Coinbase is one of the world’s largest cryptocurrency exchanges, dealing with major currencies such as Bitcoin and Ethereum. Coinbase is also responsible for conversion into fiat currencies and facilitates bank transfers around the world. In this Coinbase review, we will take a look at what Coinbase is and what services it provides.
How Coinbase works
Coinbase allows users to buy Bitcoin and other digital currencies against fiat currencies (such as USD) using credit or debit cards. Coinbase operates 6 cryptocurrency tokens in over 30 countries, and is aimed at making coin acquisition easy for new users.
Typically, when you purchase a cryptocurrency, you have to store it in a wallet for which you get a private key or passphrase. Coinbase, however, manages the key for you, and you don’t have direct access to your coins. Instead, you allow Coinbase to manage your coins in much the same way a bank manages your money.
Coinbase offers brokerage for six major cryptocurrencies. These include:
- Bitcoin (BTC)
- Bitcoin Cash (BCH)
- Ethereum (ETH)
- Litecoin (LTC)
- Ethereum Classic (ETC)
- 0x (ZRX)
You can buy any of these digital currencies or sell them on the Coinbase brokerage services.
Coinbase Pro offers experienced users some advanced features, such as the trading and exchanging of cryptocurrencies with each other. Exchange fees are considerably lower as compared to Coinbase brokerage.
Starting 2018, Coinbase is also offering a digital Wallet service with iOS and Android apps that store private keys on your mobile device. This wallet can be used to store a number of different currencies.
For merchants and online retailers, Coinbase offers plugins for accepting cryptocurrency payments on e-commerce websites. These plugins are available for all major CMS, including Shopify and WordPress.
Transaction fees and limits
Transaction fees for Coinbase can be tricky, and attract some level of criticism from the community. Below purchases of $200, you are charged a flat rate anywhere between $0.99 and $2.99. For larger transactions, the price can vary depending on the method of payment and the region you’re currently located in. Standard buy charges a transaction fee of 1.49%, whereas credit card buys are charged at 3.99%. Depositing money costs $10 except when done via ACH transfer.
Check out more information about Coinbase fees here.
If you invest heavy sums in buying Bitcoin, Coinbase might be a little restrictive. For people in the US with credit card on file, there’s a $1,000 weekly limit on buying cryptocurrency coins. The highest limit for verified users is $25k per week.
Coinbase has drawn some criticism with respect to its policies, as it reserves the right to cancel a transaction and can even shut down your account if illegal activity is detected. However, Coinbase still is a great platform for beginners looking to get into the cryptocurrency market, and has competitive fees when compared to some other popular cryptocurrency exchanges.