Coinbase Review 2022: How safe is Coinbase?

Registration on Coinbase is simple. Enter your email address and nominated password. Make sure to use your real name as shown on your passport or driver’s license. You will need to confirm your identity but more on that later. Using an alias will only delay this particular step. Lastly, check your email address to make sure it is accurate.

Then, you will receive a confirmation email at the address you provided. Click the confirmation link to activate your Coinbase account.

When your account gets activated, you must confirm your identity. While you can skip this step, it is worth setting up right at the beginning so you can access more cryptocurrency. Only confirmed accounts can buy certain coins. Not to mention, your account will also be doubly-secured.

To confirm your identity, go to the Settings options in your Coinbase dashboard and choose Security. Then, you need to fill in your residential address. The Country field determines which financial services you can use and the volume of coins you can buy or sell.

Then, upload copies of any government-approved ID such as passport or driver’s license. The requested documents would depend on which country you currently reside.

Coinbase and Coinbase Pro are two cryptocurrency exchanges owned by Coinbase Global Inc. Beginner investors find the simplicity of Coinbase to be more appealing. Seasoned crypto enthusiasts prefer the advanced options that Coinbase Pro can offer.

The major difference between the two platforms is the user interface. Coinbase offers a clean and simple way to buy and sell cryptocurrency. You will have few trading options, which makes the experience more straightforward.

Coinbase Pro, on the other hand, gives users advanced charting. Advanced traders prefer this platform because it offers more control over their trading by providing them access to multiple trade options. Users can further customize their charting views by creating minute-by-minute trading, enabling them to view the moving averages for each coin.

If you are a novice trader, you can learn the ropes first on Coinbase. Yes, the transaction fees on Coinbase are much higher than Coinbase Pro. However, it offers simplicity and ease of use that the other exchange does not. With Coinbasse earn, you can learn about the different cryptocurrency projects and earn small amounts of crypto as a reward.

Coinbase Pro is more for business use. If you are an experienced crypto investor, you would probably want to use this platform instead. Although there would be a steep learning curve, this platform offers lower transaction fees. On top of that, you can access advanced chart analysis and professional trading features that Coinbase lacks.

The beauty of Coinbase and Coinbase Pro lies in the seamless way you can jump from one exchange to another. Log into Coinbase Pro using the same Coinbase username and password. It also works vice versa.

he Coinbase fee structure might seem too complicated and intimidating to some. But we’re here to break down the fee structure into digestible pieces to lessen the confusion.

Let’s define the two main fees that apply to all transactions: margin or spread fees and Coinbase fees.

The difference between the market price and the price you pay for a purchase is called the spread. It is not unlike the commission or trading fee you might pay when investing using a brokerage account.

Coinbase’s spread equals 0.50% of your crypto sales and purchases. It can fluctuate depending on the market. You can get charged a spread fee of up to 2% when converting cryptocurrencies, like trading Bitcoin for Ethereum.

Now, the Coinbase fee is a whole other story. This part is where things get confusing for most. There are so many factors that affect this fee. The user can either pay a flat fee or a variable percentage of the transaction. This percentage will also depend on the region, product, transaction size, and payment method.

The flat fees charged by Coinbase:

Here are the variable fees for users based in the US:

It is worth noting that the minimum transaction on Coinbase is only $2, up to a total of $25,000 per day.

Although compared to other top exchanges such as Binance, Coinbase doesn’t have as many altcoins. However, it still supports the trading of over 100 cryptocurrencies. Bitcoin, Ethereum, Cardano, Polygon, Polkadot, Uniswap, and Dogecoin are a few popular currencies available on Coinbase.

The platform allows you to purchase cryptocurrency in dollar amounts. Coinbase has a $2 minimum order amount, while Coinbase Pro has no minimum dollar requirement. However, the order can’t be smaller than 0.001 BTC, O.01 BCH, 0.01 ETH, or 0.1 FTC.

Security is one of the most talked-about aspects of any exchange. Every investor has perhaps asked once or twice if Coinbase is a safe platform to use. Let’s take a closer look at this crypto exchange’s security features and other safety measures it has put in place.

• ID Verification
  Since Coinbase follows KYC (Know Your Customer) rules, users must submit a government-issued ID and complete the address verification step so they can use the platform’s trading features. You can’t trade on Coinbase anonymously, which adds a layer of protection.

• Use of Cold Storage
  Coinbase has long since stored assets in cold storage. Those assets are offline. Less than 2% of customer funds are online, so users remain secure that their funds are untouchable via hacking or theft. The exchange also keeps all of its assets insured.

• Wallet Security
  Each user’s wallet, wallet address, and private keys feature encryption. Wallets and other personal data are encrypted under AES-256 encryption.

• 2-Step Verification
  All users are encouraged to use 2FA to boost personal security. There are three types of 2FA available to customers.
  
  You can go for phone/SMS authentication where you will receive a one-time passcode every time you log into your account. You can also use a TOTP authenticator such as Google, which provides random time-sensitive codes you can use during login.
  
  The most robust form of 2FA is using hardware keys. Hardware keys are physical token devices similar to flash drives that provide additional authentication during login. Trezor and Ledger are some of the popular hardware keys.

Coinbase has a major weakness: its customer support. Angry customers have left thousands of complaints of being unable to reach customer service.

The crypto platform only has email support to offer. There is an emergency phone number provided to disable your account. You are given the option to speak to a live agent. However, these options still aren’t enough to address the pain points of most users.

Most users try to make it work by directly sending a message on the exchange’s social media accounts. Some prefer to reach out to online crypto communities on Reddit or Discord.

Coinbase is one of the most trusted cryptocurrency exchanges today. Not only does it store 98% of all the users’ assets on offline cold storage, but USD balances of up to $250K are FDIC insured. While it may have its weaknesses, such as poor customer service and high transactional fees, it makes up for its diverse products, easy-to-use interface, and crypto rewards for users who participate in Coinbase’s video classes.