Coinbase

Coinbase is the world's largest cryptocurrency exchange, offering users a wide range of services including the purchase, sale, and storage of over 200 cryptocurrencies such as Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, and Litecoin. The exchange boasts more than 35 million users across 100 countries worldwide.

It stands as the primary digital currency exchange in the USA, founded in 2012 in San Francisco. Coinbase went public on NASDAQ on April 14, 2021, through a direct listing, becoming the first cryptocurrency exchange to be listed on the stock market.

The platform is renowned for its ease of use, making it accessible to both beginners and experienced traders.

Coinbase Features

Wide Selection of Cryptocurrencies: Coinbase supports trading of over 200 cryptocurrencies and offers more than 400 trading pairs.
Educational Content: The platform provides educational materials and the opportunity to earn cryptocurrency by learning about blockchain and cryptocurrencies.
Instant Withdrawals: Coinbase allows users to instantly withdraw cryptocurrency after purchase using fiat currencies.

Coinbase Advantages

Low Entry Threshold: The minimum transaction amount is only $2.
Highly Rated Mobile Apps: Coinbase apps are highly rated by users for their ease of use and wide range of functionalities.
Staking Opportunity: Users can earn rewards by staking certain cryptocurrencies with a potential yield of up to 10%.

Coinbase Disadvantages

High Fees: Depending on the payment method and transaction type, fees on Coinbase may be higher than on other platforms.
Legal Issues: As the largest cryptocurrency exchange in the USA, Coinbase is under close scrutiny by regulators, which could impact its operations.

Registration on Coinbase

To register, you need to enter an email address, which will be your login to log in to the system. You can also register via Google or Apple account. Login is also possible via Passkey or Wallet.

Coinbase requires going through a KYC (Know Your Customer) procedure, including uploading a photo of an identity document such as a driver's license or passport.

Methods of Depositing and Withdrawing Funds

Deposits

Supported methods include ACH bank transfers, debit cards, bank transfers, and PayPal. Fees for debit cards are 3.99%, and for PayPal deposits, 2.5%.

Withdrawals

Possible to bank accounts and PayPal without fees in some cases, but cryptocurrency withdrawals incur network fees.

Coinbase Token

You can purchase Token through Coinbase Wallet. Here’s how to buy Token via Coinbase Wallet:

Download Coinbase Wallet
Choose a username in Coinbase Wallet
Secure your recovery phrase in a safe place
Understand Ethereum network fees and set aside funds for them
Buy ETH and transfer it to Coinbase Wallet
Use ETH to purchase Token on the trading tab

Staking – How to Earn on Coinbase

Coinbase offers the opportunity to earn through staking. The Coinbase Cloud Staking service provides an enterprise-level staking infrastructure optimized for custodians, exchanges, fintech platforms, decentralized applications, and wallets across more than 15 protocols.

Clients gain access to best-in-class staking without overhead costs or the need to run their own validators.
Customizable revenue distribution is available. Integrators staking with Coinbase validators are eligible for revenue distribution once they meet the minimum threshold.
Clients get access to specialized service teams, including consultations with experts across the 15+ supported protocols.
Integration with custodians is available.

Staking Requirements:

To receive rewards, users must meet several requirements:

Identity verification
Minimum balance required for the selected asset
Purchase or maintain the minimum balance or transfer cryptocurrency from an external wallet
Store eligible cryptocurrency on the exchange

Staking Fees

No fee is charged for placing or canceling a stake.
Coinbase charges a fee based on the rewards you earn from the network.
The standard staking fee is 35% for ADA, ATOM, DOT, MATIC, SOL, and XTZ.
For Coinbase One eligible participants, the fee is 26.3% for ADA, ATOM, DOT, SOL, and XTZ.
The ETH staking fee can be found in the "Asset Info" section.
Some users may receive offers with lower staking fees. APY and rewards displayed in your account always reflect earnings after fees.

Trading Fees

Coinbase offers two trading platforms: Simple and Advanced.

Simple trading involves higher fees, reaching up to 4% depending on the trade amount.
Advanced trading uses a tiered fee structure based on 30-day trading volume, with a maximum fee of 0.6% for takers and 0.4% for makers.

Fee Structure Based on Trading Volume.

Fees are determined by the transaction amount and overall trading volume. They are calculated based on the price level at the time of order placement (not order closure) and updated hourly based on total trading volumes.

For Coinbase Pro, the expected fee ranges are:

For transactions less than $10,000, the taker fee is 0.60%, the maker fee is 0.40%.
From $10,000 to $50,000, the taker fee is 0.40% and the maker fee is 0.25%.
From $50,000 to $100,000, the taker fee is 0.25% and the maker fee is 0.15%.
From $100,000 to $1 million, the taker fee is 0.20% and the maker fee is 0.10%.

For most major stablecoin pairs, the taker fee is 0.01%, and the maker fee is 0%.