Coinbase is a major cryptocurrency exchange and trading platform, allowing the sale/purchase and trading of most major digital crypto coins in over 30 countries in the world. Coinbase is focused towards enabling beginners to own their first cryptocurrency conveniently. For advanced users, however, it has certain limiting factors.
In this post, we will take a look at what these Coinbase limits are, which should help you understand whether this is the right platform for you to invest in.
Account levels
Coinbase has various account limits, depending on the level of information you have provided. I order to go up to Level 2, you will need to complete the verification for the following:
- Verify phone level
- Verify personal information
- Verify photo ID
With Level 2, you can make trades of up to $25,000 a day via ACH in the US. Wire transfer to your USD wallets will allow you to buy more.
Level 3 can be unlocked by providing a valid US state ID. This will allow you to send and receive funds and cryptocurrencies on the blockchain.
Coinbase Pro
The Coinbase Pro service allows advanced users to trade in their crypto coins in addition to being able to buy and sell them. Users who have just created a Coinbase Pro account get a withdrawal limit of $10,000 by default.
For trading, there is no limit on the number of orders you can place. However, there are minimum volume limits for orders on each market as follows.
- BTC: 001
- BCH: 0.01
- ETH: 0.01
- LTC: 0.1
For Coinbase Pro, there is no limit to how much cryptocurrency you can deposit. There are limits, however, on deposit of fiat currencies (USD, EUR etc.). This deposit limit applies to ACH or SEPA transfers, and are limited based on your weekly bank transfer limit. Wire transfers are unlimited.
Withdrawal limits for cryptocurrency and fiat currency for Coinbase Pro users are limited. There’s a daily withdrawal limit of $10,000 per day. This applies to 10,000 actual US dollars, or crypto coins worth up to $10,000.
Coin ownership
While Coinbase makes ownership simple, it also gets criticism over the fact that the platform doesn’t allow basic users to actually own cryptocurrencies on the blockchain. Digital funds are not not controlled by users. Rather, they’re controlled by Coinbase much like a Bank that controls your money.
Furthermore, Coinbase reserves the right to reject a trade or transaction if it doesn’t adhere to their policies. This includes the use of their digital assets for the purchase of illegal items (drugs, adult content), or the transfer of valuable assets to competing coin exchanges. It is for this limiting factor that some high-volume customers prefer not to use Coinbase.
Are you currently using Coinbase? What are your experiences with respect to the limits and restrictions put in place by Coinbase?
