Coinbase Exchange Review
Similar to Binance, Coinbase is a Tier 1 cryptocurrency exchange. Coinbase is the biggest cryptocurrency exchange in the United States, with Crypto.com as the second biggest one. Nevertheless, on a global scale, Coinbase falls behind 3 other major exchanges in terms of the daily trading volume. Currently, Coinbase has a lower daily trading volume than Binance, MEXC, and Upbit. This is understandable since the cryptocurrency market is more regulated in the western world, and Coinbase mainly operates in the west.
- User Experience
- Cryptocurrency Availability
- High Liquidity
- Low Variety of Altcoins
- High Fees (when not using Pro version)
- Centralization
The Coinbase Exchange made its debut back in mid-2012. Nevertheless, the exchange was not functional until late 2012. On October 2012, the public finally got the chance to buy and sell Bitcoin using Coinbase. Its founder is Brian Armstrong and the company is centralized. So, Coinbase is a centralized cryptocurrency exchange, also known as a CEX.
This cryptocurrency exchange, however, did not get the attention of the masses until 2021, when its user number skyrocketed. In 2021, Coinbase became one of the most used exchanges in the world. During that year, something known as “The Coinbase Effect” came into existence. Every time Coinbase listed a cryptocurrency or token, the price of that asset skyrocketed. Because of this, crypto projects were fighting to get listed on Coinbase.
Coinbase is leading the way when it comes to adopting regulations in the United States. The founder and CEO of Coinbase is fully open to transparency and cooperation. Thus, he believes that regulation should be first understood and then implemented.
“It’s important to understand how Coinbase thinks about regulation and compliance in the digital currency space. As an exchange, we view compliance as key to digital currency’s success.”
Brian Armstrong, CEO of Coinbase
Coinbase Exchange Features
As we mentioned above, the Coinbase Exchange is the biggest crypto exchange in the United States. Moreover, it is one of the biggest ones worldwide as well. Today, Coinbase has more than 73 million registered users and more than 8.5 million users that make at least one transaction per month. These numbers are astonishing since we are in a bear market. Although Binance has more active monthly users than Coinbase, the latter has tens of millions of registered users nonetheless. Just in 2021, Coinbase reached an annual trading volume of $1 trillion. This was huge for Coinbase as such a high trading volume meant an x8 increase from 2020.
There are several reasons why Coinbase is the most used cryptocurrency exchange in the United States. Not only this cryptocurrency exchange leads the way for innovation in the crypto space, it also provides users with an easy-to-use platform. Moreover, this exchange is one of the safest cryptocurrency exchanges in the world. Although they have yet to publish their Proof-of-Reserves, most of their users trust them with their funds.
Coinbase offers these deposit and withdraw methods:
Moving on, Coinbase supports only three fiat currencies. The fiat currencies that Coinbase are the US Dollar (USD), the British Pound (GBP), and the European Euro (EUR). This low number of fiat currencies supported limits the potential customer number since it provides a platform for only a portion of the global population. Nevertheless, Coinbase supports more than 231 cryptocurrencies. The Coinbase Exchange offers more than 597 market pairs out of the 231 coins it has listed on its platform.
