Coinbase Review - Top 6 Things to Know Before Trading in 2021

Anisa Batabyal
| 30 December, 2020 | 2 min

What is Coinbase?

Coinbase is a global digital asset platform headquartered in San Francisco, California. It acts as an intermediary to trade and communicate on the blockchain network. Coinbase has assisted over 10 million customers, facilitating the exchange of more than $50 billion worth of digital currencies. The platform helps new entrants to conduct transactions with ease because of its easy-to-use interface. The processing time of the transactions can, however, be lengthy and take between 3 -5 days. Coinbase is one of the most secure exchange platforms available, maybe because it stores 98% of its user's funds offline in cold storages like hard drives, which is then dispersed around in safe vaults.

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Coinbase review:

1. Services that coinbase offers:

  •  Brokerage service:

Coinbase offers brokerage services to users for buying & selling of digital assets online. Its easy-to-use interface attracts new users who don't understand the complexity of the network. However, it does not give the user full authority of their funds; it stores the funds of the user on behalf of them and does not generate any private key or seed phrase.

  •  Coinbase wallet:

Your coinbase wallet can be accessed via the web or coinbase app that is supported on iOS and Android. It takes control of your private key and acts more like a bank where the money belongs to the bank and less like a Bitcoin wallet. Coinbase offers two types of wallet Coinbase Bitcoin Wallet and Coinbase Vault.

2. Fees and payment methods:

Coinbase users from any country can easily convert between cryptocurrencies, however, not all fiat currencies can be used to buy cryptos. Coinbase charges 3.99% as a fee when a credit card and debit card is used and 1.49% when individuals perform bank transfers. The transaction fee charged by coinbase is relatively high when compared to alternatives like Gemini and Binance. 

3. Check to see if coinbase is supported in your country: 

Coinbase supports 100+ countries, including Kenya, South Africa, New Zealand, UK etc. You must visit the official website of the platform and check to see if your country is listed as a supported country before you go ahead and start with the registration process.

4. Buying limit:

Bitcoin offers a very high buying limit to fully verified US customers; the buying limit may go up to $50,000 daily. European customers, however, have a maximum buying limit of €30,000. The buying limit may vary depending upon the extent to which a user's account is verified.

5. Deposit time:

The duration of deposit time depends mostly on the mode that you have selected for purchasing your digital currency. E.g. if you have linked your debit/credit card to your coinbase account and used that to buy crypto then the transaction will happen instantly. But if you have linked your bank account, then the transaction may take up to 3 -5 days, which is quite long. As the rates of crypto may or may not change drastically over that period; hence, you must think wisely before linking your bank or card to the account.

6. Coinbase security:

The platform uses 2FA (2-factor authentication) to protect the privacy of its user's data and funds. This 2FA makes your account much more secure. Also, the platform saves 98% of its users funds offline in cold storages which again reduces the chances of theft or leak of information. 

Coinbase is an Indian crypto exchange platform similar to Coin Switch, who has also launched its own crypto trading platform called Coinswitch Kuber on June 1, 2020. 

This platform is a mobile application which is user friendly. CoinSwitch Kuber is the first-ever mobile application to pool liquidity from other Indian and global exchanges and provide the best rates to the Indian market.

Coinswitch Kuber promises to give the best rates by aggregating liquidity across all Indian exchanges. The platform will support 100 cryptocurrencies for Indian users to trade easily using INR.

About CoinSwitch is the world’s largest cryptocurrency exchange aggregator which supports 300+ coins and over 45,000+ pairs. It provides an easier way of trading through global exchanges like Binance, KuCoin, IDEX, Huobi, Ethfinex, HitBTC and Cryptopia without creating an account on them. If you are interested in buying cryptos, do give it a try!