Coinbase Review with Infographic
Coinbase was launched in San Francisco in 2012 and is now the largest cryptocurrency exchange in the United States. In April 2021, Coinbase became the first U.S. cryptocurrency exchange listed on the NASDAQ stock exchange with an initial public offering valuing the company at approximately $86 billion.
Coinbase has now more than 56 million Crypto enthusiasts across 100 countries using their services, holding more than $220 billion in assets. Institutional Investors can also use their custodial services for cryptocurrency storage.
Coinbase made it to the headlines again when it became the first cryptocurrency exchange to receive a license from Germany’s Financials Supervisory Authority (BaFin), allowing them to start offering their services in Germany.
Back in 2019 a law was passed in Germany requiring all companies offering cryptocurrency custodial services to apply for custody license otherwise they would have to leave the country. Although there are a number of other exchanges which are in advanced stages of receiving the license, Coinbase was the first to receive regulatory clarity.
Coinbase Features Infographic
Coinbase scores high in most of our listed Cypto Enthusiast features. However, they lag behind on the fees section - with a poor score of 70%.
The reason is that their fee structure is a confusing combination of elements that depend on two factors as follows:
Approximately 0.5% for cryptocurrency sales and purchases; rates may be higher or lower depending on market fluctuations.
The greater of either a flat fee or a variable according to the payment method used is charged.
Payment methods fee structure
So for sake of example, if I want to purchase $1000 worth of Ethereum from Coinbase using my debit card, I will be charged both:
- The spread fee of $5 (as it is usually 0.5%).
- The payment method fee of $39.9 (Debit Card fee) as this is the greater between the flat and the payment method fee.
This means that for the $1000 paid on Coinbase, I will receive $955.1 worth of Ethereum. The fees charged by Coinbase are on the high side, especially if you buy/sell cryptocurrency on a daily basis.
Coinbase Pro fee structure is more straight to the point and offers cheaper fees.
Why should I use Coinbase?
If paying a little bit of extra fees when buying or selling is not your concern, then Coinbase offers an excellent cryptocurrency platform which caters for beginner-intermediate crypto enthusiasts.
It's user friendly interface make it super easy to purchase the cryptocurrency you want in a few clicks. Before buying any cryptocurrency, make sure that you are well-equipped with the basic knowledge around the topic, you can visit our Cryptopedia section which provides articles tailored for different levels of knowledge.
Coinbase has a proven track record in terms of service, safety and reliability. Now that they are listed on the NASDAQ stock exchange and regulated by a number of different bodies, it makes it an even more secure place.
An interesting feature Coinbase offer is the "Learn and Earn" section, which gives the opportunity to new users to learn about different cryptocurrency by watching short videos and earn cryptocurrency in return. New users can easily earn up to $30 by watching a few videos and learning on the topic - It's a win win.