Is Coinbase Legit

Is Coinbase Legit or Scam? Answer From a Real User!

If you’ve heard of a cryptocurrency exchange, the chances are you’ve heard of Coinbase.

Coinbase has been purchasing and trading bitcoins since 2012, but the site received national notice in 2021 when it became the first cryptocurrency exchange to list on the Nasdaq.

Each quarter, more than 73 million customers trade more than $300 billion worth of cryptocurrencies on Coinbase. According to cryptocurrency analytics firm CoinMarketCap, it has the second-highest trade volume of all exchanges.

What you need to know about purchasing, trading, and storing cryptocurrency on Coinbase is as follows:

Table of Contents

Pros and Cons of Coinbase

Pros

  • For novices, a straightforward interface
  • Educational resources
  • There are around 150 cryptocurrencies available.
  • Effective security measures
  • The minimum deposit amount is low

Cons

  • Fees are high in comparison to certain other exchanges.
  • When you retain coins on your account, you lose ownership of your private keys.
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Coinbase At a Glance

Support for over 150 coins

The spread and the Coinbase fee are included in the trading costs.

Free wallet service with access to your private keys, or you can store your cryptocurrency in your Coinbase account.

$2 minimum purchase or sale

Insurance against theft and storage of the majority of digital assets offline

Accounts are available via a web browser or a mobile application.

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Education hub with cryptocurrency prizes for education

Option to upgrade to Coinbase Pro

Cryptocurrencies Available on Coinbase

Coinbase currently supports over 50 distinct coins. On Coinbase, you’ll find all of the most popular cryptocurrencies, including the following:

  • Bitcoin (BTC)
  • Ethereum (ETH)
  • Avalanche (AVAX)
  • Solana (SOL)
  • Cardano (ADA)
  • USD Coin (USDC)
  • Dogecoin (DOGE)
  • Polygon (MATIC)
  • Tether (USDT)

Different coins have varying trading limits and withdrawal minimums and maximums. Certain cryptocurrencies can only be exchanged for specific fiat currencies, such as the US dollar, or converted to or from other cryptocurrencies.

Additionally, depending on the country or state in which you reside, you may be prohibited from trading certain coins.

Coinbase’s website includes a summary of these limits for each of the cryptocurrencies it supports.

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Coinbase Fees

One of Coinbase’s primary disadvantages in comparison to other exchanges is its high fee structure.

When you use Coinbase to conduct a cryptocurrency transaction such as purchasing Bitcoin or exchanging your Ethereum for US dollars you will be charged both a spread and a Coinbase fee.

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The spread is the difference (or margin) between the market price and the actual price you pay for or get for a buy or sale.

Comparable to the commission or trading cost you may incur when investing through a brokerage account.

Coinbase’s spread is approximately 0.50 percent of your bitcoin sales and purchases, though it varies according to market conditions.

For cryptocurrency conversions, such as trading Bitcoin for Ethereum, a spread of up to 2.00 percent may be applied, depending on market conditions.

However, there is no fee associated with converting your crypto coins to other cryptocurrencies using Coinbase.

Additionally, the Coinbase Fee may vary based on your payment method, region, and other variables. It may be a flat cost or a percentage of your transaction, but it will always be larger than the lesser of the two.

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For US users, the following table compares the flat vs. % Coinbase fee:

Flat fee

TOTAL TRANSACTION AMOUNT FEE
$10 or less $0.99
More than $10 but less than or equal to $25 $1.49
More than $25 but less than or equal to $50 $1.99
More than $50 but less than or equal to $200 $2.99

Percentage

PAYMENT METHOD (FOR PURCHASE OR SALE) FEE
U.S. Bank Account 1.49%
Coinbase USD Wallet 1.49%
Debit Card or PayPal 3.99%
Instant Card Withdrawal Up to 1.5% (minimum $0.55)

Thus, if you purchase $50 worth of Bitcoin on Coinbase by bank transfer, you’ll pay a spread of approximately $0.25 in addition to the $1.99 flat price (which is more than the 1.49 percent alternative fee).

This implies you’ll end up with approximately $47.76 worth of Bitcoin. This may not seem like much, but it builds up over time as you purchase more.

Other Coinbase Fees

Additionally, you can transfer cash into your Coinbase USD wallet and then purchase cryptocurrency from that wallet (for the 1.49 per cent fee described above).

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Due to the rapid movement of cryptocurrency prices, having USD in your Coinbase wallet can help you avoid potentially lengthy bank transactions, for example, if you wish to capitalize on a fast price reduction.

The following are the fees connected with making a USD deposit into Coinbase:

DEPOSIT METHOD FEE
ACH Transfer Free
Wire Transfer $10 ($25 outgoing)
PayPal 2.5%

Coinbase Security

Unlike bank-issued cash, Bitcoin is not regulated by the federal government.

Coinbase claims to store 98% of its customers’ cryptocurrency in cold storage (the remaining 2 percent is used to facilitate trading volume).

Additionally, the exchange has insurance coverage to safeguard cryptocurrency holdings.

According to experts, rigorous procedures like these are why a mainstream exchange like Coinbase may be worth the additional fees.

Even yet, there is no guarantee that your money will be returned to your wallet in the event of a large-scale security incident. In that instance, Coinbase’s website states, “we will make every effort to make you whole.” “However, total losses may exceed insurance reimbursements, resulting in the loss of your funds.”

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Additionally, the insurance policy excludes losses resulting from unlawful access to your personal account

In other words, if your identity is stolen or if someone discovers your Coinbase password and steals it from your wallet, you may be unable to restore it.

Though it may facilitate speedier trades, the majority of consumers do not require cash storage on Coinbase (just as they would not hold uninvested funds in a traditional investment account).

However, any cash assets you maintain on the exchange are pooled with those of other users in one of three ways: in US bank accounts, in US Treasury securities, or in money market funds.

You have no say in how your cash is stored, however, Coinbase reports that currency held in bank accounts is FDIC-insured up to a current ceiling of $250,000.

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Additionally, two-factor authentication, biometric logins (such as fingerprint and Face ID), and data encryption are included in the security measures.

Always safeguard your personal security by using strong passwords, avoiding the use of the same password across several accounts, enabling two-factor authentication, and periodically monitoring your accounts for any suspicious activity.

Is Coinbase Legit

Additional Information

In general, experts advise investors to stick with well-known cryptocurrency exchanges that already have a sizable customer base.

Coinbase is likely the most well-known traditional cryptocurrency exchange, having existed for a significantly longer period of time than many others.

Due to Coinbase’s recent listing on the Nasdaq, customers may now gain a greater understanding of the platform’s health, as its financials are now public.

Coinbase Earn

Education is a critical component of investing in cryptocurrency, particularly for novices.

Coinbase offers a Coinbase Learn hub that includes beginner’s guides to various coins and uses of bitcoin, regular market updates, and recommendations for more resources.

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Additionally, Coinbase Earn incentivizes users to actively study. Coinbase will reward you for watching short movies and doing quizzes about specific altcoins by depositing a small amount of that cryptocurrency into your wallet.

Because altcoins are generally not suggested for long-term investment, you can convert your earnings to Bitcoin or Ethereum.

Simply remember to keep track of these transactions, as each cryptocurrency-to-cryptocurrency exchange is taxable.

Coinbase Wallet

Coinbase offers a variety of cryptocurrency storage solutions.

To begin, you can securely store your cryptocurrency on Coinbase. This is the simplest method – simply log into your account, purchase your cryptocurrency, and leave it there.

You will not have access to your private keys; rather, the security of your coins will be dependent on Coinbase’s security procedures (and your own account protections).

Additionally, you can transfer your funds to Coinbase’s independent hot wallet program, Coinbase Wallet. This is a standalone application that you would download, and unlike Coinbase, it does offer you control over your private keys.

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This increased control enables you to do more with your cryptocurrency, such as transfer coins between wallets and engage in other decentralized financial activities that require crypto transfers and payments outside the exchange.

However, if you’re simply trying to purchase and hold Bitcoin or another cryptocurrency for its asset value, this is unnecessary.

Coinbase Pro

Coinbase also offers a free exchange platform called Coinbase Pro, which has cheaper fees and other features for customers who trade cryptocurrency actively.

If you’re just getting started with bitcoin and want to learn more about it — or if you’re interested in cryptocurrencies as a long-term store of value, Coinbase Pro’s sophisticated capabilities are definitely unnecessary.

However, if you’re wanting to purchase and sell cryptocurrencies more actively, Coinbase Pro may benefit you with more tools and reports, as well as cheaper trades.

Who Is Coinbase Best For?

Coinbase’s simple-to-use interface, educational materials, and robust security measures make it an excellent alternative for anyone interested in getting started with bitcoin investing.

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If you’re wanting to invest some additional funds in Bitcoin as a long-term investment, Coinbase makes the procedure simple. You may just purchase your coins and store them on Coinbase, where you can monitor their value over time.

However, it’s a viable solution that will develop with you as you gain knowledge about cryptocurrency. Between various alternative currency offers and the Coinbase Wallet, it does not lack any important services that are available elsewhere.

If you decide to invest in something other than Bitcoin or keep your own private keys in the future, Coinbase remains an excellent starting place.

The primary disadvantage of Coinbase is that its fees can be greater than those of certain other exchanges. For the majority of ordinary investors, however, they are a tiny price to pay for the ease, breadth of features, and security they provide.

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Coinbase Compared to Other Crypto Platforms

COINBASE GEMINI ETORO
Coins 150+ cryptocurrencies 70+ cryptocurrencies 50+ cryptocurrencies
Fees 0.50% spread; Trading fee between 1.49% and 3.99% (or $0.99 to $2.99 flat fee) 0.50% convenience fee; $0.99 to $2.99 transaction fee; 1.49% transaction fee for trades over $200 0.75%-4.9% spread (varies by crypto)
Wallet Storage Keep coins on Coinbase account, Coinbase Wallet option, or transfer to your own wallet Keep coins on Gemini account, Gemini Wallet option, or transfer to your own wallet Keep coins on eToro trading platform account, move them to an eToro wallet, or transfer to your own wallet
Minimum Trade $2 Equal to the smallest amount of each coin that can be traded (0.00001 BTC) $25

Can I Trust Coinbase?

Investing in cryptocurrencies is by definition dangerous, and your coin is at best a speculative asset. However, if you’re OK with the risk (and have taken care of your other financial obligations), Coinbase is a secure and legitimate exchange to utilize.

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While you cannot protect your investments from market swings, Coinbase has a pretty long track record and robust security procedures in place to safeguard the money you deposit.

How do I Withdraw Money from Coinbase?

You can transfer funds from Coinbase to your bank account. All you have to do is sell your cryptocurrency on an exchange.

The proceeds from the sale will be deposited into your Coinbase USD Wallet, from which you can withdraw the funds to your bank.

Additionally, you can send cryptocurrency from your Coinbase account to your own wallet if you know your wallet address, albeit there may be a cost.

Is Coinbase Regulated?

Coinbase is licensed to conduct money transmission business in the majority of the United States and is expected to adhere to all applicable rules and regulations in each state in which it operates.

Coinbase, according to its website, is required to comply with a variety of financial services and consumer protection legislation.

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Does Coinbase have Customer Service?

Coinbase provides customer assistance via email, telephone, and live chat. Additionally, the Coinbase website features a dedicated help centre for those seeking rapid answers to any problems.

If you believe your account has been hacked or there is questionable activity, you can use an automated phone system to lock it.

What is the Coinbase Network Fee?

The Coinbase network fee is not a Coinbase cost. The network cost is the fee charged by the blockchain for sending your currencies.

For example, if you move Bitcoins from Coinbase to yourself, the Bitcoin blockchain will charge Coinbase a fee to deliver the coins, as the sender is responsible for all fees.

When Coinbase charges you a network fee, they are simply passing on the blockchain’s fee to you in order for you to repay them.

What is Coinbase Wallet?

Coinbase wallet is a non-custodial wallet designed by Coinbase’s parent company, Toshi Holdings Ltd.

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Unlike the Coinbase app, which enables you to purchase and sell coins as well as manage your fiat and coin holdings on the Coinbase platform, the Coinbase wallet is similar to other mobile wallet apps in that the private key to your coins is stored on your mobile device.

To use the Coinbase wallet, you do not need a Coinbase account.

In a nutshell, you lose ownership of your coins when you store them on Coinbase. You do have control over your coins when they are stored on the Coinbase app.

Is it Safe to Link My Bank Account to Coinbase?

Coinbase is a regulated entity that is licensed in each of the jurisdictions in which it operates.

It is not a scam because it is backed by large US investors.

Thus, while linking your bank account is safe, this does not mean you should ever store bitcoins on Coinbase.

Who is Coinbase’s CEO?

Coinbase’s CEO is Brian Armstrong.

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Why is Coinbase telling me My Funds are on Hold?

When there is a high volume of bitcoin trading activity on Coinbase, their system can become overloaded with requests, resulting in cash being locked up.

Regrettably, there is little you can do but wait. You can contact customer support, but they will most likely inform you that the holds have been identified automatically by bots and there is nothing they can do about it.

The length of time required to receive your payments is also unpredictable. Certain individuals have waited months.

For dollar withdrawals. It is identical. Your finances may be placed on hold and you may simply have to wait.

Does Coinbase Accept Paypal?

Coinbase began accepting Paypal as a method of payment for the sale of Bitcoin and other cryptocurrency purchases on the site in November 2019. However, you cannot use PayPal to purchase cryptocurrency.

Why Isn’t Paypal Working with Coinbase?

There are numerous reasons why Paypal may be unable to connect to your Coinbase account.

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If you attempt to purchase cryptocurrency with PayPal, Coinbase will reject your request. If you’re attempting to sell cryptocurrency and get paid via Paypal, it’s conceivable that your region prohibits you from doing so (US, EU, UK). Only Canada is permitted to do so.

Finally, ensure that your Paypal and Coinbase accounts are correctly integrated. To do so, you must ensure that your Coinbase account is properly confirmed.

After that, navigate to Settings -> Linked Accounts and click “Connect a new account.” On your mobile device, navigate to settings -> “Add a Payment Method.”

Alternatives to Coinbase

  • Binance.
  • UPHOLD.
  • LocalBitcoins.
  • Kucoin.
  • NiceHash.
  • Kraken.
  • Bittrex.
  • HitBTC.

Is Coinbase Legit and Safe?

Coinbase is one of the most popular cryptocurrencies and Bitcoin exchanges. Since October 2012, it has provided a secure on-ramp for Bitcoin and began supporting altcoins in 2016. Coinbase is secure and has a solid track record as a custodian, but falls short on privacy.

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Why you should not use Coinbase?

Transacting with bitcoins via Coinbase may be less secure than using PayPal. And it’s because you also jeopardize the privacy of those with whom you transact.

Then there’s the matter of exorbitant fees. Coinbase’s simplicity and ease of use come at a cost: the charge ranges from 1.49 percent to 3.99 percent when purchasing bitcoins.

Is Coinbase Legitimate Company?

Coinbase is a legitimate cryptocurrency startup headquartered in San Francisco and backed by a slew of reputable investors. Coinbase is licensed to conduct money transmissions in the majority of US states. Cryptocurrency wallets are also covered by the money transmission license in several states.

Can You get Rich from Coinbase?

Simply told, Coinbase Earn is a legitimate method to earn some extra cash. This can be attributed to the fact that Coinbase has been functioning since 2012 and has consistently grown in terms of user base.

Is Coinbase Good For Beginners?

The main Coinbase website and mobile app are both extremely user-friendly and enable you to rapidly purchase trade, and swap bitcoins. Numerous cryptocurrencies are supported: Coinbase presently offers trading in over 100 currencies, and the number is growing daily.

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Is Investing in Coinbase a Good Idea?

Although 2022 began with a compressed valuation for technology companies and cryptocurrencies, Wall Street’s long-term bullish sentiment and the recent decrease in cryptocurrency prices in general make Coinbase an attractive long-term investment.

Can You Get Scammed on Coinbase?

Scammers might construct bogus websites that request crucial information in order to get access to your accounts.

Employees of Coinbase will NEVER request your password, two-step verification codes, or private keys. If you are asked for this information by someone purporting to be from Coinbase, it is a scam.

Why is Coinbase Fee So High?

The site charges a high fee for both crypto-to-crypto and crypto-to-fiat transactions. Supply and demand are the primary reasons behind high bitcoin mining fees.

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Bitcoin blocks are 1MB in size, which means that miners can confirm no more than 1MB worth of transactions every block (one every ten minutes)

Is Coinbase a Long Term Buy?

Although 2022 began with a compressed valuation for technology companies and cryptocurrencies, Wall Street’s long-term bullish sentiment and the recent decrease in cryptocurrency prices, in general, make Coinbase an attractive long-term investment.

Is Buying Small Amounts Of Bitcoin Worth It?

This is due to bitcoin’s erratic nature. Bitcoin’s value swings daily. Maintaining a little investment in bitcoin ensures that you are always prepared to profit from price fluctuations. As a result, it is worthwhile to invest at least a small amount.

Is Coinbase Safe From Hackers?

Coinbase issued a statement to FOX 35 stating that while it takes significant security precautions to keep customer accounts safe, in many situations, they do not cover “any damages resulting from unauthorized access to Coinbase accounts as a result of a customer’s login credentials being compromised.”

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Is Coinbase Free To Use?

Coinbase provides a free USD Wallet and a hosted cryptocurrency wallet service. This implies that you will not be charged for storing your USD or cryptocurrency with us.

How do I Withdraw Money From Coinbase?

Utilizing a web browser:

  • Select your cash balance under Assets from a web browser.
  • Enter the amount you wish to cash out on the Cash out tab and then click Continue.
  • Select your desired cash out location and then click Continue.
  • To finalize your transfer, click Cash out now.

Does Coinbase report to IRS?

Yes. Coinbase now issues Forms 1099-MISC to users who are US traders and earned more than $600 in the previous tax year from bitcoin rewards or staking. Take note that this form does not include information about capital gains or losses.

How much does Coinbase Charge To Withdraw?

While there is no fee for using USDC with the Coinbase Card, Coinbase charges a flat 2.49 percent transaction fee on all transactions, including ATM withdrawals made with other cryptocurrencies.

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Each time you make a purchase, they enable the selling of your cryptocurrency, which is why there is a cost for bitcoin purchases.

Why can’t I withdraw from Coinbase?

It is closely related to the purchase of cryptocurrency or the deposit of fiat currency via a linked bank account.

For security reasons, you will not be able to quickly withdraw fiat cash deposited via a linked bank account or transmit crypto acquired with such funds outside of Coinbase Pro (this is referred to as “withdrawal availability”).

Is Coinbase Best Way To Buy Bitcoin?

If you’re completely new to bitcoin and cryptocurrency, Coinbase is an ideal place to start thanks to its support for a variety of major cryptocurrencies, a strong security track record, and low fees.

Does Coinbase Charge Monthly Fees?

While there is no fee for using USDC with the Coinbase Card, Coinbase charges a flat 2.49 percent transaction fee on all transactions, including ATM withdrawals made with other cryptocurrency. Each time you make a purchase, they enable the selling of your cryptocurrency, which is why there is a cost for bitcoin purchases.

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Why does Coinbase need my SSN?

When you create an account on Coinbase, you are required to give your Social Security number.

They utilize your Social Security number for a variety of purposes, including background checks, tax reporting, and compliance with US anti-money laundering regulations.

Is Binance or Coinbase better?

Coinbase is ideal for investors looking to buy and hold a cryptocurrency for the long term. Binance charges significantly cheaper transaction costs and incentivizes high-volume trading through its fee structure. While they employ a maker-taker price structure, they maintain similar creator and taker fees.

Is Coinbase Safe From Hackers?

Coinbase issued a statement to FOX 35 stating that while it takes extensive security measures to ensure customer accounts remain safe, in many cases, they do not cover “any losses resulting from unauthorized access to Coinbase accounts as a result of a customer’s login credentials being compromised.”

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Is Coinbase Legit in Canada?

Coinbase is a legitimate, user-friendly, safe, and trusted cryptocurrency exchange where millions of users purchase and trade cryptocurrencies monthly.

Having said that, you’ll face higher trading and transaction costs than those charged by competitors such as NDAX, CoinSmart, Binance, Bitbuy, Kraken, and Crypto.com.

Is Coinbase Legit In Philippines?

Yes, there is support for Coinbase in the Philippines

Is Coinbase Legit In Nigeria?

In comparison to Binance, Coinbase does not have a presence in Nigeria. This means that Nigerians would be unable to register for Coinbase as of May 2021, and there will be no naira (NGN) trading pairs or peer-to-peer platforms enabling Nigerians to trade naira for cryptocurrencies.

Is Coinbase Legit To Make Money?

Simply told, Coinbase Earn is a legitimate method to earn some extra cash. This can be attributed to the fact that Coinbase has been functioning since 2012 and has consistently grown in terms of user base.

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Is Coinbase Legal In India?

Now accessible in India and over 100 more countries worldwide.

Is Bitcoin Coinbase Legit?

In a nutshell, Coinbase is a reputable bitcoin exchange and a broker. This is due to the fact that it attracts high-profile investors and is located in a highly regulated environment (San Francisco). Coinbase is quite unlikely to steal your money.

Is The App Coinbase Legit?

In a nutshell, Coinbase is a reputable bitcoin exchange and broker. This is due to the fact that it attracts high-profile investors and is located in a highly regulated environment (San Francisco). Coinbase is quite unlikely to steal your money.

Is Apex Coinbase Legit?

While Apex Crypto appears to provide secure crypto storage, there are a few points to keep in mind: It is not insured for bitcoin holdings. It acknowledges in its risk statement that it may lack the financial resources necessary to reimburse cryptocurrency losses in the event of technical issues.

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