Coinbase Review 2023: Is It Safe? Going Bankrupt?
Why I Recommend Coinbase
If you are looking to buy or sell a cryptocurrency, then Coinbase could be the solution to your problems.
I’ve been a Coinbase user since 2018 and have 4+ years of experience using the crypto trading platform.
As an American citizen, Coinbase was the first cryptocurrency exchange I tried because of its size and reputation.
To be honest, everything hasn’t been perfect during my 4 years as a Coinbase user but so far I haven’t experienced any serious problems or hacks.
I store the majority of my crypto on Coinbase using their Vault cold storage services to protect my crypto from hackers and thieves.
However, several crypto interest brokers filed for bankruptcy in 2022 and there have been several rumors of Coinbase becoming insolvent. The SEC recently filed an investigation against Coinbase for insider trading and Cathie Wood, founder of Ark Invest, dumped over 1 million shares of Coinbase stock after the investigation became public.
I honestly have no idea if Coinbase will survive but rest assured Coinbase never lent out crypto to hedge funds in order to pay users high interest rates.
I would sleep much better at night if I held my coins in a hardware wallet but that too has several risks as well.
Aside from the looming bankruptcy risk, Coinbase has a simple to use platform with one of the best fee structures in the business. 0.5% fees on the Coinbase Pro (now Advanced Trading) platform means you pay only 50 cents in fees per $100 of crypto purchases.
That’s a good deal in my book although crypto brokers such as Robinhood charge zero fees for crypto trades.
Perhaps Coinbase will eliminate its fees in the future and offers monthly subscriptions or NFTs to drive revenue.
No one knows for sure but until now I stand behind Coinbase and recommend them to all my friends & family.
Pros and Cons
- Buy and sell over 166 different cryptocurrencies including Bitcoin, Ethereum, Cardano, Dogecoin, Shiba Inu and more
- Accepts major credit cards, wire transfer, bank accounts, and Paypal
- Store your crypto safely in cold storage using Coinbase vault
- Compatible with crypto portfolio tracking services like Cointracker.io
- Instant cash withdrawals into your bank account via debit card
- Trading fees are the highest in the industry
- No 24/7 phone customer support
Full Coinbase Review
Coinbase is a digital cryptocurrency wallet and broker founded in June 2012 by Brian Armstrong.
98 million verified users in over 100 different countries use Coinbase to buy, sell, and earn cryptocurrency. Coinbase performs over $309 billion in quarterly trading volume with a massive $256 billion in crypto assets on its platform. The company employs over 4,900 employees while remaining a mostly remote workplace. Check out more Coinbase usage and revenue statistics for more interesting facts about the company.
In fact, Coinbase has grown so large that the company went public in April 2021 and trades on the NASDAQ under the ticker symbol: COIN.
I also own shares in Coinbase stock because I believe the company will become the dominant global cryptocurrency exchange in the future.
You can check out my favorite crypto stocks if you want to invest in cryptocurrency companies.
I personally use Coinbase on a daily basis to not only track the prices of crypto coins like Bitcoin, but as a digital wallet for my coins.
While Coinbase isn’t perfect, I’m going to give my honest review using Coinbase and whether you should sign up or not.
Coinbase Quick Rundown
|Total Verified Users||98 million|
|Trading and conversion fees||.05% to 4.5% depending on several factors|
|# of tradable cryptocurrencies||166|
|Crypto to Crypto trading pairs||100+ in Coinbase Pro|
|Mobile App||2 separate mobile apps for Coinbase and Coinbase Pro available on Android and iOs|
|Customer Service||Email support. Emergency Phone number only to disable your account.|
|Signup Promotion||Get $10 in Free Bitcoin upon signing up.|
Cryptocurrency is a digital non-government asset that is traded on a blockchain.
You need a digital address to send and receive bitcoins along with a safe place to store them.
Coinbase provides a simple to use platform for trading multiple cryptocurrencies by linking a bank account or credit card to your account.
Coinbase offers over 100+ cryptocurrencies on Coinbase and Coinbase Pro for U.S. customers to trade.
Coinbase doesn’t support every single cryptocurrency but you have enough choices available in your wallet.
Coinbase supports 100+ countries around the world but certain countries can buy and sell crypto while others can only convert crypto. If your country doesn’t support buying or selling crypto then you can only convert, send, and receive crypto in your Coinbase account.
Supported Countries That Can Buy Crypto
United States, Canada, Mexico, Chile, Andorra, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Gibraltar, Greece, Guernsey, Hungary, Iceland, Ireland, Isle of Man, Italy, Jersey, Latvia
Trading Fees & Costs
Coinbase’s fee structure is determined by several factors including the amount of crypto you purchase and your payment method.
- Coinbase charges a 0.5% spread on most crypto transactions
- Coinbase also charges an additional fee depending on the total purchase amount and payment method
Here’s a quick breakdown of the regular Coinbase.com fee structure:
|Total Trade Amount||Fee|
|$10 or less||99 cents|
|More than $10 and up to $25||$1.49|
|More than $25 and up to $50||$1.99|
|More than $50 and up to $200||$2.99|
Using a bank account is 1.49% while paying with a debit /credit card is 3.99%.
You’ll save a bit of money over time if you link your bank account and use ACH transactions.
Read our Coinbase fees guide to learn how to reduce costs and avoid hidden charges.
Coinbase offers two separate trading platforms based on your needs: Coinbase and Coinbase Pro.
Coinbase Pro is a more advanced digital trading app for active traders. I like using Coinbase Pro because the fee structure is much cheaper than regular Coinbase.
What I usually do is buy crypto on Coinbase Pro then transfer it to regular Coinbase. Purchase any crypto asset then hit “Withdraw” and you can send it into Coinbase.com’s vault storage.
You can transfer crypto between Coinbase and Coinbase Pro for 100% fee and use Coinbase’s cold storage for popular coins like Bitcoin and Ethereum.
Some investors just leave everything in Coinbase Pro and that’s perfectly fine since Coinbase Pro has several security measures to protect your assets (more on that later).
If you trade bitcoin or other altcoins then just use Coinbase Pro to save time and money.
Coinbase allows you to earn rewards for completing quizzes on other cryptocurrencies.
When you watch a video and answer the question correctly, Coinbase rewards you with some free cryptocurrency.
Coinbase is currently offering rewards for the following cryptocurrencies:
- Band Protocol
- The Graph
- Clover Finance
- Ixec RLC
Since I’m a bitcoin bull, I claim my rewards and transfer it into Bitcoin. Use my Coinbase quiz answers to complete the quiz faster so you can receive your coins!
Coinbase allows users to earn staking rewards on several cryptocurrencies that pay rewards for contributing to the network. All you have to do is hold at least $1 of crypto in your account to earn staking rewards automatically.
Coinbase pays rewards on the following crypto coins:
- Ethereum 2.0 (ETH2): 4.5% APY
- Algorand: 4% APY
- Cosmos: 5% APY
- Tezos: 4.64% APY
- Dai: 2% APY
- USD Coin: 0.15% APY
Coinbase will earn rewards for you then deduct a small fee before returning the remaining rewards to your balance. Most coins pay rewards either daily or weekly.
You can view your total interest earned from your Coinbase dashboard to see how much money you’ve made.
I staked a little bit of DAI but plan to increase my staking holdings to see how much interest I can earn in 2022. I normally buy and hold my crypto in Coinbase so earning interest with them is a new thing for me.
Want to send crypto to a family member, friend, or colleague as a gift? Coinbase supports crypto gifting as a simple way to send Bitcoin, Ethereum, Litecoin, Bitcoin Cash, or Stellar to any anyone via e-mail address, which includes people who don’t have a Coinbase account.
If the recipient already has a Coinbase account then you can send any of the 100+ supported cryptocurrencies on the Coinbase platform.
Follow these simple steps to send crypto as a gift:
- Sign Up for Coinbase if you don’t already have an account
- Go to the Gifting tab and enter the amount of crypto you want to send as a gift
- Enter the e-mail address of the receiver
- Choose a personalized card with your own personal message
- Select the desired cryptocurrency you wish to send
- Hit “Continue”
- Hit “Gift Now” to send your gift
Once completed, Coinbase will send the recipient an e-mail on how to claim the cryptocurrency gift.
Coinbase allows you to cancel the transaction at any time until the recipient opens an account and claims the cryptocurrency. If the person doesn’t create an account within 30 days, the transaction is canceled automatically.
Many crypto bulls worry about security when storing their cryptocurrency.
Coinbase offers some of the best security measures in the entire industry including 98% offline storage for customer funds and 2-step verification requirements for all accounts.
Coinbase Vault offers a more secure cold storage solution for your Bitcoin, Litecoin, and Ethereum holdings.
You can transfer your crypto to an offline vault that requires you to verify all withdrawals through email and phone confirmation. There is also a 2-day waiting period for any withdrawals for extra security.
Read our Coinbase security guide for more tips on how to keep your crypto assets safe.
The Coinbase referral program rewards you and your referral a free $10 in Bitcoin when your referral signs up through your link and buys or sells at least $100 in cryptocurrency within 180 days.
I’ve earned over $1,000 referring crypto investors just like you to sign up for Coinbase since last year.
Whenever you make a successful referral to Coinbase, you will receive an email like this along with $10 in Bitcoin credited to your Coinbase account.
$10 isn’t a lot of money but these small amounts of $BTC can add up over time. It’s an easy and simple way to stack sats and increase your Bitcoin holdings.
Here are a few simple ways to get more Coinbase referrals:
- Add your referral link to your Twitter profile bio
- Add your referral link to your e-mail signature
- Add your referral link to your Youtube description
- Write a blog post about Coinbase and share your referral link
Read my article on Coinbase referrals to receive your free $10 in Bitcoin and learn more.