Coinbase Review 2023

Show Details

Coinbase is an industry-leading exchange that facilitates the buying, selling and storage of cryptos. Our review will cover how to use Coinbase in the UK, from fees and account opening to digital wallets and payment methods. Find out whether to open a Coinbase trading account today.

About Coinbase

Coinbase was founded in 2012 in San Francisco by Brian Armstrong and Fred Ehrsam. It initially started as a Bitcoin trading platform but has expanded to include a long list of popular and emerging tokens. The company is now the largest cryptocurrency trading platform in the U.S., with over 56 million users around the world.

Coinbase offers a variety of services, such as crypto investing, custodial accounts for institutions, an advanced trading platform, a wallet for retail investors, and a proprietary U.S. dollar stablecoin (USDC). Coinbase has also partnered with Visa to create a Coinbase Card.

The exchange is owned by Coinbase Payments Limited, which is fully licensed and regulated by the UK Financial Conduct Authority under license number 09708629.

Trading

Coinbase’s brokerage services specialise in the buying and selling of cryptos on a secure and user-friendly trading platform. The browser-based application is an excellent solution for investors new to cryptos. It offers a selection of time frames i.e. 1 hour, 24 hours, 1 week and 1 year.

Users who hold funds on the platform do not have direct access to their own coins as Coinbase owns the private keys. However, the platform allows you to send tokens to your Coinbase wallet, which provide additional security and control over funds. You can also receive cryptos into your online wallet. In addition, Coinbase offers a mobile app for Android and iOS devices.

Coinbase Pro

Coinbase Pro is best suited to experienced investors who require an advanced trading platform and upgraded charting abilities. Users have access to short-term candles of up to 2 minutes, line charts, overlays and indicators. While Coinbase Pro supports margin trading, this feature is not available to UK users.

On top of industry-leading trading APIs, Coinbase Pro offers 60+ popular digital currencies. Coinbase Pro also offers lower fees vs Coinbase, which are cheaper during periods of high volume trading. The upgraded trading and digital commerce platform rewards active investors with extensive product listings and investing features.

Coinbase Wallet

Coinbase offers a digital custody wallet, which allows you to store cryptocurrencies safely and securely. As the wallet stores the private keys on the user’s device, owners have full control over their tokens, as opposed to keeping them on a trading platform. Users can send and receive crypto with a wallet address, participate in airdrops, collect NFTs, and more. The Coinbase wallet can be downloaded as a mobile app.

Crypto Tokens

Coinbase offers an impressive range of 60 cryptocurrencies for UK traders. New coins are also continuously being added. Some popular tokens offered include:

• Bitcoin (BTC)
• Cardano (ADA)
• Dash (DASH)
• Ethereum (ETH)
• Ripple (XRP)
• Litecoin (LTC)

Pros Of Trading With Coinbase

• Accessibility – Coinbase’s simple interface offers a straightforward way for new traders to capitalise on the growing crypto market. You don’t need extensive knowledge of blockchain technology to participate and invest.
• Top-rated – Compared to popular alternatives i.e. vs Kraken, Binance and eToro, Coinbase is one of the oldest crypto exchanges with a current stock valuation of $87 billion. The company’s strong share price and IPO has given increased validation to the crypto market.
• Liquidity – Day trading on Coinbase has become popular due to consistent levels of liquidity. Thus, investors can be protected from price slippage, especially when the market is so volatile.
• Earn free crypto – The Coinbase Earn feature allows users to earn free cryptos by learning about various cryptocurrency topics through educational videos. Coinbase deposits tokens into your wallet after you complete each quiz. This feature is a great way for new traders to be rewarded for learning.
• Algorithmic trading bots – APIs enables the use of algorithmic trading on the platform. Users can employ an automated trading bot to increase profit potential with a successful strategy. This allows you to save time on day trading strategies.
• Staking – Coinbase supports staking for UK traders. This allows participants to earn additional cryptos by contributing to the network.

Cons Of Trading With Coinbase

• High fees – The standard Coinbase platform has high fees when compared to other large competitors. New traders are subjected to costly prices unless they make the switch to Coinbase Pro. However, Coinbase Pro is less suitable for beginners, which can make the trading experience overwhelming.
• No control over funds – A drawback to most centralised exchanges is the lack of control or ownership over coins. When a user purchases a cryptocurrency on the Coinbase exchange, it is stored in a wallet in which the exchange controls. The exchange acts as a central bank, where the user does not have autonomous control over funds. This goes against the principles of decentralised crypto trading. To avoid this, investors should withdraw funds into their own digital wallet.

Fees

The standard platform has a complicated fee structure, which is more expensive than Coinbase Pro. Prices are also higher than popular alternatives. The exchange charges a spread of 0.50% for crypto purchases and sales, which can vary with market conditions. They also charge a ‘Coinbase Fee’ in addition to the spread, which acts as a transaction payment. This differs depending on the amount transacted. For example, if the total amount is more than $10 but less than or equal to $25, you will be charged £1.49.

Coinbase also charges a margin of up to 2% for crypto conversions. Instant buys on UK debit cards come with a 3.99% fee and instant card withdrawals charge up to 2% of the transaction value.

Coinbase Pro uses a maker-taker fee schedule for determining trading charges. Taker fees are based on total USD trading volume over a 30 day period. Fees are also calculated based on the current pricing tier you are in when the order is placed rather than the tier after a trade is completed. For example, a pricing tier of $50 – $100k comes with a taker fee of 0.25% vs a maker fee of 0.15%.

Head to the crypto broker’s fee calculator to work out specific trading charges.

Payments

When it comes to deposits and withdrawals, Coinbase supports a number of payment methods for UK customers:

• 3D secure card – Best for quickly buying cryptos. These are processed instantly
• Faster payments – Best for large GBP deposits or withdrawals. Takes 1-3 business days
• SEPA transfer – Best for large EUR deposits or withdrawals. Takes 1-3 business days
• Instant card withdrawals – Best for withdrawals only. These are processed instantly
• PayPal – Best for withdrawals only. Takes 1 business day

The process and rules are different for each payment method. For example, to make a GBP deposit with a UK bank account, your ID and mobile number need to be verified. Additional information on how to deposit and withdraw can be found on the website.

Note that GBP is not currently supported on the Coinbase Pro mobile app, but it is available on the desktop website platform.

How To Open A Coinbase Account

Before you start trading on Coinbase, you need to open an account. Simply follow these steps:

1. Sign up – Head to ‘Get started’ on the website. Here, you will be asked to fill in your personal information, verify your email address, identity and phone number. The verification time can take just 2-3 minutes.
2. Connect – You need to link with your chosen payment method i.e. debit or credit card. This is so that you can purchase cryptos directly from the exchange. However, if you already have a digital wallet, you can transfer assets onto the platform.
3. Start investing – Once you’ve signed up and funded your account, you can login and start trading cryptocurrency.

Customer Support

You can keep up with Coinbase updates or get help from the customer service team via:

• UK contact number – 0808 168 4635 (only use this number to lock your account if you encounter suspicious activity)
• Twitter – Keep updated with regular Coinbase product news. Account specific issues cannot be dealt with on Twitter
• Email – Submit a request for email support on the Coinbase help centre
• UK address – 5 Fleet Place, London, EC4M 7RD, United Kingdom

Unfortunately, Coinbase does not offer comprehensive phone support with a live agent or a chat feature.

Trading Rules

Before you start trading on Coinbase, it’s important to understand the trading limits. UK customers have a £250,000 limit on all deposits into Coinbase. Any deposits over that amount will be rejected. To increase your buy/sell limits, you need to complete a verification process to enable additional account features. You will need to provide identification documents, among other details.

Should You Trade With Coinbase?

Coinbase is an industry-leading crypto exchange for good reason. It offers multiple services plus a powerful and secure trading platform. On top of that, UK traders can be assured of their reputation as an FCA-regulated exchange. However, users need to be aware of the expensive transaction fees with the standard Coinbase platform. Experienced investors will benefit from a more competitive trading experience on Coinbase Pro.

FAQ

Compare Coinbase with Other Brokers

These brokers are the most similar to Coinbase:

1. IG Index - IG is an award-winning broker that has an excellent reputation globally. The brand offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
2. Pepperstone - Pepperstone is a leading online broker with over 400,000 clients in more than 175 countries. The top-rated brokerage offers excellent market access, industry-leading platforms in MT4, MT5, TradingView and cTrader, plus low fees with no hidden charges. Pepperstone is also heavily regulated with a high trust score, holding licenses with reputable bodies, including the FCA, ASIC, DFSA, and CySEC.
3. Binance - Binance is one of the best-known crypto exchanges. The company is available in more than 180 countries with over 120 million registered customers. The platform offers a suite of crypto trading products, from staking and NFTs to derivatives.

Coinbase Feature Comparison

Coinbase Compared With Similar Brokers

	Coinbase	IG Index	Pepperstone	Binance
Rating	1.4	4.4	4.8	3.5
Markets	Crypto	Forex, Stocks, Commodities	Forex, Stocks, Commodities, Crypto	Crypto
Minimum Deposit	$0	$0	$0	$0
Minimum Trade	0.0001 XBT	0.01 Lots	0.01 Lots	$10
Demo Account	No	Yes	Yes	No
Regulators	CBoI	FCA, ASIC, NFA, CFTC, DFSA, BaFin, MAS, FSCA	FCA, ASIC, CySEC, DFSA, CMA, BaFin, SCB	-
Bonus	-	-	-	-
Education	No	Yes	Yes	No
Platforms	-	MT4	MT4, MT5, cTrader	-
Leverage	-	1:30 (Retail), 1:222 (Pro)	1:30 (Retail), 1:500 (Pro)	-
Visit
Review	Coinbase Review	IG Index Review	Pepperstone Review	Binance Review

Trading Instruments Comparison

Comparison of Coinbase Trading Instruments

	Coinbase	IG Index	Pepperstone	Binance
CFD	No	Yes	Yes	No
Forex	No	Yes	Yes	No
Stocks	No	Yes	Yes	No
Crypto	Yes	No	Yes	Yes
Commodities	No	Yes	Yes	No
Oil	No	Yes	Yes	No
Gold	No	Yes	Yes	No
Copper	No	Yes	Yes	No
Silver	No	Yes	Yes	No
Corn	No	No	Yes	No
Futures	No	Yes	No	No
Options	No	Yes	No	No
ETFs	No	Yes	Yes	No
Bonds	No	Yes	No	No
Warrants	No	Yes	No	No
Spreadbetting	No	Yes	Yes	No
Volatility Index	No	Yes	Yes	No

Coinbase vs Other Brokers

Compare Coinbase with any other broker by selecting the other broker below.