Is Coinbase reliable? Can you make money investing cryptocurrencies on Coinbase? What are the commissions?
POINTS IN FAVOR
Simple and intuitive platform to start trading cryptocurrencies
High commissions can be reduced with Coinbase Pro
You can operate with various cryptocurrencies including Bitcoin from your mobile phone with its app
Coinbase is the leading cryptocurrency exchange in the United States and Europe. It has become the star portal for new investors in cryptocurrencies due to its ease of use.
Coinbase offers a variety of products, including cryptocurrency investments , trading interface for advanced transactions, institutional custody accounts, wallets for retail investors, and the ability to exchange euros and dollars (fiat currency) for cryptocurrencies.
Founded in 2012, Coinbase is a fully regulated and licensed cryptocurrency broker in 80 states and regions in the United States and Europe .
Coinbase initially only allowed bitcoin transactions, but soon began adding cryptocurrencies that meet its decentralization standards. Its list expanded to Ethereum, Litecoin, Bitcoin Cash, XRP , etc., and as long as its requirements are met, new investment alternatives in this type of virtual currencies are added.
💡TO TAKE INTO ACCOUNT:
- Coinbase offers a safe way to invest and trade cryptocurrencies.
- Coinbase presents a list of more than 30 cryptocurrencies that is increasing over time.
- It has a simple user interface, but it provides an excellent environment to learn and operate.
- Coinbase Pro has cheaper rates with more features and is free to use for anyone with a Coinbase account.
Who is Coinbase for?
From expert users to investors who have just started in the world of crypto, they can enter Coinbase and with a few minutes of use they will feel very comfortable buying and selling virtual currencies. It is true that there are more professional options and with more cryptocurrencies. We also find other points to improve, we will see them all in the next section so that you can choose your cryptocurrency broker correctly.👍 Pros
- Various investment options beyond Bitcoin
- Extremely simple user interface
- Very high liquidity
- High fees when not using Coinbase Pro
- The investor cannot control the keys of the mondero
- Many altcoins are missing out of the hundreds on the market
- Various investment options beyond Bitcoin. Coinbase offers more than 25 cryptocurrencies for investment, trading and also participation.
- Extremely simple user interface . Coinbase is perhaps one of the easiest options for investing in cryptocurrencies. It’s easy to sign up and buy virtual currencies in minutes. It also has a learning program that will allow you to learn more about how cryptocurrencies work.
- Very high liquidity : Coinbase has high liquidity, which protects the investor against market gaps. Something very important in a market as volatile as that of cryptocurrencies.
- High fees when not using Coinbase Pro . Coinbase has high commissions compared to its competitors. Unless they use Coinbase Pro, you will have to assume these fees for each transaction. Coinbase Pro is free, if you don’t know it yet, you just have to go to pro.coinbase.com and transfer your balance from one account to another and, of course, make new purchases and deposits in the pro version.
- The investor cannot control the keys of his wallet . When a user buys cryptocurrency from a broker, it is stored in a wallet over which Coinbase has control. This means that the user does not have full autonomous control over their purchases, which, in essence, goes against the spirit of decentralized finance or currency. This can be avoided if the investor withdraws his coin to his own personal wallet.
- Many altcoins are missing out of the hundreds on the market . Coinbase has a strong control over the altcoins that it includes, so if you want to invest in other lesser-known currencies, you will not be able to find them on this platform. Although it is true that Coinbase plans to add more altcoins in the coming months.
Cryptocurrencies available on Coinbase
Today these are the investment options that Coinbase has. As we have already discussed, he intends to add new currencies in the coming months so this list may be out of date.
- Bitcoin (BTC)
- Ethereum (ETH)
- XRP (XRP)
- Chainlink (LINK)
- Bitcoin Cash (BCH)
- Bitcoin Satoshi’s Vision (BSV) (Send Only)
- Litecoin (LTC)
- EOS (EOS)
- Tezos (XTZ)
- Stellar Lumens (XLM)
- USD Coin (USDC)
- Cosmos (ATOM)
- Dash (DASH)
- Ethereum Classic (ETC)
- Zcash (ZEC)
- Maker (MKR)
- Compound (COMP)
- Basic Attention Token (BAT)
- Algorand (SOMETHING)
- OMG Network (OMG)
- Dai (DAI)
- 0x (ZRX)
- Kyber Network (KNC)
- Band Protocol (BAND)
- Augur (REP)
- Orchid (OXT)
Easy to use
Investing in Coinbase is a very easy process and is aimed at all users, including beginners in cryptocurrency investing. The platform can also be accessed through Android or iOS since it has an application.
Coinbase does not offer any Meta Trader-type software to download. The entire operation is done in a browser or in the application . The most professional part (Coinbase Pro), also allows you to do all the trading and analysis in the browser itself.
The use of this website, as we say, is very simple. When you log into Coinbase, you are immediately shown your portfolio balance and your performance by day, month, or year.
In the upper right we can see the action buttons to Buy or Sell cryptos . You can buy with another currency or directly from euros with your credit card. From this section you can buy periodically, for example once a month. This way you won’t have to worry about doing it yourself as Coinbase will do it for you.
Next to the buy – sell buttons, you will find the options to send and receive . This allows users to send cryptocurrencies from their Coinbase wallets or receive cryptocurrencies from other places to their Coinbase wallets. This is something fundamental and that not all brokers allow it since having all our cryptocurrencies in our own wallet, with our own keys, will give us a lot of security and will prevent a security hole in these brokers from affecting us.
While Coinbase is a good gateway for those just starting to invest in virtual currencies, Coinbase Pro offers a much more powerful and robust trading and charting experience . Essential for any user experienced in this type of investment.
Coinbase users have quite high fees compared to other brokers that offer this same service. Luckily, with Coinbase Pro the commissions are much lower and on par with the rest of the brokers. In addition to being able to use a much more professional system that allows you to operate, limit and stop orders with much lower commissions and professional charts.
Brokers using Coinbase Pro have line or candlestick charts available to them. Configurable in time and with the option of superimposing moving averages, exponentials, etc. Currently, the only two indicators and overlays available are EMA (12) and EMA (26). Coinbase Pro also has more than 80 trading pairs available to trade with.
While the standard Coinbase platform is a great tool to help people understand how easy it is to buy, store, and move cryptocurrencies, Coinbase Pro is a better platform for those who want to actively trade professional charts and invest at lower fees .
Coinbase has a fairly high commission system if you do not use Coinbase Pro , and it is not easy to understand. It is a high price compared to any other cryptocurrency broker . However, for many it is still profitable since the ease of use of the platform is ideal for the first contact with altcoins.
Coinbase fees vary in different countries and are constantly updated. Today these are the commissions that exist for Spain :
- Commission per purchase: 1.49%
- Commission per sale: 1%
- Withdrawal in euros: € 0.15
- Withdrawal in bitcoin: € 0
Although there may be more or less commission depending on the amount invested, in general this is all you need to know about Coinbase’s commission; it is high and disadvantaged parts the moment you start trading . But what has been said, to begin with is fine, as soon as you get used to this platform you have to make the leap (which is free) to Coinbase Pro to lower these commissions.
Coinbase Pro fees
Coinbase Pro fees are much cheaper and place this platform at the level of the rest of the brokers in the market. We have already commented that going to this Pro version is completely free, you just have to access pro.coinbase.com, log in with your account and pass your cryptocurrencies from one portal to another, at no additional cost.
The commissions for recharging in cryptocurrencies are zero euros. For SEPA direct debit it is only € 0.15 and the electronic deposit in dollars has a cost of 10 USD.
Withdrawal commissions are all commission-free, except for electronic withdrawal in dollars, which has a commission of 25 USD.
The commission for carrying out an operation at market price is 3% , for carrying out an operation at a price different from that of the market (marked by the broker in the order), it is 0% .
Coinbase uses a wide variety of security measures to protect brokers operating on this platform. However, it is essential to use strong passwords and use available security features, such as two-step verification, to prevent our account from being compromised and someone taking our money.
Coinbase has two-step verification and biometric logins with fingerprints and face verification. This company also has insurance in case there is a security hole in the platform, but it is important to mention that this insurance does not apply if your account is violated due to your own lack of security. Coinbase stores 98% of user funds off-platform to ensure their safety.
Digital currencies are not considered legal tender and therefore are not endorsed by government authorities such as SIPC or FDIC in the United States. Coinbase provides insurance by pooling Coinbase balances and holding them in custody accounts in USD, money market funds, or US and European Treasuries.
Coinbase provides a solid guarantee of security compared to other brokers on the market. This is one of the reasons why Coinbase is one of the most popular traders for those who want to start investing safely in cryptocurrencies.
With that said, the premise of cryptocurrency is to cut out intermediaries whenever possible and have full control of your own funds. While Coinbase provides an easy entry point to investing in cryptocurrencies, it is important to learn about the safety and proper storage of these virtual currencies. Most professional crypto investors use Coinbase Pro for its reduced fees and then withdraw their holdings to their own secure wallet.
Open an account at Coinbase
Registering with Coinbase is a very very simple process. You just have to add your name, email and the password you want to use (remember to choose the safest possible).
After this, you will have to verify your email. Next, Coinbase asks you to enter your phone number to send a code that you must enter. Coinbase will use this number to submit two-step verification codes. After this stage, it will ask you to enter your identification information to verify your account, this process is normally automatic and in five minutes you will be able to use your account and start investing with cryptocurrencies.
As with any bank account or investment account, you must prove your identity by means of a DNI or passport identification. After this, you will have created your Coinbase account and you are ready to add your bank account or credit card and start trading.
Coinbase is a perfect tool for investors who are just getting started with cryptocurrencies . While the standard platform has high fees, its features, such as its learning program and the ability to easily set up recurring purchases, give the inexperienced a clear path to investing in and truly understanding cryptocurrencies.
Those with more experience will find Coinbase Pro to be a more economical and robust option . Although it still has some limitations in terms of the number of altcoins and the configuration of the charts, it may make you look for a more professional broker in the future.