Coinbase: A Worthy Investment App?

Coinbase is a popular cryptocurrency exchange that allows users to buy, sell, trade, store, and stake crypto. It is the world's most trusted crypto exchange and the only publicly traded crypto exchange in the U.S. Coinbase offers a wide variety of options for users, from beginners to advanced traders, with an easy-to-use interface and powerful trading tools. However, it is known for high fees and poor customer service. In this article, we will explore the features, benefits, and drawbacks of using Coinbase as a crypto investment app to help you decide if it is the right platform for you.

Coinbase's fee structure

When buying, selling, or converting cryptocurrencies on Coinbase, fees are charged based on factors such as the chosen payment method, order size, market conditions, jurisdictional location, asset, and other costs incurred to facilitate the transaction. These fees are calculated at the time of placing the order and are disclosed before completing the transaction.

Coinbase also charges a spread on cryptocurrency sales and purchases, which is included in the quoted price. The spread helps increase the likelihood of a successful transaction and allows Coinbase to lock in the quoted price temporarily. The spread may vary for similar transactions and is typically around 0.5%.

For transactions on cryptocurrency networks (i.e. transfers off the Coinbase platform), Coinbase incurs and pays network transaction fees, such as miner fees. When sending cryptocurrency from a Coinbase wallet to another wallet, a fee is charged based on the prevailing network fees for a standalone wallet-to-wallet send.

Coinbase offers a subscription product called Coinbase One, which provides fee-free buying and selling of cryptocurrencies, with certain limitations. Members may still be subject to spread fees, and the subscription costs about $30 per month.

Coinbase Advanced is the platform's advanced trading feature, suitable for more experienced traders. The fees in this tier follow a maker/taker model, with a maximum of 0.40% for makers and 0.60% for takers, based on the 30-day trailing volume.

Overall, Coinbase's fees tend to be higher than those of its competitors, and they can be challenging to predict due to the various factors that influence them.

Customer service

Coinbase is a popular cryptocurrency exchange that allows anyone with an account to buy, sell, and exchange cryptocurrency. It has been rated as one of the best investment platforms for crypto trading, staking rewards, and crypto storage. However, it is also known for its high fees and poor customer service.

Coinbase's customer service has been rated as slow and non-interactive, with a combination of live chat, social media help, and a ticketing system. The company has also been criticised for its lack of urgency in resolving customer complaints, even with critical issues.

On Trustpilot, Coinbase has scored poorly, with a rating of 1.8 out of 5 stars from over 9,300 reviews. Many customers have complained about issues accessing and operating their accounts, with non-human communication and slow response times.

Despite its poor customer service reputation, Coinbase does offer some support options. In addition to the live chat, social media, and ticketing systems, Coinbase also provides a 24/7 live phone support service. The platform also has an online help centre and a chat system, as well as an extensive library of educational content.

Coinbase's "earn while you learn" program is another unique feature that incentivises users to understand cryptocurrency trading better. By taking video classes and exams, users can earn rewards in the form of cryptocurrencies.

Overall, while Coinbase offers some support options, its customer service has been rated poorly by many users, indicating a need for improvement in this area.

Security and storage

Coinbase is the largest publicly traded crypto company in the world and is considered the most trusted place to buy, sell, trade, and store crypto. The company is based in the USA and became the largest public crypto company in April 2021. As a public company, Coinbase operates with more financial transparency, publishing financial statements quarterly and undergoing independent third-party audits annually.

Coinbase offers state-of-the-art encryption and security, with a dedicated security team that works to protect users and their assets from emerging threats. The platform provides powerful security features to all its users, including auto-enrolled 2-factor authentication (with security key support), password protection, and multi-approval withdrawals in Coinbase Vault.

Coinbase Wallet is a self-custody web3 wallet, giving users full control over the private keys to their assets on the blockchain. This means that even Coinbase cannot access your tokens or NFTs without your recovery phrase. The wallet also offers additional security options such as biometrics and security locks.

Coinbase takes extensive security measures to safeguard accounts and cryptocurrency investments, but also emphasizes that security is a shared responsibility. Users are advised to take proactive steps to protect their accounts, such as using strong and unique passwords, enabling 2-step verification, and keeping their devices clean and updated with the latest security measures.

While Coinbase has implemented robust security measures, it is important to note that there have been instances of users losing their assets due to hacking or account compromises. Therefore, it is crucial for users to remain vigilant and proactive in safeguarding their accounts and investments.

Coinbase Wallet

The wallet is available on both the Apple App Store and Google Play Store, with ratings of 4.7 out of 5 stars and 4 out of 5 stars, respectively.

• Trade, swap, stake, lend, and borrow crypto assets
• View your NFTs and access built-in NFT galleries
• Earn crypto rewards through hands-on web3 learning
• Access real-time price charts and DeFi positions
• Send and receive cryptocurrency payments globally
• Convert your crypto with decentralized exchanges (DEXes)
• Bridge your crypto between different blockchains

Coinbase Advanced Trade

The platform provides access to real-time order books and advanced charting tools, allowing users to leverage EMA, MA, MACD, RSI, Bollinger Bands, and custom drawing tools for in-depth analysis. It also offers a range of order types to suit different trading strategies, including market orders, limit orders, and stop-limit orders.

The platform also prioritizes security with state-of-the-art encryption and security programs. It implements 2FA, mobile biometrics, Yubikey support, and Allowlist, among other risk management measures, to safeguard customer assets.

Frequently asked questions