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Why We Chose Coinbase
Coinbase is our top pick for the best crypto exchange for beginners. It offers a wide range of supported cryptocurrencies, strong security measures, and advanced trading options, all on an easy-to-use platform. Here’s why we believe Coinbase stands out:
Pros:
- Large number of supported cryptocurrencies (5,500+)
- User-friendly trading experience
- Robust security measures
- Advanced features for experienced traders
- Insured digital funds
- Availability in 100+ countries
- Options for storing crypto: custodial and non-custodial wallets
- Multiple payment methods for funding trading accounts
Cons:
- Relatively high trading fees (0% to 0.60% depending on trade volume)
- Poor user feedback and customer support issues
- Previous instances of unexpected account closures
- Current charges by the U.S. Securities and Exchange Commission (SEC)
Overview of Coinbase
Coinbase was founded in 2012 with the aim of making it easy for people to buy, sell, and store Bitcoin. Today, it is a publicly traded cryptocurrency exchange with a market value of over $49 billion. The company is geographically decentralized, with no headquarters, and available in more than 100 countries.
Coinbase is known for its user-friendly trading experience, strong security measures, and advanced features for experienced traders. It has become the go-to exchange for many first-time crypto buyers due to its large number of supported assets and easy-to-use platform. The platform’s interface resembles that of an online banking app, making it simple for users to transition to crypto investing.
One of the key advantages of Coinbase is the insurance it provides for the digital funds held on behalf of users. Additionally, U.S. dollar balances are stored in Federal Deposit Insurance Corporation (FDIC)-insured bank accounts, ensuring the safety of user funds in the event of a security breach. Coinbase offers a wide range of payment methods for funding trading accounts, including wire transfer and ACH transfer.
Coinbase also offers options for storing crypto. The first option is a custodial wallet, where users can store their coins on the Coinbase.com exchange. The second option is a non-custodial wallet called Coinbase Wallet, which is designed for experienced crypto users. When using the custodial wallet, Coinbase holds the private keys and effectively stores the funds on behalf of the users. With Coinbase Wallet, users have complete control over their funds as they hold the wallet’s private keys.
However, it’s worth noting that Coinbase has relatively high trading fees, ranging from 0% to 0.60% depending on the trade volume. Additionally, the exchange has received poor user feedback, with several Trustpilot users reporting issues with customer support. There have also been numerous instances of unexpected account closures, which have affected Coinbase’s reputation.
Furthermore, Coinbase has been charged by the U.S. Securities and Exchange Commission (SEC) for allegedly operating as an unregistered securities exchange. The SEC claims that Coinbase unlawfully offered exchange, broker-dealer, and clearinghouse functions, despite being subject to securities laws.
Despite these drawbacks and the current charges by the SEC, Coinbase remains a popular choice due to its ease of use and wide range of supported cryptocurrencies.
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