What Is Coinbase? Fees, Benefits, and Everything You Need to Know

Are you interested in cryptocurrency? If you are, then you might be looking around for a cryptocurrency trading platform to use for digital currency and wondering which one’s the best. You might even be asking, “What is Coinbase?”

Coinbase is a cryptocurrency exchange that offers users the opportunity to buy, sell, convert, and trade cryptocurrencies. (Read: COINBASE REVIEW) The company was founded in 2012, making it one of the longest-standing and most popular crypto exchanges around. 

There are more than 260 cryptocurrencies available on Coinbase plus hundreds of trading pairs. While the main platform is free, there’s a premium option, too. Most beginners will be served well by using the free option to start.

Uninvested deposits on Coinbase are insured by the FDIC, just like bank deposits. The company has also invested in state-of-the-art security to make sure it’s safe for users. (Read: IS COINBASE SAFE? & IS BITCOIN SAFE IN 2025?)

In this review, we’ll run through a brief history of Coinbase, its fees, and how it works – so you can make an informed decision about whether it’s right for you.

How Coinbase Works

As we stated above, Coinbase is a crypto exchange. It was founded by Brian Armstrong and Fred Ehrsam in 2012. The fact that it’s been around that long says something about the company’s popularity.

Coinbase generated $2.9 billion in revenue in 2023 and has approximately 105 million total users, 9.5 million of whom trade on the platform on a monthly basis.

The process of setting up an account on Coinbase is very easy. Here are the steps to follow.

1. Go to Coinbase.com and click the blue Sign Up button in the upper right-hand corner of the page.
2. Choose from an individual or business account.
3. Enter your email address.
4. Enter your personal information. In order to trade on Coinbase, you’ll need to verify that you’re over 18 years of age and provide the last four digits of your Social Security Number plus information about your citizenship. You may be asked other questions.
5. Confirm your identity.
6. Link to a payment method.

You won’t be able to buy or trade cryptocurrency on Coinbase until these steps are completed. It may take up to 48 hours for your account to be verified. Keep in mind that Coinbase sometimes offers free crypto to new users. To learn more, read our article on HOW TO GET FREE CRYPTO ON COINBASE!

Pro Tip:

Sign up today and get $50 of BTC for free after making your first trade on Coinbase!

Is Coinbase Free to Use?

One of the most common questions we hear about a Coinbase wallet is about whether it’s free to use. That’s a potentially confusing question.

Account set-up is totally free. We’ve outlined the steps above and that’s all you’ll need to do to set up an account. There’s no account fee unless you choose to sign up for Coinbase One, their paid subscription plan.

Trading is another story. There are transaction costs for every trade you make for digital currency, and there are also costs associated with transferring money into or out of your Coinbase wallet. We’ll run through those in the next section.

Coinbase Fees Explained

Coinbase earns money by charging fees for trades. Some fees are passed on from blockchain networks and transfer services, while others are fees that Coinbase calculates and charges users at the time of a trade

What Are Coinbase Fees?

Coinbase fees fall into several categories.

• Trading fees (more on these in the next section)
• Transfer fees (charges for deposits into your Coinbase account or withdrawals)
• Staking commissions (If you stake cryptocurrency, Coinbase earns a commission)
• Blockchain fees

For example, if you want to transfer money out of your account via a wire transfer, the charge is $25. Coinbase earns between 26.3% and 35% commission on staking. You can read more about pricing and fees in this disclosure.

Coinbase Trading Fees

Coinbase uses a maker/taker model for trading fees. If you initiate a trade to buy cryptocurrency that goes through immediately, you’re a taker and will pay a fee between 0.05% and 0.60%. If your transaction has a waiting period to be matched, then you’re considered a maker and the fee is slightly lower, between 0.00% and 0.40%.

Coinbase calculates a spread on crypto transactions to account for volatility in the market. You’ll be charged the market price at the time the transaction goes through from your Coinbase wallet and Coinbase keeps the difference.

Keep in mind that if you use Advanced Trade (formerly Coinbase Pro) you may pay lower fees if you trade at a high enough volume.

Pro Tip:

Sign up today and get $50 of BTC for free after making your first trade on Coinbase!

Coinbase Bitcoin Fees

Bitcoin fees are the same as they are for any other cryptocurrency. There’s a spread and other fees involved. When you purchase Bitcoin, you’ll put in the amount you want to spend. Before the transaction is finalized, you’ll see a screen and at the bottom, you can see the amount of your fees and spread. Subtracting that from the total amount of your trade, you can determine the value of the Bitcoin you purchased. If you are unsure about investing in Bitcoin check out our new article: IS BITCOIN A GOOD INVESTMENT IN 2025?

How Much Does Coinbase Charge to Buy Bitcoin?

There is one other charge associated with Bitcoin. If you choose to transfer Bitcoin out of Coinbase to another network, Coinbase uses the Lightning Network, which allows transfers to bypass the Bitcoin network fees. The charge for a transfer via the Lightning Network is 0.10% of the transaction amount.

Benefits of Using Coinbase

Coinbase benefits include several important things to keep in mind as you evaluate your regulated crypto exchange options. 

• Easy to use interface for Coinbase users and beginners. Coinbase has an attractive and simple-to-navigate interface that makes it easy to find cryptocurrencies for a publicly traded crypto exchange.
• High security for crypto storage. Uninvested Coinbase USD deposits are insured by the FDIC. In addition, the site has automatic two-factor authentication (2FA) with security key support, and state-of-the-art encryption to protect you and your holdings. Coinbase support is also known for professionalism and quick response times.
• Access to a wide range of cryptocurrencies and trading pairs. With a free Coinbase account, you can access more than 260 cryptocurrencies and 400+ trading pairs.
• Affordable fees. While Coinbase does charge fees for all trades, they’re affordable when compared to other trading exchanges.

Coinbase is one of the world’s oldest cryptocurrency exchanges. There are other exchanges that are bigger, but there’s a comfort that comes with using a platform that has a long history.

User Experience & Performance

Coinbase is popular because it provides an easy-to-use interface. New traders should have no trouble jumping in. The account set-up process takes just a few minutes, and once you’re approved, you can start trading crypto right away.

As we noted above, Coinbase has approximately 9.5 million active monthly traders. Help is available via live chat, email, and phone 24 hours a day. There’s also an extensive knowledge base that makes it easy to get help whenever you need it.

Coinbase offers several levels of engagement:

• Coinbase is the basic service and free to use
• Coinbase Advanced Trade is also free, but more ideal for experienced traders with high volume who can take advantage of the tiered fee structure
• Coinbase One is a premium service that costs $30 per month and provides additional features

Most beginning crypto traders will do just fine with Coinbase’s basic service. If you’re more experienced, Advanced Trade can help you save money and engage in more complex trades in order to sell crypto. Coinbase One is for people who don’t mind spending a little money in return for the ability to seamlessly transfer crypto internationally, zero-fee trading, an advanced trading platform, and a few other perks. Both services have the benefit of Coinbase support help to ensure a secure crypto wallet.

Pro Tip:

Sign up today and get $50 of BTC for free after making your first trade on Coinbase!

Conclusion 

Coinbase is a secure, beginner-friendly platform that’s ideal for people who want to get started with cryptocurrency trading and more advanced traders. The most important thing to understand before you start trading with Coinbase is its maker/taker fee structure, spreads, and other charges that impact how much cryptocurrency you’ll get in return for your money.

Before you finalize any trade, make sure to review the fee information provided on the screen. You will get a full picture of the fees being charged at the bottom, and you always have the option to back out if you don’t want to pay the fees.

It’s free to create a Coinbase account, and you can always explore Advanced Trades and the paid subscription, Coinbase One, at a later date. If you are curious about how Coinbase stacks up to competitors like Crypto.com, check out our new review: COINBASE VS CRYPTO.COM.

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