This content is accurate as of Feb. 10, 2023
We do our best to keep on top of all the latest developments. However, please be aware that the fast-paced nature of the cryptocurrency world means there may be shifts in fees, specific services, and the numbers of available cryptos. Check out our list of the best cryptocurrency apps and exchanges for the most up-to-date information on the platforms we recommend.
Coinbase has a wide selection of cryptocurrencies, a user-friendly design, and helpful educational content. For more experienced crypto investors, it also offers advanced trading tools. Thanks to those benefits and its topnotch security, Coinbase is one of the largest cryptocurrency exchanges in the world. Read our full Coinbase review to see if it's the exchange for you.
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Ratings Methodology
Our Rating:
Rating image, 4.50 out of 5 stars.
4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. = Best = Excellent = Good = Fair = Poor
Bottom Line
A go-to exchange for new and seasoned crypto investors, Coinbase offers a vast array of cryptocurrencies and is easy to use. Its educational content is especially impressive and gives you the opportunity to earn free cryptocurrency.
Fees:
Variable fees (Coinbase), 0%-0.60% (Coinbase Advanced Trade)
Account Minimum:
$2
Open Account for Coinbase
Full Coinbase review
This cryptocurrency exchange is a good fit for: Crypto investors and traders of all skill levels who want a solid all-around platform for buying, storing, and selling cryptocurrencies.
Pros
- Extensive cryptocurrency selection
- Simple and advanced trading
- Earn free crypto
- Educational content
- Top-rated mobile app
- Crypto rewards
- Offers Coinbase debit card
Cons
- Complex fee structure
- High fees on certain transactions
- Limited staking and interest opportunities
Crypto regulation
The SEC advises investor caution when it comes to crypto and filed charges against several crypto platforms in 2023. It says that a number of popular cryptocurrencies -- including Solana, Cardano, and Polygon -- are unregistered securities. This could impact the way these and other cryptos are traded in the U.S. As a crypto investor, make sure you understand how the SEC cases and proposed regulatory changes could impact your portfolio.
Top perks
Extensive cryptocurrency selection
There aren't many cryptocurrency exchanges, especially for U.S. investors, that can compete with Coinbase's selection. It offers well over 150 types of cryptocurrency for trading, ranging from Bitcoin (BTC) and other major coins to smaller and newer digital tokens.
Simple and advanced trading
Coinbase provides separate simple and advanced trading tools that you can access from your account. The simple trade option has a straightforward design that's easy to use. Advanced trading offers more features, including charts, a live order book, and limit orders.
The one downside with these options is that simple trades have much higher fees. For that reason, we recommend placing trades using the advanced trade option. Keeping fees to a minimum is important when investing in cryptocurrency.
Earn free crypto
One of the cooler features on this exchange is Coinbase Earn, where you can earn free crypto in exchange for completing educational modules about it. Even though you won't earn a lot this way, modules can be completed in under a minute, and it's a fun way to learn more about different cryptocurrencies.
Educational content
Coinbase maintains an impressive library of educational resources, including crypto basics, tips and tutorials, and market updates. Want an easy-to-follow but thorough introduction to Bitcoin? A guide to the tax implications of cryptocurrency investing? Coinbase has you covered on these topics and many more.
Mobile app
Just like the web platform, the Coinbase mobile app is a user-friendly way to buy, sell, and manage cryptocurrency. It has high ratings on both the Apple App Store and the Google Play Store, so it's a great option if you plan to do any mobile crypto trading.
Crypto rewards
You can earn interest on several cryptocurrencies through your Coinbase account. Coinbase pays interest on certain stablecoins, such as USD Coin (USDC), automatically. It also allows you to stake certain cryptocurrencies, including Ethereum (ETH) and Solana (SOL). If you stake your crypto, you'll earn rewards on it. Note that eligibility varies depending on your region and the cryptocurrency.
LEARN MORE: What Is Staking in Crypto?
Coinbase debit card
If you have a Coinbase account, you can apply for a Coinbase Card. This prepaid Visa debit card is linked to your Coinbase account balance, allowing you to spend cryptocurrencies. The Coinbase Card also offers crypto rewards and lets you choose which crypto you earn from a rotating list. You can earn up to 4% back this way.
RELATED: Best Crypto Credit Cards
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What could be improved
Complex fee structure
Fees on Coinbase are unnecessarily complicated and confusing. The exchange uses different trading fee structures depending on whether you use its simple trade or advanced trade option.
Although fees on advanced trades are reasonable and simple enough to understand, simple trades cost more, and you only see the fee amount to be charged when you preview the transactions. It'd be much easier for users if Coinbase adopted the same fees for all types of crypto trades, like many other exchanges do.
CHECK OUT OTHER OPTIONS: Best Cryptocurrency Apps and Exchanges
High fees on simple trades and staking
There are a few areas where Coinbase's fees are expensive. Simple trades have high fees, especially for smaller transactions (below $200). Advanced trades are much cheaper, so you can at least save money using that option. However, it's frustrating that you need to use a more advanced trading tool just to get the best deals on Coinbase, especially if you prefer the simple trade interface.
Coinbase also takes a big cut if you use its staking services. When you stake cryptocurrencies on Coinbase, it charges a 25% commission. That's more than you'd typically pay if you staked cryptocurrency yourself.
Limited rewards opportunities
We like that Coinbase allows you to earn rewards, but you can only do so with a somewhat small selection of cryptocurrencies. There are exchanges with better rewards programs, including exchanges that offer higher rates and that allow you to earn interest on a larger number of digital assets.
Alternatives to consider
| Offer | SoFi Active Investing | Robinhood Limitations Apply |
|---|---|---|
| Rating | Rating image, 4.00 out of 5 stars. 4.00/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. | Rating image, 4.50 out of 5 stars. 4.50/5Our ratings are based on a 5 star scale.5 stars equals Best.4 stars equals Excellent.3 stars equals Good.2 stars equals Fair.1 star equals Poor.We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs. |
| Commissions | $0 for stocks, 1.25% for cryptocurrencies | $0 for stocks, ETFs, options, and cryptocurrencies |
| Next Steps | Open Account for SoFi Active Investing Read Full Review | Open Account for Robinhood Limitations Apply Read Full Review |
How Coinbase works
Coinbase allows users to buy, sell, and trade cryptocurrency. It accepts several payment methods, including ACH transfers from a bank account, debit cards, money wires, and PayPal. ACH transfers are the most cost-effective option, because you can deposit money from a bank account without any extra fees.
This crypto exchange offers quite a few features, including:
- Simple and advanced trading options
- A debit card to spend crypto and earn crypto rewards
- A Coinbase Earn program to earn free crypto by completing educational modules
- A crypto staking program
It also offers Coinbase Wallet, a digital crypto wallet. The advantage of keeping your crypto in a wallet instead of on an exchange like Coinbase is that you'll have full control over it. Note that you don't need to be a client to use Coinbase Wallet. It's available free of charge to anyone and can store both cryptocurrencies and non-fungible tokens (NFTs).
Fees overview
Coinbase's trading fees are complex and depend on several different factors, starting with the trading tool you choose. The exchange offers a simple trade and advanced trade option and charges different fee amounts for each one.
Advanced trade is recommended, because it has much cheaper fees. It uses a tiered fee table based on your trading volume. The table also has a maker-taker model, where orders that aren't filled immediately incur a maker fee, because they add liquidity to the order book. Orders that are filled immediately incur a taker fee, because they take liquidity.
Here's the Coinbase fee schedule for advanced trades:
| 30-DAY TRADING VOLUME IN U.S. DOLLARS | TAKER FEE | MAKER FEE |
|---|---|---|
| Up to $10,000 | 0.60% | 0.40% |
| $10,000 to $50,000 | 0.40% | 0.25% |
| $50,000 to $100,000 | 0.25% | 0.15% |
| $100,000 to $1,000,000 | 0.20% | 0.10% |
| $1,000,000 to $20,000,000 | 0.18% | 0.08% |
| $20,000,000 to $100,000,000 | 0.15% | 0.05% |
| $100,000,000 to $300,000,000 | 0.10% | 0.02% |
| $300,000,000 to $500,000,000 | 0.08% | 0.00% |
| Over $500,000,000 | 0.05% | 0.00% |
Data source: Coinbase.
Coinbase doesn't publish upfront fee amounts for simple trades. Instead, it says that it calculates fees at the time you place an order. However, the exchange is consistent about the fees it charges.
On simple trades of $205 or more, Coinbase charges a variable percentage fee of just under 1.5%. It charges a flat fee on smaller trades. Here are the flat fees Coinbase charges depending on the transaction amount:
| TRANSACTION AMOUNT | FEE |
|---|---|
| $10 or less | $0.99 |
| $10-$25 | $1.49 |
| $25-$50 | $1.99 |
| Over $50 | $2.99 |
Data source: Coinbase.
Those are the only commissions that Coinbase charges. It charges additional fees for certain payment methods, such as debit cards and PayPal. Purchases made through an ACH transfer from a bank account or funds in your Coinbase USD Wallet won't have any extra fees.
How Coinbase fees work
The easiest way to understand Coinbase's fee structure is with a few firsthand examples. The table below breaks down how much you'd pay for crypto purchases of $10, $100, and $1,000 with each trade option:
| TRANSACTION AMOUNT | SIMPLE TRADE FEE | ADVANCED TRADE FEE* |
|---|---|---|
| $10 | $0.99 | $0.06 |
| $100 | $2.99 | $0.60 |
| $1,000 | $14.68 | $6.00 |
Data source: Coinbase *Advanced trade fees are based on the taker fee in the lowest pricing tier.
Cryptocurrency selection
Coinbase has one of the most impressive cryptocurrency selections, with well over 150 cryptocurrencies available for trading. Most of the market leaders, such as Bitcoin, Ethereum, and Cardano (ADA), are on Coinbase. It also has just about every type of cryptocurrency, including serious projects, meme coins like Dogecoin (DOGE) and Shiba Inu (SHIB), and smaller tokens.
Although Coinbase doesn't have everything, there aren't any major gaps in its lineup. This exchange is also proactive about adding new cryptocurrencies for investors to check out.
See if Coinbase has the crypto you want: Cryptocurrency Availability: Where Can You Buy Your Favorite Tokens?
Is your cryptocurrency safe with Coinbase?
Your cryptocurrency is safe with Coinbase, as it's one of the most secure exchanges. It stores over 98% of client funds in cold storage, meaning those assets are stored in devices that aren't connected to the internet. This provides greater security against hackers, making it the method of choice for secure cryptocurrency storage.
LEARN MORE: What Is Cold Storage in Crypto?
Coinbase carries crime insurance that covers assets stored online. Cash balances stored in Coinbase accounts are covered by FDIC insurance up to a maximum of $250,000 per customer, just like assets held in a savings or checking account at a bank.
Two-factor authentication (2FA) is required on all Coinbase accounts for added security. You also have the option of whitelisting withdrawal addresses so your crypto can only be withdrawn to addresses on your whitelist. For those who want even more security, Coinbase offers vaults, which require that withdrawals have a 48-hour waiting period and the approval of one or more designated parties.
Coinbase has an excellent track record, but it did have a security incident in 2021. Hackers exploited a vulnerability in its SMS account recovery tool to steal funds from over 6,000 clients. Coinbase fixed the issue and reimbursed those clients in full.
Coinbase is right for you if:
- You want a top-notch trading platform, user-friendly mobile app, and access to a wide variety of cryptocurrencies to buy and sell.
- You're new to cryptocurrencies and looking for a platform with plenty of educational resources.You're interested in opportunities to earn free crypto, including staking and interest programs.
Our Cryptocurrency Experts
By:Matt Frankel, CFP®
Writer, Analyst
Matt is a Certified Financial Planner® and investment advisor based in Columbia, South Carolina. He writes personal finance and investment advice for The Ascent and its parent company The Motley Fool, with more than 4,500 published articles and a 2017 SABEW Best in Business award. Matt writes a weekly investment column ("Ask a Fool") that is syndicated in USA Today, and his work has been regularly featured on CNBC, Fox Business, MSN Money, and many other major outlets. He’s a graduate of the University of South Carolina and Nova Southeastern University, and holds a graduate certificate in financial planning from Florida State University.
Fact CheckedJamie Matthews
Jamie Matthews is alumni of Ohio State University and still calls Columbus, Ohio home. She is a finance editor with more than nine years of experience. When she isn't obsessing over grammar and punctuation, she enjoys baking, reading books, and being a proud dog mom.
As an experienced cryptocurrency enthusiast with an in-depth understanding of the market and its various platforms, let me delve into the concepts and information presented in the provided article.
The article primarily discusses Coinbase, one of the largest cryptocurrency exchanges globally, highlighting its features, pros, cons, fees, and alternatives. Here's a breakdown of the key concepts and information covered:
-
Introduction to Coinbase:
- Coinbase is a prominent cryptocurrency exchange known for its extensive selection of over 150 cryptocurrencies.
- It is user-friendly and caters to both novice and experienced crypto investors.
- The platform offers educational content, including Coinbase Earn, where users can earn free cryptocurrency by completing educational modules.
-
Pros of Coinbase:
- Extensive Cryptocurrency Selection: Coinbase provides a wide range of cryptocurrencies for trading, including major coins and smaller tokens.
- Simple and Advanced Trading: The platform offers both simple and advanced trading tools, with advanced trading providing additional features.
- Earn Free Crypto: Coinbase Earn allows users to earn free cryptocurrency through educational modules.
- Educational Content: Coinbase maintains a comprehensive library of educational resources covering crypto basics, tips, tutorials, and market updates.
- Mobile App: The Coinbase mobile app is user-friendly and highly rated for trading on the go.
- Crypto Rewards: Users can earn interest on certain cryptocurrencies and stake assets to earn rewards.
-
Cons of Coinbase:
- Complex Fee Structure: Coinbase has a complex fee structure, with different fees for simple and advanced trades.
- High Fees on Simple Trades: Fees for simple trades, especially for smaller transactions, can be relatively high.
- Limited Staking and Interest Opportunities: The platform has limitations on staking services and earning rewards, depending on the cryptocurrency.
-
Crypto Regulation:
- The article mentions that the SEC advises caution regarding cryptocurrency investments and has filed charges against some platforms in 2023.
- Specific cryptocurrencies like Solana, Cardano, and Polygon are labeled as unregistered securities, potentially impacting their trading in the U.S.
-
How Coinbase Works:
- Coinbase facilitates the buying, selling, and trading of cryptocurrencies, accepting various payment methods such as ACH transfers, debit cards, money wires, and PayPal.
- The platform offers features like simple and advanced trading, a debit card linked to user accounts, Coinbase Earn for educational rewards, and a staking program.
- Coinbase Wallet, a digital crypto wallet, is available for users who prefer full control over their assets.
-
Fees Overview:
- Coinbase's trading fees vary based on the chosen trading tool, with advanced trades recommended for lower fees.
- The fee structure includes maker and taker fees, with different percentages based on the 30-day trading volume.
-
Cryptocurrency Selection:
- Coinbase boasts a diverse selection of over 150 cryptocurrencies, including major players like Bitcoin and Ethereum, as well as smaller and newer tokens.
-
Security Measures:
- Coinbase is recognized as one of the most secure exchanges, storing over 98% of client funds in cold storage.
- It carries crime insurance for assets stored online and offers FDIC insurance for cash balances.
- Security features include two-factor authentication (2FA) and the option to whitelist withdrawal addresses.
-
Coinbase's Suitability:
- Coinbase is recommended for users seeking a top-notch trading platform, a user-friendly mobile app, and access to a wide variety of cryptocurrencies.
- It is suitable for both new and experienced investors, offering educational resources and opportunities to earn free crypto through staking and interest programs.
-
Alternatives to Consider:
- The article suggests alternatives to Coinbase, such as SoFi Active Investing and Robinhood, highlighting their respective ratings, commissions, and limitations.
In conclusion, Coinbase is positioned as a go-to exchange for crypto investors, offering a diverse range of cryptocurrencies, user-friendly interfaces, and educational resources. However, users need to be aware of the platform's fee structure and potential limitations in certain services. Additionally, the article emphasizes the evolving regulatory landscape and the SEC's cautionary stance on certain cryptocurrencies.
