If you want to trade and or even purchase cryptocurrency for holding it as a long-term investment, you need a cryptocurrency exchange. While everyone is raving about Bitcoin which is great but Coinbase has become a popular exchange platform. So, if you want to purchase cryptocurrency, we are sharing the Coinbase review in this article! And you may also check https://bit-bolt.com/.
The Brief Introduction Of Features & More
Coinbase is one of the most popular and established cryptocurrency exchanges available right now, be it in the United States or other parts of the world. To begin with, Coinbase boasts an extensive range of cryptocurrencies and offers support for more than a hundred cryptocurrencies out there.
In addition, this is an insured platform, which means you can get your investment back if the platform is ever hacked. Truth be told, it’s nearly impossible to find an insured cryptocurrency exchange but Coinbase takes the lead here.
The users on Coinbase can trade on two different platforms, including Coinbase Pro and the original one. With the original platform, the users can utilize their U.S. dollars to buy cryptocurrency.
On the other hand, Coinbase Pro, previously known as GDAX, is known for cutting-edge charting functions and supports crypto-to-crypto transactions, and has an array of features, including stop orders, limits, and place market. On top of everything, the platform has a series of tests and video classes available for people who want to earn while learning.
The video courses and exams are actually very extensive and provide in-depth knowledge about cryptocurrency trading. In fact, the exchange platform offers multiple cryptocurrencies as rewards for completing the classes.
Many people believe that the fee is quite high and the fee structure is equally confusing while there is a minimum amount of $2 for purchasing cryptocurrency. Having said that, it’s a promising platform for regular traders and traders who like to shift from one cryptocurrency to another.
When it comes down to the transaction charges, Coinbase will charge around 0.5% of the crypto purchases and sales, but the rates can fluctuate with the changes in market conditions. In addition, Coinbase will charge a fee, depending on the payment type and amount purchased by the trader.
As far as the confusing fee structure is concerned, the pricing model of Coinbase Pro is easier to understand but the fees are rising constantly but it also depends on the asset liquidity and monthly trading volume when you purchase a cryptocurrency.
Currently, Coinbase is offering around 96 cryptocurrencies for American users. These users can trade cryptocurrencies and it’s the largest number of cryptocurrencies supported by any exchange in the market.
The Trading Pairs
As we have already mentioned, Coinbase supports crypto-to-crypto trading and it actually offers over 80 trading pairs for this trading configuration. Out of these 80 crypto-to-crypto trading pairs, dozens can be traded for Ethereum and Bitcoin while more than ten can trade with USDC, the coin that’s valued at $1 right now.
Security & Wallet
It’s obvious that the cryptocurrency exchanges are not secured by SIPC or FDIC, but according to Coinbase, their digital currency is insured and they only hold 2% or less of the customer funds online. This is because the exchange platform uses cold storage for securing their users’ cryptocurrencies which takes away the scare of online breaches. Also, even if they go through an online breach, the insurance policy will be paid for covering the loss of the customers.
However, there is a catch here because the insurance will only cover the losses related to employee theft and cybersecurity, but if your account’s password was compromised, that loss won’t be funded in any case. As far as the cash balance is concerned, it’s held in custodial accounts or money market funds. Having said that, it’s a secure way of storing your cryptocurrencies.
- Offers support to hundreds of cryptocurrencies
- Supports crypto-to-crypto trading
- The funding minimum is quite low
- Insured platform to cover the loss of funds in case of compromised security
- A mobile app is available
- Reliable customer support
- The transaction fee is higher
The Final Verdict
Coinbase has coined its name as the biggest cryptocurrency exchange in the U.S. but it’s only best for experienced traders. While there are amazing security features available, trading is always a volatile experience, so it depends on your level of crypto knowledge and experience!