Coinbase is one of the most popular options if you are looking for an exchange for criptoactivos exchange and make trading with bitcoin. It is a regulated exchange house that has approximately 43 million registered users and operates in more than 100 countries, including Spain and several in Latin America. If you wonder if this is the right exchange for you, here you can find out everything you need to know about Coinbase.
It is a trading platform for bitcoin and other cryptocurrencies based in California, United States. It was founded in 2012 by Brian Armstrong and Fred Ehrsam, and has grown into one of the largest centralized exchanges in the country.
According to CoinMarketCap , it is one of the exchange houses with the highest liquidity, volume of trade and user traffic. Also, it occupies the second position in the ranking of exchanges , it is only surpassed by Binance .
In addition to being a broker to exchange crypto assets for national currency, it provides its users with custody accounts for institutions, wallets , an advanced trading platform and its own stablecoin linked to the price of the US dollar, called USD Coin. Its clients have access to 129 exchange pairs , with BTC / USD being the largest in volume (more than 900 million dollars to date).
Coinbase is licensed in the countries in which it operates, and is regulated by entities such as the United States Securities and Exchange Commission (SEC) , the Australian Prudential Regulatory Authority (APRA) and the UK Financial Conduct Authority ( FCA).
In fact, it was the first exchange to meet the necessary standards to offer its services in North America. Thanks to its simple interface and its security, it is one of the exchange houses chosen by millions of people around the world.
In April 2021, the cryptocurrency exchange debuted on Wall Street. During the first day of direct bidding, Coinbase shares reached $ 400 on Nasdaq , with a trading volume of 23.8 million shares.
What are the services of this bitcoin trading exchange ?
As we mentioned earlier, Coinbase stands out for the wide variety of services it offers to all types of users. Let’s analyze each of them.
The company has a standard exchange platform that is designed for retail investors or beginners. With this version you can exchange cryptocurrencies for national currency or for other crypto assets, make shipments, access a wallet and its stablecoin. But keep in mind that this specific platform is only available in a small number of the countries where Coinbase operates.
It is a more advanced version than the previous one. It operates in more countries and the restrictions and security measures imposed by the company are greater, since it is made for experts. Therefore, KYC verification is mandatory.
It allows you to do trading with Bitcoin and other digital currencies in a protected environment . Users can trade, limit and stop orders with lower commission rates, and have more sophisticated graphics and the option of margin trading.
With Commerce it is very easy to receive payments in cryptocurrencies in just a couple of minutes . It is an alternative for those businesses willing to accept crypto assets as a payment method. An advantage is that there are no fees for receiving funds, which can be exchanged for cash or USD Coin. Currently, more than 8 thousand businesses have access to this service.
This is one of the most outstanding services of Coinbase . Provide institutional customers with offline storage . According to the company, it is the most secure and sophisticated custody solution in the world. It is regulated by the New York Department of Financial Services (NYDFS) and operates independently.
Unlike the Pro version, which is for individuals, Coinbase Prime is aimed at institutional investors . The limits to operate are higher and it has a wide variety of tools for professionals. It stands out for its security, privacy and high degree of liquidity. It has an API (application programming interface) and other functions that make it a solution for companies that want to manage their digital assets intelligently.
Do you want to learn more about bitcoin and other cryptocurrencies in an entertaining and easy way? Then Coinbase Earn is for you. With this platform you not only get knowledge, you can also earn money in the process.
You will find multiple educational videos that teach you about different crypto assets. After watching them, you must complete a questionnaire to show what you have learned. Upon completion, you will receive cryptocurrencies as a reward.
It is an investment platform for companies that contribute to the open financial system. They provide financing to startups with the necessary ideas to significantly improve the crypto ecosystem. AirTM, Reserve, and BlockFi are some of the companies that have been funded by Coinbase .
The company has a cryptocurrency portfolio . It is an application available for iOS and Android . You can have control of all your digital assets from the comfort of your mobile device. Sending or receiving funds with this wallet is really easy.
What do you need to make trading of bitcoin in Coinbase Exchange?
By US law, KYC verification is required to access their services. There are two levels of verification. In the case of level 1 accounts (those that only provide their name and email address), they can only send and receive cryptocurrencies.
Level 2 ones, in which the user has verified their account by entering additional data such as age, proof of residency and a government-issued ID, can access all the features of the Coinbase Exchange .
For the Pro and Prime versions, the measurements are more stringent . Not only does the aforementioned data have to be provided for KYC verification, new users have to comply with AML ( Anti-money Laundering ) guidelines . Extra information is requested, such as bank account statements. Here you will find more information about the request for company data.
Features of the Coinbase exchange for cryptocurrency trading
Let’s analyze in detail each of the features that Coinbase has, which will allow you to execute bitcoin trading operations on a multi-service exchange .
Security and privacy
According to the company itself, Coinbase has never suffered a cyber attack. Your users have access to two-factor authentication (2FA) by third-party applications to log in, withdraw, and deposit funds. Additionally, 98% of client funds are kept in cold storage wallets.
In the event of a breach in exchange security, accounts are insured by the Federal Deposit Insurance Corporation (FDIC) , for an amount of up to $ 250,000 for US dollar wallets. On the other hand, they have encryption of the traffic of their web page and of the passwords and wallets of the users, using the AES-256 mechanism. They also do regular criminal checks on their employees.
Regarding the data collected by Coinbase, the company ensures that the purpose of obtaining information from users is to comply with laws against money laundering, verify identity or protect its customers from fraudulent activity.
On their website they make it clear that they will not sell or sell their users’ data to third parties without their consent . The General Data Protection Regulation (GDPR) and the California Consumer Privacy Act are the laws by which the company governs for data processing.
Its interface is friendly and intuitive. Even if a person does not have experience using these types of platforms, they are likely to learn in a short time. In its standard version, designed for beginners, you will find everything you need to sell or buy cryptocurrencies quickly and safely. In the Pro version there are advanced charts and other types of useful tools for traders .
When entering the Coinbase platform , we see that each section is clearly identified. There is one for businesses, another for individuals and another for developers. Besides, there are other tabs to learn more about the company, its prices and resources. The design of your website is attractive and simple.
As for its mobile application, it is as simple and functional as the desktop version . With it you can store and buy crypto assets. You will have access to the typical functions such as selling or buying bitcoin, accessing the wallet, creating alerts and seeing the details of the transactions carried out. It is available for Android and iOS devices.
Customer service and support
According to the comments of various users on Trustpilot , customer service is not the strong suit of this company. In the help section of its page , the same exchange states that it is experiencing an increase in the number of inquiries, which may cause delays in responses from the support team.
In their help center they have articles that clarify the most frequent questions regarding topics such as privacy and security, financing, negotiation, taxes, reports, financial services, account management and others. They have a chat box, a support phone number and a contact form for more specific questions.
Payment methods on Coinbase
Payment methods vary according to the country where the exchange house operates. For US customers, they accept PayPal, bank account, wire transfer, and debit card . For those located in Europe, SEPA, 3D security card, Ideal / Sofort, debit card and PayPal are the options for withdrawals and deposits. There are multiple national currencies available on the platform, including the euro, the US dollar and the pound sterling.
There are more than 40 cryptocurrencies to trade on this exchange. Among the main ones are:
In this link you can find the complete list of criptoactivos to trading on the platform.
Coinbase stands out for having good liquidity, according to the CoinMarketCap exchange ranking at the time of writing. Its overall liquidity average is 441 out of 1,000 . As for its average liquidity for its most traded pair , BTC / USD, it is 745 out of 1,000. This means that you can trade with large amounts of money without problem, since the sale price does not vary too much with respect to the market price.
In which countries is Coinbase available
Today, it operates in 102 countries in Europe, North America, South America, Asia, Africa and Oceania. Among the Spanish-speaking countries in which it is available are:
For a full list of the countries in which Coinbase works, click here. It should be noted that all its services are only available in countries such as the United States, Canada and those located in Europe. In most, it is only possible to exchange one asset for another, with the exception of Mexico and Chile, where you can also buy with national currency.
In countries such as Venezuela, Bolivia and Cuba, access to the Coinbase platform is currently restricted.
What are the fees and commissions for trading bitcoin on the Coinbase Exchange?
The commissions vary according to the type of account. For the standard version, they charge a commission of 0.50% on the sale and purchase of cryptocurrencies. But the actual difference may change due to market fluctuations.
Keep in mind that this fee also varies according to the payment method used and the user’s location. If a bank transfer is made, the company may charge an additional commission. In any case, they ensure to notify all the fees applied before confirming a transaction.
The variable rates of payment methods for the United States are 1.49% for bank account and Coinbase wallet , 3.99% for purchases with debit card and up to 1.5% of any transaction plus a minimum fee of $ 0, 55 for instant card withdrawal. For USD deposit methods, there is a fee of $ 10 for incoming bank transfers and $ 25 for outgoing bank transfers.
In addition to the 0.50% commission for buying and selling assets, there is a “Coinbase fee”. These fixed fees are set as follows, according to their website :
In case of requesting a loan in USD to Coinbase, they charge a fixed fee of 2% of the total transaction. For cryptocurrency conversion, the cost of the margin is up to 2%. There are no fees for storing USD in the platform’s wallet or for transferring cryptocurrencies from one Coinbase wallet to another.
Coinbase Pro’s pricing model is simpler compared to the previous one. This is based on the monthly volume of operations of the user and the liquidity of the asset at the time of purchase. Trading commissions vary for makers and takers . For a maximum amount of up to USD 10,000, the maker and taker commission is 0.50%. The higher the volume, the lower the commission.
If you wonder what a maker is, it is that trader who generates an operation order in the market so that it is later completed and, therefore, creates offers and increases liquidity. A taker or taker, is the one who accepts the order and executes it before it reaches the order book, reducing liquidity but increasing volume.
The limit to trade on the standard platform and the Pro is USD 25 thousand per day , although they can increase this limit if you request it and meet certain requirements.
Advantages and disadvantages of trading bitcoin on the Coinbase Exchange
It operates in more than 100 countries, including Spain and several in Latin America.
It offers platforms for institutional investors.
It has traditional trading and leverage in its Pro version.
It is regulated by the United States Securities and Exchange Commission and other government entities.
Its liquidity and volume of exchange are among the highest in the market.
More than 100 exchange pairs to trade.
User accounts are insured by the FDIC.
The standard version is not available in Latin America.
KYC verification is mandatory.
The fees of the standard version are high compared to other exchanges.
It is not possible to buy and sell in all the countries in which you operate.
It is confusing to calculate the total fee for each transaction.
Conclusion: Is Coinbase a good exchange for trading bitcoin?
Overall, Coinbase is a reputable bitcoin trading exchange. It offers multiple products adapted to the needs of those who want to start trading with bitcoin and other cryptocurrencies. If you are starting in the market, it works well . For more advanced users, Coinbase Pro is the right solution. Not only are the commissions lower, it has more alternatives to operate.
A striking aspect of this exchange house is that it is regulated by various government authorities, and it is one of the first to comply with financial laws in the United States. Its liquidity is one of the highest in the market and there are more than 100 exchange pairs . If you are concerned about the safety of the rig, you’ll be happy to know it has cold storage and FDIC insurance.
However, Coinbase fees and commissions are considered high and KYC verification is mandatory. In addition, it is not possible to buy and sell cryptocurrencies in all the countries it operates, only in the United States, Canada and many in Europe. For most customers, understanding the company’s pricing model is difficult. Despite this, Coinbase remains one of the largest and most popular exchanges in the world.