Do you want to invest in cryptocurrencies through Coinbase? Looking for broker advice? Do you want to know your order and how it works? Are you willing to invest derivatives in cryptocurrencies like CFDs?
Coinbase is undoubtedly the most famous exchange in the world for buying and selling virtual currencies, even surpassing Kraken. Founded in 2012, it has approximately 15 million registered users by 2021. Thanks to the great appeal of its services and blockchain technology, its growth has been astronomical over the years.
It can be said that the number of users is really in line with the prices of the most popular cryptocurrencies such as Bitcoin or Ethereum. Knowing this, we start from Coinbase analysis to understand customer opinions, their commissions and their security. To be precise, we will start here.
Is Coinbase legit? Is a gotcha?
There is no doubt that customer opinions or exchange fees are important, but if everyone is happy or their prices are attractive (if it turns out that the company is not trustworthy), it will be of no use. Therefore, at this point, we will analyze the security of Coinbase based on this regulation.
Interestingly, in Spain, Coinbase does not have any regulations from regulatory agencies such as FCA or CNMV. After all, cryptocurrency is something very new and very unsupported. In addition to certain regulations in the United States, the main requirement is that you have registered as a money services business with FinCEN. Therefore, we cannot say that security is complete because it does not have the official regulations that we want. That being said, there are currently no major complaints or claims, so we believe Coinbase is not a scam.
Many of the derivatives brokers, like CFDs, are regulated by recognized regulatory agencies. For example, Plus500. In this case, we find a company whose shares are listed on the London Stock Exchange. Furthermore, Plus500UK Ltd. is also regulated and licensed by the British regulatory agency FCA. To this end, it should also be added that if we consult the website of the Spanish regulator CNMV, we will find that Plus500UK Ltd. also appears in their documents. Therefore, it seems that we are facing a serious and reliable company.
Now that we have discussed security and the risks of fraud and scams, we can move on to the topic of charges. Coinbase charges different fees depending on your investment method. The first is based on how we want to deposit and withdraw funds, and the second is the commission for buying and selling cryptocurrencies.
Deposit and withdrawal fees
Coinbase charges fees for deposits and withdrawals. At this time, the rate will change depending on the payment method you choose. According to Coinbase, if you are in Spain or an EU country, the fee for withdrawing deposits by bank transfer is 0.15 euros. The cost of buying and selling cryptocurrencies. Of course, what interests investors the most is the commission for investing in cryptocurrencies. It also depends on the payment method you choose. Therefore, we will see it as a schematic diagram. Coinbase’s commission is:
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- 1.49% for normal buy / sell
- 3.99% for instant purchase with card
These are the Coinbase commissions for Spain and European countries.
Are these commissions cheap or expensive? There is no exact answer, it is up to you. Returning to the comparison with CFDs, brokers like Plus500 They do not charge commissions. This does not mean that it is free. In the world of CFDs there are what are known as spreads. Spreads are differentials in the prices of the same underlying asset at a given time. If you don’t understand, let’s see it with an example. Let’s say you can buy CFDs on Bitcoin for 6462 dollars, but at that very moment, if you want to sell they pay you 6418. This is the spread, which in the case of Plus500 is usually reduced.
Now that we know all about Coinbase conditions, let’s see what cryptocurrencies can be bought. As you will see, Coinbase is only very specialized in a few cryptocurrencies, but they are the main ones. The cryptocurrencies available on Coinbase are:
- Bitcoin cash
On the other hand, if you are interested in other virtual currencies (such as Ripple or Neo), you should look for other alternative currencies. What happened was that the main bags did not have them. Another option is to trade derivatives on it. As you know, for derivative products, you do not own this cryptocurrency, but you do own a product whose price fluctuates similarly. Continuing with the comparison that we have seen, in terms of derivatives (such as CFDs), it is possible to use more cryptocurrencies as a basis. In this case, you do not own the asset, but instead have derivatives whose prices change with the asset over time. The risk is high, but you can use commercial derivatives of cryptocurrencies that are not on Coinbase, such as Ripple or Neo.
We enter one of the main parts, which is the online exchange of opinions between users. Of course, we don’t need to say that, but just in case, we remind you that people leave thousands of comments and messages on the Internet. Therefore, it is impossible to analyze all the comments about Coinbase on social networks and forums dedicated to investment or blockchain. Therefore, what we will see here is a broad vision. Again, we will divide this part into positive and negative opinions. Clear, let’s go.
Perhaps the most repeating positive point is Coinbase’s leadership in the cryptocurrency exchange market. Some reviews also praised the customer service as they thought it would be helpful if they found a problem. There are also positive reviews for the investment platform, because many people think that it is complete. Lastly, Coinbase apps also get good reviews.
On the negative side, we have a negative view of commissions because some people think that the fees and costs are high. There are also some negative comments about various cryptocurrencies available. While it is possible to buy classic currencies (Bitcoin, Bitcoin Cash, Ethereum, and Litecoin), some digital currencies lack major currencies, such as Ripple, IOTA, or Neo. Some people also have negative opinions. These people encounter platform problems or system failures at important times.
As you can see, we conducted a comprehensive review of Coinbase. Although there is still much to say, we believe that we have discussed the main topics of the company. However, we will make a brief summary. Coinbase is one of the leading cryptocurrency exchanges.
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It has a great reputation, but the commission is not small. As an alternative, some people prefer to trade derivatives on cryptocurrencies such as CFDs. With CFDs, you do not own the currency, but a product that replicates its behavior.