Coinbase is designed for new investors investing in cryptocurrencies for the first time. It has a user-friendly interface allowing users with limited technical knowledge to purchase and sell crypto tokens. Users need to set up their accounts and link their bank accounts to carry out selling or buying activities.
Users using Coinbase can access their portfolios on the dashboard, and the platform offers a similar experience to buying and purchasing stocks through online brokerages. The sum one spends or earns is directly added to their bank account. However, this process can take up to a few days.
Coinbase helps new investors maneuver through their site and trade at their convenience. Unlike the stock market, the crypto trading market is open 24*7, which can help users trade anytime they want.
Like the Pro versions of other crypto trading platforms, Coinbase Pro offers several new features like stop and limit orders, etc. However, users need not create a separate account for Coinbase Pro. Instead, they can access the pro features through their Coinbase accounts. Coinbase Pro is more suitable for large investors or investors with enough crypto trading experience.
Coinbase offers a range of crypto trading features where investors can purchase or sell stocks through an online brokerage. Here are some of the pros and cons of the platform.
If you are a new investor, beginning with your investments in the crypto market, Coinbase can be the best option. Users can efficiently use the platform without prior investment knowledge in the sector. Coinbase offers several investment features, which users can access through a few simple clicks. Additionally, the platform also has an easy way of crediting or debiting amounts directly from the user's account. Thus, Coinbase tries to offer a hassle-free trading experience to its users.
Apart from its user-friendly site, Coinbase also supports various kinds of cryptocurrencies. Starting from Bitcoin, Ethereum, Cardano, Solana, Shiba Inu, Algorand, and much more, users have several options from which they can choose. Additionally, Coinbase expands its crypto tokens regularly. Hence, one can expect a greater number of crypto options in the later years.
Coinbase makes account management easier for its users. The platform enables users to view and manage their portfolios along with a detailed pattern of the nature of their investments. Thus, new investors can gather considerable insights from such statistics. What's more? You can access your portfolio either through your mobile or desktop, as Coinbase supports all operating systems.
Coinbase is famous for its safety and security features. All users must register and verify their accounts through a two-step verification process that enhances the platform's security. While cyber thefts and scams are quite common in the crypto market, investors trading using Coinbase reports no such hacking activity. Instead, most investors claim the platform uses efficient technology and cutting-edge software to reduce the chances of cyber threats. Moreover, Coinbase also stores customer assets in offline cold storage, surrounded by high-tech security tools. Thus, it is almost impossible to hack the user's account unless the hacker can access your device.
Cons
While the content above indicates the benefits and efficiency of Coinbase, here are some of its disadvantages:
Though Coinbase is one of the most popular crypto trading platforms globally, it has low customer satisfaction. Most customers complain that though the platform theoretically offers several customer support features, it is far from offering them in reality.
Thus, the platform operates on a self-service basis, as customers barely receive any help from professionals. Though you may chat with robots or access their automated calls, getting in touch with human professionals or technicians is impossible.
The lack of customer support is a major factor that keeps new investors away from the platform. Thus, most new investors prefer other crypto trading platforms with prompt customer service.
Though Coinbase claims to offer top-notch security, and most customers testify the same, it does not mean the platform is free from crypto thefts and hacks. Very few investors have reported crypto hacks in the platform that resulted in severe losses. The platform needs to improve its privacy and security features to rule out the chances of any hack and make crypto trading safer.
The amount Coinbase charges for crypto trading is higher than most other platforms. While there are no extra charges for Coinbase Pro, the basic version is pretty expensive. This is a major disadvantage for new investors who do not require the Pro version. According to Coinbase's pricing policy, one has to pay a higher sum for lesser features on Coinbase than Coinbase Pro.
Conclusion
Though Coinbase is popular worldwide and supports around 100 cryptocurrencies, the platform is yet to expand its list. However, it has several advantages, especially hassle-free and safe crypto trading. While one cannot deny its advantages, it is challenging to overlook its shortcoming.
Hence, it would be best to weigh the pros and cons of the platform and your expertise in the field before you begin trading. It would be best to compare it with other crypto trading platforms like Binance, Kraken, and Gemini to gauge which platform can serve your purpose better. Overall, remember, it is vital to thoroughly know the crypto market before selecting any of them.