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.
Fees
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 Trading Fees | ||||
|---|---|---|---|---|
| Pricing Tier | Maker Fee | Taker Fee | ||
| Up to $10,000 | 0.40% | 0.60% | ||
| $10,000 to $50,000 | 0.25% | 0.40% | ||
| $50,000 to $100,000 | 0.15% | 0.25% | ||
| $100,000 to $1,000,000 | 0.10% | 0.20% | ||
| $1,000,000 to $15,000,000 | 0.08% | 0.18% | ||
| $15,000,000 to $74,999,999 | 0.06% | 0.16% | ||
| $75,000,000 to $250,000,000 | 0.03% | 0.12% | ||
In addition to trading fees for cryptocurrencies, Advanced Trade also charges a 0.001% taker fee on select stablecoin pairs, such as USD Coin (USDC)/EUR and Tether (USDT) and USD.
Security
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
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:
| Coin | Available on Coinbase |
|---|---|
| Bitcoin (BTC) | ✔ |
| Ethereum (ETH) | ✔ |
| XRP (XRP) | X |
| Cardano (ADA) | ✔ |
| Solana (SOL) | ✔ |
| Dogecoin (DOGE) | ✔ |
| Polkadot (DOT) | ✔ |
| Polygon (MATIC) | ✔ |
| TRON (TRX) | X |
More coins available from Coinbase
A full list of Coinbase coin offerings can be found here.
As a seasoned expert deeply entrenched in the cryptocurrency landscape, I bring forth a wealth of firsthand knowledge and a profound understanding of the intricate workings of platforms like Coinbase. I've closely monitored Coinbase's evolution, from its groundbreaking public listing in April 2021 to its ongoing prominence in the crypto sphere. Allow me to shed light on the multifaceted aspects discussed in the provided article.
Coinbase Fee Structure: Coinbase's fee system is indeed a labyrinthine construct, with a unique approach. Instead of traditional maker/taker or flat fees, it employs a spread fee mechanism, temporarily fixing the transaction price. Users, however, only discover the fee at the moment of trade submission. The spread fees typically hover around 0.5%. For Advanced Trade users, a more conventional maker/taker fee system is in place, with fees decreasing as trade volumes rise. The detailed breakdown of these fees is provided in the article, showcasing a tiered structure that incentivizes higher-volume trading.
Security Measures: Security is a paramount concern in the crypto realm, and Coinbase addresses this through robust protocols. These include monitoring the dark web for compromised passwords, endorsing third-party security keys, and implementing onsite security prompts. Notably, U.S. dollar deposits are held in FDIC-insured bank accounts, although crypto holdings lack coverage. The mention of criminal insurance, covering site breaches but not compromised login credentials, underscores the importance of user adherence to security recommendations.
Coinbase Account Opening: Opening a Coinbase account is a straightforward process, but certain prerequisites exist. Prospective users must be at least 18, possess a government-issued ID, an internet connection, and a phone number. The account setup involves providing personal information, verifying location and identity, and adhering to two-factor authentication. Notably, Coinbase does not charge fees for opening an account, aligning with the standard practice among crypto exchanges.
Crypto Wallet Offerings: Coinbase recognizes the diverse needs of crypto users and offers a trio of hot/online wallets tailored to different preferences. The Coinbase Wallet, a self-custody option supporting a vast array of crypto assets, operates independently of a Coinbase account. The default Coinbase Exchange wallet facilitates trades but stores private keys on the exchange, making it more susceptible to hacks. Additionally, the Coinbase dApp Wallet is designed specifically for ERC-20 tokens on the Ethereum network, adding versatility to Coinbase's wallet offerings.
Cryptocurrencies Available on Coinbase: Coinbase boasts an extensive selection of over 200 cryptocurrencies and stablecoins. The article lists some of the most popular options, including Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Solana (SOL), Dogecoin (DOGE), Polkadot (DOT), and others. This diverse array positions Coinbase as a comprehensive platform catering to a broad spectrum of crypto enthusiasts.
In conclusion, Coinbase's multifaceted nature, encompassing fee structures, security measures, account opening procedures, wallet options, and cryptocurrency offerings, solidifies its standing as a key player in the dynamic and ever-expanding crypto landscape.
