Coinbase has been in operation since 2012 after launching in San Francisco’s Silicon Valley, as a consequence of the cryptocurrency boom. It is widely regarded as one of the leading cryptocurrency exchanges today, serving more than 12 million customers and exchanging over $40 million in crypto coins. At the time of writing, Coinbase is the world’s number-one broker for bitcoin.
If you’re keen to learn more about Coinbase, trust Buy Ripple’s Coinbase review to give you all the info you need. We’ve tested the Coinbase exchange to discover how it performs in terms of the breadth of cryptocurrencies offered, its deposit and withdrawal methods, transaction fees and its levels of customer service.
Coinbase Vs eToro
Widely regarded as a unique social investment network, eToro is our preferred broker for several reasons. It spans a huge range of traditional financial and cryptocurrency investments and is designed to foster communication between investors new and old to discuss prospective trading angles. eToro is also one of the longest-standing social trading and multi-asset brokerage companies online. It was launched more than a decade ago (2007).
Coinbase is also a well-respected cryptocurrency broker, having secured its licences to comply with US state and federal laws and regulations. This means the exchange is highly accountable for its actions, something which many of its competitors lack at present. Coinbase, like eToro, also offers a wealth of payment methods and is one of the few brokers to accept deposits from credit cards.
Coinbase is widely considered one of the most secure platforms for buying and selling cryptocurrencies online. As the company is based in San Francisco, it must comply with US state and federal laws. However, in the other 31 countries in which it operates, Coinbase does not need a license to operate its cryptocurrency platform. There are several high-profile financial backers of Coinbase, which helps to make it more attractive and trustworthy in the eyes of consumers. The Bank of Tokyo and Alexis Ohanian, the founder of Reddit, are two of the most high-profile investors.
Interestingly, although Coinbase offers a wide spread of crypto coins to invest in, it does not offer Ripple XRP at present. Crypto experts believe this decision has been taken because Ripple is not 100% decentralised, meaning that it fails to meet the criteria to be listed on Coinbase. Its lack of inclusion on platforms such as Coinbase could be part of the reason why the price of Ripple XRP dipped below $1 in 2018.
Pros and cons of Coinbase
- Intuitive – Coinbase is generally considered easier to navigate and use than your average cryptocurrency exchange.
- Additional Coinbase payment methods – users at Coinbase can purchase cryptocurrency using debit and credit cards as well as traditional bank transfers and third-party payment providers.
- Highly trustworthy – as a well-regulated company in the US, Coinbase is a safe pair of hands for crypto investors.
- Secure storage of user funds – Coinbase is committed to the safe storage of customers’ cryptocurrency, storing them in custodial bank accounts.
- Relatively few cryptocurrencies available – Coinbase currently accepts transactions for only four cryptocurrencies – Bitcoin, Litecoin, Ethereum and Bitcoin Cash.
- Higher fees than average – Coinbase transaction fees tend to be a little on the higher side compared with the industry average.
- Ripple XRP not available – cryptocurrency investors cannot purchase Ripple XRP at Coinbase at the time of writing.
Which cryptocurrencies are traded?
- Bitcoin Cash
Which payment methods are offered?
- Bank transfer (USA users)
- Credit and Debit cards (USA, Canada, Europe, Australia-based users)
- SEPA transfer (EU users)
- Xfers transfer (Singapore users)
How to deposit and pay out with Coinbase
Coinbase withdrawal methods: How easy is it?
- If you choose to link your bank account, withdrawals from your Coinbase wallet to your bank are seamless.
- Wire withdrawals from Coinbase accounts are available for cryptocurrency worth at least $25,000. Complete the verification steps to activate your wallet and verify your wire withdrawal information to receive your funds within three working days.
- SEPA account withdrawals take just two working days to complete, with only transfers in the Euro supported by SEPA at present.
Are there any Coinbase fees? What are the min/max deposits?
- Minimum deposits: 2.00 of your local fiat currency (e.g. £2 or $2)
- Bank Transfers (1.49%)
- Credit / Debit Card (3.99%)
- SEPA Transfers (1.49%)
- Xfers Transfers (1.49%)
Experiences with Coinbase customer service
With over four million customers served since 2012, you’d think that Coinbase would have perfected its customer support by now. However, it appears that isn’t the case, with no shortage of anti-Coinbase vitriol posted online. Reports suggest Coinbase take up to 48 hours to respond to customer emails and its social channels are full of unanswered questions. While Coinbase gets many things right, they should certainly sharpen up on their external communications, or they are risking having customers calling Coinbase a scam.
How does Coinbase compare to our preferred broker?
Coinbase compares favourably with eToro in terms of its standing in the marketplace. As a well-regulated company with six years of trading under its belt, Coinbase is a well-respected bitcoin broker and for other cryptocurrencies. However, with no demo accounts or online community, eToro still gets the edge, allowing crypto investors to invest, learn and share knowledge across its network.
Although it’s not perfect, Coinbase is certainly one of the most intuitive and secure cryptocurrency brokers on the market. Coinbase is designed to make it easy for first-time investors to experience the world of crypto coins without feeling out of their depth.