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The Coinbase platform was launched in 2012. It is used to buy, sell, store, and trade cryptocurrency. The platform supports about 40 different crypto coins and is designed for use by both new and experienced traders. Coinbase is very popular and is considered one of the leading cryptocurrency exchanges. The company that operates it is based in San Francisco and serves over 40 million users in 100 countries, making it the most widespread of the cryptocurrency exchanges.
More On Coinbase
This secure online trading platform uses the US dollar for the purchase of cryptocurrencies. The design is very simple, making it easy for anyone to use. The interface is user-friendly with trading options identified as BUY, SELL or CONVERT. The mobile app can be used on iOS devices and Android. Fees are a bit steep compared to some other cryptocurrency exchanges, ranging from 0.5% to 4.5%. Fees also differ depending on the payment method used, type of cryptocurrency involved, size of the transaction, and platform being used. Market fluctuations also affect the fee schedule.
The Pros and Cons of Coinbase
Using Coinbase has several advantages and a few disadvantages. Here is a look at each:
PROS:
- Simple, easy-to-use interface, ideal for new crypto-traders
- Cryptocurrencies are covered by insurance
- Trading is available for several different cryptocurrencies
- Minimum deposit limits are very low
- High liquidity offered
CONS:
- The original Coinbase platform contains a complicated and costly fee program
- There is no autonomous control on wallet keys
Alternatives To Coinbase
Coinbase may be the most popular of the trading platforms available, but several competitors are available. Depending on your needs, you may choose to go with one of them. Here is a look at some of the most popular alternatives to Coinbase.
Binance
For those who want good alternatives to Coinbase, Binance offers a great selection of platforms including Classic, Advanced, Margin, Convert, and Peer-To-Peer (P2P). Founded in 2017, the fee structure at Binance is less than that of Coinbase and is also far less complicated. The fee of 0.1% is for all trades with a 50% discount on fees that use the Binance Coin. Binance does not charge deposit fees, however, withdrawal fees are based on the market so they often change. Otherwise, this is a very attractive choice for those wishing to deal somewhere other than Coinbase.
BitMEX
This P2P crypto-products trading platform provides leveraged contracts that are only bought or sold in Bitcoin. BitMex differs from Coinbase in that it does not handle fiat currency. Instead, it offers leverage up to 1:100. There are only three Bitcoin products used at BitMEX: XBT Perpetual, XBT Quarterly Future, and XBT Biquarterly Future. Users trade contracts at BitMEX instead of directly trading currency. Since this increases its volatility, BitMEX is probably for more advanced crypto traders than for beginners. Fees are low (0.05% to 0.25%) because it only exchanges cryptos rather than buying them, which would see more fees tacked onto transactions. For traders who want to shave their costs, BitMEX is great alternatives to Coinbase.
Bitstamp
Bitstamp was launched in 2011 and is based in Luxembourg. It is Europe’s oldest cryptocurrency exchange and is one of the top four in the world. It trades in Bitcoin, Ethereum, Ripple, Litecoin, and Bitcoin Cash. Trading fees range from 0.10% to 0.25% depending on the size of the trade. No fees are incurred to deposit or withdraw cryptocurrency, but fees apply to all other deposits and withdrawals. There are also several fiat deposit and withdrawal methods accepted. Although it is limited with a low market reach, for traders who want low fees and an exchange with a good reputation and excellent security, Bitstamp far exceeds Coinbase on these matters.
Gemini
This platform is best suited for advanced traders. It is similar to Coinbase in that it provides buy and sell options using fiat and cryptocurrencies. The interface is easy to use but Gemini only offers 26 cryptocurrencies. There is no fee on deposits and trades are charged up to 2.5%. But other parts of the Gemini fee structure depends on the products used and the trades made. If you want a greater selection of cost-effective trading platforms and tools, Gemini is great alternatives to Coinbase.
Kraken
Kraken was established in 2014 and provides services aimed at both new and experienced traders. This platform is not considered an easy one for beginners to understand. Even so, it is a good alternative to Coinbase for several reasons. Considered a hassle-free cryptocurrency exchange, Kraken provides margin and OTC trading with over 50 different coins. According to Cove Markets, it does not offer a wallet as Coinbase does, but there is a brokerage service or the Kraken coin. Kraken has different platforms including Kraken Terminal and Cryptowatch. You can view real-time market data through Kraken Terminal as well as access price charts and more. Cryptowatch includes features such as an additional 25 crypto exchanges, technical analysis, and more.
Final Thoughts
Coinbase is one of the top cryptocurrency exchanges that helped build this industry into what it is. However, for many traders, competition is a good thing. Coinbase can’t keep everyone happy. With other great alternatives available featuring such bonuses as low or no fees, it doesn’t take long to see that experienced traders will go to where the access is good and the fees are low. This makes sense because when you trade cryptocurrency, the last thing you want is too many others with their hands on your wallet seeking fees connected to your trading success. The list above is far from complete, but it gives you a snapshot of what is available as alternatives to Coinbase. Other exchanges are available. Expect to see more appearing in the future.
