I know, clickbaity title, right? I’ll cut to exactly how you can instantly lose money on Coinbase and that’s by buying cryptocurrency directly through Coinbase.com for fees as high as 51% (rare cases). Selling through Coinbase also results in a similar fee amount. You should be using Coinbase Pro (still a Coinbase platform) where your total buy and sell fees will be 1%. The only risk is that it takes 5 days to fund your account in Coinbase Pro with a bank transfer and you don’t know if Bitcoin will go up or down.
As a warning, cryptocurrency is one of the most volatile investments you can own. Most cryptocurrencies peaked in January 2018 and many useless coins dropped 99 to 100% in value. Bitcoin itself had gone from $20k to $3k in that same year, an 85% drop in price. But if you buy low, then the swings upward can be very lucrative. That’s why this Coinbase Review will cover everything you need to know about:
- Coinbase Earn: Free money for learning about Crypto
- Can you avoid fees on Coinbase?
- Coinbase Buying/Selling (fees vary by country/amount)
- Coinbase Pro Buying/Selling (0.5% buy fees/sell fees)
- Using Coinbase Pro
- Keeping Your Coinbase Account Safe
- Coinbase Alternatives
- Coinbase Safety: Scams and sending to the wrong addresses
- What I like (and don’t like) about Coinbase
Coinbase Earn: Get free cryptocurrency from Coinbase by learning about different coins
In less than 1 hour, you can make about $41 from Coinbase. You’ll also get an additional $10 for signing up for Coinbase with my referral link and depositing $100 to buy any of their available cryptocurrencies. Making your grand total $51 for less than 1 hour of work. If you make $52/hour, this might not be worth your time. But if you like an easy $51, this is what you need to do. With Coinbase earn, it only takes a moment to watch a few videos and answer a few questions about what you just saw. Basically, they want to teach you about the potential value in some of these cryptocurrencies.
- $10 Sign Up Bonus (after buying/selling $100 of crypto on Coinbase.com – referral link)
- $6 Kyber (KNC) Coinbase Earn Kyber Answers:
- (3) Exchange one Ethereum Token for another
- (3) Stellar Lumens (XLM)
- (2) Identity Verification
- $9 Compound (COMP) Coinbase Earn Compound Answers:
- (5) Earning interest on your crypto
- (2) Supply a crypto asset as collateral
- (2) COMP token holders
- $10 (+$40) EOS (EOS) Coinbase Earn EOS and EOSIO Answers:
- (1) A decentralized finance (“defi”) platform for lending and borrowing crypto
- (1) Delegated Proof of stake
- (1) Fast, free transfers
- (3) Stake EOS Tokens
- (3) Upgradeable smart contracts
- $10 (+$40) Stellar (XLM): You should learn about this one.
- $6 Tezos (XTZ): You should learn about this one.
Coinbase Earn allows you to learn about some of their cryptocurrency project picks and rewards you with crypto immediately. You can earn (at least) $41 on your own from doing the Coinbase crypto lessons (answers revealed later) and an additional $80 from referring 4 people to EOS and 4 people to XLM (new or existing Coinbase members).
What are the Coinbase Fees?
The fees on Coinbase vary between countries. For US residents, the fees to buy and fees to sell are about 3.5% on Coinbase. Although the official rate on the Coinbase site says 3.99%, this seems to vary from the actual rates. [Official Coinbase Fees]. The fee rates vary by country but use the same numerical value: $1.49 | €1,49 | £1,49
- Buy $10 or less (minimum $2) and the fee is $0.99
- Buy $2 and get $1.01 worth of Bitcoin (49% fee)
- Buy $10 and get $9.01 worth of Bitcoin (10% fee)
- Buy $10.01 to $25 the fee is $1.49
- Buy $10.01 and get $8.52 worth of Bitcoin (14.89% fee)
- Buy $25 and get $23.51 worth of Bitcoin (5.96% fee)
- Buy $25.01 to $50 the fee is $1.99
- Buy $25.01 and get $23.02 worth of Bitcoin (7.96% fee)
- Buy $50 and get $48.01 worth of Bitcoin (3.98% fee)
- Buy $50.01 to 200 the fee is $2.99
- Buy $50.01 and get $47.02 worth of Bitcoin (5.98% fee)
- Buy $200 and get $197.01 worth of Bitcoin (1.5% fee)
- Buy 200.01 then you get the flat fee of 1.49%
- Buy $200.01 and get $197.03 (1.49% fee)
Since there is at least a 0.6 to 1% difference in market prices, expect the fee for any transaction on Coinbase to be at least 2.1%.
Can you avoid the fees on Coinbase? Absolutely. By using Coinbase Pro your fees drop to 0.5% resulting in a significant amount of savings. The more you trade using Coinbase Pro the more your fees drop. The same cannot be said about using the standard Coinbase.com site. [Official Coinbase Pro Fees]
Are there fees to move coins from Coinbase? There are no network fees when moving cryptocurrency from Coinbase and Coinbase Pro to another exchange or wallet. I really like that Coinbase covers the fee (even though it’s a small amount for most people).
Using Coinbase Pro
To use [Coinbase Pro], you need to create a Coinbase.com account first. Then you can use that same login at the official Coinbase Pro website. For some reason, I can’t find any link that I can easily navigate to on the Coinbase.com site to get to Coinbase Pro. It seems like this is insider info that they don’t really want to share with their users since they can charge much more in fees if they keep their user on the main Coinbase platform.
Coinbase and Coinbase Pro are two different platforms, but the account information and wallet balances are linked. By linked, I mean that you can instantly transfer between Coinbase and Coinbase Pro but you still need to go through the withdraw and deposit steps. Both are free platforms to use and there is no fee to sign up for Coinbase Pro (there are exchange fees though).
Depositing Money To Coinbase Pro: If you want to buy cryptocurrency with Coinbase Pro, you’ll need to fund your account with a bank transfer. Typically it can take up to 5 business days and since crypto is super volatile, you might feel lucky or unlucky having to wait these 5 days.
Depositing Money/Crypto from Coinbase to Coinbase Pro: You can instantly transfer any of your coin holdings from Coinbase to Coinbase Pro by using the [Deposit] button. You’ll then pick the currency/coin and then have the option to get a Crypto Address or to transfer from Coinbase.com
Depositing/Withdrawing Cryptocurrency: You need to be very careful when sending and receiving any type of cryptocurrency. Your wallet address uses a unique address for every type of coin, so you can’t send Bitcoin cash to a Bitcoin wallet address. There is no undo button, which means if you send money to the wrong address, it’s completely gone.
Withdrawing Money on Coinbase: To my knowledge, Coinbase is one of the few crypto exchanges that follows all federal regulations in countries it operates in. That means, if you’re based in the United States they report your crypto earnings to the IRS. There are ways around that if you decide to change your coins into privacy coins.
If you’re holding any crypto that you’d like convert to money, you’ll need to sell it on the Coinbase Pro (best value) exchange for USD (not USD coin). Then you can withdraw the USD directly to your bank which will take several days. Alternatively, you could always send Bitcoin to a Bitcoin ATM for a fee and instantly cash out.
Is Coinbase safe to use?
Coinbase is probably the safest platform because of it’s 3-factor authentication. It’s easy to make crypto funds disappear in seconds so you’ll need as much security as possible. With Coinbase, you need to set up a password, Google Authenticator and an email verification allowing you to authorize a device to access your account. Most platforms use passwords and Google Authenticator, but it’s rare to get the 3rd part: email verification.
Can you buy bitcoin with a credit card on Coinbase?
Yes and no. You can only buy cryptocurrency (Bitcoin) with a credit card on Coinbase if you are from Singapore or Australia. For everyone else, you’ll need to use a debit card or set up a bank transfer. In 2019 and earlier, you were able to buy Bitcoin with a credit card on Coinbase, but they have removed that feature.
Where can you buy Bitcoin with a credit card?
Not all banks allow you buy cryptocurrency with a credit card. Some may charge you additional cash advance fees or decline the transaction. Most of these cryptocurrency companies process their transactions outside of the United States so if you use your credit card to buy cryptocurrency there’s also a high chance that you’ll incur a foreign transaction fee.
- Paybis: $100 gets you $88.31 (in BTC) when you buy bitcoin with a credit card. That’s a 11.7% fee!
- CEX.io: $100 gets you $92.15 (in BTC) that’s about an 8% fee
- Crypto.com: 3.5% credit fee (sometimes waived?)
- Coinmama: 5% credit card fee (Visa and Mastercard only)
As of this video, I haven’t used any of these and can’t recommend them. You’ll have to do your own research until I make a video on how to buy Bitcoin with a credit card. Because I am very interested in seeing how much credit card manufactured spending I can do with that.
Why I like Coinbase?
Coinbase really simplifies the process of buying Bitcoin and other cryptocurrencies so that people entering the world of Bitcoin for the first time aren’t too overwhelmed. They keep the platform simple and easy to understand. I really love their BTC cold storage system and their 3-factor authentication. You’ll need to (1) log in with your password, (2) input your Google authenticator and (3) verify the device through your e-mail. It’s very rare to see any other platform have this extra layer of security.
The actual good thing about Coinbase is that they don’t charge any network fees to send cryptocurrency. Typically, you’ll have to pay for “gas” which is the transaction fee to process your transaction on the blockchain
Why I don’t like Coinbase?
I’m a cheap person and I don’t like the 2 different sets of fees on the platform. The fees on Coinbase.com will cost you at least 3X (and up to 10x) more than it would be compared to using Coinbase Pro.
Are there other places to buy cryptocurrency?
Yes. Coinbase WAS one of the first places that made it easy to buy Bitcoin, but so many other platforms allow you to buy Bitcoin now. You can buy Bitcoin with:
- Robinhood Crypto: but it’s more like investing in a stock because you can’t actually move the coins you purchased to a wallet or to a different exchange.
- Cash App: You can buy Bitcoin with cash you’ve deposited to the app and transfer the coins to any person or exchange.
- And then there’s a lot more but I haven’t researched them so I don’t want to recommend anything I can’t say is 100% legit.
For people starting their cryptocurrency journey, Coinbase is one of the biggest and most trusted platforms out there. There is a lot of risk when investing in Bitcoin and other cryptocurrencies, so only invest with whatever you’re comfortable with losing. Also, there are a lot of scams. No stranger will ever send you Bitcoin for free.
You should NEVER use Coinbase to buy/sell cryptocurrency when you can do the exact same thing for much cheaper on Coinbase Pro. I know transferring money from your bank to Coinbase can take up to 5 days plus getting your account verified takes some time too so you might feel like you want to lock in a price right now buy paying the 3.6% premium to buy bitcoin on Coinbase now. That’s fine, you can do that.
The Coinbase sign up link is a referral that gives you an extra $10 when you sign up and buy/sell $100 worth of crypto on Coinbase.com. That’s a referral link and my incentive to tell you that is because I also get $10, but it’s still $10 more than what you would have got if you signed up directly at Coinbase.com. Now you might see some affiliate links from other people that don’t provide the $10 bonus, but that’s because they’re using the Coinbase affiliate system. That system gives the referrer 50% of the fees you pay to Coinbase for your first 3 months. I don’t like fees and I don’t like you having to pay fees too which is why I explained how using Coinbase Pro significantly drops the fees you’re paying by 85%.
Overall, I’m a Coinbase user and really like their easy to use platform. I do all my trading on the Coinbase Pro side because the fees are much lower. I really like the 3-Factor authentication with Coinbase and I feel safe using it.