Coinbase Review 2022: Features, Security, Pros & Cons

In this Coinbase Review for 2022, we take a dive deep into the popular crypto platform. We analyze the variety of features and apps the platform has to offer, plus take a look at Coinbases’ security, fees, support, pros and con

Coinbase’s design is simple and user-friendly, making it a popular choice for the new crypto investor. The platform’s popularity continues to grow and is available in over 100 countries and with over 35 million users buying, selling, and trading cryptocurrencies.

So, let’s dive into this Coinbase Review, to help you work out whether Coinbase is the right crypto platform for you.

Coinbase Review: How to Use Coinbase?

Coinbase Pros and Cons

What is Coinbase?

Coinbase.com is a secure online trading platform for buying, selling, transferring, and storing digital currency, such as Bitcoin. The platform is ideal for new users getting into cryptocurrency, purchasing their first Bitcoin with the likes of a credit/debit card, or via bank transfer. It is easy to use, convenient and has easy onboarding.

Coinbase Products

Coinbase essentially is built up of 4 individual products & platforms, plus their own USD Coin. These are; Coinbase.com, Coinbase Pro, Coinbase Earn, and the Coinbase Wallet.

Coinbase Pro

Coinbase Pro is a trading platform aimed at more experienced traders. Traders can exchange a wider range of assets with more advanced order types, using order books, charts, and graphs. One of the advantages of trading on Coinbase Pro, compared to Coinbase is their lower trading fees. To reduce your trading fees even further, it’s worth checking out the Binance Exchange.

Coinbase announced in June 2022 that it was phasing out its Coinbase Pro version. The company said the move is to ensure that its users leverage its unified services. Coinbase said;

“Later this year, we’ll begin sunsetting Coinbase Pro to migrate all advanced trading into one unified Coinbase account, bringing customers access to popular features like staking, Borrow, dapp wallet, and Coinbase Card from a single platform balance.”

If you would like to find out more information check out our Coinbase Pro Review & Tutorial.

Coinbase Wallet & DApp Browser

The Coinbase Wallet is a standalone app, that allows users to store their own crypto and explore the decentralized web with a Dapp browser.  This wallet is not to be confused with the Coinbase app, which is also available on Coinbase.com.

It’s not recommended to keep your crypto on Coinbase or their Coinbase Pro exchange long term, as they are centralised exchanges and you are entrusting a third party to look after your crypto. In the world of crypto, this is a big no-no, and there is a saying “not your keys, not your crypto”.

With the Coinbase Wallet, you have access to your private keys, so you can safely store your crypto assets and have full control. However, if you would prefer further security with your crypto stored offline, it’s worth looking into a hardware wallet such as a Ledger Nano S, Nano X or Trezor Model T

If you would like to find out more information check out our Coinbase Wallet Review.

Coinbase Earn

Coinbase also gives users the opportunity to earn crypto with their Coinbase Earn. Their Earn feature is integrated into Coinbase.com and provides its users with an incentive to earn free cryptocurrency while learning about crypto, in a simple and engaging way.

Coinbase Referral Code: £10 Bitcoin Sign-up Bonus

If you’re a new user, Coinbase offers a sign-up bonus of £10 when buying or selling at least $100 (or more) of crypto. For more information on Coinbase referral code or sign-up bonus click here.

Coinbase Supported Cryptocurrencies

The number of supported cryptocurrencies has exploded on the platform in the last year. You will now find the majority of the most popular cryptocurrencies such as Aave, Bitcoin, Cardano, ChainLink, Compound, DAI, EOS, Ethereum, Ripple, Stellar Lumens, Tezos, USDC, and Wrapped Bitcoin available on Coinbase.

You can check out the full list of supported cryptocurrencies here.

Coinbase Payment Methods

With Coinbase, the payment methods available will all depend on your location and whether buying or withdrawing.

In the UK, these include Faster Payment Services, SEPA Transfers, 3D Secure Payments, PayPal for withdrawals only, and instant card withdrawals. You can check out a full list of payment methods for Coinbase UK users here.

Coinbase US users can also make smaller investments with Paypal, Apple Pay and Google Pay. If you’re from the US and view a full list with transfer times, check out the table below.

Coinbase no longer allows users to link their credit cards and this has been restricted to debit cards only. However, if you have a credit card linked already you may still be able to use this but your bank may charge additional fees for these purchases. Therefore it’s worth switching to a debit card or bank account. 

Coinbase Fees

The fees that you pay with Coinbase will depend on the method of payment you choose and your location.

In the past, Coinbase were clear in disclosing their fee structure which they listed by country, payment method, etc. However, more recently have replaced this on their fee page with the following statement;

“Coinbase may charge fees when you buy, sell, or convert cryptocurrencies. Fees are calculated at the time you place your order and may be determined by a combination of factors including the selected payment method, the size of the order, and market conditions such as volatility and liquidity. The applicable fees will be listed in the trade preview screen which will be surfaced before you submit your transaction, and may differ for similar transactions.”

Generally speaking, the most expensive way to buy your crypto on the Coinbase exchange is via credit/debit card payments with a fee of around 3.99%. This isn’t a way that I personally recommend buying your crypto due to the high fees associated. Although it may be one of the most convenient, you are paying for this convenience.

Other types of buy and sell orders with Coinbase incur a fee of between 1.49% and 2.99%. This doesn’t seem huge, but if you compare this to Binance Exchange’s 0.1% or even their own Coinbase Pro platform at 0.5% you are definitely paying over the odds here.

As well as charging fees for instant buys and with payment via bank transfers, Coinbase also charges a spread of about 0.50% for both buy and sell orders. However, the actual spread may be higher or lower due to market fluctuations. If you’d like to check out more information on Coinbase Pro you can click here.

If you’re serious about getting the best price when trading. I would recommend checking out other exchanges to reduce trading fees, such as Binance Exchange (save up to 45%) or FTX (save 5%).

Coinbase Fees UK

The fees that you will pay with Coinbase exchange will differ depending on your location. Previously you could find a full list of fees on their site by location, however, these have since been removed. Below is their previous list of fees, which you may be able to use as a guide;

Coinbase Fees US

The fees that you will pay with Coinbase exchange will differ depending on your location. Previously you could find a full list of fees on their site by location, however, these have since been removed. Below is their previous list of fees, which you may be able to use as a guide;

Coinbase Support

Coinbase customer support is one of their biggest downfalls. They have been heavily criticized on the likes of Trustpilot giving them a rating of “Bad”. Although I have never personally experienced any issues, I can see how frustrating it can be if something goes wrong or you need help.

During crypto bull markets, Coinbase will have a surge of newbies signing up, and with more new users comes more complaints and customers needing help. They have become a victim of their own success, and hopefully will be ready for the next Crypto bull market.

Is Coinbase Safe?

To use the Coinbase exchange, you access the site with a username and password plus any form of 2-factor authentication you have associated. Coinbase is a centralized exchange and therefore has control over your crypto, with no access to your private keys. This means you are entrusting a third party to look after and secure your crypto assets.

Although Coinbase has not reportedly suffered an attack, there have been reports of Coinbase freezing user accounts. Therefore, I’d personally recommend not to keep your crypto on an exchange. When you have finished trading, move your crypto to the safety of a wallet, such as a Ledger or a Trezor.

Conclusion

Coinbase was the first exchange we used to buy Bitcoin and the exchange we would recommend to someone new to crypto. It´s simple and clear to use and with the likes of Coinbase Earn, it continues to grow and attract new users.

Compared to the likes of Binance and FTX exchanges the fees for buying and selling are expensive. These fees can really add up, so I would try their more advanced Coinbase Pro exchange and reduce these fees. Again these fees are still very high and you can do better.

Although we rarely use their Web3 wallet, it’s a great wallet to have. However, if you´re looking to invest long-term check out a hardware wallet like a Ledger or Trezor.

Related Posts

Here are some of our articles you may also find helpful;

• Compare Crypto Exchange & Find the Best Exchange for You
• Coinbase Staking: How to Stake & Earn Rewards on Coinbase?

“Cryptocurrency is not regulated by the UK Financial Conduct Authority and is not subject to protection under the UK Financial Services Compensation Scheme or within the scope of jurisdiction of the UK Financial Ombudsman Service. Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, or lose some or all value. Capital gains tax may be applicable to profits from cryptocurrency sales.”