Cryptocurrencies are speculative and investing in them involves significant risks - they're highly volatile, vulnerable to hacking and sensitive to secondary activity. The value of investments can fall as well as rise and you may get back less than you invested. Past performance is no guarantee of future results. This content shouldn't be interpreted as a recommendation to invest. Before you invest, you should get advice and decide whether the potential return outweighs the risks. Finder, or the author, may have holdings in the cryptocurrencies discussed.
Crypto.com vs Coinbase: Which crypto exchange is better?
Evenly matched crypto heavyweights Crypto.com and Coinbase go head to head.
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.
Round 1: Vital statistics
|Exchange location||Hong Kong||US|
|Offers a debit card|
|Earn returns on crypto|
|call to action||More Info||Go to site|
Both Crypto.com and Coinbase are both large – 50 million users and 98 million users respectively – and well-established platforms, making them pretty evenly matched in terms of market presence and the core crypto services that they offer, however, Crypto.com was granted Financial Conduct Authority (FCA) licence to operate in the UK in August, 2022.
Round 2: Supported coins
If you’re after obscure altcoins, then Crypto.com has you covered. It has an extensive number of lesser-known coins, with more added all the time. That’s not to say that Coinbase doesn’t have a decent number of supported coins, but Crypto.com slightly wins out if it is cryptocurrency variety that you are looking for.
Round 3: Supported fiat currencies
Once again, Crypto.com and Coinbase are evenly matched when it comes to fiat currencies. GBP is covered, as well as other mainstream currencies such as AUD, EUR and USD.
Round 4: Fees
|Deposit Fees||None||ACH: Free|
Wire transfer: $10
|Trading Fee||Maker: 0.00-0.75%|
|Maker fee: 0.00-0.4%|
Taker fee: 0.05-0.6%
|Withdrawal Fees||Cryptocurrency: Fees vary||ACH: Free|
Wire transfer: $25
|Deposit methods||Credit card, Cryptocurrency, Debit card, SEPA, Faster Payments (FPS), Apple Pay, Google Pay||Bank transfer, Credit card, Cryptocurrency, Debit card, PayPal|
|call to action||More Info||Go to site|
Neither Crypto.com nor Coinbase is particularly transparent when it comes to their crypto buying or selling fees. Trading fees can vary widely on both platforms, making it hard to know how much you’ll pay for your transaction. On the plus side, deposit fees via bank transfer are low for both. But Coinbase’s high card deposit fee and its large minimum deposit amount mean that it just loses out to Crypto.com.
Round 5: Wallets
Both Crypto.com and Coinbase’s crypto wallets are non/self-custodial, which means you keep complete control of your private keys. Beyond the normal wallet services, Crypto.com’s wallet stands out more for its earn capability across multiple tokens. With no lock-up term, it gives users an opportunity to earn passive income on their crypto holdings.
Round 6: Ease of Use
Coinbase’s platform has been created to appeal to beginners. It has an intuitive UI and makes buying your first cryptocurrency easy. In contrast, Crypto.com’s exchange or app may feel overwhelming initially. The user interface is easy to use, but its extensive ecosystem and additional functionality may take some time to get used to.
Round 7: Security
Crypto.com takes security seriously: it has cold storage of all digital assets and has also listed a bug bounty programme on HackerOne which provides rewards to those who spot gaps in the security of the platform. Both Coinbase and Crypto.com have a large insurance fund. But it’s worth knowing that in October 2021, the accounts of around 6,000 Coinbase customers were hacked and their funds stolen. Coinbase did reimburse users who were affected, but in contrast, Crypto.com has never experienced a hack.
Verdict: Is Coinbase better than Crypto.com?
It’s a close competition between these 2 well-known cryptocurrency platforms. Both are well established and have features that include a crypto debit card and earn accounts. In our comparison, Crypto.com narrowly comes out on top. Its altcoin variety, tighter security and advanced features at an affordable price puts it slightly above Coinbase.
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