Cryptocurrency has been gaining a lot of traction in recent years and is increasing in popularity. But you’ll need a crypto exchange, like Coinbase, to buy and sell these digital coins. Coinbase is a top cryptocurrency exchange that makes it easy and safe to buy, sell, and store digital currencies. With over 100 million users in more than 100 countries, it’s a popular choice for both beginners and experienced investors.
Let’s dig into Coinbase to see how it works, what it costs, and the perks and drawbacks of this exchange.
Key Points You Should Know About Coinbase
- Coinbase is a regulated crypto exchange in Canada. They are registered as a Restricted Dealer with the Canadian Securities Administrators (CSA) and they’re registered as a Money Services Business (MSB) with FINTRAC.
- You can buy, sell, and trade over 240 types of digital assets and 300 trading pairs.
- Coinbase is available via an app that is easy to use and is known for various features such as crypto staking and e-transfer funding options.
What Is Coinbase?
Coinbase is a cryptocurrency exchange that was founded in 2012 and became a publicly traded company in 2021. It has quickly become one of the top platforms to buy, sell, trade, and store cryptocurrencies, like Bitcoin and Ethereum.
Traders and investors enjoy Coinbase for its easy-to-use interface, availability of popular coins, and adherence to regulations. Additionally, Coinbase offers a crypto wallet, which allows investors to store their crypto assets within the software.
Users can access Coinbase via iOS and Android or by a browser.
What Does Coinbase Offer?
Coinbase is among the most trusted crypto exchanges to buy, sell, and manage cryptocurrencies. In 2023, Coinbase officially launched in Canada as part of its plan to expand globally. This launch brought new features specifically for Canadian traders and investors, including free Interac e-Transfers and the Coinbase One membership.
Coinbase is also contributing to Canada’s growing crypto community, with nearly 200 full-time local Coinbase employees, making Canada the largest Coinbase tech hub outside the US. Coinbase also supports local Canadian startups that help drive innovation, entrepreneurship, and tech growth.
To ensure safety and regulatory compliance, Coinbase works closely with regulators, financial institutions, and investors to create a policy framework that can be used as a standard in the world of crypto.
What Type Of Crypto Can You Buy?
Coinbase supports over 240 digital assets and 300 trading pairs. Users can securely hold more than 425 digital assets, including 38 different blockchains, in one of their trusted and regulated custodians.
Here are a few of the more popular crypto coins available on Coinbase:
- Bitcoin (BTC)
- Ethereum (ETH)
- Tether (USDT)
- XRP (XRP)
- Solana (SOL)
- USDC (USDC)
- Dogecoin (DOGE)
- Cardano (ADA)
- SUI (SUI)
- Bitcoin Cash (BCH)
- Chainlink (LINK)
- Stellar Lumens (XLM)
For a full list of available coins, visit Coinbase.
Coinbase’s Unique Features
Coinbase has several useful features for investors and traders:
Earn Interest By Staking Your Crypto
With Coinbase, you can stake your crypto to earn up to 14 APY. Staking does not involve lending out your crypto; instead, you earn rewards by putting your crypto to work on a blockchain network.
Doing so helps the network run smoothly, and as a reward, you earn more of the crypto you’re staking.
Learning Centre
Through Coinbase Learn, users can peruse video tutorials and guides to learn the basics of trading crypto. This feature is particularly useful for first-time users, as they’re encouraged to learn about what they’re buying, how to buy and sell crypto, and how to safely store it.
Ease Of Use
Coinbase is perfect for crypto traders who are just starting. It’s as simple as downloading an app, connecting your bank account, adding funds to your wallet, and trading with just a few taps.
Security & Regulatory Compliance
Crypto exchanges in Canada are required to comply with regulations. Coinbase complies with Canadian regulations and is registered as a Restricted Dealer in all the provinces and territories with the Canadian Securities Administrators (CSA). In Canada, crypto trading platforms, like Coinbase, are subject to securities regulations, which Coinbase closely follows.
Cryptocurrency Is Insured
Coinbase has crime insurance that protects a portion of all digital assets (including those of its users). This, however, does not include losses that are a result of unauthorized access due to an individual’s oversight. Essentially, you’re covered if the breach has to do with all of Coinbase and not just because you gave your login credentials to the wrong person.
Customer Support
Coinbase offers several ways for users to contact customer support:
- Live chat
- Request a call
- Submit an online ticket
- Mail your submission to Coinbase, Inc., 1350 Ave of the Americas, Fl. 2 #1143, New York, NY 10019
Response times depend on the method of contact, with live chat providing faster responses.
Coinbase Advanced
Coinbase has an elite membership for those who want to take their trading to the next level. It gives users:
- Advanced Charting Tools: Users can benefit from innovative charting tools powered by TradingView, with indicators like RSI and Bollinger Bands.
- Lower Fees: High-volume trading is subject to lower fees than non-members.
- More Trading Pairs: Over 550 spot trading pairs are available
- Robust Security: Safe risk management programs include 2FA, mobile biometrics, and Yubikey support, among others.
How Much Does Coinbase Cost?
Below is a breakdown of fees for Canadian Coinbase users:
| Deposit Fee (Debit Card) | 3.99% |
| PayPal Withdrawals | Free (PayPal may charge a fee, however) |
| Trading Fees | Fees are determined when you place your order & are based on many factors, including: – Order size – Market conditions – Where you’re located – How you pay – Asset type |
Steps On How To Create A Coinbase Account
You can create an account with Coinbase by following these steps:
- Visit the Coinbase Website Or App. Go to the Coinbase website or download the Coinbase app and click “Sign Up”.
- Complete The Online Form. Enter your personal details, including your full name, email address, and choose a secure password.
- Verify Your Email. Coinbase will send an email asking you to click the verification link to verify your email.
- Link Your Bank Account. Connect your bank account. Most users in Canada use Interac e-Transfer thanks to its free and fast deposits.
Note: To create a Coinbase account, you must be at least 18 years old and must provide a government-issued photo ID.
Options For Funding Your Account
To start investing in crypto with Coinbase, you’ll need to create an account and connect a payment method. Here are a few ways to fund your account:
- Interac e-Transfer: This is the more popular and convenient method, as it’s fast, free, and available to anyone with a bank account.
- Bank Debit Card: You can use a debit card to make deposits, as long as the card supports 3D Secure (3DS).
- PayPal: Link your PayPal account to fund your Coinbase wallet or withdraw funds.
- Crypto Transfers: If you already have crypto in an external wallet or another exchange, you can transfer it into your Coinbase wallet.
- EFT/Bank Transfers: Coinbase supports EFT and bank transfers, allowing you to deposit and withdraw funds directly from your bank account.
How To Buy Crypto On Coinbase
Now that you’ve created and funded your account, you can add some crypto assets to your portfolio:
- Sign in to your Coinbase account on the website or app
- Click on buy/sell in the top right-hand corner of your screen
- Click “Buy” and you will be prompted to select a cryptocurrency; choose the one you wish to purchase.
- Enter the dollar amount you wish to purchase or the amount of crypto you own already and want to use to purchase the new crypto, then select your payment option.
- Select “Preview Buy”. If you are satisfied, click “Buy” and confirm your order. If you aren’t satisfied, you can select the back arrow to edit or cancel your order.
Things You Should Know Before Opening An Account
Despite all the perks that Coinbase offers, there are a couple of potential drawbacks to consider before opening an account:
- High Transaction Fees: Transaction costs can be a bit higher than their competitors, particularly for smaller, infrequent trades.
- Unclear Fee Structure: Fee structures aren’t always transparent, making it hard for beginner traders to know what they’re paying
Bottom Line
Coinbase is a reputable crypto trading platform that’s easy to sign up for and use. You’ll have over 240 digital assets and 300 different trading pairs to choose from, and up to 550 spot pairs with Coinbase’s advanced trading platform. However, trading costs can be relatively high compared to other similar platforms.
