For the average crypto enthusiast, there are plenty of exchange sites and platforms to choose from. Each comes with its own list of pros and cons, making it hard for beginners to choose which one offers the products and services they need.
But among the rest, there are always big sites that are trusted by the community. Coinbase is one of the most popular and most trusted crypto exchange sites in the world. With its wide range of coins and services, navigable user interface and quick process, it’s easy to see why the US-based exchange site garners a lot of attention and earned the trust of advanced crypto users.
What else makes Coinbase stand out from the rest? What are its most outstanding services and should you open up a Coinbase account today? Let’s dive into the pros and cons of one of the most trusted crypto sites in the industry today. Don’t forget to check out CryptoShimbun for other cryptocurrency news and updates.
The ‘Coinbasics’ of Coinbase
Out of all the exchange sites available in the United States, Coinbase is the largest when it comes to traffic volume and market capitalization. It offers a wide variety of products and services suitable for beginners and advanced investors alike such as crypto buying, investing and trading.
They also accept bigger customers aside from individual investors. For institutions, they offer custodial accounts and for retail investors, they have wallets available. Coinbase also has its own stablecoin pegged to the US dollar which can be bought on their own site.
Coinbase went live in 2012 and at the time, only Bitcoin trading was allowed in the exchange site. But it soon grew to accommodate other altcoins. Fully regulated and licensed by 40 US states and territories, Coinbase became the largest exchange site and trading platform in the country. But its products and services are not only enjoyed by people in the States but they are also used in all over 102 countries in the world.
Pros of using Coinbase
Wide range of altcoin choices
You can buy most of the commonly bought cryptocurrencies in Coinbase including Bitcoin, Ethereum, XRP and Litecoin. All in all, Coinbase offers 25 cryptocurrencies available for investment, trading and staking.
Navigable user interface
Advanced sites can overwhelm and intimidate beginners but with Coinbase’s sleek and basic interface, buying and trading crypto are as simple as buying something online with your credit card. It makes for a great learning environment for those who want to dive into the world of crypto but are too intimidated by its complexity.
Additionally, they also have a learning program where people can earn cryptocurrencies by watching crash course videos on specific crypto assets. Not only will you learn how crypto works but you’ll also earn from it.
Making a Coinbase account is simple and only takes a few minutes. There’s no need for harrowing authentication and identification processes. To start creating your cryptocurrency portfolio in Coinbase, all you need to do is create an account and link your bank account. Once you’re all set, you can start buying, selling and trading coins.
Cryptocurrency stores on Coinbase’s servers are covered by their insurance policy so in case a cyberattack happens, you won’t lose your digital assets. Their insurance policy covers any losses in case Coinbase’s online storage, physical and cybersecurity have been breached.
You won’t have to worry about waiting for a long time to complete trades and transactions in Coinbase. Their high liquidity protects you from price slippage when exchanging digital assets. Liquidity is important when it comes to judging a crypto exchange site’s performance. The higher the liquidity is, the faster your transactions are completed and the less vulnerable your assets are from volatility.
Cons of using Coinbase
Convenience usually comes at the expense of higher fees and the same thing applies in Coinbase. Their easy to use interface is perfect for beginners but they need to pay a fee to complete a transaction. Coinbase offers an alternative with Coinbase Pro which has lower fees and more features but it’s more complex and difficult to use for novices.
You don’t have full control of your assets
If you store your coins in Coinbase, you’re not fully in control of them since they will be kept in Coinbase’s own storage. In a way, it’s similar to storing your money in the bank for safekeeping. Some people don’t mind this but if you’re familiar with the principles behind cryptocurrency and blockchain, then you’ll know that the industry generally frowns at centralization.
If you want full control of your assets, then you can store your keys in your own wallet. Majority of people don’t leave their assets in exchange sites since they are vulnerable to cyberattacks. Storing your coins in your own soft or hard wallet is the safety standard when it comes to cybersecurity.
Soft wallets are sites or apps that store your money online while hard wallets are pieces of hardware that stay off the net. Out of the two options, hard wallets are the most preferred because of their security feature.
Lacking customer support
For questions you might have on Coinbase’s products and services, they have an extensive knowledge database to help you. But if your concern goes beyond what’s in their FAQ page, expect a long time before their customer service entertains your problem.
A significant number of customer feedback testifies that Coinbase’s customer support is lacking. Based on customer accounts, emailing them will give you a response within 3 days and if you’re lucky enough to go through their phone support line, it’s unlikely that their staff will have the answer to your problem. Many people complain that Coinbase’s support team isn’t capable of solving and explaining customer problems.
Coinbase exchange site in a nutshell
In conclusion, Coinbase is a straightforward exchange site suitable for beginners and those looking for a convenient way to buy and trade crypto coins. However, these pros come at the expense of high fees and poor customer support. If you want to experience it for yourself, you can create a Coinbase account in a matter of minutes.
For more cryptocurrency news and updates, you can check out btcpost. Learn more about other crypto exchange platforms here and find out which one suits your needs best.
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