Coinbase

Coinbase is a cryptocurrency trading platform that has been in operation for over a decade. The platform is available globally and users in more than 100 countries can buy, sell, trade, and store their crypto and fiat currencies. 

The platform has grown in popularity with both new and experienced crypto users for its comprehensive offerings including investing and staking. Let us take an in-depth look at what the platform offers. 

Coinbase Overview

Feature	Overview
Security	2FA, On-site prompts, Lock My Account
Regulation	BitLicense
Wallets	Coinbase.com, Conbase Wallet, Coinbase Web3 Wallet
Tokens	Over 10,000 assets (Supports ERC-20 tokens, tokens on EVM, Solana)
Payment Methods	Bank. Gpay, Apple Pay, PayPal, Wire transfer
Registration Process	Simple and quick
Fees	Transaction, staking, network, spread, and recovery

Coinbase Security Measures

Other than the normal verification process, Coinbase has put in place several security measures to ensure users are well-protected:

Two-Factor Authentication: Two-factor authentication or 2FA is a security process that requires you to provide two different authentication factors to verify yourself. It’s a higher level of security and requires a password as the first factor and a second, different factor, which could be a security token (or PIN) or a biometric factor, such as a fingerprint. 

Notifications: Coinbase regularly sends email, in-app, and push notifications. It also sends security alerts if there are any changes to the account or if any updates need to be made. 

Lock My Account Feature: With this feature, Coinbase allows you to lock your account if there’s suspicious activity on the account. 

Criminal Insurance: Coinbase provides criminal insurance to protect a portion of digital currencies in case of loss from theft, including cybersecurity breaches. Unfortunately, the policy doesn’t cover the assets when you lose your assets from sharing your credentials. 

Coinbase Regulation

Coinbase has a BitLicense from the NY Department of Financial Services, which it received in 2017. It is also licensed in almost every US state. In Canada, Coinbase must notify users when crypto assets dip below a certain level and have a limit on total cryptocurrency purchases in a year. These limits do not apply to Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), and Ethereum (ETH). 

Coinbase Wallet

When you open a Coinbase account, you get access to the Exchange and the Coinbase Wallet.

Coinbase Wallet. This is a self-custody wallet, which means you control your private keys and in turn all our assets. The Coinbase wallet is a separate downloadable app that supports all ERC-20 tokens, all tokens on EVM-compatible chains like Polygon, and tokens hosted on the Solana Network.

Coinbase Exchange. You can use the default wallet on Coinbase when you open an account. This is a custodial wallet and Coinbase stores your private keys for you. This means it also has control over your assets. 

Coinbase Web3 Wallet. The Web3 wallet on Coinbase shares custody with the device your web3 wallet is on. In other words, it holds half of your private keys while the device holds the other half. 

Coinbase Payment Methods

There are several payment methods you can use on Coinbase.

Payment Method	Buy	Sell	Add Cash	Cash Out	Speed
Bank Account	Yes	No	Yes	Yes	3-5 business days
Debit card	Yes	No	No	Yes	Instant
Credit card	No	No	No	No	–
Wire transfer	No	No	Yes	Yes	1-3 business days
PayPal	Yes	No	Yes	Yes	Instant
Apple Pay	Yes	No	No	No	Instant
Google Pay	Yes	No	Yes	Yes	Instant
3D Secure Card	Yes	No	No	No	Instant

Deposit Crypto on Coinbase

• Log into your account
• Click on “Send & Receive”
• Click on “Receive”
• Choose your preferred crypto coin
• Copy and paste the address to your external wallet.
• Complete the transaction to your Coinbase wallet.

Withdraw Crypto on Coinbase

• Log into your account
• Click on “Send & Receive”
• Click on “Send”
• Choose your preferred crypto coin
• Enter the amount of crypto you are withdrawing
• Copy and paste the address to your external wallet.
• Complete the transaction to your Coinbase wallet.

Deposit Fiat on Coinbase

• Log into your account
• Go to the Deposit page 
• Select your preferred deposit method. 
• Click on “Continue” to authorize the transaction and complete

Withdraw Fiat on Coinbase

• Log into your account
• Verify your payment method
• Go to the “My Assets” page
• Select the fiat currency.
• Select your preferred withdrawal method. 
• Enter the amount 
• Click on “Withdraw” to complete the transaction

Coinbase Fees

Coinbase is transparent with its fees, which you can find on the platform’s help section. Makers pay less (0% to 0.4%) than takers (0.05% to 0.6%). Its other fees include:

Exchange fees: Based on your tier and the amount you transact

Transaction fees are based on the time of the transaction. This includes mining fees.

Efficiency gains and network fees are based on potential efficiencies from batching transactions.

Payment network fees: Based on the payment method used during a transaction

Credit transaction fees: Coinbase charges 2% for USD borrowed from the platform or its affiliates.

Spread fees are included in the quoted price during a transaction. 

Staking fees: Coinbase charges a standard 35% commission on rewards earned from staking. 

Asset recovery fees: Coinbase charges 5% for recoveries above $100

Registration Process

• Creating a Coinbase account is simple and easy. 
• Visit the Coinbase website and click on Sign Up.
• Choose your account type and click on ‘Get Started’
• Fill in the basic information (name, email, state, and password)
• Check that you’ve read the User Agreement and Privacy Policy.
• Click “Create account”
• Verify your email, phone number, and identity
• Link a payment method

Customer Support

Coinbase offers users a comprehensive FAQ/Help section with detailed information about the platform. Unfortunately, its customer support system is unavailable 24/7 and is known to be slow. 

Is Coinbase Safe?

While Coinbase has put security measures in place, the platform faced a series of hacks in 2021 and thousands of customers lost their assets.  

Final Thoughts

As one of the largest crypto exchanges, Coinbase provides trading solutions to users in different countries. Whether you are a beginner or an advanced trader, you can take advantage of all the platform has to offer, including staking and trading.