Coinbase Review 2024: Pros, Cons and How It Compares

Where Coinbase shines

Trading platforms. Coinbase users can trade on multiple platforms. The original Coinbase platform is a relatively simple interface that allows users to purchase cryptocurrency with U.S. dollars. Coinbase Advanced Trade has advanced charting functions and allows users to make crypto-to-crypto transactions and place market, limit and stop orders. Toggling between the two platforms is as simple as clicking a dropdown.

Coinbase also has an option called Coinbase One, which offers no-fee trades and other benefits in exchange for a monthly fee of about $30.

Learn to earn. A novel way to “earn while you learn,” Coinbase provides a series of video classes and exams as a way to educate users about cryptocurrency trading and some of the cryptocurrencies on offer. And, by taking the classes, users can earn a few dollars worth of certain cryptocurrencies.

Quick withdrawals. Coinbase is one of the few crypto exchanges to allow users to withdraw crypto immediately after they purchase it using fiat currency, rather than waiting several days for the payment transaction to clear. This can be a big help for users who want to use cryptocurrency in decentralized apps and other external services.

Where Coinbase falls short

Fees and worsening transparency over time. Coinbase has a lot of ways you can pay for crypto, and they can carry different fees that are at times hard to understand. And although Coinbase technically does disclose fees to users before completing a transaction, the way the fee is presented in relation to the amount of crypto you're buying is more confusing now than it used to be, and those fees are difficult to look up ahead of time. In our opinion, this is the biggest knock against Coinbase. We've been reviewing the platform since 2020, and this fee transparency has gradually worsened since then.

Legal woes. As the largest U.S.-based crypto exchange, Coinbase has been — and will likely continue to be — a focus of regulatory efforts to rein in the industry. In June 2023, Coinbase was hit with a sprawling complaint by the U.S. Securities and Exchange Commission, which accused it of dealing in unregistered securities. The case has implications for the entire U.S. industry, in part because it also names several popular cryptocurrencies as securities.

Coinbase is best for:

• Cryptocurrency traders looking for convenience.

• Traders who want to easily convert one cryptocurrency to another.

Coinbase at a glance

More details about Coinbase's ratings

Trading and transaction fees: 2 out of 5 stars

Coinbase's fee structure is a confusing combination of elements that depend on three factors:

• Coinbase charges a spread on cryptocurrency sales and purchases. While rates can vary depending on market fluctuations, the company has previously said the fee is about 0.5%. (This fee doesn't apply for orders placed with Advanced Trade.)

• Coinbase also says it charges fees based on factors “including the selected payment method, the size of the order, and market conditions such as volatility and liquidity.”

• In addition, Coinbase charges fees to cover the costs of executing transactions on the external blockchain networks that support the cryptocurrencies in which it deals.

Overall, these factors can make Coinbase fees difficult to predict on its main platform. The company says it clearly lays out fees for customers before finalizing a transaction, which we found to be true — but you'll only see it on the screen just before purchasing. Even so, it still seems like they try to obfuscate the amount in BTC you're actually receiving. (Note the screenshot to the left: You can see the fee comes out to $8.38, or about 4.2%, and we'd only receive $191.62 in Bitcoin.)

Fees are lower if you purchase through a connected bank account. When we purchased $200 of Bitcoin with USD that way on Sept. 12, 2024, the total fee came out to $3.74, or 1.87%.

By comparison, Coinbase Advanced Trade’s pricing model is more straightforward, though fees have risen slightly in recent years. It's based on your monthly trading volume and liquidity of the asset at the time of purchase; if immediately available, you're charged a “taker” fee, and if your order needs to wait for a buyer, you are charged a “maker” fee. Your fee tier is recalculated every hour.

Minimum trade: 5 out of 5 stars

We were able to purchase $1 of BTC on Coinbase. However, it's worth noting that that came with a $0.50 fee, so we netted about $0.50 of BTC.

Number of cryptocurrencies: 5 out of 5 stars

Coinbase offers more than 240 cryptocurrencies for U.S. customers to trade, a larger number than many other platforms. However, the number of assets available can change regularly as Coinbase adds and delists cryptocurrencies in the fast-changing crypto landscape.

Crypto-to-crypto trading pairs: 5 out of 5 stars

Coinbase offers more than 350 crypto-to-crypto trading pairs.

Staking and rewards: 4 out of 5 stars

The potential APY on staked coins tops out at around 12% on Coinbase, and there are nine coins that can earn rewards.

Coinbase's staking program was part of the SEC's complaint against the company, so the legal questions over staking on the platform will likely linger as the case moves forward. Coinbase says it disputes the SEC's interpretation of the legality of its offerings. Chief executive Brian Armstrong said in a written statement in June that the company is "proud to represent the industry in court to finally get some clarity around crypto rules."

Customer support options: 5 out of 5 stars

Coinbase has 24/7 live phone support. It also allows customers to reach out by email or chat.

The platform also has a strong library of educational content, and Coinbase Learn is a creative way to incentivize users to understand what they’re doing.

Is Coinbase right for you?

Coinbase is considered one of the top cryptocurrency exchanges in the U.S. The interface for Coinbase basic service is quick and user-friendly, but it also has a handful of features that might appeal to more seasoned users. That said, the costs of using Coinbase can be difficult to track, especially if you are purchasing cryptocurrency with cash.

Methodology