Reviewing CoinBase

Overview

Overall, Coinbase is probably one of the easiest, if not the easiest, places to buy, sell, and store cryptocurrency. It’s sleek, simple user interface makes it easy for new investors to see price trends over time. The simple dashboard shows your account value in both the amount of cryptocurrency and it’s USD equivalent. Buying, selling, sending and receiving cryptocurrency are all very easy in Coinbase, but the process of exchanging one coin for another is a little confusing and pricy. Coinbase is a great exchange for newbies, but more experienced traders may be frustrated by the lack of more advanced trading features.

 

What is Coinbase?

Coinbase is a digital currency wallet and exchange that was founded in 2012. It’s based out of San Francisco, CA, and in the last year it has quickly become one of the most popular and most used exchanges, with nearly 12 million users, many of whom started using the platform in 2017.

 

Which Coins Can You Buy on Coinbase?

Coinbase allows users to buy and sell Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC). In December of 2017, Bitcoin Cash (BCH) was added to the exchange. It’s been rumored that Coinbase will add Ripple (XRP) to the list of coins in it’s exchange during 2018.

 

Getting Fiat Currency Into Coinbase

Coinbase allows for three different methods of using fiat currency to buy cryptocurrency. You can link a bank account to Coinbase, allowing you to make larger cryptocurrency purchases. Your bank account must be verified via small deposits made into that account. Coinbase also allows you to add a debit card to your account, after the same verification process. You’ll be able to make purchases and withdrawals more quickly, but you’re limited to $1,000 per day in purchases. Lastly, Coinbase allows you to wire money (make an ACH transfer) from your bank directly into Coinbase.

 

Purchasing Cryptocurrency in Coinbase

You can either deposit funds into your USD wallet in Coinbase (a process that takes between 7-14 days) or you can purchase cryptocurrency directly using your debit card nearly instantaneously. The price of the cryptocurrency is locked in at the time of purchase, so you won’t be subject to price fluctuations. Coinbase charges the following fees to purchase cryptocurrency:

  • Linked U.S. Bank Account – 1.49%
  • Coinbase USD Wallet – 1.49%
  • Debit or Credit Card – 3.99%

 

Exchanging Cryptocurrency in Coinbase

Exchanging one cryptocurrency for another isn’t very straightforward in Coinbase. You can’t simply use ETH to buy BTC. In order to purchase another cryptocurrency, you must first sell your ETH into your USD wallet and then use those funds to purchase BTC. Unfortunately, this means you’ll be charged twice, once when selling your ETH into USD and once when you purchase BTC using your USD wallet.

 

Selling Cryptocurrency into Fiat Currency in Coinbase

Selling cryptocurrency into fiat currency is very easy in Coinbase. Once you have your accounts linked, either bank accounts or debit card accounts, you simply select the wallet you want to sell from and the account to which you want to deposit your funds. Alternately, you can sell into your USD wallet, and simply store your money there. While selling to your USD wallet is nearly instantaneous, it will take up to seven days to receive your funds after selling into one of your bank accounts. Coinbase charges the following fees for sales:

  • Linked U.S. Bank Account – 1.49%
  • Coinbase USD Wallet – 1.49%
  • PayPal – 3.99%

 

Safety

Coinbase is trusted by millions and has processed over $20 billion of digital currency transactions since it launched in 2012. Coinbase follows all cryptocurrency best practices for storage and stores the majority of their cryptofunds in secure offline cold storage wallets

 

For a complete review of all major cryptocurrency exchange services, visit our exchange review page.