Coinbase Review: Buy and Sell Bitcoin

Description

Coinbase is one of the largest and most popular Bitcoin exchanges in the world. Founded in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase allows you to buy, sell, and store Bitcoin. It has grown to become a publicly traded company, offering services to millions of users globally.

Unfortunately, Coinbase lures their customers into trading shitcoins. Their whole business model is based on getting customers to buy new coins all the time. Coinbase gets a nice commission on every trade you make. They don’t care if you ‘win’ or ‘lose’. They just want you to get ‘into crypto’, because this is how they make their money.

Coinbase Features

• User-Friendly Interface: Coinbase is designed to be easy to use, making it accessible to people new to Bitcoin.
• Security: Coinbase is a two-factor authentication exchange and holds a significant portion of user funds in cold storage.
• Multiple Payment Methods: Supports bank transfers, debit/credit cards, PayPal, SEPA, etc.
• Coinbase Pro: An advanced trading platform for experienced users. It offers more detailed charts, lower fees, and a wider range of order types compared to the standard Coinbase platform.
• Educational Resources: Coinbase provides educational content through its platform, allowing you to learn and earn crypto through its “Coinbase Earn” program.
• Coinbase Commerce: A platform enabling businesses to accept cryptocurrency payments, including Bitcoin, directly into their wallets.
• Private Clients: Offers specialized services for high-net-worth individuals, including personalized support and tailored investment strategies.
• Coinbase Wallet: A self-custody wallet that allows you to securely store your Bitcoin and private keys.
• Coinbase Card: A Bitcoin debit card that lets you spend Bitcoin and earn Bitcoin rewards on everyday purchases. Currently, Coinbase Card is available for all Coinbase customers who live in the US.

How Coinbase Works

Coinbase operates as a digital wallet and a cryptocurrency exchange. You can create an account, link your bank accounts, credit cards, or debit cards, and start buying or selling Bitcoin. Coinbase supports a wide range of cryptocurrencies, including Bitcoin. The platform also offers a mobile app, enabling you to manage your account on the go.

How to Buy Bitcoin on Coinbase

• Create an Account: Sign up for a Coinbase account using your email address and create a strong password.
• Verify Your Identity: Unlike non KYC exchanges, with Coinbase you need to complete the identity verification process by providing the necessary documentation, such as a government-issued ID.
• Link a Payment Method: Add a payment method, such as a bank account, credit card, or debit card, to your account.
• Buy Bitcoin: Navigate to the “Buy/Sell” section, select Bitcoin, enter the amount you wish to purchase, and confirm the transaction.

How to Sell Bitcoin on Coinbase

• Log in to Your Account: Access your Coinbase account using your credentials.
• Go to the “Sell” Section: Click on “Buy/Sell” and then select the “Sell” option.
• Select Bitcoin: Choose Bitcoin from your list of assets.
• Enter the Amount: Specify the amount of Bitcoin you want to sell.
• Confirm the Transaction: Review the details and confirm the sale. The funds will be credited to your Coinbase account.

How to Withdraw Money from Coinbase

To withdraw funds from your Coinbase account, first log in and navigate to the “Portfolio” section. Once there, select the fiat currency you wish to withdraw, such as USD or EUR. Next, click on “Withdraw” and enter the amount you want to transfer. Choose your withdrawal destination, like your bank account or PayPal, then review the transaction details. Finally, confirm the withdrawal, and the funds will be transferred to your selected account.

Coinbase Limits

Coinbase imposes various limits on transactions based on factors like the user’s account level, payment method, and country of residence. For example, there are limits on how much cryptocurrency you can buy, sell, or withdraw daily or weekly. These limits can be increased by completing additional verification steps.

Coinbase account limitations are accessible on the Account Limits tab in your settings. Your current weekly restrictions can also be found alongside buying or selling cryptocurrencies, where they might fluctuate based on payment methods (for purchases) or withdrawal types (for sales). Daily limits denote 24-hour spending allowances, while weekly limits dictate permissible expenses within a seven-day period.

Coinbase Fees

When you buy, sell, or convert cryptocurrencies on Coinbase, fees are applied at the time of your transaction. These fees can vary based on several factors, including your payment method, order size, market conditions, location, the specific cryptocurrency, and any additional costs incurred to facilitate the transaction.

For Bitcoin transfers via the Lightning Network, Coinbase charges a processing fee of 0.1% of the transferred amount. Additionally, when you add or withdraw cash, fees may be charged depending on the payment method you choose. Coinbase Pro offers lower fees compared to the standard Coinbase platform, making it a more cost-effective option for frequent traders.

Coinbase Supported Countries

Coinbase is available in over 100 countries, including the United States, Canada, the United Kingdom, most of Europe, and parts of Asia and Latin America. However, not all services are available in every country. For instance, some regions may have limited payment options or restricted access to certain cryptocurrencies.

Can You Trust Coinbase? Is Coinbase Legit and Safe?

Coinbase is a legitimate and regulated cryptocurrency exchange. It is publicly traded on the NASDAQ under the ticker symbol COIN, which adds to its credibility. Coinbase follows strict regulatory compliance, including anti-money laundering (AML) and know your customer (KYC) procedures. Additionally, Coinbase holds a significant portion of user funds in cold storage, which is not connected to the internet, reducing the risk of hacking.

However, like any online platform, it is not entirely risk-free. Users should practice good security habits, such as enabling two-factor authentication and regularly monitoring their accounts.

Is Coinbase the Best Place to Buy and Sell Bitcoin?

Coinbase is often recognized for its user-friendly interface, making it an attractive option for both beginners and experienced traders. It is a solid choice for buying and selling Bitcoin, especially for beginners, due to its ease of use and educational resources. However, it is not necessarily the best option for everyone. The higher fees on the standard platform and the fact that it is a custodial exchange (meaning Coinbase controls your private keys) might be drawbacks for some users.

Many Coinbase customers have reported issues with their accounts being locked or restricted without clear reasons, and the process to regain access can be difficult. Additionally, using a VPN or Tor can lead to account blocks, as Coinbase requires IP addresses to be authorized before account access is granted. Like many large companies, Coinbase’s customer service has been criticized for being slow and inefficient.

Despite being a centralized, custodial exchange, Coinbase does offer a self-custody wallet, which is a positive feature. However, for Bitcoin-only users, especially beginners, Coinbase may not be the ideal choice. The platform’s support for hundreds of cryptocurrencies can be distracting and overwhelming, potentially complicating the experience for those who wish to focus solely on Bitcoin. For those looking for more control over their assets and lower fees, Coinbase Pro or other platforms might be more suitable.