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Coinbase.com Test – Should you really trade BTC on Coinbase?
- Good liquidity
- High volume
- Competitive fees
- International market
- not recommended for privacy lovers
- prefers investors to customers
- Support could be way better
- no margin trading
- rather buy and sell exchange than trading platform
Launched in 2012, Coinbase was created not only to support Bitcoin exchange but also other related currencies as well. Based in San Francisco, USA the firm currently operates globally with a direct focus on the global market. One of the Co-Founders is Brian Armstrong.
Bitcoin is currently one of the globe’s most used digital currency with a market share of about $3.5 billion. The network is comprised of millions of computers operated by different people all over the globe. Coinbase’s objective is to be the quickest and the easiest way to sell and buy Bitcoin. The platform is designed to provide services similar to those of PayPal.
It is available for Etherium, litecoin and bitcoin trading and it gives users an opportunity to make trades 3 times their investment, something that could easily compound their gains. It also gives hedge funds investors, high net worth people and proprietary trading firms an opportunity to gain from dips in the value of the digital currencies.
Coinbase Analysis
Coinbase is available in 7 different languages including: Dutch, Portuguese, Italian, German, French, Spanish and English. It operates in over 30 different countries among them, France, Greece, Malta, USA, United Kingdom, Belgium, Australia and Cyprus. And according to statistics, the platform has over five million users worldwide which basically means it is reliable platform.
In addition, through GDAX, Coinbase offers different types of orders including even the most advanced ones. The basic orders available include stop, limit and market orders. A market Order here is a type of order that is usually administered immediately at the prevailing market rates. In addition, besides the basic limit order, other advanced limit order types include:
GTC (Good till Cancelled)
This is a type of order that is in the odder book but it remains there until the user cancels it.
IOC (Immediate or Cancel)
This is a type order that is recorded on the order book and it is completed instantly. It will be canceled automatically and discarded form the order book.
FOK (Fill or Kill)
This type of order is only completed when the whole amount is matched. With this kind of order sectional matches cannot be completed.
Post Only
This is a feature on the platform that ensures an order only administers as a maker order to avoid paying anything. If the option comes across orders that require transfering liquidity rather than providing, it will not act on them.
Stop Orders
This order helps users prevent huge losses that come because of a price dip. There are two types of stop orders: Buy stop Order and Sell stop Order.
What About Margin Trading And Other Assets?
The exchange platform does not offer trading with derivates or futures or margin trading. If you intend to trade on margin check out our list of brokers offering leverage.
Using the site
The site’s interface is great and it is designed to be very user friendly. Trading is also easy and the connection rate is more than enough for real time engagement. Most of the handy icons are just a tap or a click away allowing traders to quickly and easily use the website.
signup
The site has 4 main verification levels. The first 3 usually take a few minutes but the 4th can take a while. Completing each verification level increases your sell/buy limits. Here is an overview of the levels;
- First level-verification of phone number and email address.
- Second Level-Verification of details such as address of residence, date of birth and full name.
- Third Level-Credit and debit card details as well as bank account details.
- The Forth level-This level usually involves:
- Verification of Identity
- Taxpayer identification number
- Answering a few questions
This verification is important for security purposes and traders cannot trade or place deposits before the identification is completed. Nonetheless the procedure is pretty straightforward and it can also vary depending with your country. For example:
The requirements for US Traders are:
- A driver’s license or a photo of state Identity card
- Users cannot use passports, as they do not show state of residence
- Social Security number also abbreviated as SSN
- Residential Address
Requirements for UK users are:
- A driver’s license, a clear photon of your Identification card or passport
- Answer a few questions regarding your identity
Users from other countries
(Canada, Australia, Singapore and other European countries)
- A driver’s license, a clear photo of your Identification card or passport
- A clear photo of any other Identification document
Please note that if you already have an account with GDAX.com you do not have to sign up again and you can easily log in with your GDAX details. There are no restrictions when depositing or trading, but when it comes to withdrawals there is a cap of $50,000 per week. This does not affect the verification process.
Coinbase Mobile App
Coinbase has a mobile application known as “Coinbase Bitcoin Wallet.” It is modelled to provide users with the best experience ever when trading. It’s features include:
- A digital wallet that allows you to request or send bitcoin, litecoin and ether easily using a digital currency address, name or email.
- Vault-A feature that offers additional security with timed withdrawals, private storage and multiple signers
- Price charts: Helps users track historical and real-time rates
- Send and Request: Traders can request or send money from their Google contacts.
- Extra security: Has a pass-code and you can remotely disable the app in case the phone is stolen or lost.
Dashboard Walk-Through
The platform has a clean, simple and responsive site which can be easily accessed from different platforms. Once you log in into your Coinbase account, you will see these handy features:
Buy and Sell: You can buy and sell directly from your wallet and the rates are also very competitive
Price Charts: Provide real time market prices and transactions
Link Bank Account: This is one of the main features that makes Coinbase standout. It makes it very easy for anyone to start trading as a trader can easily link his or her bank account to heir bitcoin wallet. Some popular payment methods that you can use on the site are buying with debit or credit card and using bank transfer.
Coinbase.com Fees
The exchange’s fee design is relatively different from others, and it depends on the monthly volume. The fee on maker orders is zero percent and 0.25 percent on take orders. Also note that the platform utilizes price improvement to execute orders. This usually results in a lower ask price if a user is purchasing bitcoin and a higher bid if a user us selling bitcoin. In addition, orders are usually paired with the existing order book at the specific figure on the book and not at the rate of the take order.
Trading Volume
Currently the company has a 30-day volume of 211,487 BTC. For traders who traded a portion of that volume their fee schedule is:
- 0%(~0 BTC) – 0.25 percent
- 1%(~2,114 BTC) – 0.24 percent
- 2.5% (~5,287 BTC) – 0.22 percent
- 5%(~10,574 BTC) – 0.19 percent
- 10%(~21,148 BTC) – 0.15 percent
- 10 % (~42,297 BTC) – 0.10 percent
The fee schedule depends on taker fees. There is a rebate of 0.01% for takers and the maker fees are 0%. There are no charges for withdrawals or deposits in any of the platform’s accounts. The only thing that applies is bank fees for wire transfers.
Which fiat currencies are supported?
Currently Coinbase supports the following FIAT currencies
- USD
- EUR
- GBP
For digital currency traders, the three matching currencies supported are
- Bitcoin (BTC)
- Ether (ETH)
- Litecoin (LTC)
SMS / Email Trade Alerts
The platform provides SMS and Email notifications.
Coinbase.com Security measures
The platform is well secured. It holds less than 2% of all the user funds in a hot wallet and the rest in a secured cold storage with multisig keys and encryptions. There is also a PGP encryption and a 2-factor authentication used in email notifications and the company undergoes financial and IT security audits regularly. In addition, all the assets held both offline and online are insured. All the account balances are covered by FDIC up to $250,000 per user.
Customer Support
Coinbase has a comprehensive FAQ section and offers email and ticket submission support as well. But is important to be very extensive with your question as the support can sometimes be a bit shallow and only resolve the problem partly, which may result in you waiting longer for your issue to be resolved completely. Nonetheless most queries are usually answered within 24 hours.
Coinbase.com Hacks
Though the platform has been around for a while, there have been no substantiated reports of hacks or interference either offline or online yet. Nonetheless it is worth mentioning that there have been bitcoin related issues in the past but this had nothing to do with the security of the website. Most of the compromises usually occur as a result of negligence and improper security on the part of user.So it is imported to utilize the security features of the Bitcoin.
Pros
- Backed by top investors in the NSE including; Andreessen Horowitz, Union Square Ventures, and others
- Trust factor: Coinbase is one of the leading exchange companies and the largest retail digital currency exchange company worldwide.
- Good liquidity
- Competitive fees
- International market
- High leverage
- High volume
- Good for enthusiasts and beginners alike
Cons
- Support could be way better
Conclusion
Coinbase Bitcoin trading platform is a well-designed site that is easy to use and especially suitable for beginners. However the platform isn’t among the prefered trading sites of trading veterans as it is basically designed as an easy buy and sell exchange. So if you buy bitcoins the first time and just want to keep them as an investment, then it’s the right place. But active professional traders prefer broker platforms (which have better trading features) to exchanges. But when it comes to just every once in a while selling or buying Bitcoin, Coinbase offers an easy and secure way for users of all levels to sell and buy alternative currencies directly. Generally, it is a reliable and no fuss exchange.
