Coinbase Review – The 1 Thing You Have to Know About

Once your Coinbase account is set up (tutorial later down in this post), you are able to buy a small amount of Bitcoins until you raise your limit. For example, US residents who have a credit card on file in their Coinbase account (as backup) will be able to purchase up to $1000 worth of Bitcoins a week.

In order to raise your limits on buying Bitcoins you will need to supply the following:

  • Identity verification
  • Credit card verification
  • Debit card verification

If you are a fully verified US resident you can reach the highest limit which is currently $50K worth of Bitcoin a day. Limits may also be sent depending on the payment method you choose to buy the Bitcoins with. For example, ACH transfer has higher limits than buying Bitcoins with a credit card on Coinbase.

Coinbase transaction times depend on the payment method you will use. For example, a wire transfer can take up to 5 days to be approved whereas a credit card purchase will be instant. Once your account is funded you will receive the Bitcoins after placing your order (tutorial to follow). Depending on your payment method there can be different fees to the transaction.

Most transactions hold a 1% transaction fee + any fees related to the payment method you are using.  Here is the latest fee chart taken from Coinbase’s FAQ section:

USA

Payment Method for PurchaseEffective Rate of Service Fee*
U.S. Bank Account1%-2%, with a $0.15 minimum
Coinbase USD Wallet1%
Credit/Debit Card3.75%

 

Payout Method for SaleService Fee
U.S. Bank Account1%-2%, with a $0.15 minimum
Coinbase USD Wallet1%
PayPal3.75%

 

USD Deposit MethodFee
ACH TransferFree
Wire Transfer$10 ($25 outgoing)

 

Europe

Standard Buy / SellCredit Card BuysBank transfers (SEPA)  – in / out**
1%3%Free / €0.15

 

UK

Standard Buy / SellCredit Card BuysBank wires – in / out **Bank transfers (SEPA) – in / out **
1%3%N / AFree / €0.15

 

Canada

Buy / Sell via EFTBuy / Sell via CAD Currency WalletBank transfers (Interac)
1% + $11%$2

 

Singapore

Buy / Sell
1%

If someone sends Bitcoins into your Coinbase account you will have to wait for 3 confirmations to arrive on the Bitcoin network before Coinbase approves it on their internal system.

Coinbase has a very extensive FAQ page and also a support forum. Most standard requests will probably find their answer in one of these pages. If you are submitting a support ticket, expect a response to arrive within 48-72 hours (from personal experience).

Another issue is that most of the time the support team won’t dig deep into your issue on their first response, and it is quite common to receive “canned responses” that don’t really address the problem. Many people in the community complain that Coinbase isn’t really very support oriented and that many times issues aren’t explained to the customer.

Their has been a lot of controversy over Coinbase inside the Bitcoin community. If you’re new to Coinbase this is perhaps the one thing you need to take into account before making your decision to buy Bitcoins through Coinbase. The main point of controversy are:

  • Coinbase tracks how users spend their Bitcoins – Coinbase can and will track how you use your Bitcoins. They may also close or freeze your account if you deal with adult services, gambling, selling stuff on the darknet and other shady business.
  • Affiliate reward abuse – Coinbase offers a referral program however doesn’t always pay its partners according to what is stated.
  • Taking a stand in Bitcoin debates – There are many “internal debates” inside the Bitcoin community that Coinbase voiced its opinion on. Usually it’s expected from a service to remain neutral in these debates and follow the natural market movements.

Guide – Using the coinbase wallet

In order to find out your current buying limits go to “buy/sell Bitcoins” and choose “limits” on the top tab.

coinbase limits

As you can see after reading this pretty long review, Coinbase has its pros and cons. It’s main pros are the fact that it’s simple and easy to use. The main cons are the fact that you are not in complete control over your Bitcoins and your transactions are being tracked.

My personal opinion is this – use Coinbase to buy your Bitcoins, the service is solid. However, once you buy your Bitcoins get them the hell out of there to a wallet that you completely control like GreenAddress, MyCelium or any other wallet.

Click here to visit Coinabse