What is Coinbase? Pros And Cons Of The Crypto Exchange

In a short period of time, cryptocurrency has gone from a small, alternative investment to one worth trillions of dollars collectively. Coinbase is a crypto exchange where you can buy popular coins like Bitcoin, Ethereum and Solana. Not every coin is supported on Coinbase, but there are more than 240 different types of cryptocurrencies on the platform. Meanwhile, there are thousands of different cryptocurrencies available worldwide. Still, Coinbase lets you trade the most popular types of crypto, so it works well for most purposes.

This all makes Coinbase an option for new crypto investors to buy and sell their favorite coins. But is Coinbase safe to use? What about the fees? We’ll address these questions and more below.

Coinbase: A beginner’s guide to using the popular crypto exchange

If you’re new to Coinbase and perhaps even cryptocurrency in general, it can all seem overwhelming. Don’t worry — it’s actually quite simple, and we’ll explain how to get started. With over 100 million users, Coinbase is one of the most popular cryptocurrency exchanges. It’s also one of the easiest ways to buy cryptocurrency, which has helped fuel its explosion in popularity.

How to open a Coinbase account

Opening a Coinbase account is easy. Here’s what Coinbase says you’ll need to create an account:

• Be at least 18 years old
• A government-issued photo ID, such as a driver’s license or state ID (Passports aren’t accepted)
• A computer or smartphone with internet access
• A phone number for SMS verification
• The latest version of your internet browser

If you can meet the requirements above, you should be good to go. To get started, enter your first and last name, email, state of residence, and create a password. You’ll also have to check the box confirming you are at least 18 years old. The only thing left to do after that is to set a password. Be sure to set a strong, unique password to keep your account safe.

You’ll also want to add a payment method so you can move money into your Coinbase account. U.S. customers can use a variety of methods, including a bank account, debit card, PayPal, Apple Pay or wire transfer. Note that PayPal is only available to U.S. customers, and you can only use it to buy cryptocurrency or to cash out.

Once you create your account and add a payment method, you are ready to start trading cryptocurrency.

Cryptocurrencies available on Coinbase

While Coinbase doesn’t support every cryptocurrency, it supports many of the most popular coins. So most people buying and selling on Coinbase won’t run into any issues. However, traders with more niche tastes might find they need to set up an account elsewhere.

There are more than 240 coins available on Coinbase. We won’t list every single one, but here are some of the most popular ones that Coinbase provides access to:

You can find a complete list on the Coinbase website.

How to buy and sell cryptocurrencies on Coinbase

If you have already linked a payment method to Coinbase, buying and selling couldn’t be easier. When logged into your Coinbase account, here are the steps to buy cryptocurrency:

1. Click the Buy/Sell button in the upper right-hand corner (or lower left if you’re using the app).
2. Specify whether this is a one-time purchase or daily/weekly/monthly.
3. Enter the amount of your purchase.
4. Select the cryptocurrency to buy.
5. Select your payment method.

Keep in mind that when you buy using a bank account, the transaction typically takes 3 to 5 business days to complete, according to Coinbase.

Selling on Coinbase is even easier. All you have to do is enter how much you want to sell (or select “sell all”). Then indicate which coin you want to sell and how you want to be paid. Note that the same fees apply whether buying and selling.

How much does it cost to trade?

Fees on Coinbase can be complicated, but they depend on a combination of factors, such as market conditions, payment method and size of the order. Coinbase includes the spread in the quoted price when you place a buy or sell order.

When you go to place the trade — whether in the app or browser — you will be given an opportunity to see the details of what fees are included next to the total price. To learn more about the details related to those fees, hit the information icon to the right of the total you’ll be paying for the trade.

If you’re a more advanced trader or trade a lot, you do have two options that may help lower your fees: Coinbase Advanced Trade or Coinbase One. 

• Coinbase Advanced Trade: Here, you’ll find additional trading options and upgraded charting features. Coinbase Advanced also offers a maker-and-taker fee structure, which is more straightforward (and has lower fees). You can opt into Advanced mode by toggling “Advanced” at the bottom left of the screen after logging in.
• Coinbase One: The company also offers Coinbase One, a subscription service that allows members to trade up to $10,000 per month with no trading fees. 

Another way to help combat fees is to take advantage of crypto bonuses and referrals. If you’ve never had a Coinbase account before, you can get a crypto or cash bonus. You can also earn an additional bonus or reduced fees from referring your friends. 

All in all, the easiest way to familiarize yourself with Coinbase’s fees is to preview an order.

Is Coinbase a safe crypto exchange?

It’s natural to wonder whether Coinbase is safe, especially if you are investing a lot. While Coinbase is generally a secure platform and has security measures such as two-factor authentication, it’s not impervious to attacks, especially hacking, extortion and phishing scams. In one recent instance, cybercriminals paid Coinbase support agents overseas in order to steal customer data, then tried to extort the company to cover it up. The scam affected some users, but no passwords, private keys or funds were compromised, according to the company. 

Separately, Coinbase has faced some legal issues in recent years. The Securities and Exchange Commission sued Coinbase in June 2023, alleging it had illegally operated as an exchange, broker-dealer and clearing agency, as well as offered and sold unregistered securities. The SEC dismissed the case in 2025. 

But, you don’t have to avoid Coinbase entirely. When it comes to keeping your digital assets safe, there are measures you can take, such as buying and using a hardware wallet.

The idea behind these different types of wallets is that you aren’t relying on Coinbase to store your money. They allow you to store your own crypto using an app, software or hardware. So even if someone gains access to your Coinbase account, that won’t give them access to the wallet, where your cryptocurrency is actually stored.

The downside to this approach is it requires you to remember your own private key. If you have ever heard of people losing millions’ worth of crypto, it’s likely because they got locked out of their non-custodial wallet and lost or forgot their recovery seed phrase. 

While this method is more secure, the onus is on you to ensure you can access your wallet by keeping the phrase in a secure and safe location that isn’t online.

Bottom line

Coinbase is an easy way for those who are new to cryptocurrency to get started. Its easy-to-use interface lets people buy and sell crypto in just a few clicks. While not every type of cryptocurrency is supported, you will find many of the most popular coins there.

One thing to keep in mind about Coinbase is that the fees can add up, especially when buying small amounts of crypto. 

These are among the biggest reasons that while Coinbase is useful for beginners, it is not for everyone. If you want to avoid Coinbase’s complicated fee structure and long processing times, there are plenty of other ways to buy cryptocurrencies such as Bitcoin.

And if you do choose to invest in cryptocurrency, make sure it’s part of a diversified investment strategy. That means investing in tried-and-true assets such as stocks and bonds, as well as real estate if you choose. Also, don’t forget to keep cash on hand, ideally in a money market account or a high-yield savings account. Taking these steps should help you weather the volatility that often comes with investing in cryptocurrency.

— Bankrate’s Logan Jacoby contributed to an update of this article.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.