Coinbase Cryptocurrency Platform (2024 Review)
Coinbase has become a household name which is synonymous with cryptocurrency wallets and trading. But is Coinbase a good platform? And should you use it to store your cryptocurrency?
We have all the information you need to know in order to make an informed decision. So, keep reading to learn all about Coinbase, how it works, and whether or not it meets regulatory requirements in the United States.
What is Coinbase?
Coinbase is an app which doubles as a software cryptocurrency wallet that you can download on your phone or computer. It also functions as a cryptocurrency trading platform and has investment options for those interested in staking currencies like Ethereum.
Coinbase is well known for its trading platform, which currently offers over 250 currencies. Coinbase does vet most of the crypto projects before listing them on their exchange, but in the past , there have been a few situations where they later removed a listed coin due to regulatory issues or because the coin turned out to be a scam.
Coinbase is easy to use, even if you don’t have years of experience in the cryptocurrency space, which is one of the reasons they are so popular among users. They also have a decent blog and website, allowing users to learn about projects before deciding to invest in them.
Who Invented Coinbase?
Coinbase was invented in 2012 by two men, Brain Armstrong and Fred Ehrsam. The two of them saw a need for a platform that could make trading and buying cryptocurrency easy, and they delivered exactly that.
Does Coinbase Follow Legal Requirements in the USA?
Coinbase operates in a legal grey area in the United States. While trading cryptocurrency isn’t 100% legal, they do collect the KYC and AML information that allows them to register as a financial service in the United States. They also don’t allow privacy coins like Monero to be traded on their platform, because all trades made on Coinbase are publicly registered and are not considered private.
That being said, Coinbase has been investigated a number of times by the SEC, but each time , the company has come out on top by agreeing to mine more data of their customers and turn more information over to the IRS. While this makes the Coinbase platform safer than others, it’s important to know that when you use Coinbase, the US government is aware of what you are trading and when, and they will send you a tax bill for transactions at the end of the year.
Related: Coinbase Investigated by the SEC
How Much Does Coinbase Cost?
Coinbase accounts are free for most users on their basic platform, but if you do too many trades with a basic account, you will be forced to upgrade to a trader account, which does cost money. Those with a basic account don’t have to pay for account maintenance, but they do have to pay fees when they buy, sell, or trade cryptocurrency.
The fee Coinbase charges varies based on the currency you are exchanging and the amount you plan to send. Some transactions have very low fees of a dollar or two, while large ones may cost you a whopping 1%. For this reason, we don’t recommend the platform for hardcore traders. More on this later.
Is Coinbase Profitable?
Coinbase is perhaps the most profitable cryptocurrency firm in the United States, raking in a massive $953.8 million in revenue in 2023. Coinbase makes most of this money off of the fees their platform charges for purchases, sales, and trades.
Is Coinbase a Good Platform to Use?
Coinbase is a decent platform to use if you are an American because it keeps you in the legal area of cryptocurrency trading. That being said, we have found the fees for using Coinbase are a bit steep for day traders and others in the industry. In these cases, we recommend looking at a different platform.
That being said, Coinbase is not a private way to hold your cryptocurrency, and for coins like Bitcoin, there are other, better wallets to use. But for someone who wants exposure to coins in a relatively safe space and doesn’t mind sacrificing their privacy, it’s decent. It’s also very user-friendly, which can’t be said about all the software wallets in the cryptocurrency space.
Related: How to Buy Altcoins
Should You Use Coinbase?
If you are new to buying or trading cryptocurrency, Coinbase can be an excellent app to use to get your feet wet. However, once you gain a little experience, we strongly recommend going to a different platform or managing trading yourself.
This is because Coinbase really offers very little privacy when it comes to crypto (which is one of the reasons crypto was invented in the first place), and they are a software wallet. Software wallets are inherently more dangerous than hardware ones and leave you at the mercy of a company. If you ever find yourself with a decent amount of crypto, you will want to take some time and money to invest in a hardware wallet like the Trezor or Ledger X.
Additionally, Coinbase really is too expensive for day trading. If you want to trade cryptocurrency with some regularity, you will need to find a platform with less, and smaller fees. But if you are just buying a small amount of crypto to hold onto for the long haul—well, then Coinbase is probably okay for now.
Coinbase Competitors
Coinbase isn’t the only cryptocurrency wallet on the market that makes trading easy for beginners. Their major competitors are as follows:
So, if you don’t think Coinbase is the right choice for you, you may want to look into these other platforms to see if they are more suitable for you.
Overall, Coinbase is one of the decent projects in the cryptocurrency exchange platform space. While we don’t necessarily recommend it to everyone, if you are just getting into cryptocurrency, it can be a decent place to start. But if you are a seasoned trader looking to expand, we definitely recommend heading elsewhere.
You May Also Enjoy: The 5 Best Decentralized Exchanges (2024)
This article was brought to you by the 100% provably fair Bitcoin Slots on MintDice. Originally posted to the MintDice Blog.
If I say it from my own experience, I think the Coinbase platform is not a good platform to use. because he closed my account without any explanation. and I can't access my balances. No explanation was given.