Coinbase Review: the Top Exchange with Tools for Beginners and Advanced Investors
Coinbase has a wide selection of cryptocurrencies, a user-friendly design, and useful educational content. For more experienced cryptocurrency investors, it also offers advanced trading tools and the ability to earn free cryptocurrency by pledging or learning about it. Thanks to these advantages and its top-notch security, Coinbase is one of the largest cryptocurrency exchanges in the world. Read our full Coinbase review to see if it’s right for you.
Full Coinbase Review
This cryptocurrency exchange is perfect for: cryptocurrency investors and traders of all skill levels who want a reliable all-encompassing platform to buy, store and sell cryptocurrencies.
Pros.
Wide selection of cryptocurrencies
Simple and advanced trading
Earn free cryptocurrency
Educational content
Most acclaimed mobile app
Cryptocurrency rewards
Coinbase debit card available
Cons
Complex fee structure
High fees for certain transactions
Highest benefits
Wide selection of cryptocurrencies
There aren’t many cryptocurrency exchanges that can compete with Coinbase’s selection, especially for U.S. investors. It offers nearly 250 cryptocurrencies for trading, from Bitcoin (BTC) and other major coins to smaller and newer digital tokens.
Simple and Advanced Trading
Coinbase offers separate simple and advanced trading tools that you can access from your account. Simple trading options are designed to be simple and easy to use. Advanced trading offers more features, including charts, a real-time order book, and limit orders.
One drawback is that simple trading is much more expensive and less transparent. Therefore, we recommend trading with the advanced trading option. When investing in cryptocurrencies, it is important to keep fees to a minimum.
Earn Free Cryptocurrency
One of the coolest features of the exchange is Coinbase Earn, where you can earn free cryptocurrency in exchange for completing educational modules about cryptocurrencies. While you won’t earn a lot of money this way, the modules can be completed in less than a minute and it’s a fun way to learn more about different cryptocurrencies.
Educational content
Coinbase maintains an impressive library of educational resources, including cryptocurrency basics, tips and tutorials, and market updates. Want an easy-to-understand but comprehensive introduction to Bitcoin? A guide to the tax implications of cryptocurrency investments?Coinbase has you covered on these topics and more.
Mobile Apps
Like the web platform, the Coinbase mobile app is a user-friendly way to buy, sell, and manage cryptocurrencies. It’s highly rated on both the Apple App Store and Google Play Store, so it’s a good choice if you plan to do any mobile cryptocurrency trading.
Cryptocurrency Rewards
You can earn interest on a wide range of cryptocurrencies through your Coinbase account.Coinbase automatically pays interest on certain stablecoins, such as the US Dollar Coin (USDC). It also allows you to pledge certain cryptocurrencies, including Ether (ETH) and Solana (SOL). If you pledge your cryptocurrency, you will be rewarded. Please note that eligibility varies depending on your location and cryptocurrency. Coinbase also offers the ability to earn rewards if you are willing to take a short course in cryptocurrency.
Coinbase Debit Card
If you have a Coinbase account, you can apply for the Coinbase Card. This prepaid Visa debit card is linked to your Coinbase account balance and allows you to use cryptocurrencies.The Coinbase card also offers cryptocurrency rewards and allows you to choose the cryptocurrencies you earn from a rotating list. In this way, you can earn up to 4% back.
What could be improved
Complex Fee Structure
Fees on Coinbase are unnecessarily complex and confusing. Depending on whether you are using the Simple or Premium trading option, the exchange uses a different transaction fee structure.
While the fees for advanced transactions are reasonable and simple to understand, the fees for simple transactions are higher and you can only see the amount of fees to be charged when you preview the transaction. There is a serious lack of transparency about fees for simple trades, and Coinbase says that fees vary based on factors such as order size and market conditions. If Coinbase used the same fees for all types of cryptocurrency transactions like many other exchanges, it would be much easier for users.
High Fees for Simple Transactions and Pledges
In some areas, Coinbase’s fees are expensive. Simple transactions incur high fees that are not readily available until you are ready to trade. This is especially true for smaller transactions (under $200). Premium transactions are much cheaper, so you can at least save money with this option. However, it is frustrating that you need to use more advanced trading tools to get the best trades on Coinbase, especially if you prefer a simple trading interface.
Coinbase also charges a large commission if you use Coinbase’s pledge service. When you pledge cryptocurrencies on Coinbase, it charges a 25%-35% commission. This is higher than what you would normally pay to pledge cryptocurrencies yourself.
Limited Reward Opportunities
We love that Coinbase allows you to earn rewards, but you can only use a small portion of your cryptocurrency to do so. Some exchanges have better rewards programs, including exchanges that offer higher rates and allow you to earn interest on large amounts of digital assets.