March 17, 2020

What is Coinbase?

sell bitcoin

New users often ask, “What is Coinbase?”. The exchange offers a modern trading platform with the ability not only to conduct trading but also to analyze the situation. For this purpose, a wide range of tools is provided, from chart types to indicators. You can also switch between different timeframes.

By the way, this platform was added only in 2015. Up to this point, the company was a regular exchange where users were buying cryptocurrency. Users could only make transactions; no analytical tools were intended.

Coinbase added GDAX, which is a world-class platform with a glass of prices as well as transaction history. It also offers an API for creating trading bots. The advantages of the terminal include the fact that the makers conduct transactions without commissions. You can read user reviews to learn more information about how to use Coinbase. 

In our Coinbase review, we want to point out its advantages and disadvantages. The exchange has the following advantages: 

  • Great reputation. During the entire period of operation, there were no significant attacks that would lead to the loss of customers’ money;
  • Insurance of client accounts;
  • Easy-to-use platform with wide functionality. Since the addition of GDAX, Coinbase has become on a par with other professional exchanges that offer an advanced terminal for analysis and the ability to open different types of orders;
  • High security. Coinbase offers many methods to protect the client’s funds and the trading platform, which virtually eliminates the possibility of funds theft ;
  • Ability to work with fiat currencies;
  • A diversified system of charging commissions with rebates.

However, there are also some drawbacks:

  • The company’s website contains a list of countries whose residents can conduct operations with the exchange. Among them are the EU, Canada, USA, Australia, Singapore.  However, the website does not offer service for the CIS countries;
  • A large number of complaints about the exchange on various issues;
  • The support service does not cope with the flow of tickets;
  • Only a few cryptocurrencies are available for trading. The choice of assets is very limited.
  • Also, there is a lack of leverage. 

Coinbase fees

Fees on the Coinbase platform vary depending on the chosen method of deposit or withdrawal. As for trading commissions, the exchange has a model of differentiated Coinbase fees for makers and takers. The user becomes a maker when he/she places an order that is not immediately purchased, but remains in the list of orders and is executed later. 

Such orders create (“make”) the volume in the order book, so the transactions are performed on the principle of “Maker-Taker”. Takers are those traders who work with orders that are executed instantly. Such transactions remove (“take”) the volume from the order book and are therefore called Taker. The trading fee is paid after the transaction is completed. 

As soon as a buy or sell order is executed, the system determines who was the “maker “and who was the “taker.” The user pays a fee for the maker or taker, depending on their role in the transaction. The fee is calculated on the exchange based on the total trading volume for a particular asset over the past 30 days. As a rule, the fee for the makers is lower. So, depending on the monthly volume on Coinbase PRO, makers pay from 0% to 0.15% commission, takers – from 0.05% to 0.25%.