Coinbase Review: Find out If Coinbase a Safe Bitcoin Exchange

Coinbase

Coinbase
75

Reliability

8/10

    Security

    8/10

      User-friendliness

      8/10

        Support

        6/10

          Pros

          • High liquidity and buying limits
          • Suitable for newbies who want to invest
          • Instant buy available with credit card as backup
          • Backed by trusted investors
          • Free to sign up

          Cons

          • Limited payment methods
          • High transaction fees
          • Poor customer support

          If you are a huge fan of cryptocurrency, I bet you have heard about Coinbase. Is Coinbase a safe Bitcoin exchange? Is Coinbase insured? Is Coinbase safe to link bank account for transactions? If you have these questions in mind, read this Coinbase review and find out if it is a reliable cryptocurrency exchange.

          Coinbase Review Login and Find out If Coinbase a Safe Bitcoin Exchange


          Coinbase Review: Is Coinbase a Safe Bitcoin Exchange?

          What is Coinbase?

          Coinbase is the world’s largest Bitcoin broker, and also offers an exchange, a wallet, and developer API. In other words, it is a web-based digital wallet that allows you to send and receive Bitcoins. At the time of writing, you can also buy and see Ethereum (Cryptocurrency 2.0) and Litecoin through Coinbase.

          Coinbase is one of the world’s largest Bitcoin exchange based in San Francisco. Created in 2012 by Brian Armstrong and Fred Ehrsam, Coinbase’s reputation lies with its presence in 32 countries across the world – especially in the USA, UK, and Brazil, which represent their largest customer base. As per day, there are 45% of visits to Coinbase are from the USA, with Brazil second at 9% of total traffic, and the UK at 4%.

          The company is backed by several large venture capital firms and claims to hold 617,000 consumer wallets, 16,000 merchants, as well as integration with U.S. banks.

          Coinbase comes in English, Spanish, French, German, Italian, Portuguese and Dutch. That makes it a 7 language platform and it is really convenient. Now, when it comes to the number of countries where Coinbase is supported, a total of 32 countries are available for you to turn to. Among them, we find the United States of America and the United Kingdom, Austria and Belgium, Cyprus and Malta, Greece and France.

          According to the latest statistics, Coinbase has over 6 million users, which is a significant milestone. Albeit not all of these users are still active on the platform, getting 6 million people to sign up for a bitcoin exchange is no easy feat.

          On 29 March 2016, Coinbase was listed by UK-based company Richtopia at number 2 in the list of 100 Most Influential Blockchain Organisations.

          How Does Coinbase Work?

          What I like about Coinbase is their user-friendly interface that aims to make it easy for first-time buyers to purchase Bitcoin. Once you sign up an account with Coinbase, you will notice the following features on the dashboard.

          Price Charts: They provide live price and transaction charts for basic investment and merchant services.

          Buy and Sell Bitcoins: They provide exchange services directly from the wallet, but users buy and sell from them since they are not an exchange. Their prices are very competitive and in line with market prices.

          Link Bank Account: This is one of Coinbase’s key services that makes it so convenient especially to start exploring the Bitcoin market. Depending on which country you are residing, most users can link their bank accounts to their wallets so it’s easy to move money between their Bitcoin wallets and their bank accounts. The most popular payment methods for Coinbase customers are buying with a credit card or debit card, and also using a bank transfer.

          Mobile App: They provide both Android and iPhone apps. All wallet services are included and they are synchronized with the web application meaning whatever you do in the app is immediately reflected on the website.

          Coinbase Review Login and Find out If Coinbase a Safe Bitcoin Exchange

          Is Coinbase Safe?

          Coinbase uses the cold storage and hot storage model. Cold storage just means that they private keys used to access the Bitcoin is kept offline — that is the private key NEVER touches the internet. Physical security is a relatively easy problem to solve compared to digital security. Whilst, hot storage is where the private keys used to access the Bitcoin is kept online. These Bitcoins are at high risk of being stolen because it is relatively easy for hackers to get access to these — computer security is really hard.

          Coinbase keeps 98% of customer funds stored offline, on encrypted drives that are geographically distributed around the world. The drives utilize secret sharing (also called secret splitting) to ensure both redundancy of data and no single point of failure.

          Data is then split with redundancy, AES-256 encrypted, and copied to FIPS-140 USB drives and paper backups. Drives and paper backups are distributed geographically in safe deposit boxes and vaults around the world.

          TIPS: As for storing Bitcoin, paper wallets are still the safest, followed by an offline wallet with encryption with multiple physical backups.

          If you are wondering why Coinbase needs your ID, it is part of the security measures that verifying your identity helps Coinbase to prevent fraud from occurring on their exchange platform. Because Coinbase has buy/sell features, it must follow all Know Your Customer (KYC) laws. The objective of KYC guidelines is to prevent Coinbase from being used, intentionally or unintentionally, by criminal elements for money laundering activities.

          Verification

          There are four verification levels on Coinbase, and first three levels take only a couple of minutes. The fourth level can take a bit longer, usually a few days. Completion of each level increases user’s weekly buy/sell limits. Here’s a short overview of the Coinbase verification levels:

          Level 1 – verification of email address and phone number.

          Level 2 – completion of personal details such as full name, date of birth and address of residence.

          Level 3 – input of bank account details as well as credit and debit card details.

          Level 4 – identity verification which involves:

          • Government-issued identification document
          • Taxpayer identification number
          • Identity verification by answering a few questions

          Is Coinbase Insured?

          Coinbase has been insured against the theft or loss of bitcoin since November 2013, stressing that its users are not being charged for the cover. The company said its policy provides sufficient insurance to cover the company’s average online holdings at any time and protects against a variety of potential causes of loss.

          All digital currency that Coinbase holds online is fully insured. This means that if Coinbase were to suffer a breach of its online storage, the insurance policy would pay out to cover any customer funds lost as a result. The insurance policy covers any losses resulting from a breach of Coinbase’s physical security, cyber security, or by employee theft. The policy is provided by a syndicate of insurers through Lloyd’s of London.

          It is important to note that this insurance policy does not cover any losses resulting from the compromise of your individual Coinbase account. It is your responsibility to use a strong password and maintain control of all login credentials you use to access Coinbase and GDAX.

          Coinbase Fees

          Coinbase doesn’t have separate deposit and withdrawal fees, and the exchange charges percentage fees instead of fixed amounts. Bank transfers in the US carry a fee of 1.49 percent, and the funds are available in 5 to 7 days. US customers can add a credit card as a backup payment method, which will enable Coinbase instant BTC buy for up to $1,000 per week.

          Credit or Debit Card payments in the US, Europe, Canada and the UK cost 3.99 percent of the sum transferred, and the money is available right away.

          European SEPA transfer fee is 1.49 percent, and the money is available within three days of the transfer. Xfers transfers in Singapore carry a fee of 1.49 percent as well, but the money is available immediately. Cryptocurrency deposits and withdrawals are free of charge.

          You can check their pricing and fees disclosures at their website.

          Coinbase Special Feature – Bitcoin Vault

          Coinbase has two places where you can store your Bitcoin: the wallet and the vault. Funds stored in your Bitcoin wallet are available for immediate withdrawal. You can use the funds to make purchases. Because these funds are available for immediate use they are somewhat less secure, so it is not recommended that you store large amounts of Bitcoin in your wallet.

          When creating new ‘wallets’ within Coinbase, you can choose either a standard ‘wallet’ or a ‘vault’ account which provides additional security. A vault can receive funds like a normal wallet, but in addition, it prevents funds stored there from being immediately withdrawn by adding additional security steps depending on the security settings you choose. You can also choose to split up ownership between multiple users and email accounts and require a subset of these users to approve a transaction before it can be created or completed.

          Coinbase Review Login and Find out If Coinbase a Safe Bitcoin Exchange


          Conclusion

          CoinBase has advantages in terms of ease of use, legitimacy through high-profile backers, and security. You link a bank account to the San Francisco-based start-up, and then send them money to buy Bitcoin at the currently offered price. It’s user-friendly and easy to navigate.

          Coinbase is often recommended to newcomers as one of the easiest ways to acquire their first bitcoins. Their extensive banking partnerships allow transactions to be made via EFT payment, ACH / SWIFT / SEPA transfer and, as a recent introduction, major credit cards and PayPal.

          If you’re wary of leaving substantial sums of fiat or crypto on an exchange, Coinbase is probably one of the more secure options.

          Coinbase Review: Login and Find out If Coinbase a Safe Bitcoin Exchange

          Summary
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          Author Rating
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          Aggregate Rating
          4.5 based on 2 votes
          Brand Name
          Coinbase
          Product Name
          Coinbase
          Price
          USD 0
          Product Availability
          Available in Stock

          Alex Y

          Alex is the owner of Managing Your Finance. He helps newbies start their own online businesses. Sign up for his 7-Day Free training course and learn how to start making a sustainable income online and quit your 9-to-5 job.

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          18 Responses

          1. gregS says:

            Hi Alex

            I have tried Coinbase and I am happy with them. I noticed that monthly visit to Coinbase has been skyrocketing. I am sure it is partly because of the availability to buy and sell Ethereum and Litecoin.

            Conbase is an extremely secure place to have bitcoin, and do transactions/storage. This cryptocurrency ‘space’ will be huge in the future, and we probably won’t have fiat anymore. That’s just my point of view. I have recently made a large purchase on Bitcoin and Ether. Yeah, my investment with Ether has been looking fantastic! You have to buy some!

            Cheers

            • Alex Y says:

              Hi,

              I am glad you are happy with Coinbase. Indeed, it is one of my favorite exchange so far. I do like the simplicity and also the convenience to buy and sell cryptocurrency.

              I bought a lot of Ether when it was priced at $10 in January. It is now priced at $90 and I am sure it will climb further in the long-run. I have no regret buying Ether so far! It is looking promising! Yeah, buy low (now) and sell high later.

              Cheers,

              Alex

          2. Jan Soetendaal says:

            Hi Alex,

            It is an interesting article about crytocurrency. What held me back in the past was the fact that it was too technical. I have tried and I am still using Coinbase. Coinbase comes with a friendly user interface that newbies can easily get familiar with it. What I also like of Coinbase is the security they offer too.

            Other than Bitcoin and Ethereum, which other cryptocurrency is worth investing?

            Regards

            Jan

            • Alex Y says:

              Hi,

              Other than Ether and Bitcoin, you should also look into Ripple. At the time of writing, Ripple shoots past Ether for No.2 in Crypto capitalization. I also invested in Litecoin, which is also surging. If you are an existing account holder of Coinbase, you can buy and sell Litecoin too. It is a new integration.

              Hope it helps.

              Alex

          3. Quang says:

            Hi Alex,

            Following your advice, I recently invested in Bitcoin and Ethereum. Thanks to you, I have made $6k from the recent price hike! You have lots of good stuff to share with your readers! Thanks a lot!

            Do you think it is the right time to sell both Ether and Bitcoin?

            Quang

            • Alex Y says:

              Hi Quang,

              I am glad my article helped. Congrats on the earning! Remember to invest within a reasonable budget.

              I think you can still keep Ether and Bitcoin for now. They still have a lot of rooms to grow. Although you might have heard about the recent decline in Ether, it was mainly due to the Kraken and Poloniex DDoS that leads to trader losses. They are back in business now and Ether is surging again!

              Alex

          4. Ryan Basham says:

            I’m very intrigued by cryptocurrency, but it’s still difficult for me to fully grasp the concept. I’m hoping by studying up and reading articles like yours, that I eventually get comfortable enough to invest. I’ve learned hard lessons in the past. Don’t invest in anything that you don’t completely understand!

          5. Advent Voice says:

            I have tried Coinbase. I have to say it is a good e-wallet and it is easy to navigate around. It is definitely a safe Exchange.

            I bought Bitcoin a month ago and the price has shot up $600. I have made a good investment with Coinbase. Do you think I should continue buying some BTC and store them for long-term investment?

            • Alex Y says:

              Glad you are in the game. In my opinion, you should buy Bitcoin because it is:

              Inflation proof;still in its infancy;has cheaper transaction fees;much more secure and reliable;subject to capital gain without a cap limit value to fiat currency;eliminates third parties between you and your money; andFaster (Time is more valuable than money).

              There will only ever be 21,000,000 Bitcoin in existence, currently we’re slightly over 12.6 million, we should reach the final amount in approximately 2140. Value of Bitcoin will always rise over time (as it increases in scarcity) potentially in the future becoming a large value-store coin.

          6. cvguider says:

            Hi Alex!

            Great article on coinbase and I think it’s great that you’re educating people about some of the main cryptocurrencies out there. I own both ethereum and litecoin. While I’m bullish over the long term future of cryptocurrencies, I’m cautious about wild exuberance and bubbles forming, so may be advisable for people to take of some the profits the make it the coins start rallying as technologies can change so fast leading to all the gains being lost. I’ve made this error before, so this time around I sold some of my coins so I got my initial investment back, and now the rest is all just upside.

            As a famous investor likes to say, “nobody went broke by taking a profit”

            Jerry

            • Alex Y says:

              Hi Jerry.

              Good to know you are a big fan of cryptocurrency too. I hope you are still making good investment from it.

              Cheers,

              Alex

          7. Maxx says:

            Hey Alex,

            The first part I look into invest my money to broker most of time is whether they are insured by backed by certain bodies. I have seen many of others companies goes broke and ended up consumer suffering from it.

            But it’s good to know that Coinbase is insured and I think this will be my next move of my money. Very excited and learn something from your blog. When it comes to money I am very excited to know more and further.

            Hey, thanks for the free $15 Bitcoin! I am $15 richer just by clicking your link!!

            Cheers,

            Max

          8. IllusiozTan says:

            Hi Alex, Thanks for the FREE $10 Bitcoin!

            I have been following your posts and bought a few Ether two weeks ago when it was $120. It was a good buy and now it has shoot up to $200! I have strong confidence on Ethereum!

            By the way, I made few fractions of Bitcoin with my initial deposit! It’s a pretty good deal!

            Tan

          9. cvguider says:

            So much useful info here!!!

            I didn’t know about the coinbase vaults either and good to know that there’s insurance if something goes wrong on coinbase’s end. I’m already signed up, but for all those who haven’t, I recommend following his link and signing up too as I think digital currencies are the the future! And nice get a freebie when you sign up.

            Thanks for the FREE $10 Bitcoin!!

            Best,

            Jerry

          10. Michael says:

            No doubt, Bitcoin is worth investing. Other than Coinbase, I used Kraken and it is one of my favorite exchanges as it is easy to navigate, trade and send/receive BTC. Other than that, it allows me to trade other altcoins too.

            Thanks for this thorough review on Coinbase. Thanks for the link too and thanks for the free $10 Bitcoin. Totally worth it!

            Regards,

            Michael