Coinbase Crypto Exchange Review: Features, Fees, and Security
Coinbase has long been one of the most recognizable names in the cryptocurrency world, offering a platform where users can buy, sell, and trade digital assets. With its user-friendly interface and broad cryptocurrency support, it has attracted millions of users worldwide, including in Australia. However, beneath its polished exterior lies a platform with notable complexities, particularly regarding fees and security.
This review takes a closer look at Coinbase, examining its features, fee structure, security measures, and overall usability to help you determine if it’s the right exchange for your cryptocurrency needs. Whether you’re a beginner or an experienced trader, understanding the pros and cons of Coinbase can help you make an informed decision.
Coinbase Overview: At a Glance
Coinbase features easy-to-use trading tools for both beginners and advanced traders, allowing users to buy, sell, and hold various cryptocurrencies like Bitcoin, Ethereum, and more, with seamless integration of prominent currencies support.
Coinbase also places a strong emphasis on security, with features like two-factor authentication (2FA), cold storage for funds, and regular audits to protect user assets. However, Coinbase has undergone some significant hacks and exploits affecting both its customers and employees.
Investors who prefer a transparent fee policy may find Coinbase’s fee policies complicated as they vary based upon payment methods, sorts of trading, and the “spread”.
Pros
Cons
The table below provide a comprehensive overview of Coinbase.
Coinbase Unique Features
Coinbase goes beyond crypto trading by offering a range of services within the cryptocurrency ecosystem, including Coinbase Card and Staking option.
Coinbase Fee Structures
Coinbase’s trading fees and spread. Source: Coinbase
Deposit and Withdrawal Fees
Aussies can deposit and withdraw AUD directly from their accounts through bank transfer and PayID with no fees charged. However, if you opt for credit or debit cards, fees may vary based on the volume of your transactions and the card providers’ fees.
Transaction Fees
Coinbase’s fee structure is very complicated. There is no specific rate for any trading activity, except for the staking option (which takes 25% commission based on your rewards if you go with ETH).
The “spread and Coinbase fees” make the exchange not as transparent as it states. Fees can vary dramatically depending on how much you trade, market conditions, jurisdictional location, asset, payment method, and other costs. When you place simple buy and sell orders, Coinbase includes a spread in the quoted price. The spread is also included in the exchange rate when converting from one cryptocurrency to another.
Coinbase Australia’s Help Center
With a 1.5 (out of 5) Trustpilot rating, Coinbase reviews on Trustpilot rank the exchange similarly to Binance (2.1 out of 5-star rating) and Kraken (2.5 out of 5-star rating).
Coinbase offers a comprehensive Help Center that offers instruction articles, FAQs, and an educational site that assists you in discovering the crypto sphere. The platform does have a 24/7 live chat, but you cannot reach anyone if you do not have a Coinbase account.
Coinbase Help Center. Source: Coinbase
This makes it hard and inconvenient for Australian individuals considering choosing the exchange since not everything about Coinbase (e.g., fee structure) is clarified on the website.
Coinbase Security
When choosing an exchange, security is one of the most integral factors. Literally, both Coinbase emphasises strong security measures against crypto frauds, scams, or cyber breaches.
We are curious about the security measures that Coinbase employs as we cannot find a special method stated on the exchange’s website or any reviews from trusted publishers. Coinbase does have Two-factor authentication (2FA), password protection, multi-approval withdrawals, and a bug bounty programme.
However, in recent years, Coinbase has been hit by three notable security incidents:
