What is Coinbase?
Coinbase is a U.S.-based crypto trading platform that allows customers to invest in digital assets. The history of this exchange took place in June 2012 when Coinbase founder Brian Armstrong won a startup incubator grant of $150,000 and got Fred Ehrsam on the board. Coinbase headquarters were initially settled in San Francisco, but after the COVID-19 pandemic, the company decided to work full remotely without HQ and offices. Coinbase CEO is still Brian Armstrong with Emilie Choi as COO, and Alesia Haas in the role of CFO.
At the time of writing, the Bitstamp crypto platform ranks 1st in the overall rating of exchanges on Coingeco, and 7th in the cyber security rating. Assigned security level - AAA, the exchange passes the Penetration Test, has Proof of Funds, and encourages the Bug Bounty program as the Coingecko says. The exchange funds are proved and audited by Deloitte in December 2021, but its proof of reserves is not publicly available.
What is Coinbase stock?
In the process of reorganization, Coinbase Global Incorporated was established in 2014 in Delaware, which became the holding company for the exchange and other fintech companies. The holding’s products and services include self-custody wallets, decentralized applications, and Web 3 services. There was no Coinbase IPO, instead in 2021 the Coinbase Global stock (COIN) went public on the Nasdaq exchange through the DPO, which stands for Direct Initial Offering. Two main differences between IPO and DPO are that the issuer does not need to create new shares and does not require bank assurance before stock listing. Coinbase stock hit the $85 billion capitalization at the start of trading, making 1.5X its market value before listing.
Daily volume - $700,000,000
Trust score - 10
Cybersecurity score - AAA
Financial reserves - available for 2021
Monthly visits - 34,4 Million
Supported currencies - 240
Trading pairs - 536
*Data from Coingecko and Coinmarketcap
Coinbase is ranking 1st on Coingecko, achieving a TrustScore of 10. The exchange has a AAA rating for cyber security, passing the Penetration test, providing Proof of Funds, and encouraging the Bug Bounty program. Proof of Reserves is not displayed in real-time on Coinmarketcap, however, the exchange funds are audited in 2021 by Deloitte. 34,4M monthly visitors provide Coinbase trading volume at an average of $700,000,000 per day. There are 240 cryptocurrencies available, which creates 536 trading pairs.
Coinbase crypto list of tokens available for trading is not such exceptional, as competitors have, but it compensates with the U.S., E.U., and U.K. regulatory compliance of the exchange. Thus you can legally trade crypto to the following stablecoins and fiat currencies: USD, EUR, GBP, DAI, USDT, and USDC.
Deposit and withdrawal
Coinbase transaction fees depend on the type of transfer (deposit or withdrawal) and the payment processor. Due to licensing in European, British, and United States regions, you can deposit and withdraw from the exchange with a wide range of payment methods. It is acceptable to buy crypto and cash out with a Credit or Debit, bank transfer (SEPA, Swift, and ACH), wire transfer, or PayPal. Coinbase transfer fees for cryptocurrency transactions are paid by the exchange and will be charged to you at the time of the operation.
Coinbase deposit fee and limit depend on the registration of the customer and the payment method. For UK users there is a Fast Payment option allowing you to deposit at least 50 GBP with no commission but with limits of 20 transactions in 24 hours and £250,000 per deposit. For EU citizens there is a SEPA bank transfer available with no depositing limits and €0.15 fee.
For US customers, there are the following depositing options: Fedwire transaction, international wire via SWIFT, and ACH Bank Transfer. The first will take a $10 commission, and will not give any limits. There are no limits for SWIFT deposits, but there is a $25 fee. ACH transfers are available only to U.S.-based customers with no limits and deposit fees. For all types of deposits, the exchange emphasizes making at least $50 transactions.
The Coinbase withdrawal fee will depend on the payment method - free for ACH, 25 USD for American SWIFT and Fedwire, 0.15 EUR for SEPA, and 1 GBP for UK Fast Payment. The Coinbase withdrawal limit is set to $100,000 per day for all payment methods. The cost of the cryptocurrency Coinbase withdrawal will be calculated and charged to you at the time of the transaction, as it depends on the network load.
- API trading
- Bitcoin and Ethereum futures
Using the exchange in a basic mode you can convert crypto, deposit, and withdraw. While advanced trading is available on Coinbase Pro with the enhanced chart mode, limit, and stop orders. The Coinbase NFt platform allows users to trade and create digital assets easily and without leaving the ecosystem. Coinbase API can be used for institutional investors to execute high-volume trades or access advanced real-time market data to develop a trading bot for automated strategy.
Coinbase is the CTFC-registered Designed Contract Market that allows trading of Bitcoin and Ethereum Nano Futures. The first one has the ticker BIT and stands for 1/100th of BTC, and the second one is ET which is 1/10th of the ETH. Coinbase derivatives are available for trading via brokerage and clearing firms, which set the margin level and fees individually.
Coinbase trading fees depend on the user’s average 30-days trading volume. However, that is applied to the Pro version of the exchange. Fees for converting crypto in the light version will be 0.6%. Coinbase Pro trading fees based on the volume are listed below:
30 days trading volume
Coinbase KYC is obligatory before accessing the platform, as the exchange is officially registered in many jurisdictions and must follow the AML policy. To verify identity the following information may be required depending on the client's citizens: personal information, ID verification, proof of address, and your intentions for using the exchange.
The exchange has been hacked in 2021 and 6,000 users were affected by the software exploit for the SMS recovery system. Hackers got access to the user’s log data to withdraw funds, but the exchange fixed the breach fast and restore the client's funds in full. Another Coinbase hack took place in 2019 when there was a combined massive attack, which has been successfully defeated by the exchange.
Is my crypto safe on Coinbase?
Overall, it is safe to keep your crypto on this exchange, if you agree to store assets in a custody wallet of a third party. In addition to the 2-factor verification for your account, the exchange is tracking any suspicious login activity and you can easily block your account in emergency cases. For a faster confirmation process, there is mobile in-app verification that can replace the standard 2FA verification via SMS or Google. If you need more security, there are special vaults with additional secure withdrawal approval and the opportunity to add a co-signer person for the withdrawal confirmation.
Terminal and mobile app
The Coinbase wallet is available as a mobile app for IOS and Android and as an extension for Google Chrome. You can use the app or wallet extension to manage your crypto (swap, bridge, send, receive) and to connect to decentralized applications. The Coinbase Pro app is accessible for IOS and Andriod users, where you can get access to advanced trading and chart analysis. However, there is no desktop Conbase app available to use.
- Coinbase card
- Coinbase Prime
- Coinbase One
You can borrow up to 40% of your Bitcoin portfolio in fiat currency if you are a US citizen. With the minimum monthly payment of $10 and an 8,7% Coinbase interest rate, you can get up to $100,000,000 in cash. The funds can be withdrawn to your bank account via ACH transfer or to your PayPal account.
Coinbase staking can provide you with several options - Cloud Staking and classic one. The classic one allows you to stake crypto that is on your exchange account, making that a few-click solution. Cloud Staking is the self-custody staling solution, allowing you to delegate your crypto to the exchange public validator, or to let the exchange run your validator node. The exchange staking fee occurs on the gained assets from the network transaction fees and varies from 25% to 30%.
Coinbase One is a monthly subscription for $30, which reduces trading fees to zero, boosts staking APY and gives the support priority. Coinbase Prime is the integrated brokerage platform for institutional investors. It gives direct market access to the liquidity pools underlying the exchange products via an API connection. In line with offline custody by the exchange and advanced trading opportunities, that is becoming a good solution for institutional and high-frequency traders.
A Coinbase card is a debit card issued by Metabank and operated by the exchange. It makes it possible to pay by crypto all the payments available for Visa cards. The exchange will automatically swap cryptocurrency for fiat at the time of purchase. With no fee for crypto spending and annual payments, you will additionally get a crypto cashback from each payment. The card ATM withdrawal is available all around the world with a daily limit of $1000.
Coinbase reviews on TrustPilot set the average rating of 1.3 stars from 5, based on more than 8,000 reviews. Most of the complaints are connected to account restrictions and customer support being unable to resolve the issue effectively. However, 16% of users gave the exchange more than 3 stars stating the efficiency of fiat transfers and the platform's high-quality Web 3 services.
Customer support and contacts
Coinbase customer service is available only via the chat assistant or the direct support request on the website or in the app. The customer service number and email contact are unavailable. Instead, there are detailed articles on all possible topics in combination with the previously mentioned support options.
Coinbase is a legally operating crypto exchange that does not permit to access its services from jurisdictions sanctioned by the U.S. Treasury and the Office of Foreign Assets Control. To get the list of jurisdictions that are currently under the OFAC sanctions, follow the link to their website.