Coinbase Broker Review
Coinbase is considered the largest broker in the world with 12 million users.
It was created in 2012 in Sans Francisco.
It currently serves more than 30 countries around the world, including the United States, which is not the case for many other brokers.
Moreover, since its launch, Coinbase has helped its users to exchange more than 40 billion dollars of cryptocurrency.
What is so special about Coinbase?
Coinbase is a broker that operates differently from its competitors: instead of users being forced to trade on a market, Coinbase sells them crypto currency directly.
As a result, the price is fixed, and based on the current market price.
This feature allows users to buy their digital currency faster than other exchanges.
In addition, users can buy their currencies by credit card in addition to bank transfers.
What are the payment methods and fees on Coinbase?
On Coinbase you have several payment options. You can pay either by SEPA credit transfer, credit card or PayPal.
The fees will be different depending on the method of payment.
They range from 1.49% to 3.99%.
However, if you use a credit card, the fees will be higher due to fees charged by the credit card company. And do not forget that with this payment method Coinbase takes the risk of fraudulent chargeback.
That’s why, if you use the bank transfer, you can save around 2.5%.
It should be noted that these fees are lower than those of many brokers in the market.
Which countries does Coinbase support? Is Coinbase taking charge of your country?
As we have already said, Coinbase supports some thirty countries around the world. More precisely 32 countries.
In particular, Coinbase offers brokerage services in the United States, the United Kingdom, Canada and Singapore.
Coinbase also supports the following European countries:
Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Liechtenstein, Malta, Monaco, Netherlands, Norway, Poland, Portugal, Romania, San Marino , Slovakia, Slovenia, Spain, Sweden, Switzerland.
Is Coinbase regulated?
Coinbase is one of the few brokers to be regulated in the United States, both federally and nationally.
In fact, Coinbase is registered as a money services business with FinCEN. That is why he must comply with the law on bank secrecy.
In addition, Coinbase complies with the USA Patriot Act., Which makes it consistent with state money transmission laws.
Finally, it should be noted that Coinbase has among its investors some people or organizations that can be trusted. For example the Bank of Tokyo, the Digital Currency Group, or the co-founder of Reddit: Alexis Ohanian.
Is Coinbase secure?
First of all, it must be said that Coinbase separates client funds from those of the company. This means that if the broker becomes insolvent, client funds could not be claimed by his creditors and would be refunded to customers.
In addition, 98% of cryptocurrency funds are cold-stored, ie offline.
Digital currencies are therefore in several paper and paper wallets, which are themselves stored in safes around the world.
All of these measures are designed to protect the funds against loss or theft by hackers.
As for the remaining 2%, they are stored online, and are insured by the Lloyd’s Union in London.
In the same way, US residents using a dollar portfolio on Coinbase, see their funds insured by the FDIC up to $ 250000.
On the other hand, Coinbase uses two-factor authentication methods (2 FAs) to secure your accounts.
It is therefore a very secure broker.
How to buy crypto coins on Coinbase?
If you want to buy crypto coins on Coinbase, here is the procedure to follow.
You will need to open an account first. For this, you will be asked for your name, your email, a password and your country of residence.
Then you will have to choose between an individual account or a business account.
Then you will be asked to check your phone number which will be used as a form of two-factor authentication.
Finally, before buying your currency, you must choose your method of payment. If you wish to pay by credit card, you will need to send photos of it.
You may also be required to verify your identity so that transactions comply with government regulations.
You can now buy your crypto currencies. On Coinbase, you have the choice between Bitcoin, Ethereum, Litecoin or Bitcoin Cash.
What are the buying and selling limits on Coinbase?
Buy and sell limits on Coinbase vary depending on the user’s country and method of payment.
On your account, you can check your limits at any time on the limits page.
Customer service on Coinbase
Coinbase has a customer service by email or live chat.
If you use this service by email, know that answers usually arrive after 24 or 72 hours.
This customer service exists for all countries covered by Coinbase.
But if your questions are general questions, Coinbase has a very complete FAQ.
What kind of wallets does Coinbase offer?
There are three kinds of wallets on Coinbase. Coinbase Wallet, Vault and Vault multi-signature.
The Coinbase Wallet
With this portfolio, it is Coinbase who is in charge of the security of your crypto currencies. So you have to trust them.
However, it is of course you who must keep your username and password safe.
It should be noted that Coinbase may at any time close your account or block access to your funds. We will see why further.
The Coinbase Vault
This wallet offers a solution to secure the largest quantities of currencies.
This account can be protected by several approvers. It will therefore require the approval of all approvers to confirm a withdrawal.
These withdrawals take 48 to be processed.
In fact, this delay serves to provide additional security. Thus, if you notice that a withdrawal has been requested without your authorization, this withdrawal may be canceled.
Again, for this wallet too you have to trust Coinbase for the security of your funds.
The Vault multisig
With this wallet there are several keys: Coinbase has one, the second is shared and the third is held by the account holder.
Two out of three are needed to spend the funds.
Thus, if Coinbase fails, the other two keys remain available.
The USD Wallets
Finally, there is another wallet on Coinbase, the USD Wallets.
This allows you to store dollars on your Coinbase account.
This has several advantages: when you want to buy digital currencies, you do not have to wait five days to make a bank transfer.
On the other hand you can spend your cryptocurrency without exposing yourself to their volatilities.
What is the privacy level on Coinbase?
As we said, to open an account on Coinbase, you will be asked to provide your name, your phone number, your email and a certain amount of personal information.
As a result, Coinbase can connect your identity and IP address to your address and balance at any time.
Moreover, Coinbase having to follow all the laws of KYC, it is able to monitor the way users serve their Bitcoins.
What reviews about Coinbase?
Coinbase has been the subject of many criticisms. And if you seek the opinions of Internet users, you will find a large amount of dissatisfaction.
These criticisms concern several elements.
First, Coinbase can prohibit its users from making certain transfers or even forcing forced account closures. For example for transactions with gaming sites, adult sites or Darknet purchases. But this is mainly due to the broker’s compliance with the legislation. It should be noted that Coinbase was the first to receive regulatory approval from the United States. This is why Coinbase has practices against money laundering or against transactions related to adult services, for example, like any other bank. In addition, Coinbase is a member of the Blockchain Alliance, which fights against the use of Bitcoin for illegal purposes. All these reasons should therefore reassure us about the strict regulations followed by Coinbase.
Second, there have been site and application downtime on Coinbase, which has prevented people from trading or buying cryptocurrencies. But this was due to the popularity of Coinbase and the huge demands that took place at times when Bitcoin peaked. But in reality, no Broker could have resisted such a request. Coinbase was a victim of its success. But since then, the platform has been working on this problem of the weight of customer growth due to an unprecedented pace.
Finally, Coinbase has such a large volume of users that it is obvious that the number of complaints will necessarily be proportionally higher. The important thing is whether complaints are dealt with and how quickly. But it seems that Coinbase responds to complaints from its customers very quickly.
Coinbase offers its customers, especially those who are new to the world of cryptocurrencies, an easy-to-use service.
Coinbase also has the advantage of its different payment methods.
And his fees are lower than his competitors.
In addition it is a highly regulated broker and therefore trustworthy.
However, Coinbase like the other exchange services, is a third party, which takes care of the conservation of your currencies. And despite the added security offered by the Vault multisig and following the maxim: if you do not have private keys, you do not have Bitcoins, it is recommended to store your currencies in a cold wallet or a suitable physical wallet.