Coinbase Exchange Review – An Easy to Follow Guide for New Users

Exchange Reviews / 17.12.2018

Coinbase is the largest U.S.-based cryptocurrency exchange in the market at this time. The platform is geared towards novices and features a simplistic interface that simplifies basic trading activities. Currently, Coinbase is one of the most reputable exchanges in the world. The platform consistently ranks in the top ten in terms of traffic, liquidity, and trading volumes.

Coinbase exchange has grown from a simple platform to encompass a complete blockchain ecosystem. The network operates as a fully regulated brokerage firm. Additionally, it is licensed to provide custodial services and offer payment processing. The network also expanded to include Coinbase Pro, which is a more advanced version of the platform. For these reasons, Coinbase is an ideal choice for new investors and large financial institutions.

Benefits of Coinbase

You gain a lot of benefits when you trade on one of the most established cryptocurrency exchanges ever. The interface is responsive and user-friendly. The trading window provides you with all the data you need to make informed investment decisions. Best of all, the minimum to fund an account is $2.

Coin Selection

The exchange offers 32 cryptocurrencies at this time. You will find all of the top projects in the market on this platform. Coinbase is notoriously picky about what projects make the cut. Coins that are lucky enough to qualify and get added to the network usually experience a huge spike in value due to the increased market capitalization. 

Top-Notch Security

Coinbase integrates industry-grade security measures to keep your crypto safe. Developers claim that less than 2% of customer funds remain online. The other 98% are tucked safely away in cold storage. The network also has personal security measures in place to protect your account. For example, you can utilize 2FA to add an extra layer of protection to your account.

Insured

Coinbase is fully insured against hacks. This strategy provides more confidence to large institutional investors. It also lets you know that the network won’t leave you out in the cold if attacked. 

Fiat On-Ramp

Coinbase is one of the most successful fiat on-ramps in the world. Every day new users pour into the blockchain space via this exchange. Users can fund their Coinbase accounts in a variety of ways. The network supports bank transfers, debit cards, and credit cards.

Institutional

The exchange offers a lot of features to entice large investment firms. For example, there is a $25,000 per day withdrawal limit for regular accounts. Large institutions can get this bumped up to meet their needs by submitting a request. This flexibility helped Coinbase secure its large clientele base.

How Does Coinbase Work

Coinbase is a custodial centralized exchange. This designation means that your funds are loaded onto the exchange before you can trade. Centralized exchanges then trade your funds between their network wallets. New investors prefer centralized exchanges because they offer a regulated fiat on-ramp and are easier to navigate than decentralized exchanges (DEXs) at this time. 

  • Coinbase Wallet

The Coinbase network also includes a digital wallet. The Coinbase wallet makes purchasing crypto a breeze. You can also send and receive any of the supported digital assets in seconds. 

  • Fees

There’s a price tag on all the features and benefits Coinbase brings to the table. The current sliding fee structure is based on your trading volume. New users can expect fees between 0.5% to 4.5% depending on the payment method, cryptocurrency type, and transaction size.

  • Mobile Wallet

Coinbase is primarily used on mobile devices. The exchange is available as a free download on both iOS and Android platforms. The app downloads in seconds and takes minutes to get up and to run.

  • Coinbase Earn

One very unique feature of the exchange is its Coinbase Earn system. This educational series includes various video classes and exams to help you become a better crypto trader. You learn different trading strategies, and you can delve deeper into 12 of the cryptocurrencies on the exchange. Best of all, you can earn $100+ in crypto rewards.  

History of Coinbase

The long journey to the top of the market began for Coinbase in July 2011. At this time, the founder of the exchange, Brian Armstrong, came up with the concept. Notably, Armstrong is well-known for his part in engineering the popular lodging app Airbnb. 

The concept received a huge boost after receiving funding from the Y Combinator. The Y Combinator is an investment group that focuses on funding early-stage startups.  Interestingly, the network invests in a large variety of startups twice a year. 

In 2012, a former Goldman Sachs trader, Fred Ehrsam, became the co-founder of Coinbase. This move helped drive innovation and development into the exchange’s crypto buy and sell features via bank transfers. Today, Coinbase is available in 32 countries. Impressively, the network’s wallet is available in 190 countries worldwide. 

How to Use Coinbase

Coinbase was built to make crypto investing easy for the average new user. You need to download the mobile app or go to the website and click register. From there, you are directed to a registration form. Coinbase is fully regulated in the US. You will need to prove your identity before you can trade or even load your account with funds. 

The KYC process requires you to send a photo of your ID, holding your ID, and other banking information. The process can take over a day to complete. In some instances, they may request more information to verify your account. 

You’re Ready to Go

Once you’re registered and approved, you can start trading in minutes. You will first need to either load your account with cryptocurrency you already have or, you will need to load fiat currency from your bank. You can select your USD wallet and click deposit. Next, you will need to specify your fiat payment method and the number of funds you will load. Once you approve the deposit, your funds typically load quickly.

Coinbase – A Top Quality Exchange for New Users

If you live in the US, Coinbase is one of the best and safest exchanges available. Your funds are secured, and the network has an incredible amount of funding to back its developments and security. For these reasons, the platform is set to remain a mega exchange for years to come. 

David Hamilton aka DavidtheWriter is a long time Bitcoinist and cryptocurrency journalist. Currently, he has over a thousand articles published on blockchain technology. His expertise and experience makes him one of the most reputable writers in the sector.