Coinbase Cryptocurrency Exchange Review

Exchanges
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Coinbase History

Cryptocurrency platform Coinbase appeared in 2012 in the United States. Its headquarters is located in San Francisco. The platform offers cryptocurrency trading in 32 countries. During its existence, Coinbase has served more than 10 million customers. This exchange is one of the few platforms of its kind that accepts credit cards.

Specifics of Work on Coinbase

The exchange offers a modern trading platform with the ability not only to trade, but also to analyze the situation. For this purpose, a wide set of tools from chart types to indicators is provided. It is possible to switch between different timeframes. By the way, this platform was added only in 2015. Until then, the company offered the usual mode of buying cryptocurrency as on the exchange.

Users could only make transactions. No analytical tools were intended. GDAX is a world-class platform with a price stack and transaction history. It offers an API for the creation of trading bots. One of the advantages of the terminal is that the makers here conduct transactions without commissions.

Registration on Coinbase

The registration procedure on the site is simple enough. It is necessary to enter the first and last name, as well as a password. Coinbase cooperates with legal entities. Two options are possible here – trading on the exchange as an institutional investor or connecting merchant services.

During registration, it is necessary to provide the e-mail address and to confirm it by clicking on the link in the letter which comes to the trader’s e-mail. The verification by cell phone is also supposed. After the registration, the user determines the method of depositing to the account. The platform offers bank transfers and credit cards. To confirm the bank transfers, it is usually necessary to make some small payments to the exchange and withdrawal.

As for the verification procedure, in order to pass it traders need to upload a scanned copy of a document proving their identity. The site offers detailed instructions describing the main problems that may arise in the process of confirming the identity of the user.

How to Trade on Coinbase

Users are offered to use bank transfer and card. Also, there are methods available such as Singapore Bank Payments, transfers to bank accounts in USA. Orders are placed in the window on the left side of the chart on the GDAX platform. The user can choose between market, limit and stop orders. The former involve the purchase of a cryptocurrency at the market price, that is, the current price at the time of the transaction.

In order to open such a trade, it is necessary to set the amount of bitcoins (or other cryptocurrency) and click on the Place Buy Order button. Selling is done in the same order.

More experienced traders are offered limit orders. Here, buying and selling is not at market prices, but at the value desired by the trader. To create an order, one must enter the amount of cryptocurrency and set the price at which the investor wants to buy or sell. As soon as the price reaches this mark, the trade will automatically open. There is also an option to execute an order by both a maker and a taker.

Finally, Coinbase offers its clients the ability to trade using stop orders. Professional traders resort to such technique usually in order to protect their positions from increased risks in case the price goes against the forecast.

Coinbase Commission

Commissions on Coinbase may vary depending on which particular method a user chooses to deposit and withdraw money from their account. There are also trading commissions.

How does the service calculate commission? All takers pay the standard rate. At the end of each day, the rebate is calculated. It depends on total trade volume for a certain asset a trader has been working with during the last 30 days.

For example, 100 bitcoins were traded in the order book during a month and the trader made deals with 11 units of the cryptocurrency (it is 11% of the total volume). Accordingly, the commission of the taker in this case will be 0.25%, and the rebate amount will be 0.10% on each trade. As a result, the taker will pay only 0.15%.

How is the volume of trades on the exchange calculated? This is the total volume of bitcoins or other currencies that are exchanged within the exchange. For example, if 10 bitcoins are exchanged between a maker and a taker, then the total trade volume will be 10 bitcoins.

Takers are those traders who work with orders that are executed instantly. Makers are the category of exchange users whose orders are executed by means of the order stack.

Security on Coinbase

The Coinbase website offers a user-friendly interface. The main page shows all the main menus, through which you can get to the trading platform itself, as well as choose other products offered by the company. In terms of security, the site offers the following solutions. 98% of all user funds are stored on hardware wallets offline. This helps protect user funds from theft or loss. All the important information stored on the company’s servers is also not available online.

Information is encrypted with AES-256 algorithm. The company’s security service stores data on USB and paper drives, which are distributed and stored in secure vaults around the world. Another element of security Coinbase offers is two-factor authorization. In order to conduct most transactions, in addition to entering your username and password, you must also enter a code from your cell phone. The site uses SSL protocols.

Pros
  • Serious reputation. For all time of work, there were no significant attacks that led to the loss of money by clients.
  • Insurance of client accounts.
  • Easy-to-use platform with extensive functionality. Since the addition of GDAX, Coinbase has been on par with other professional exchanges that offer an advanced terminal for analysis and the ability to open different types of orders.
  • High level of security. Coinbase offers a lot of methods to protect customer funds and the trading platform, which virtually eliminates the possibility of funds theft.
  • Possibility to work with fiat currencies.
  • Diversified system of charging commissions with rebates.
Cons
  • A large number of complaints on the exchange on various issues.
  • Support service cannot cope with the flow of tickets.
  • Only a few cryptocurrencies are available for trading. The choice of assets is very limited.
  • Lack of leverage.
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