about.
Coinbase Customer Service
You can call the company phone number to disable your account, but you can’t talk to a live person. The best way to reach the support team is via email.
Coinbase Reviews and Reputation
This platform is one of the most commonly used of its kind. It has many favorable reviews and a solid reputation among customers.
This platform implements strong security measures, including:
- Limitation of login attempts
- Keeping application credentials separate from the database
- Checking for strong passwords upon account creation
Final Verdict — Is This Platform Right for You?
To conclude our Coinbase review, we’d like to leave with a few thoughts.
The platform is well-designed and simple to use. It has a long history behind it, so you can rest assured that your money and assets will be safe.
It’s an excellent app to use to become more confident in the crypto realm and profit in ways you never thought possible. The high fees and less-than-stellar customer service are easy to overlook, as the rest of the platform offers an amazing experience for investors.
Is the Coinbase app safe or a scam?
After conducting our Coinbase app review, we’ve determined that the app is safe to use, as it’s registered with FinCEN. However, it still carries risks, just like all other kinds of investing do. Never invest what you can’t afford to lose.
What is social trading/copy trading?
When it comes to discussing “How does Coinbase work?”, you can implement several strategies. Some users like to pick and choose investment strategies on their own. Others prefer to engage with social trading, which is when you copy the real-time trades of other live investors.
What assets can I trade?
You can trade dozens of cryptocurrencies, including BTC, ETH, ADA, and XLM.
Can you make money with Coinbase?
Yes, but you’ll have to determine a strategy that’ll meet your financial goals.
Users most often buy Bitcoin on this platform. If you’re wondering how to buy Bitcoin on Coinbase, you can follow these steps:
- Sign in to your account and click on the Buy/Sell button.
- Click the Buy field and select Bitcoin.
- Enter the fiat amount of how much you’d like to buy.
- Choose your payment method.
- Click Preview Buy to view the details of your impending purchase.
- If everything looks okay, hit Buy to finish your purchase.
How secure is Coinbase? Is it regulated?
The Coinbase app complies with all relevant regulations everywhere it operates.
How do I withdraw money?
Go to the “Withdraw” button in your account next to the applicable cryptocurrency. Enter how much you’d like to withdraw and choose where you want the funds to go.
Where is the company based?
The company is based in San Francisco, CA but serves customers in multiple countries.
How does Coinbase make money?
The company makes money by charging its customers fees. Customers have to pay fees for any transaction they complete, including buying, selling, and sending cryptocurrency. Some payment methods incur more fees than others and are very advantageous for the platform’s revenue.
How can I deposit into a Coinbase account?
You can link your preferred payment method and wait for approval.
What is the minimum lot size at Coinbase?
The minimum lot size at Coinbase is 0.001 BTC.
When does a margin call take place at Coinbase?
A margin call will occur if your margin score falls below 33%.
What is the maximum leverage offered by Coinbase?
The maximum leverage Coinbase offers is 3x leverage.
How do I open an account with Coinbase?
Follow these steps to sign up:
- Fill out the initial sign-up form.
- Obtain the verification email and identify yourself as an Individual or Business.
- Provide your phone number to get through the 2-factor authentication.
- Verify your identity by uploading a picture of your driver’s license.
- Link a form of payment.
What trading platforms does Coinbase offer?
You can choose between Coinbase and Coinbase Pro. We’ve conducted a Coinbase Pro review and determined that it’s worth investing in for the following benefits:
- It supports more transaction types
- It offers more cryptocurrencies
- It has lower fees
- It more security features
Is Coinbase an ISA?
No, you cannot own currency directly in an ISA account.
Do I pay tax on Coinbase?
Yes, you’ll pay tax on any profits you make.
Is Coinbase legit and legal in the USA?
Yes, millions of active customers use Coinbase in the USA everyday.
How much is the minimum deposit?
Your initial deposit should be at least $50.
What are the platform’s market hours?
The most active market hours are 8 a.m. to 4 p.m., but you can trade 24 hours a day, seven days a week.