What is Coinbase? and why should I get a Coinbase account NOW?

coinbase
coinbase

Coinbase is the best international digital wallet that allows you to securely buy, use, and accept bitcoin and other cryptocurrencies.

Coinbase is one of the easiest on-ramp to the Bitcoin World and Blockchain. It provides you with an easy way to learn how to buy bitcoin in minutes. Coinbase offers the most comprehensive bitcoin service on the planet.

The whole Coinbase interface makes it easy to get started with bitcoin and other cryptos.

  • Once you have connected your bank account, you can immediately start buying and selling bitcoin.
  • Coinbase makes it easy for you to securely Bitcoin in your Coinbase wallet or vault.
  • With the Coinbase Merchant network, you can start sending money to friends or shopping with merchants who accept bitcoin.

Coinbase Quick Facts

What is Coinbase? and why should I get a Coinbase account NOW?

How it all started

Brian Armstrong and Fred Ehream founded Coinbase in June 2012 and are still working for their company today. 

Renowned companies such as BBVA, IDG Ventures, USV, SVAngel and others have invested in the exchange since then.

The Los Angeles-based crypto exchange is licensed and monitored. Much more about the history and development of the company cannot be found online.

What is Coinbase?

  • Coinbase is a crypto exchange that has been around since 2012. The company is based in San Francisco, United States, and can count on money from well-known investors such as the New York Stock Exchange (NYSE). The Coinbase Exchange can now be accessed from 102 countries. 
  • At Coinbase there are two platforms: The normal one for the newbies and the Bitcoin Coinbase Pro, which is tailored to professional traders. With the professional version, the fees are lower than with the normal platform.
  • The licensed and monitored exchange offers the possibility to buy cryptos, exchange the coins for fiat currencies and many other exchange transactions with crypto assets.
  • However, cryptocurrency trading is only available in a few countries, mostly in Europe. In Africa, for example, it is only possible to exchange digital currencies for fiat or vice versa.
  • Coinbase is also involved in developing and supporting a stable coin called the USD Coin (USDC). The crypto exchange belongs to a consortium called Center, which also includes Circle, the developer of USDC.
Key Coinbase dataCoinbase Features
Is it regulated?Yes
Deposit insuranceYes, FIAT max. 250,000 / customer
Broker typeCrypto exchange
Spreads1.49% / trade
Minimum depositNone
KYC verificationYes fast
Scalpingallowed
Mobile walletYes, Android and iPhone
Mobile appYes
Credit card paymentYes
Payment methodsDebit and credit card payments, bank transfers, eWallet
What is Coinbase? and why should I get a Coinbase account NOW?

Is it easy to buy Bitcoin with Coinbase?

Coinbase makes it easy to convert your local currency into and out of bitcoin. On this page, you’ll learn how to buy bitcoin and store it securely in a wallet.

1. Sign up for Coinbase

What is Coinbase? and why should I get a Coinbase account NOW?

This first step is to sign up for a Coinbase account. This will give you a secure place to store your bitcoin, and easy payment methods to convert your local currency into or out of bitcoin.

2. Connect Your Bank Account

What is Coinbase? and why should I get a Coinbase account NOW?

After you sign up, connect your bank account. You’ll need to complete some verification steps before you can use the account. Once the verification steps are complete, you can start a purchase.

3. Buy and Sell Bitcoin

What is Coinbase? and why should I get a Coinbase account NOW?

After starting your first purchase, Coinbase will debit your bank account and deliver your bitcoin. (Sells work the same way but in reverse). The price of bitcoin changes over time, so Coinbase shows you the current exchange rate before you buy.

How to setup up a Coinbase account for beginners

coinbase

Find out below how easy it is to open a Coinbase account. The steps are easy and beginner-friendly.

Total Time: 10 minutes

1. Go to the Coinbase website

how legit is coinbase?

Go to the Coinbase website , enter your email address and click on ‘get started’.

2. Verify your email address

has coinbase been hacked?

Confirm your email address in the email that will be sent to you. You will be redirected to a page where you can choose between an institutional account and an individual account.

3. Verify your phone number

What is Coinbase? and why should I get a Coinbase account NOW?

Verify your phone number and set up 2-factor verification to keep your account secure

4. Verify the SMS you receive

What is Coinbase? and why should I get a Coinbase account NOW?

Congratulations, your Coinbase account has now been opened. With the SMS confirmation, you can now start to verify your identity.

5. Complete a Know Your Customer (KYC) verification

coinbase KYC

Because Coinbase is a regulated cryptocurrency broker, it is required to verify the identity of every user that opens a Coinbase account. You will therefore need to show a copy of your government-issued ID. Depending on where you live, this can either be your passport, driver’s license, or national ID card.

6. Link your payment method

coinbase payment methods

At this point you can set up a payment method for your account. Depending on the amount of cryptocurrency you want to buy and the transaction speed you want, linking to a bank account or a secure 3D debit card is the best option.

NOTE: If decide to link your bank account, you will need to send a small amount from your bank account into the account of Coinbase with a unique reference number in the transaction ID.
The process can take 4-5 working days.

7. Buy Bitcoin and other Cryptos with Coinbase

how much money can you withdraw from coinbase?

Now select which cryptocurrency you want to buy from Coinbase and enter the amount that you wish to purchase in your local currency. This will either be USD, EUR, or GBP – depending on where you live. As you type in the amount in fiat currency, the equivalent amount in your chosen cryptocurrency will update.

Supply:

  • First and Last Name
  • Nationality
  • Country of Residence
  • Date of Birth
  • Home Address
  • Mobile Number
  • Email Address

Tools:

  • Desktop/laptop device with a webcam

coinbase

How Secure is Coinbase?

To be honest, security is one of the main things that have kept the masses from investing in Bitcoin and other cryptocurrencies. So how secure is Coinbase?

1. With Coinbase, up to 97% of customer funds are stored offline

This is important because offline storage provides an important security measure against theft or loss.
Coinbase distributes bitcoin geographically in safe deposit boxes and vaults around the world.

  • Coinbase makes sure that sensitive data that would normally reside on their servers is disconnected entirely from the internet.
  • Coinbase then splits data with redundancy, encrypts it with AES-256, and copies it to FIPS-140 USB drives and paper backups.
  • Coinbase makes sure that drives and paper backups are distributed geographically in safe deposit boxes and vaults around the world.

2. They use 2-Step Verification on all accounts

In addition to your username and password, Coinbase requires you to enter a code from your mobile phone, adding an extra layer of security for your account.

3. Hack protection

  • The Coinbase website traffic runs entirely over encrypted SSL (https)
  • Wallets (and private keys) are stored using AES-256 encryption

4. Application security

  • Coinbase uses SQL injection filters and verify the authenticity of POST, PUT, and DELETE requests to prevent CSRF attacks.
  • They implement a rate limit on a variety of actions on the site (login attempts, etc).
  • They also whitelist attributes on all models to prevent mass-assignment vulnerabilities.

5. Authentication security

  • Coinbase uses hash passwords stored in the database (using bcrypt with a cost factor of 12).
  • They check for strong passwords on account creation and password reset.
  • They make sure that application credentials are kept separate from the database and code base.

6. Organizational security

  • Coinbase employees must pass a criminal background check as part of the hiring process.
  • Coinbase uses separate passwords and two-step verification with each device and service.
  • Coinbase employees are required to encrypt their hard drives, utilize strong passwords, and enable screen locking.
coinbase

What products does Coinbase offer?

What can I do on Coinbase?

Coinbase offers you the opportunity to buy and sell currencies crypto , to store your coins in an online wallet and it in the real world with a crypto debit card spending.

Coinbase ProductDescription
Coinbase ExchangeCoinbase Exchange allows you to buy and sell various cryptocurrencies using your bank account or debit card.
Coinbase online walletCoinbase online wallet offers secure storage for your coins in connection with the exchange so that you can buy and sell quickly and easily.
Coinbase Shift Card (US only)Coinbase Shift Card (US only) allows you to spend your cryptocurrency anywhere VISA payments are accepted.
Coinbase Pro (formerly GDAX trading platform)Coinbase Pro is designed specifically for experienced traders and has a much larger selection of coins than you can find on Coinbase. 
If you want to do a more complicated trade than just buying and selling coins through Coinbase, you can transfer funds from your Coinbase wallet to your Coinbase account instantly and free of charge.
Coinbase trading platformCoinbase Commerce platform is designed to enable companies to accept cryptocurrencies as a means of payment for their products and services. 
With the API documentation, companies can use this Coinbase product to set up secure and simple systems for accepting cryptocurrencies. 
This is a step towards being able to buy almost anything with crypto.
Coinbase Developer platform
Coinbase Developer Platform offers developers the ability to create APIs that can take on tasks such as recording real-time data and historical price information for the four digital currencies supported by Coinbase.
coinbase

Which countries, currencies and payment methods does coinbase support?

Supported countries

Coinbase is available in 102 countries on six continents, i.e. in North and South America, Europe, Asia, Australia and Africa. Some of the main supported countries include:

  • Switzerland
  • Austria
  • United States
  • United Kingdom
  • Brazil
  • Spain
  • France
  • Singapore
  • Poland
  • … and more.

You can easily find out if your country is supported by Coinbase by looking at their comprehensive list of supported countries here

Supported currencies

Coinbase supports fiat currencies from all supported countries. For example, a user in Hong Kong can transact in Hong Kong Dollars (HKD), while a user in South Africa can transact in Rand (ZAR). 

Supported payment methods

When it comes to payment methods, Coinbase accepts different options depending on your location. 

For US customers, these are the payment methods:

  • Bank account (ACH)
  • Debit card
  • Transfer
  • PayPal

For customers in Europe, the payment methods are:

  • SEPA transfer
  • Secure 3D map
  • Debit card (only for withdrawals)
  • Ideal / Immediately
  • PayPal (only for withdrawals) 

What we think of Coinbase

Coinbase Features ReviewCoinbase Feature Rating
Setting up Coinbase5/5
Coinbase Fees, Commissions, Margin Rates and Account Minimums3/5
Coinbase Usability5/5
Coinbase Education5/5
Coinbase Offerings3/5
coinbase

Review: Coinbase Account Set Up

Setting up a Conbase account is very easy. The steps involved are similar to just about opening a bank account.

  1. Open a Coinbase account – Simply signup for an account and complete the KYC check. You can then use Coinbase to trade and store all your cryptos.
  2. Link your bank / Credit card – You need to connect your debit or credit, to your Coinbase account. This enables you to exchange cryptocurrencies into fiat currencies of your choice.
  3. Start buying and selling cryptos – Coinbase lets you buy the cryptocurrency of your choice. This includes Ethereum and Litecoin because Coinbase is the biggest Bitcoin exchange in the world.

After funding the account, you are able to trade Bitcoin and other cryptocurrencies just like other trading platforms. You will get real-time cryptocurrency prices during trading hours with an online stock tracker.

Rating: 5/5

Review: Coinbase Fees, Commissions, Margin Rates and Account Minimums

To start with, you have the choice of opening up a normal Coinbase account or a Coinbase Pro account.

  • Standard Coinbase – Offers a simple layout and pricing with an easy-to-understand interface and easy-to-navigate pricing.
  • Coinbase Pro – is meant for more experienced traders. It provides you with more advanced charting and analysis tools, as well as a variety of order types.

The Coinbase pricing is easy to understand. However, it depends on the type of Coinbase account you opened

  • For orders valued at less than or equal to $10, you’ll pay a flat-rate fee of $0.99 per order.
  • For orders valued at more than $10 but less than or equal to $25, you’ll pay a flat-rate fee of $1.49 per order.
  • For orders valued at more than $25 but less than or equal to $50, you’ll pay a flat-rate fee of $1.99 per order.
  • For orders valued at more than $50 but less than or equal to $200, you’ll pay a flat-rate fee of $1.99 per order.
  • For orders valued at over $200, you’ll pay a variable percentage of 1.49% of your total order value. For example, if you purchase $1,000 worth of Bitcoin, you’ll pay $14.90 in fees.

These prices are very high. To lower your prices, you’ll have to trade a high volume which is only possible with a Coinbase Pro account.

A Pro account does not have a flat-rate pricing system.

  • You’ll pay the maker fee when you add liquidity to your order by placing a limit order below the ticker price for a buy order or above the ticker price for a sale order.
  • You’ll pay the taker fee when you remove liquidity from the market by executing an order at the market rate.

Rating: 3/5

Review: Coinbase Usability

For all beginners, we recommend opening up a standard Coinbase account instead of the Coinbase Pro account. This offers you a simple UI and simple pricing structure that will make it easier for you to learn at your pace. You can always upgrade to the Coinbase Pro account once you understand how the trading works.

We found the following Coinbase features very important and easy for anyone making the decision to jump into cryptocurrency trading:

  • Easy account opening process – Opening a Coinbase account takes less than 10 minutes in most cases (unless you have to link a bank account in which case it might take between 4-5 days). Make sure you have a good webcam to verify your identity in order to start trading
  • Easy price calculations – With Coinbase, a beginner gets to enjoy easy navigation. It offers a simple dashboard with an overview of the market sorted by gainers, losers and pricing. An added benefit is the ability to track cryptocurrencies not available to trade on Coinbase. 
  • Easy and simplified order placements – Once you have linked your account funding method, simply click on the button titled “Trade,” enter the asset you want to buy or sell, choose your dollar amount and place your order. 

Rating: 5/5

Review: Coinbase Education

Ok. You have no idea what Coinbase is! Coinbase will provide you with a comprehensive set of education tools to teach you about trading cryptocurrencies. The information is comprehensive and any beginner will find it easy to learn and understand. You will also benefit from the Coinbase platform assistance which makes buying and selling cryptos even simpler.

The following features are worth noting if you start using Coinbase:

  • Coinbase Earn – The more you learn about the platform’s offerings, the more the Coinbase Education center rewards you. You will be rewarded with small crypto deposits directly into your account by simply watching videos to learn how each coin operates and what investors use each offering for and then testing your skills by answering questions about the practical use cases and framework of each token.  
  • News notifications – There is no need to spend hours reading Crypto news from different crypto news sites. Coinbase send you direct notifications from sources like Decrypt and TheBlock directly on your profile. You can stay up to date by simply clicking on the bell notification icon to read the most recent headlines. 

Rating: 5/5

Review: Coinbase Offerings

In comparison to other exchanges, Coinbase has limited offerings. It currently supports the purchase and sale of the following cryptocurrencies in the United States:  

  • Algorand (ALGO)
  • Cosmos (ATOM)
  • Band Protocol (BAND)
  • Basic Attention Token (BAT)
  • Bitcoin (BTC)
  • Bitcoin Cash (BCH)
  • Compound (COMP)
  • Dai (DAI)
  • Dash (DASH)
  • EOS (EOS)
  • Ethereum (ETH)
  • Ethereum Classic (ETC)
  • Kyber Network (KNC)
  • Chainlink (LINK)
  • Litecoin (LTC)
  • Maker (MKR)
  • Numeraire (NMR)
  • OMG Network (OMG)
  • Orchid (OXT)
  • Augur (REP)
  • USD Coin (USDC)
  • Stellar Lumen (XLM)
  • Ripple (XRP)
  • Tezos (XTZ)
  • Zcash (ZEC)
  • 0x (ZRX)

If you are a Coinbase Pro user, you will also be able to buy and sell all of the tokens listed on Coinbase along with the following additional assets:

  • Civic (CVC)
  • District0x (DNT)
  • Golem (GNT)
  • Loom Network (LOOM)
  • Decentraland (MANA)

NOTE: If you reside in New York, there are a select cryptocurrencies that are not available to you.

View the full list of domestic and internationally supported cryptocurrencies here

Rating: 3/5

coinbase

Frequently asked questions about Coinbase

What services does Coinbase offer?

Coinbase offers two major services, namely cryptocurrency conversion and cryptocurrency trading. The crypto conversion feature is available in all 102 countries that Coinbase supports. However, crypto trading is accessible in select countries, most of which are in Europe. In Africa, for example, Coinbase does not support crypto trading in any of the supported countries.

Which is the best Coinbase account for me?

It depends on your trading experience and the amount that you are willing to invest. The regular Coinbase account is ideal for beginners. The registration process is easy and quick, and customers can access a wide range of Coinbase services. In addition, the risk that regular users are exposed to is low. However, advanced traders can open a Coinbase Pro account that offers advanced crypto trading services.

Will I have to pay to open an account?

No. Registration for all accounts, with the exception of the institutional version, is free. The only time you need to spend money is when you fund your Coinbase wallet to start trading.

Does Coinbase have withdrawal limits?

Yes. All Level 1 accounts (whether regular or Coinbase Pro) have a withdrawal limit of $25,000. However, customers are free to increase this limit by providing additional information and checking. The information required includes a photo of valid government identification and proof of residence. Technically, after verifying the details of Level 2.

Is Coinbase Safe?

Yes. Coinbase is one of the safest, if not the most secure, crypto trading platforms in the industry. The exchange has robust security measures, the implementation of which begins with the account registration. Other layers of security include encryption of web traffic, implementation of 2FA, and cold storage of 98% of customers’ digital assets.

About Kevin Moseri 65 Articles
He has experience in developing online marketing campaigns, online & mobile product launches, and EU funding regulation. He is an active FinTech & MarTech blogger with interests in online banking, mobile banking, mobile payment, and insurance

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