Coinbase Investment Opportunities: Exploring Your Options

Coinbase is a cryptocurrency platform that allows users to buy, sell and store their crypto coins. It is a popular choice for beginners, with an easy-to-use interface and over 10,000 assets to choose from. Coinbase offers a simple, direct way to convert crypto to cash and vice versa, and users can also store their crypto in a digital wallet. However, it is known for high fees and poor customer service. Coinbase also offers a more advanced platform for avid and experienced traders who make high-volume transactions and want more trading options.

Coinbase fees and charges

Coinbase offers a cash and Hosted Cryptocurrency balance service free of charge, allowing you to store your cash and supported cryptocurrency at no cost. However, there are multiple fees and charges associated with using Coinbase.

Coinbase fees can be somewhat complicated, especially for beginners. There are multiple exchanges built into Coinbase, each with its own fee structure. Here are some of the fees and charges you may encounter:

• Transaction Fees: Coinbase charges a fee for transactions on cryptocurrency networks, i.e. transfers of cryptocurrency off the Coinbase platform. The fee is based on Coinbase's estimate of the prevailing network fees for a standalone wallet-to-wallet send. The final fee may differ from the estimate due to factors such as batching transactions or changes in network congestion levels.
• Lightning Network Processing Fee: Coinbase charges a flat 0.1% processing fee for bitcoin transfers using the Lightning Network, a micropayment network that enables bitcoin transfers without the transaction fee associated with the Bitcoin blockchain.
• Adding Cash and Cashing Out: When adding cash or withdrawing funds from your Coinbase account, there may be a fee assessed, depending on the payment method used. For example, if you borrow USD from Coinbase or an affiliate and they have to sell your BTC collateral, a flat fee of 2% of the total transaction will be charged.
• Trading Fees and Spread: When you buy, sell, or convert cryptocurrencies on Coinbase, fees are charged. These fees are calculated based on various factors such as payment method, order size, market conditions, jurisdiction, and more. The spread is also included in the quoted price, which helps Coinbase lock in your quoted price temporarily while processing your order.
• Coinbase Advanced Fees: Coinbase Advanced is the advanced trading platform suitable for more experienced traders. The fees are based on a maker/taker model, with a maximum of 0.40% maker and 0.60% taker, depending on your 30-day trailing volume.
• Staking and Rewards: Coinbase charges a commission on the rewards you earn from staking your crypto on the platform. The standard commission is 35% for ADA, ATOM, AVAX, DOT, MATIC, SOL, and XTZ. Eligible Coinbase One members pay a reduced rate of 26.3% for these coins.
• Card Fees: While there are no transaction fees for spending with the Coinbase Card, there is a spread fee when spending your cryptocurrency balance using the card. Additionally, ATM operators may charge fees for using your Coinbase Card at their machines.

It is important to note that Coinbase fees and charges are subject to change, and users should review the most up-to-date fee information on the Coinbase platform before making any transactions.

Coinbase's NFT marketplace

Coinbase is a major US-based cryptocurrency exchange, a platform where crypto assets may be traded. Coinbase stock gives investors exposure to the cryptocurrency market without directly investing in cryptocurrency.

Coinbase NFT is a peer-to-peer marketplace that will make minting, purchasing, showcasing, and discovering NFTs easier. Coinbase NFT will be a creative and creator-first platform, with a decentralised marketplace that puts the art and artist's experience at the forefront. It will be user-friendly, with social features that open new avenues for conversation and discovery.

The key part of the Coinbase NFT experience is control. Artists will be able to maintain creative control through decentralised contracts and metadata transparency. All NFTs are on-chain, and the initial launch will support Ethereum-based ERC-721 and ERC-1155 standards, with multi-chain support planned soon after.

Coinbase NFT will also be a vibrant, secure marketplace, fostering connections and helping creators, collectors, and fans build a community. It will curate a personal feed based on your interests and showcase all your NFTs in one place, helping you connect with like-minded fans or artists.

With Coinbase NFT, the company aims to allow everyone to benefit from their creative spark and contribute to a future where the "creator economy" is a central driver.

Coinbase's Advanced Trade platform

Advanced Trade is a native trading platform that provides advanced users with more tools and security for their trades. It allows users to access real-time order books. The fee structure for Advanced Trade uses a simpler maker-taker model. The fees are between 0% and 0.60% per trade, with lower costs for larger dollar transactions. For example, a transaction of less than $10,000 has a 0.40% maker fee and a 0.60% taker fee, while a transaction between $10,000 and $50,000 has a 0.25% maker fee and a 0.40% taker fee.

Coinbase operates a tier-based system for its maker and taker fees, allowing users transacting with larger volumes to pay less in fees. The maker pays between 0.00% and 0.40% of their transactions as fees, while the taker pays a higher percentage, ranging from 0.05% to 0.60%. These fees can be reduced according to your tier and transaction amount.

Coinbase's security measures

Coinbase is one of the largest cryptocurrency exchanges and has implemented robust security measures to safeguard its users' accounts and investments. Here are some of the key security measures Coinbase employs:

Two-Factor Authentication (2FA)

Coinbase requires all accounts to have 2FA enabled, adding an extra layer of protection beyond just a password. They recommend using a security key, which is considered the gold standard of account security, or a Time-based One Time Password (TOTP) with a mobile authenticator app like Duo or Google Authenticator.

Password Protection

Coinbase encourages users to use strong, unique passwords for their accounts and recommends using a password manager like 1Password or Dashlane. They also suggest using a passphrase, a sentence or group of four or more words, if you don't want to use a password manager.

Email Security

Coinbase emphasises the importance of securing your email account, as it is a critical connection between you and your Coinbase account. They recommend enabling 2FA on your email, using secure passwords, and regularly reviewing your email settings for any unauthorised changes.

Device Security

To protect your devices from malware and other threats, Coinbase suggests using anti-virus protection, keeping your device and software updated, and practising safe web browsing habits, such as avoiding suspicious links and downloads.

Coinbase Vault

For users holding their cryptocurrency investments for the long term, Coinbase encourages the use of their Vault feature. The Vault requires multi-email approval for withdrawals and has a 48-hour delay, providing an extra layer of protection and allowing users to cancel withdrawals if needed.

Address Whitelisting

Coinbase allows users to create a predefined set of trusted cryptocurrency addresses for outbound transactions from their Coinbase Pro account. With Whitelisting enabled, any attempts by attackers to send funds to a different wallet will be blocked.

Cold Storage

Coinbase offers cold storage options, where users can store their cryptocurrency offline on a hardware device like a USB drive. These cold wallets are not connected to the internet, providing immunity from online threats like malware or spyware.

Bug Bounty Program

Coinbase works with the security research community and offers rewards for the responsible disclosure of security vulnerabilities through its Bug Bounty program. This collaborative effort helps identify and address potential security risks.

User Education

Coinbase provides educational resources and tips to help users protect their accounts and recognise potential scams. They also offer paid training through video classes and exams, where users can earn a small amount of cryptocurrency for completing the courses.

While Coinbase takes extensive security measures, they also emphasise that security is a shared responsibility. Users should remain vigilant and proactive in following security best practices to protect their accounts and investments.

Coinbase's customer service

Coinbase offers 24/7 customer service through its live messaging feature, which can be accessed via its website or mobile app. This service initially connects users with a virtual assistant, but a live support agent can be reached if further assistance is required.

To access live support via the Coinbase mobile app, select the menu option (three lines or a "hamburger" icon), then choose 'Get support', and finally select 'Chat with Us'.

Coinbase also offers phone support. The best phone number to call is 1-888-908-7930, which 78% of consumers have used to address their issues. The average hold time is up to 3 minutes, and the longest wait times are on Wednesdays, while the shortest are on Sundays. The average call time is 4 minutes. To prepare for the call, have the following information ready to identify yourself as a customer: first and last name, email, or phone number.

For issues with Apple Pay or Google Pay, contact Apple Pay or Google Pay support.

Frequently asked questions