Coinbase is one of the mainstays in the crypto landscape. The company went public in April 2021, and since then has maintained its spot in the public eye. Coinbase has an easy-to-use platform, but a complicated fee structure.
The basic Coinbase platform has an extremely convoluted fee structure. You don’t pay maker/taker fees or a flat fee, but a spread fee that temporarily locks in the price for the transaction. You don’t get to see the fee you’ll pay until you’re about to submit the trade.
Coinbases spread fees typically run around 0.5%.
For Coinbase’s Advanced Trade users, the company charges a much simpler maker/taker fee on all transactions.
Maker/taker fees are common on most crypto exchanges. A maker creates liquidity on a platform, while a taker decreases it. The only drawback for users is that they don’t know whether they are a maker or a taker until after a transaction.
As with most crypto exchanges, Advanced Trade’s maker/taker fees decrease as the user trades higher volumes of currency. View the full range of fees for Coinbase Advanced Trade in the table below:
Coinbase’s security protocols include checking the dark web for customer passwords, recommending the use of a third-party security key and offering onsite security prompts.
All U.S. dollar deposits on the Coinbase site are held in FDIC-insured bank accounts. Crypto holdings are not covered.
Coinbase carries criminal insurance, which covers security breaches to the site but not compromised login credentials. For this reason, it’s important that customers adhere to Coinbase’s strongest security recommendations.
Coinbase was subject to a series of hacks between March 2021 and May 2021. During this period, more than 6,000 customers had their accounts drained.
Opening a Coinbase Account
To open a Coinbase account, you need to be at least 18 or older, have a government-issued ID, an internet connection and a phone number. Coinbase, like most crypto exchanges, doesn’t charge any fees for opening an account.
Once a user taps the “get started” button on the Coinbase homepage, they’ll enter their legal name, email and password. They also need to prove their location. A verification email will then be sent to the user. After verifying their email, the user also has to verify their phone number for two-factor authentication.
The final steps in setting up a Coinbase account include answering a few questions concerning employment and source of funds and verifying the user’s identity using photographs of an ID. Once all this is completed, the user can link to a payment method and begin funding their account.
Crypto wallets come in many shapes and varieties. For that reason, Coinbase offers more than a one-size fits-all wallet for your crypto storage needs. The exchange actually offers three different types of hot/online wallets:
- Coinbase Wallet. This self-custody wallet supports “hundreds of thousands” of crypto assets. It’s a separate wallet app that does not require you to open an account on Coinbase. You can also park your non-fungible tokens (NFTs) in this wallet.
- Coinbase Exchange. This default wallet option makes trades on Coinbase, but keep in mind your private keys are stored on the exchange, making them more vulnerable to hacks.
- Coinbase dApp Wallet. This wallet stores all ERC-20 tokens that run on the Ethereum network.
Cryptocurrencies Available on Coinbase
Coinbase offers more than 200 cryptocurrencies and stablecoins for trading. Here is a list of some of the most popular cryptos available for trading on Coinbase:
More coins available from Coinbase
A full list of Coinbase coin offerings can be found here.