Coinbase is one of the most well-known and trusted names in the cryptocurrency space, and for good reason. Founded in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase has grown to become the largest crypto exchange in the United States and a major player on the global stage.
With over 108 million verified users across over 100 countries as of 2024, Coinbase has played a pivotal role in bringing cryptocurrency into the mainstream. It was the first crypto company to go public on the NASDAQ in 2021, and has continued to expand its offerings and partnerships in the years since.
Whether you‘re a complete crypto novice or a seasoned trader, Coinbase offers a user-friendly platform to buy, sell, and manage your digital assets. In this comprehensive guide, we‘ll walk you through everything you need to know to make the most of Coinbase in 2024 and beyond.
Why Use Coinbase?
You might be wondering: with so many crypto exchanges out there, what makes Coinbase special? Here are a few key advantages:
Beginner-friendly interface: Coinbase is designed with simplicity in mind, making it easy for anyone to get started buying and selling crypto without being overwhelmed by complex charts and jargon.
Wide range of assets: Coinbase supports over 200 cryptocurrencies, from well-known names like Bitcoin and Ethereum to up-and-coming altcoins. New assets are being added all the time.
Robust security: Coinbase stores the majority of customer funds in secure cold storage and carries crime insurance against cybersecurity breaches. It also offers features like 2FA and biometric authentication to keep your individual account safe.
Fiat onramps: Coinbase supports a variety of payment methods to convert fiat currency into crypto, including bank transfers, debit cards, wire transfers, and PayPal. This makes it easy to fund your account and start trading quickly.
Educational resources: Through initiatives like Coinbase Learn, the company offers a wealth of articles, videos, and tutorials to help users understand the basics of cryptocurrency and blockchain technology.
Innovation: Coinbase is consistently rolling out new features like the Coinbase Card, a crypto debit card that lets you spend your balance anywhere Visa is accepted, and Coinbase Earn, which rewards users with free crypto for completing educational tasks.
In short, Coinbase aims to be the one-stop-shop for all your crypto needs, whether you‘re just dipping your toes in or diving into the deep end.
Creating a Coinbase Account
Ready to get started with Coinbase? The first step is to create an account, which you can do through the Coinbase website or mobile app. You‘ll need to provide some basic info like your name, email address, and create a strong password.
[SCREENSHOT OF COINBASE SIGNUP FLOW]Next, you‘ll need to verify your identity by submitting a government-issued photo ID and taking a selfie. This is a required step for all users to comply with anti-money laundering regulations and takes 1-2 business days. Nearly 60% of Coinbase users who start the ID verification process complete it within 10 minutes.
Once you‘re verified, it‘s time to add a payment method so you can start buying crypto. Coinbase supports a few options with varying fees:
| Payment Method | Fee | Details |
|---|---|---|
| Bank Account (ACH) | 1.49% | No fee for withdrawals, 3-5 day transfer time |
| Debit Card | 3.99% | Instant purchases, but comes with a high fee |
| Wire Transfer | $10 | Unlimited deposits, but slow and expensive |
| PayPal | 2.5% | Only available in select countries |
Buying and Selling Crypto
Congratulations, you‘re now ready to make your first crypto purchase on Coinbase! Simply navigate to the "Buy" tab, pick the coin you want, enter the amount in USD or crypto terms, and select your payment method. You can either execute the trade at the current market price or set a limit order to buy at a specific price.
The selling process works similarly – just click over to the "Sell" tab and follow the prompts. Note that you may need to wait a few days after your initial purchase before you can sell, due to regulatory holding periods.
Coinbase does charge fees on each transaction, which vary based on your region and payment method. Here‘s how its fees stack up compared to other popular exchanges:
| Exchange | Trading Fees | Deposit Fees |
|---|---|---|
| Coinbase | 1.49%-3.99% | 1.49%-3.99% |
| Coinbase Pro | 0%-0.50% | Free ACH, $10 wire |
| Gemini | 0.40% | Free ACH, 3.49% debit card |
| Binance US | 0.10%-0.50% | Free ACH, 3.5%-4.5% debit card |
| Kraken | 0.90%-1.50% | Free ACH/wire, 3.75% card |
As you can see, Coinbase does have some of the highest fees in the industry. However, you can reduce your costs by using ACH transfers instead of debit cards, or by switching over to Coinbase Pro for lower trading fees (more on that later).
Securing Your Account
While Coinbase employs top-notch security on its end, it‘s important to take steps to safeguard your individual account as well. After all, crypto transactions are irreversible, so if a hacker drains your balance, there‘s no customer support line to complain to!
Here are a few essential Coinbase security tips:
Enable 2-factor authentication (2FA) through an authenticator app or hardware security key. SMS 2FA is better than nothing but can be vulnerable to SIM swapping attacks. According to Coinbase‘s data, accounts with 2FA enabled were 50x less likely to be compromised than those without.
Use a strong, unique password and consider a password manager to generate and store it securely. 65% of Americans reuse passwords across multiple accounts, putting them at risk if any one account is breached.
Enable biometric authentication like FaceID or TouchID on the mobile app for an extra layer of security.
Regularly review your account activity and authorized apps for any suspicious logins or transactions.
For large balances, consider moving a portion of your funds to a hardware wallet or cold storage. Coinbase Vault also offers an on-platform segregated custody solution with time-delayed withdrawals.
Remember, Coinbase will never ask for your password or 2FA code over the phone or via email, so be on high alert for phishing attempts posing as customer support!
Coinbase Earn
One of the most unique and beloved features of Coinbase is the ability to earn free crypto just for learning about it. Coinbase Earn offers short video lessons on different blockchain projects and quizzes you can take to demonstrate your knowledge. Currently, there are over 60 cryptocurrencies available to earn this way.
[SCREENSHOT OF COINBASE EARN REWARD]The amount of each reward varies but is typically a few dollars worth of the coin being featured. To date, Coinbase has given away over $100 million in crypto to more than 10 million users through the Earn program. Watching these videos is also a great way to learn about lesser-known altcoins and potentially discover some hidden gems to add to your portfolio.
Coinbase Card
What if you could spend your crypto as easily as the cash in your bank account? That‘s the premise behind the Coinbase Card, a crypto debit card that instantly converts your digital assets to fiat whenever you make a purchase.
Some key features of the Coinbase Card include:
- No annual fee and no signup cost
- Spend any asset in your Coinbase portfolio, anywhere Visa is accepted
- Earn up to 4% back in crypto rewards
- Choose between a virtual card in the app or order a physical card
- ATM withdrawals up to $1000/day
The Coinbase Card is currently available in nearly 40 countries and has processed over $500 million in transactions. One thing to keep in mind is that each purchase counts as selling your crypto, so you‘ll owe capital gains tax on any appreciation. Still, it‘s a nifty way to put your crypto to practical use in the real world.
Coinbase Pro and Advanced Trading
While the main Coinbase app and website are very beginner-friendly, more experienced traders may find them lacking in features and liquidity. That‘s where Coinbase Pro comes in – a separate, more advanced platform with lower fees, a full order book, and charting tools.
![SCREENSHOT OF COINBASE PRO CHARTS]
Coinbase Pro (formerly known as GDAX) uses a maker-taker fee model, where market makers (those adding liquidity by placing limit orders) pay lower fees than takers (those removing liquidity through market orders). Fees start at 0.50% and go as low as 0% for high-volume traders.
In 2022, Coinbase began migrating the core features of Pro, like advanced charting and order types, into the main Coinbase app under the "Advanced Trade" tab. So while Coinbase Pro will eventually be deprecated, its key functionality will live on in a more seamless interface.
Ventures and Ecosystem
In addition to its consumer-facing products, Coinbase is also a major player behind the scenes of the crypto industry through its venture capital arm, Coinbase Ventures. Founded in 2018, Coinbase Ventures has made over 300 investments in blockchain startups across every sector, from DeFi protocols to NFT marketplaces.
Some notable Coinbase Ventures portfolio companies include:
- Compound, an algorithmic money market protocol
- Uniswap, the leading decentralized exchange
- BlockFi, a crypto lending and borrowing platform
- Coinbase Cloud, tools and APIs for developers to build crypto apps
Through these strategic investments, Coinbase aims to foster the growth and adoption of the overall ecosystem while generating financial returns. As of 2024, Coinbase Ventures is the third most active corporate VC in the world by number of deals.
Future Outlook
As one of the oldest and most reputable exchanges, Coinbase is well-positioned to maintain its dominance as cryptocurrency goes mainstream. The company generated $7.8 billion in net revenue in 2022, more than double the previous year. While its stock price has taken a hit in the tech downturn, many analysts remain bullish on Coinbase‘s future prospects.
One key area of growth for Coinbase is its institutional business. Over 13,000 companies and financial institutions now use Coinbase to access crypto markets, including major names like Tesla, MicroStrategy, and BlackRock. Institutional trading volume made up nearly 80% of Coinbase‘s total volume in 2024.
Coinbase is also making inroads in emergent areas of crypto like NFTs, DeFi, and staking. In 2021, it launched its own NFT marketplace and began allowing customers to earn yield on certain staked assets. As these sectors mature, Coinbase is well-positioned to be a major player and onboard the next wave of crypto users.
Conclusion
Coinbase has come a long way since its humble beginnings as a simple Bitcoin wallet, and it shows no signs of slowing down. By making cryptocurrency accessible and easy to use for the masses, Coinbase is playing a vital role in driving mainstream adoption.
Whether you‘re brand new to crypto or a seasoned trader, Coinbase offers a range of products and features to fit your needs. With its beginner-friendly interface, wide selection of assets, educational resources, and commitment to security, it‘s no wonder that Coinbase has become the go-to choice for millions of users worldwide.
Of course, Coinbase is far from perfect. Its fees can be steep, its customer support leaves something to be desired, and it has faced criticism for its centralized nature and coziness with regulators. But for most users, the convenience and peace of mind Coinbase provides is well worth the tradeoffs.
As cryptocurrency continues its march towards the mainstream, Coinbase is poised to remain a key player and gatekeeper. By constantly innovating and expanding its offerings, Coinbase is helping to build the infrastructure for the decentralized future. Whether you‘re a believer in Bitcoin, a DeFi degen, or just crypto-curious, Coinbase is the perfect place to start your journey.
