Cryptocurrencies are designed to offer economic freedom, and Coinbase is on a mission to elevate this freedom. Coinbase is among the world’s top cryptocurrency exchanges, providing services to millions of users around the globe. It was the first major cryptocurrency exchange that became a “publicly traded company” in 2021 after being listed on the Nasdaq exchange.

The popularity of Coinbase has created a popular phenomenon called the “Coinbase Effect,” comprehensively surging the price of newly listed coins on the exchange. The platform has proactively implemented a strong security system to minimize the risk of security breaches. In addition, it offers a complete suite of features, including advanced trading options, an Affiliates program, Earn products, and institutional solutions.

This in-depth review of the Coinbase Exchange will highlight its major features to help you understand everything about the exchange in 2025.

What is Coinbase?

Coinbase is a U.S.-based centralized cryptocurrency exchange that allows its users to trade popular cryptocurrencies, such as Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and more. Founded in 2012 by Brian Armstrong, the platform aims at making cryptocurrencies accessible to everyone. According to the latest statistics, the exchange has over 100 million registered users in over 100 countries.

One of the standout features of Coinbase is its user-friendly interface that makes it easy for everyone to trade their favorite digital assets. Users can access its innovative features on the website as well as on the advanced mobile phone app to manage their portfolios. Additionally, the exchange offers rich educational resources, such as articles, tutorials, and videos, to help everyone learn how to use the platform.

Coinbase allows its users to diversify their portfolios by investing in various cryptocurrencies. The exchange offers a wide range of supported cryptocurrencies that users can trade. It supports over 290 cryptocurrencies and more than 430 trading pairs across its spot and features markets.

Moreover, Coinbase offers deep liquidity to its worldwide users, and its trading volume stands above $1.7 billion. The exchange also provides its users with multiple options to generate passive income, such as Earn products and Affiliates Program. Coinbase also focuses on enhanced safety of its users’ funds through robust security measures, such as multi-approval withdrawals, two-factor authentication, and more.

The following are the key features of the Coinbase Exchange:

• Coinbase is an intuitive and straightforward platform that makes crypto trading productive for everyone.
• The platform offers rich educational content for the enhanced convenience of its users.
• Coinbase supports a wide range of cryptocurrencies, allowing everyone to invest in multiple digital assets.
• Thanks to its top security measures, it ensures a secure trading environment to users, like cold storage for funds and two-factor authentication.
• Coinbase allows its users to generate passive income through Earn products, staking, and more.

Historical Background

Coinbase is among the most popular cryptocurrency exchanges across the globe. It was founded in June 2012 by Brian Armstrong, with the exchange’s initial headquarters established in San Francisco, California. The Coinbase exchange began its operations simply as a platform to facilitate the buying and selling of Bitcoin (BTC) through bank transfers.

In 2015, Coinbase underwent some prolific upgrades, which transformed the platform. It launched Coinbase Pro, an exchange for professional crypto traders, and Coinbase Prime for institutional customers. The platform also launched its first mobile app for Android and iOS devices.

In 2016, Coinbase obtained its Bit License from the New York State Department of Financial Services, becoming the first cryptocurrency exchange to do so. It allowed the platform to operate in one of the biggest financial markets in the world, establishing trust among users.

Over the years, Coinbase has earned several accolades, including becoming the first exchange with no formal headquarters and adopting a fully remote work culture. Today, the exchange serves millions of users in over 100 countries and supports hundreds of cryptocurrencies. In addition to trading, it offers unique features such as lending, staking, and a debit card.

Some of the flagship products offered by the exchange are the following:

• Coinbase Wallet: Launched in 2017, it has become a popular crypto app for users to store and trade digital assets.
• Coinbase Commerce: It helps businesses use cryptocurrency payments for their checkout process.
• Coinbase Custody: It is a secure digital asset storage that caters to the needs of institutional investors regarding audit trails and withdrawal limits.
• USD Coin (USDC): Coinbase partnered with Circle to launch USDC Coin, a stable cryptocurrency pegged against the US Dollar. USDC has become one of the leading transacted stablecoins in the crypto space.
• Coinbase Prime: It facilitates institutional investors in trading and offers more advanced features than the wallet.

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Getting Started with Coinbase

Coinbase is a leading cryptocurrency exchange that offers advanced features to crypto users. To access its unique features, you need to create an account on the platform.

Follow these steps to get started with Coinbase:

First, visit coinbase.com and click Sign Up at the top of your menu bar.

Once you are on the sign-in page, choose between the account type: individual or business. The individual account is a personal account you can use to trade cryptocurrencies, while the business account is for managing teams and portfolios.

Once you select the account type, you are required to provide your email address. Coinbase also allows you to sign up through your Google and Apple accounts.

Enter the six-digit verification code that you receive at your email address.

Once done, create a strong password using uppercase and lowercase letters, numbers, and symbols.

After this, enter your first and last name exactly as it appears on your government-issued ID.

Enter your registered mobile phone number to receive the verification code.

After providing the verification code, agree to the terms and conditions. You need to provide your personal information based on your country name and place of birth.

KYC Process on Coinbase

Coinbase supports the KYC (Know Your Customer) procedure to verify users’ identity. This process is crucial as it protects your account from illegal activities, such as illicit fund transfers, terrorism financing, and fraud.

Once you have created your account and provided the personal information, the next step in the account creation process is completing the KYC procedure.

To do this, first, you need to select the ID type from the two available options, i.e. a government-issued driver’s license or ID card.

Provide the required images for verification. Once the system verifies your identity, the KYC procedure will be completed.

Google Two-Factor Authentication on Coinbase

The Google Two-Factor Authentication (2FA) on Coinbase adds extra protection to your account. It significantly minimizes the risk of fraud by limiting unauthorized access to your digital assets.

To set 2FA to your account on Coinbase:

• Go to your account settings and navigate to 2-Step Verification.
• Download the two-factor authentication app on your mobile phone and link it to your account.
• Scan the QR code and enter the six-digit code to enable 2FA.

Crypto Listings on Coinbase

Coinbase envisions to meet all modern-day standards of crypto trading. The platform lists a variety of cryptocurrencies that are available for trading. Among these digital coins, the popular names include Bitcoin (BTC), Ethereum (ETH), Cardano (ADA), Solana (SOL), Tether (USDT), and more.

Coinbase is a vocal advocate of crypto regulations and complies with local laws. The token listings on the exchange vary significantly across regions due to disparities in local laws. For example, tokens like XMR are absent from the exchange across several jurisdictions.

Regardless of such limitations, Coinbase focuses on sitewide support for the majority of coins that comprise its global trading volume. So, limitations over coin listings on the exchange do not hinder most traders.

Security on Coinbase

Coinbase is a secure platform for trading and storing cryptocurrencies. The exchange has implemented robust security measures to secure its users’ funds.

It supports identity verification or the KYC procedure for all accounts to comply with modern-day security standards. In addition, the platform uses Google Two-Factor Authentication (2FA) for all accounts, minimizing the risk of unauthorized access.

All account passwords on the exchange are encrypted with its database, adding an extra layer of security. You can also use the Coinbase Vault to secure withdrawals from the exchange.

Coinbase utilizes a 1:1 reserve system to safeguard your deposits. It means your funds are fully backed and cannot be lent out without your approval, significantly reducing risk during volatile market periods. Moreover, the platform stores 98% of funds in air-gapped cold wallets that come with multi-signature security protocols.

However, Coinbase has faced several cyber threats in the past. Both users and employees were subject to phishing scams and social engineering attacks. For example, a user filed a lawsuit against the exchange after allegedly losing $96,000 over a SIM-swapping attack. With such incidents, Coinbase has consistently addressed these vulnerabilities by upgrading its security setup.

Supported Payment Methods on Coinbase

Coinbase supports several payment methods that you can add when signing up for the exchange. It supports both crypto and fiat deposits to facilitate its users.

Some of the supported payment methods on Coinbase are:

• Bank Transfers
• Debit Card
• Apple Pay
• PayPal
• Wire Transfer
• SEPA Transfer for EU customers

Fiat Support on Coinbase

Today, fiat deposits and withdrawals are supported by a majority of crypto exchanges. Coinbase is an advanced crypto exchange that supports major fiat currencies, such as the US Dollar (USD), British Pound Sterling (GBP), and the Euro (EUR).

In addition, it offers Coinbase Pay, a payment feature that supports several crypto and fiat currency payment methods. This feature is on the Coinbase Wallet, third-party apps, and Coinbase NFT. It supports various crypto and more than 60 fiat currency payment options.

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Coinbase Wallet

The Coinbase Wallet is a self-custodial crypto wallet that you can use to gain full control over your crypto assets. It operates independently from the Coinbase Exchange, meaning you are not required to have a Coinbase account to use it. You can manage your assets on the Coinbase Wallet through a secure seed phrase.

The wallet supports both Solana-compatible and Ethereum Virtual Machine (EVM) networks. You can also use these networks through the browser extension or mobile phone app. Popular networks, such as Avalanche, Base, Arbitrum, BNB, and Polygon, are installed on the wallet for user convenience.

What makes the Coinbase Wallet unique from its competitors is its support for additional assets beyond the typical EVM-compatible chains and ERC-20 tokens. It supports coins, such as Bitcoin, Litecoin, and Dogecoin, offering you the chance to diversify your crypto portfolios. In addition, the wallet seamlessly connects Web3 features with supported decentralized applications (dApps).

Trading on Coinbase

At Coinbase, traders have the flexibility to choose between basic trading and advanced trading.

The basic trading has been designed for beginner traders who like to place simple buy and sell orders. It features easy-to-read line charts rather than traditional candlestick charts. It makes life easy for beginners who prefer simple order types and essential information without overwhelming features.

For experienced traders who prefer detailed technical analysis across Spot and Futures markets, Coinbase offers Advanced Trading. For this, click on your profile icon and navigate to Coinbase Advanced. Advanced Trading on the exchange provides access to technical indicators, candlestick charts, and tools to help traders analyze the market comprehensively and make informed decisions.

Traders can choose from the available over 430 trading pairs on the exchange in advanced trading. They can select from different order types and indicators and adjust the trading chart according to their trading strategies.

Order Types on Coinbase

Coinbase is an advanced exchange that offers different ways to buy or sell cryptocurrencies. Some of these ways are simple, while others offer more control. For example, on the asset page, you can start the basic trading by simply entering the order amount and placing the order. Once the order is complete, you will see the changes in your account.

On the other hand, in Advanced Trading on Coinbase, traders are offered enhanced control over their trades. You can choose between different order types in Advanced Trading and use them according to your preferred trading strategies.

The following are the order types available on Coinbase:

• Market Order: Traders use this order type to buy and sell cryptocurrencies immediately at the best available market price.
• Limit Order: It is used by traders to set a specific price for an order to be executed once it is matched.
• Take-Profit/Stop-Loss Order: This order type is based on two types of orders: Take-Profit and Stop-Loss. A Take-Profit order is executed when the specified price for the order is reached. A Stop-Loss order minimizes the losses by automatically closing a position when the price drops to the specified level, below or above the entry price.
• Bracket Order: You can use this order type to manage the risk to your position by setting the target exit price to secure profit and avoid losses.

Fees on Coinbase

The fee structure on Coinbase has been designed according to various products on the exchange, like Coinbase Advanced and Coinbase Commerce. In addition, the platform does not charge any additional fees for deposits.

Understanding how Coinbase defines market maker and taker is important to analyze its fee structure. A maker is a trader who places an order that is not immediately filled, for example, setting a price low or above the current market rate. In this condition, such a trader is considered a maker. On the other hand, a taker is a trader who places an order that instantly matches the open orders in the order book.

On Coinbase Advanced, the fee structure is based on your 30-day USD trading volume and the taker and maker fees are calculated in basic points (bps). Remember, bps is a unit of measure used in finance and 1 bps is equal to 0.01%.

The tiered fee structure looks like this:

The Coinbase Exchange also follows a maker-taker fee model across all tiers. A maker pays between 0.00% and 0.40%, while a taker pays between 0.05% and 0.60%.

The fiat deposit and withdrawal fees on the Coinbase Exchange also vary according to the fiat currency and the method used. The following are the deposit and withdrawal fees on the platform:

To sum up, Coinbase’s fee structure is competitive but not the lowest in the market. However, paying a higher fee could be worth it if you are looking for a robust security structure that ensures compliance with licensing and key regulations.

Coinbase Earn

The Coinbase Earn program has been designed to offer users an opportunity to generate passive income along with their crypto investments. The program is available to everyone who is a registered user on the exchange. To access the program, users need to complete the KYC (Know Your Customer) procedure on the platform.

The Coinbase Earn program offers three main features:

• Staking
• DeFi Yield
• Learn and Earn

These options allow users to earn up to 14% Annual Percentage Yield (APY) on their crypto investments. However, the APYs differ according to the specific assets and market conditions.

Coinbase Staking

Staking on Coinbase is handled by the exchange as it deals with complexities. By staking your cryptocurrencies on the platform, your crypto is assigned to a Proof of Stake Mechanism to a blockchain network. It allows you to earn passive income by earning token rewards.

Traditionally, staking involves lock-up periods and transaction fees. However, Coinbase allows you to stake or un-stake your assets anytime without worrying about fees. The platform charges you a small commission from your rewards for smooth services.

Remember, the supported staking assets on Coinbase can vary according to your location.

DeFi Yield

The Coinbase DeFi Yield is a yield farming service allowing users to earn rewards on their investments in decentralized finance (DeFi) protocols. These protocols are divided into several categories: swap services, Automated Market Makers, and lending platforms. Coinbase allocates your funds to these DeFi Protocols and, in return, shares your rewards with you after deducting a commission.

Learn and Earn

The Coinbase Learn and Earn is a unique program where you can earn crypto rewards while learning on the platform. It offers you free access to beginner-friendly educational courses. You only need to learn these courses and complete quizzes based on the material.

Note: The Coinbase Learn and Earn program is designed for beginner traders, and seasoned traders may find the rewards less appealing.

Coinbase Base

The Coinbase Base is an Ethereum Layer-2 scaling solution that the exchange has built in collaboration with Optimism. It uses OP Stack and has made Coinbase the world’s first publicly traded company to introduce a proprietary blockchain network.

Since its inception, Base has attracted a number of developers. A wide range of DeFi applications have already deployed smart contracts on the network. These include some popular names, including Uniswap, Curve, and Balancer. It also includes some cross-chain protocols, like Hop Protocol and Stargate, and lending platforms, such as Compound.

Friend.Tech, a Social Finance (SoFi) protocol, has been a success story on the network. It recorded incredible growth when it allowed users to trade keys for access to exclusive private chatrooms. Today, Friend.Tech is revolutionizing the intersection between blockchain technology and social media.

Other Popular Features on Coinbase

Coinbase is among the leading cryptocurrency exchanges around the globe, offering products that go beyond cryptocurrency trading. Some popular features offered on the exchange are:

• Coinbase One: a subscription service that offers discounts on trading fees, analytics services, and taxation.
• Coinbase NFT: it is a platform where you can create, discover, showcase, and trade NFTs. It is accessed through the Coinbase Wallet.
• Coinbase Card: it allows US-based Coinbase users to make crypto transactions.
• Coinbase Prime: it is a brokerage platform integrated with the exchange for institutional investors, hedge funds, corporations, asset managers, family offices, private wealth managers, endowments, and high-net-worth individuals. It offers a unified investing experience by combining financing, trading, and custody in a single platform.

Coinbase Mobile App

Coinbase offers a convenient and user-friendly mobile phone app to its worldwide users. It has an intuitive interface that allows you to manage your crypto portfolio comprehensively. You can download the app from the Google Play and Apple Play Store.

A remarkable feature of the Coinbase mobile phone app is its ability to track real-time market trends and prices. It assists you in making informed decisions when you buy or sell cryptocurrencies. Moreover, the app offers customizable changes, detailed charts, and alerts to keep you abreast of the latest developments in the crypto market.

Closing Thoughts

Coinbase remains a popular exchange offering users a secure way to trade cryptocurrencies. It is an ideal platform for those who value trust, innovation, and a well-established track record. The exchange caters to the needs of both beginner and professional traders and offers a wide range of trading pairs and advanced trading tools.   The benefits for users do not end here, as Coinbase offers several ways to generate passive income. It offers top features like an NFT marketplace, Coinbase Card, and more. It has also implemented top security measures such as 2FA and KYC for maximum safety of users’ funds.

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Frequently Asked Questions (FAQs)