Key takeaways
- Coinbase offers a user-friendly platform with seamless navigation across web, mobile and API channels.
- The platform provides over 240 digital assets for trading and advanced tools, including customizable charts, real-time data and derivatives like nano Bitcoin futures.
- Coinbase implements strong security protocols, including cold storage, two-factor authentication and insured online wallets.
- Its fee structure, while higher than some competitors, is balanced by reliable trade execution and access to over 550 markets.
CoinMarketCap has identified Coinbase as the largest cryptocurrency exchange in the United States by trading volume. That’s big news.
Founded in June 2012 by Brian Armstrong, a former Airbnb engineer, and Fred Ehrsam, a former Goldman Sachs trader, Coinbase was initially headquartered in San Francisco.
It has grown its 24-hour trading volume to about $4.1 billion and now operates on a remote-first model.
As many of our readers might know, since 2023, Coinbase has been embroiled in a legal battle with the SEC, which alleges that the company had been operating as an unregistered securities exchange, broker and clearing agency since 2019.
However, in January 2025, Coinbase achieved a legal victory when a judge agreed to escalate its case against the US Securities and Exchange Commission, calling for the creation of specific rules for digital assets.
With the early days of the administration of President Donald Trump seemingly laying the foundation for a pro-crypto environment in the US, the outlook for Coinbase appears promising.
Beyond the US, Coinbase operates in over 100 countries, serving a diverse global customer base. Most recently, Coinbase gained approval to launch in Argentina, further expanding its international presence.
With thousands of crypto exchanges available worldwide, what sets Coinbase apart as a market leader?
Did you know? Coinbase's CEO, Brian Armstrong, named one of his cats Toshi as a nod to Satoshi Nakamoto, the pseudonymous creator of Bitcoin.
User experience
Coinbase’s user experience is likely the most significant factor in its widespread adoption. Its platform is accessible through multiple channels:
- Web interface: Users can access Coinbase via a user-friendly web platform providing comprehensive features for trading and account management.
- Mobile applications: Dedicated mobile apps are available for iOS and Android devices, enabling users to manage their portfolios and execute trades on the go.
- API access: For developers and advanced users, Coinbase provides API access, allowing for integration with third-party applications and custom trading solutions.
The exchange is renowned for its intuitive and clean user interface.
The dashboard offers a clear overview of account balances, market trends and recent transactions.
Navigation is straightforward, with well-organized menus and accessible features.
The mobile apps mirror this design philosophy, ensuring a seamless experience across devices.
Creating an account on Coinbase is designed to be user-friendly:
- Sign-up: Users begin by providing their full name and email address and creating a secure password.
- Email verification: A verification link is sent to the provided email address to confirm its validity.
- Phone number verification: To enhance security, users are prompted to verify their phone number, which is used for two-factor authentication (2FA).
In compliance with global financial regulations, Coinbase implements Know Your Customer (KYC) procedures to prevent fraud and money laundering. The verification process typically involves:
- Personal information: Users must provide their full name, date of birth and residential address.
- Identity verification: Submitting a government-issued photo ID such as a driver’s license, passport or national identity card is required.
- Proof of address: In certain jurisdictions, users may need to provide a recent utility bill, bank statement or similar document to confirm their address.
The requirements can vary depending on the user’s country of residence and local regulations. Coinbase ensures that all personal information is encrypted and securely stored, adhering to strict privacy standards.
Did you know? In February 2022, Coinbase aired a unique 60-second Super Bowl commercial featuring a bouncing QR code on a black screen. This minimalist approach garnered significant attention, leading to 20 million hits on their landing page within a minute and causing the website to temporarily crash due to the overwhelming traffic.
Trading experience
Coinbase offers various instruments designed to cater to both beginner and advanced traders.
For beginners, the standard platform provides an intuitive interface with simple buy and sell options, making it easy to get started with spot trading across over 550 pairs, including 237 USDC pairs and 22 stable pairs.
Advanced traders can use the advanced trading platform, which offers customizable charts through TradingView, over 100 indicators, multiple chart types and advanced order types such as limit, market, stop-limit and bracket orders.
The platform also provides access to real-time market data, live order books and trade history for in-depth analysis. Coinbase’s derivatives offerings include nano Bitcoin and Ether futures to accommodate retail traders.
Additionally, API access is available for traders looking to develop custom trading bots or connect with third-party applications. This comprehensive feature set ensures Coinbase remains suitable for a broad spectrum of traders, from novices seeking simplicity to professionals executing complex strategies.
Coinbase offers a diverse selection of over 240 digital assets for trading, catering to popular and emerging cryptocurrencies.
Fees and execution
Coinbase’s fee structure isn’t the most transparent.
For standard buy, sell, or convert transactions, Coinbase charges a spread fee, which is the difference between the buy and sell prices, incorporated into the transaction cost and not explicitly itemized.
Additionally, a separate transaction fee is applied, calculated at the time of the order and influenced by factors such as payment method, order size and market conditions.
For users engaging in more advanced trading, Coinbase utilizes a maker-taker fee model.
- Taker fees: Orders filled immediately range from 0.05% to 0.60%.
- Maker fees: Orders that add liquidity to the order book range from 0.00% to 0.40%.
These rates are determined by the user’s 30-day trading volume, with higher volumes benefiting from lower fees.
It’s important to note that fees are subject to change, and we’ve provided the fees that are accurate as of February 2025.
Coinbase’s fee structure tends to be higher than other crypto exchanges, which may be justified by its efficient trade execution and access to real-time order books across 552 markets.
The platform’s infrastructure is designed to handle high-volume trading, ensuring that orders are processed promptly and reliably.
Fund security
As with many leading crypto exchanges, Coinbase prioritizes the protection of user funds.
Firstly, a significant portion of customer assets is stored in cold storage, meaning they are kept offline to safeguard against unauthorized access and cyber threats.
Additionally, assets held in online hot wallets are insured, providing an extra layer of protection against potential breaches or cyberattacks.
Then, for enhanced security, features like multi-approval withdrawals are available through Coinbase Vault, adding an extra layer of protection for fund transfers.
There have been only a few notable security breaches. In 2021, a security breach affected over 6,000 users, leading to unauthorized withdrawals from their accounts.
Then, in 2023, the company encountered an attempted attack by the Octopus hacker group, which was successfully thwarted.
Additionally, in July 2024, the UK’s Financial Conduct Authority fined Coinbase’s UK subsidiary 3.5 million British pounds ($4.41 million) for regulatory breaches related to inadequate financial crime controls, allowing high-risk customers to conduct transactions totaling about $226 million.
Aside from these incidents, Coinbase is generally held in high regard for its security measures.
Did you know? Despite its ongoing battle with the SEC, in the US, Coinbase is registered as a money services business with FinCEN and holds money transmitter licenses in numerous states. It also holds relevant licenses in countries such as Ireland, the Netherlands, Italy, Singapore and Canada.
Customer support
Customers can reach out through 24/7 live phone support in countries such as the United States, United Kingdom, Germany and Japan.
Additionally, live messaging support is accessible via the Coinbase help center, allowing users to connect with support agents at their convenience.
For those who prefer self-service options, Coinbase provides a comprehensive help center covering account management, payment methods and security. This resource is designed to help users find answers to common questions without contacting support directly.
In terms of response times, Coinbase has significantly improved its 24/7 customer service efficiency in recent years. The company has expanded its support team and enhanced its infrastructure to provide timely assistance.
Coinbase’s vast help center includes educational materials, frequently asked questions (FAQs) and user guides covering a wide range of subjects, from getting started with the platform to understanding advanced trading features.
Relying on community feedback to ascertain the exchange’s reputation is difficult, as disgruntled users are much more likely to write a review than those who have had a positive experience.
However, most complaints tend to be regarding issues such as locked accounts and delayed responses.
So, despite being the most popular crypto exchange, it doesn’t exhibit the greatest reviews on sites like Trustpilot, where Coinbase scores 1.8 out of 5 stars based on over 9,300 reviews.
Additional services
Coinbase offers several unique services that distinguish it from other cryptocurrency exchanges:
- Coinbase Earn: This educational platform allows users to learn about various cryptocurrencies through engaging content and rewards them with small amounts of the respective cryptocurrencies upon completion. This initiative educates users and encourages the exploration of different digital assets.
- Coinbase Card: A Visa debit card lets users spend their cryptocurrency holdings directly from their Coinbase accounts. The card supports various cryptocurrencies and offers rewards in the form of crypto cashback on purchases, bridging the gap between digital assets and everyday transactions.
- Coinbase Wallet: Beyond the main exchange platform, Coinbase provides a self-custody wallet that grants users full control over their private keys. This wallet supports a wide range of cryptocurrencies and decentralized applications (DApps), allowing users to seamlessly engage with the broader decentralized finance (DeFi) ecosystem.
- Bitcoin-backed loans: Coinbase has introduced a service that allows users to secure loans against their Bitcoin holdings. Users can borrow up to $100,000 in USD Coin (USDC) without needing a credit check, using their Bitcoin as collateral. This service provides liquidity without necessitating the sale of assets, which can be advantageous for tax purposes.
Did you know? Coinbase has been known to incorporate hidden puzzles within its website as a creative recruitment strategy. These challenges are designed to attract and identify potential talent by engaging users in problem-solving tasks related to job opportunities.
Pros and cons
The table below summarizes the pros and cons of trading crypto on Coinbase:
Final thoughts
Coinbase’s popularity undeniably stems from its user-centric design, offering a user-friendly platform that appeals to novice and experienced traders. Its extensive selection of over 250 cryptocurrencies provides ample opportunities for portfolio diversification.
The platform’s commitment to security is evident through robust measures such as two-factor authentication and insurance coverage for digital assets.
Coinbase's educational initiatives, like Coinbase Earn, empower users to expand their knowledge of the crypto space.
Still, it’s important to note that Coinbase's fee structure is relatively higher than some competitors, which may be a drawback for frequent traders.
If you’re considering diving into crypto for the first time, Coinbase will provide you with all the necessary tools. Alternatively, if you’re looking to switch up your exchange, it might be time to see what all the fuss is about.
FAQs
1. What is Coinbase?
Coinbase is a leading cryptocurrency exchange that allows users to buy, sell and store various digital assets. Founded in 2012, it has become one of the most popular platforms for crypto trading.
2. How do I create a Coinbase account?
To create a Coinbase account, visit the official website or download the mobile app. Click on “Get started,” enter your email address, create a password and follow the verification steps, which include confirming your email and providing identification documents.
3. What cryptocurrencies can I trade on Coinbase?
Coinbase supports over 250 cryptocurrencies, including popular ones like Bitcoin (BTC) and Ether (ETH), and Litecoin (LTC). The platform regularly updates its offerings to include new and emerging digital assets.
4. What are the fees associated with Coinbase?
Coinbase's fees vary depending on the transaction type and payment method. For standard buy and sell transactions, fees can range from 0% to 4%. The Advanced Trade platform offers lower fees, with maker fees at 0.4% and taker fees at 0.6%. Reviewing the fee structure on Coinbase's official website for the most current information is essential.
5. How secure is Coinbase?
Coinbase employs robust security measures, including two-factor authentication (2FA), cold storage for most user funds, and insurance coverage for online assets. Additionally, Coinbase is a publicly traded company that adheres to regulatory standards, which adds a layer of trust for users.
6. Does Coinbase offer customer support?
Yes, Coinbase provides customer support through various channels, including email, live chat and phone support. Users can also access a comprehensive Help Center on the Coinbase website, which offers guides and answers to common questions.
7. Can I use Coinbase on mobile devices?
Absolutely. Coinbase offers mobile applications for iOS and Android devices, allowing users to manage their portfolios, execute trades and monitor the market on the go.
8. What is Coinbase Pro?
Coinbase Pro, now integrated into the Advanced Trade platform, is designed for experienced traders. It offers advanced charting tools, real-time order books and lower fees than the standard Coinbase platform. This integration provides a seamless experience for users seeking more sophisticated trading options.
9. How can I deposit and withdraw funds on Coinbase?
Users can deposit funds into their Coinbase account via bank transfers, debit/credit cards, PayPal and other methods, depending on their region. Withdrawals can be made to linked bank accounts or PayPal. Processing times and fees vary based on the chosen method.
10. Is Coinbase available in my country?
Coinbase operates in over 100 countries worldwide. To determine if Coinbase is available in your country, visit the official website and check the list of supported regions.
Written by Bradley Peak
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