COIN BASE REVIEW: PROS AND CONS YOU MUST KNOW

Coinbase, which debuted three years after Bitcoin’s inception in 2009, is a cryptocurrency exchange that enables proactive traders to buy, sell, or store more than 80 digital assets, including Bitcoin, Ethereum, the basic attention token (BAT), and many others. It presents clients with an “all crypto, all the time” exchange interface that provides one of the most diverse collections of cryptocurrencies in one location.

Although the exchange’s Pro platform has transparent, competitive rates, the basic service tier delivers pricey transactions and conceals its complicated pricing structure. Coinbase enables customers to take custody of their virtual currency investments and receive staking rewards (revenue) from them, which is unusual among the few brokerages that even handle cryptocurrency trading. If you want to know more about this fantastic exchange and what it offers, this Coinbase review is perfect for you. We will be looking at all the pros and cons in detail of Coinbase exchange in this coin base review. So, let jump right into it.

PROS OF COINBASE EXCHANGE:

  • A wide variety of cryptocurrencies:

Coinbase boasts an enviable array of cryptocurrencies to trade – 103 at last count – which should be plenty for everyone but the most ardent crypto trader. You’ll obtain the most famous cryptocurrencies, like Bitcoin, Ethereum, Cardano, Solana, Ripple, and dozens of more that are still in development. So you’ll most likely find what you’re looking for here. This is one of the greatest Bitcoin exchanges with the most options.

This is in stark contrast to other brokerage or financial applications that promise crypto trading but only provide a few of the most popular currencies. If you’re seeking something other than cryptocurrency on Coinbase, you’re out of luck. If you would like to invest in stocks, options, and ETFs while only having access to the most popular cryptocurrencies, you’ll have to seek elsewhere.

  • Crypto custody:

Unlike brokers primarily concerned with trading, Coinbase exchange enables you to keep possession of your crypto assets yourself. The exchange provides its cryptocurrency wallet, or you may provide your own. In any case, you may select the option that best meets your requirements. This is rare in the trading industry, as most traditional brokers do not enable you to hold your assets.

  • Crypto staking rewards:

Users who own virtual currencies with Coinbase exchange can also engage in staking incentives. Staking is similar to earning income on a bank account but with far higher risks. Staking creates money from your holdings by using them to validate transactions in a particular cryptocurrency, and Coinbase divides the benefit with you. Clients may now receive staking rewards on just a few coins, including Ethereum and Tezos. The platform manages the technical aspects, and more coins – or portions of them – are transferred to your wallet regularly.

  • Advanced trading platform and mobile application:

Coinbase’s normal desktop site is suitable for most users who wish to buy, trade, and spend Bitcoin. However, the Coinbase Pro desktop trading interface is available to active traders. Customers may browse real-time order books, use charting tools, and rapidly execute their orders on that site. Coinbase exchange also has an easy-to-use and highly functioning mobile app that lets users purchase, trade, and manage their virtual currency from anywhere. It has a star rating of 4.7 stars in the App Store and 4.4 ratings on the Google Play Store.

  • Coinbase pro commissions:

Coinbase’s commission structure distinguishes it from the competition, but only if you use the exchange’s Pro service tier. If your monthly trading activity is less than $10,000, you will be charged a fee of at least 0.5 per cent at the Pro tier. However, you could be able to reduce that price even lower by taking advantage of the exchange’s volume-based pricing.

The Pro price system is tiered, such that fees decrease as you trade more. Your total dollar trading activity determines the amount you pay over the previous 30 days. Coinbase also employs a maker-taker pricing model, which means that depending on whether you’re supplying liquidity to the market (a maker) or taking liquidity (a taker), you may be required to pay a different cost.

CONS OF COINBASE EXCHANGE:

  • Fee transparency:

It can’t be said any other way: If you’re utilising Coinbase’s basic interface, you’ll have difficulty seeing a fee structure before you conduct a deal. In reality, Coinbase has gone to great lengths to conceal its charge schedule, hiding the previously public – and confusing – list of costs. To make it simple, you will be able to view your trading commission only when you are about to place your transaction. In an era of extremely transparent pricing, it’s a significant setback if the corporation can’t give a list of trading costs so you can make an informed decision.

  • Trading commission on basic tier:

Given the lower pricing, it’s best to skip Coinbase’s basic service tier and go straight to its Pro tier. How much do commissions on the base tier cost? It’s difficult to say. However, according to the most recent data, you’ll spend a lot in terms of %. Let’s disintegrate two of the most popular fees from the most current fee schedule and see what investors would pay if they bought $1,000 in Bitcoin:

  • If you pay using a bank account or a Coinbase dollar wallet, you will pay a 1.49 per cent fee.
  • A spread markup of 0.5 per cent

If you use Coinbase’s beginning level, you’ll be charged at least 1.99 per cent in fees. They rise from there since the corporation employs a sliding scale. Do you want $10 in Bitcoin? You’ll be charged $0.99 – or 9.9 per cent – plus the 0.5 per cent spread markup, for a total of 14.9 per cent. And this isn’t only on one side of the trade. You will be struck both coming and going.

FINAL THOUGHTS:

So, this was it for our Coinbase exchange review. Coinbase exchange is among the world’s largest crypto exchanges, with over 43 million verified users from over 100 nations and over $90 billion in Coinbase user profiles. This trading platform is suitable for investors and traders of all skill levels looking for a reliable all-around platform for purchasing, storing, and selling virtual currencies.

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