Over the past few years, the growing popularity of cryptocurrencies has paved the way for a billion-dollar industry. Because of this, you now have a wide variety of platforms to buy, sell and store your cryptocurrencies. The two top rated cryptocurrency exchanges are Coinbase and eToro. But which one should you choose when buying crypto?
Here, we are going over the pros and cons of both the platforms so that you can decide which one is best for you. Let’s start with the crypto exchange that came before: Coinbase.
What is coinbase?
Coinbase was founded in June 2012 by Brian Armstrong, a former Airbnb engineer. Armstrong teamed up with Fred Ehrsam, a former Goldman Sachs trader, in his venture to make Coinbase a success.
The platform began as a service that allowed the purchase of bitcoins via bank transfer, but has since grown and evolved into the most popular decentralized exchange in the United States.
Coinbase is available in many different countries, including the US, UK, Australia, Canada, Singapore, and several European countries.
Coinbase supports a wide variety of cryptocurrencies, from the biggest names in the market such as Bitcoin and Ethereum to stable coins such as Tether and USD Coin, and some lesser-known cryptos such as NuCypher and Pavtocall. With over 160 supported coins in total, you will never lack for options when buying or selling crypto on Coinbase.
The platform is also an excellent choice for those who make security a top priority, and here is why.
Coinbase Security Features
Coinbase offers a variety of features that ensure that your funds will remain safe and untouched by any unauthorized parties. You can use two-factor authentication to protect your login process and use Coinbase’s Vault feature to make your crypto transactions more secure using additional verification steps.
On top of this, Coinbase works with the FDC to ensure that all US wallets on the platform are insured against losses of up to $250,000 in the event that funds are stolen through the hack (although this insurance will not be available to you). Does not cover unauthorized access to account due to loss of your login details).
Coinbase stores over 98% of the cryptocurrencies on its platform in cold storage. This means that almost all of its keys are stored using physical devices that are not connected to the Internet. Without an internet connection, it is very difficult for cybercriminals to steal private keys.
With all these great security features, you can rest easy knowing that your precious crypto funds are as safe as possible.
There are also two versions of Coinbase that you can use depending on your experience level and needs. You have the standard Coinbase that most users stick to, or Coinbase Pro, a different kind of Coinbase account for those who trade very regularly and have more experience in the industry.
Coinbase Pro also offers a feature that whitelists crypto wallet addresses in your address book to prevent your funds from going elsewhere.
Coinbase Pro offers more in-depth charting and some of the more advanced trading features, although you can do a lot with just a standard Coinbase account. Check out our excerpts on Coinbase and Coinbase Pro to determine if you need a Pro account.
Coinbase and Coinbase Pro have different fee structures, so let’s discuss how each account type will charge you.
A standard Coinbase account does not charge any creator fees, which is understandable, as creators are favored over takers on crypto exchanges because they supply the platform with liquidity. But the taker fee of 1.49%, as well as a spread fee of 0.5% for fiat transactions and 1% for crypto transactions, still applies.
Coinbase Pro, on the other hand, uses a maker-taker fee system to charge users. But a producer and a taker fee is not set across the board. Instead, these fees change based on the amount of money transferred in the transaction. For any transaction less than $10,000, Coinbase Pro charges a 0.4% maker and 0.6% taker fee.
Thereafter, the fees decrease with each amount bracket.
Unfortunately, you have to transact over $300 million to avoid maker fees, and taker fees are applied regardless of the amount.
Coinbase and Coinbase Pro do not charge any fees for withdrawals and deposits.
Overall, Coinbase is a secure and diverse platform that is suitable for both crypto novices and professionals. While its fees can be a bit high at times (especially on a standard account), the security features and large range of coins and tokens offered make it an excellent choice for all your crypto needs.