Coinbase review
- Fiat currencies
- 23
- Supported assets
- 256
Our verdict
Buy and sell cryptocurrency in the UK at one of the world's biggest beginner-friendly crypto exchanges.
Ideal for a first-time crypto investor, but the fees are high. The platform was launched in 2012 and has gained a reputation as one of the best crypto exchanges. Its UI is good for crypto newbies, yet it offers plenty of other features like a debit card and a learning platform.
The main issue to be aware of is that its fees are higher than some other platforms. That said, Coinbase offers an advanced version - Coinbase Advanced, free of charge. Coinbase Advanced has lower fees, but the UI is more complex. If you’re unsure whether Coinbase is right for you, check out our best crypto exchange comparison.
Pros
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Coinbase has an insurance fund
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It supports over 200 cryptocurrencies
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It has a Visa debit card
Cons
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Coinbase fees are high compared to other exchanges
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Customer service is slow
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It has had previous hacking incidents
Details
Product details
| Product Name | Coinbase Digital Currency Exchange |
| Fiat Currencies | USD, EUR, GBP, CAD, MXN, HRK, CZK, DKK, CLP, BGN & 13 more |
| Cryptocurrencies | BTC, ETH, ADA, SOL, DOT, LTC, DAI, UNI, ETC, XLM & 246 more |
| Deposit Methods |
Bank transfer Credit card Cryptocurrency Debit card PayPal |
| Trading Fee |
Maker fee: 0.00-0.4% Taker fee: 0.05-0.6% |
| Deposit Fees |
ACH: Free Wire transfer: $10 SEPA: €0.15 SWIFT: Free |
| Withdrawal Fees |
ACH: Free Wire transfer: $25 SEPA: €0.15 SWIFT: £1 |
Estimated reading time: 2 min
Due to the potential for losses, the Financial Conduct Authority (FCA) considers this investment to be high risk.
What are the key risks?
1. You could lose all the money you invest
- The performance of most cryptoassets can be highly volatile, with their value dropping as quickly as it can rise. You should be prepared to lose all the money you invest in cryptoassets.
- The cryptoasset market is largely unregulated. There is a risk of losing money or any cryptoassets you purchase due to risks such as cyber-attacks, financial crime and firm failure.
2. You should not expect to be protected if something goes wrong
- The Financial Services Compensation Scheme (FSCS) doesn't protect this type of investment because it's not a 'specified investment' under the UK regulatory regime – in other words, this type of investment isn't recognised as the sort of investment that the FSCS can protect. Learn more by using the FSCS investment protection checker.
- The Financial Ombudsman Service (FOS) will not be able to consider complaints related to this firm or Protection from the Financial Ombudsman Service (FOS) does not cover poor investment performance. If you have a complaint against an FCA regulated firm, FOS may be able to consider it. Learn more about FOS protection here.
3. You may not be able to sell your investment when you want to
- There is no guarantee that investments in cryptoassets can be easily sold at any given time. The ability to sell a cryptoasset depends on various factors, including the supply and demand in the market at that time.
- Operational failings such as technology outages, cyber-attacks and comingling of funds could cause unwanted delay and you may be unable to sell your cryptoassets at the time you want.
4. Cryptoasset investments can be complex
- Investments in cryptoassets can be complex, making it difficult to understand the risks associated with the investment.
- You should do your own research before investing. If something sounds too good to be true, it probably is.
5. Don't put all your eggs in one basket
- Putting all your money into a single type of investment is risky. Spreading your money across different investments makes you less dependent on any one to do well.
- A good rule of thumb is not to invest more than 10% of your money in high-risk investments.
If you are interested in learning more about how to protect yourself, visit the FCA's website here.
For further information about cryptoassets, visit the FCA's website here.
Finder ratings for Coinbase
| Supported cryptocurrencies | ★★★★★ |
| Transferring money or assets | ★★★★★ |
| Fees and costs | ★★★★★ |
| Ease of use | ★★★★★ |
| Customer service | ★★★★★ |
| Features | ★★★★★ |
| Staking/earning | ★★★★★ |
| Trustworthiness/security | ★★★★★ |
| Overall score | 4 |
What is Coinbase?
Coinbase’s easy to use app and user interface has made it the go-to exchange for many crypto newbies. However, bear in mind that it’s not one of the crypto companies on the Financial Conduct Authority’s (FCA) register of firms which have passed checks for anti-money laundering and counter-terrorism. Only companies with a UK base have to be on this register and Coinbase’s crypto services are based in San Francisco, not the UK.
Its trading platform is simple and you can top up via your bank without paying fees, as well as sell your crypto and withdraw to your bank (assuming you have a “crypto-friendly bank” that will allow you to do this).
Alongside it’s trading services, Coinbase is known for its crypto wallet and card. It’s crypto debit card, which is regulated as an e-money service by the FCA.
Coinbase has an advanced trading platform called Coinbase Advanced that offers lower fees and more trading options. Advanced is automatically available for free once you sign up to Coinbase.
- If this is your first exchange: Coinbase is easy to sign up for and has a user-friendly interface that makes buying your first cryptocurrency easy. There are lots of different coins and tokens available.
- If you’re switching exchanges: Coinbase has a debit card that lets you spend cryptocurrency anywhere Visa is accepted. Fees on Coinbase are higher than some competitors unless using Pro.
What to know about Coinbase
Coinbase is one of the most used cryptocurrency exchange platforms on the market. It offers over 200 crypto assets and tokens for users to buy, sell and trade. The platform has a user-friendly interface, and offers a variety of features. Trading fees can be high when trades are done on the basic platform rather than the Advanced platform which users are automatically given access to. This is not told to users when they sign up. Coinbase gives users the ability to spend cryptocurrency with their Coinbase card and there is a 0% transaction fee, although Coinbase does charge a spread spread in the price to buy or sell cryptocurrencies.
Transferring fiat and cryptocurrency
If you deposit fiat via bank transfer, then you won’t face any fees. With withdrawals there is a £1 charge.
When depositing crypto coins and tokens onto Coinbase there are no fees apart from the network fee required by the blockchain. Withdrawing cryptocurrency to an external wallet only costs the network fee as well.
As a UK user, deposits to your GBP wallet using GBP bank transfers (Faster Payments) are normally completed within 1 business day, while withdrawals will take 1-3 business days after the deposit is initiated from your bank.
Fees and costs
Coinbase has fairly high trading fees on its standard platform because it includes a spread in the price when traders use “Trade” to buy or sell cryptocurrencies, as well as in the exchange rate when it converts cryptocurrencies. When using the Advanced platform these fees are instead 0.5% for both maker and taker trades and can be reduced through increased trading volume. All fees users have to pay are disclosed during the transaction, there are no hidden fees.
Fiat withdrawal and deposit fees
| Deposit | Withdrawal |
|---|---|
| Swift (GBP) – Free | Swift (GBP) – £1 GBP |
| Wire (USD) – $10 USD | Wire (USD) – $25 USD |
| SEPA (EUR) – €0,15 EUR | SEPA (EUR) – Free |
| ACH (USD) – Free | ACH (USD) – Free |
Crypto withdrawal and deposit fees
| Deposit | Withdrawal |
|---|---|
| Network fee | Network fee |
What is it like to use Coinbase?
Coinbase has designed its user interface, prompts and overall platform to be easy and usable for complete newcomers. Below are some of the interactions encountered on the exchange.
Getting started/KYC. You’ll need to create an account, including providing Know Your Customer (KYC) information. After that, a funding method will be required.
Buy/sell/convert. Easy to use options for buying, selling and converting cryptocurrency. A spread is charged when using this method for trades.
Learn. Coinbase’s Learn program lets you learn about cryptocurrency. Watch videos and take quizzes to learn more about how cryptocurrency works.Coinbase Card. The Coinbase Card allows you to spend any cryptocurrency in your Coinbase wallet.
Does Coinbase have good customer support?
Coinbase has live chat customer support available on its website. There is also a phone number for support on the Coinbase card or to lock an account if there is suspicious activity. Otherwise, Coinbase provides a knowledge base and an automated response system for answers via form replies. Users can also email Coinbase support directly and typically you’ll receive a reply in 1-3 days. Response times have been reported to be slow for many users.
List of services on Coinbase
Trading
Trading is the main service of the exchange. You can buy, sell or convert cryptocurrency instantly using the easy to use options available through the main platform. These transactions incur a price spread. On the Advanced platform traders can set limit orders, stop loss, or buy and sell at market price. Though it may be more intimidating for newcomers to use the Advanced version, it is free to access and comes with the added benefit of lower trading fees and no price spread.
Coinbase Visa debit card
Coinbase Card is a Visa debit card that lets you spend any cryptocurrency in your Coinbase portfolio or USDC anywhere Visa is accepted. The Visa card is available in 28 countries including the UK.
Trust rating
Until October 2021, Coinbase had been free of any hacking incidents. While that is no longer the case, the incident was handled well. Coinbase has a long history of trustworthiness before the incident, including regular security audits and insurance policies in place to protect users.
Past hacks
In October 2021, the accounts of about 6,000 customers were hacked and their funds stolen. Coinbase reimbursed users the stolen funds. The hackers exploited a flaw in Coinbase’s SMS account recovery procedure. Following that, the hackers would have required the users’ personal information. There was no evidence that the users’ personal information was stolen from Coinbase, meaning that information was phished from the affected users. This is the only incidence of a hack at Coinbase.
Security audits
In April 2021, Coinbase became a public crypto company. This means that it published financial statements quarterly and is audited annually by an independent third-party.
The company has said it would continue engaging with audit companies to conduct the SOC audits. By doing so, the company hopes to show clients that it is compliant with various security standards.
Insurance
Coinbase has crime insurance that protects a portion of digital assets held in hot wallets against losses from theft, including cybersecurity breaches.
Signing up on Coinbase
The sign-up process for Coinbase is a straightforward process. Users must be at least 18 years of age, and can do so following the proceeding steps.
- Step 1. Go to the Coinbase website or download the app on Google Store or Apple Store. You’ll need to enter your legal name, your email address, password and your country of residence. Coinbase will send you a link to confirm your email address.
- Step 2. The verification link will send you back to Coinbase, where you’ll need to add your mobile number. You’ll receive a confirmation code to verify your phone number.
- Step 3. Next you’ll enter personal information such as date of birth and address. You’ll also add information like your source of funds, your job and employer.
- Step 4. Verify your identity. You can upload a driver’s licence, a national ID or a passport. You will also need to upload a selfie. Set up 2-step verification to add a layer of safety for your account.
- Step 5. Payment methods are different for each country. They include PayPal, Apple Pay, Google Pay, SEPA transfer, wire transfer and debit card. Once you have linked a payment method you can use your account.
- Step 6. As a UK customer, you’ll also need to complete a risk assessment and investment questionnaire around your knowledge of cryptocurrency. You won’t be able to begin trading until you’ve completed this.
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