Coinbase is an industry-leading exchange that facilitates the buying, selling and storage of cryptos. Our review will cover how to use Coinbase in the UK, from fees and account opening to digital wallets and payment methods. Find out whether to open a Coinbase trading account today.
About Coinbase
Coinbase was founded in 2012 in San Francisco by Brian Armstrong and Fred Ehrsam. It initially started as a Bitcoin trading platform but has expanded to include a long list of popular and emerging tokens. The company is now the largest cryptocurrency trading platform in the U.S., with over 56 million users around the world.
Coinbase offers a variety of services, such as crypto investing, custodial accounts for institutions, an advanced trading platform, a wallet for retail investors, and a proprietary U.S. dollar stablecoin (USDC). Coinbase has also partnered with Visa to create a Coinbase Card.
The exchange is owned by Coinbase Payments Limited, which is fully licensed and regulated by the UK Financial Conduct Authority under license number 09708629.
Trading
Coinbase’s brokerage services specialise in the buying and selling of cryptos on a secure and user-friendly trading platform. The browser-based application is an excellent solution for investors new to cryptos. It offers a selection of time frames i.e. 1 hour, 24 hours, 1 week and 1 year.
Users who hold funds on the platform do not have direct access to their own coins as Coinbase owns the private keys. However, the platform allows you to send tokens to your Coinbase wallet, which provide additional security and control over funds. You can also receive cryptos into your online wallet. In addition, Coinbase offers a mobile app for Android and iOS devices.
Coinbase Pro
Coinbase Pro is best suited to experienced investors who require an advanced trading platform and upgraded charting abilities. Users have access to short-term candles of up to 2 minutes, line charts, overlays and indicators. While Coinbase Pro supports margin trading, this feature is not available to UK users.
On top of industry-leading trading APIs, Coinbase Pro offers 60+ popular digital currencies. Coinbase Pro also offers lower fees vs Coinbase, which are cheaper during periods of high volume trading. The upgraded trading and digital commerce platform rewards active investors with extensive product listings and investing features.
Coinbase Wallet
Coinbase offers a digital custody wallet, which allows you to store cryptocurrencies safely and securely. As the wallet stores the private keys on the user’s device, owners have full control over their tokens, as opposed to keeping them on a trading platform. Users can send and receive crypto with a wallet address, participate in airdrops, collect NFTs, and more. The Coinbase wallet can be downloaded as a mobile app.
Crypto Tokens
Coinbase offers an impressive range of 60 cryptocurrencies for UK traders. New coins are also continuously being added. Some popular tokens offered include:
- Bitcoin (BTC)
- Cardano (ADA)
- Dash (DASH)
- Ethereum (ETH)
- Ripple (XRP)
- Litecoin (LTC)
Pros Of Trading With Coinbase
- Accessibility – Coinbase’s simple interface offers a straightforward way for new traders to capitalise on the growing crypto market. You don’t need extensive knowledge of blockchain technology to participate and invest.
- Top-rated – Compared to popular alternatives i.e. vs Kraken and eToro, Coinbase is one of the oldest crypto exchanges with a current stock valuation of $87 billion. The company’s strong share price and IPO has given increased validation to the crypto market.
- Liquidity – Day trading on Coinbase has become popular due to consistent levels of liquidity. Thus, investors can be protected from price slippage, especially when the market is so volatile.
- Earn free crypto – The Coinbase Earn feature allows users to earn free cryptos by learning about various cryptocurrency topics through educational videos. Coinbase deposits tokens into your wallet after you complete each quiz. This feature is a great way for new traders to be rewarded for learning.
- Algorithmic trading bots – APIs enables the use of algorithmic trading on the platform. Users can employ an automated trading bot to increase profit potential with a successful strategy. This allows you to save time on day trading strategies.
- Staking – Coinbase supports staking for UK traders. This allows participants to earn additional cryptos by contributing to the network.
Cons Of Trading With Coinbase
- High fees – The standard Coinbase platform has high fees when compared to other large competitors. New traders are subjected to costly prices unless they make the switch to Coinbase Pro. However, Coinbase Pro is less suitable for beginners, which can make the trading experience overwhelming.
- No control over funds – A drawback to most centralised exchanges is the lack of control or ownership over coins. When a user purchases a cryptocurrency on the Coinbase exchange, it is stored in a wallet in which the exchange controls. The exchange acts as a central bank, where the user does not have autonomous control over funds. This goes against the principles of decentralised crypto trading. To avoid this, investors should withdraw funds into their own digital wallet.
Fees
The standard platform has a complicated fee structure, which is more expensive than Coinbase Pro. Prices are also higher than popular alternatives. The exchange charges a spread of 0.50% for crypto purchases and sales, which can vary with market conditions. They also charge a ‘Coinbase Fee’ in addition to the spread, which acts as a transaction payment. This differs depending on the amount transacted. For example, if the total amount is more than $10 but less than or equal to $25, you will be charged £1.49.
Coinbase also charges a margin of up to 2% for crypto conversions. Instant buys on UK debit cards come with a 3.99% fee and instant card withdrawals charge up to 2% of the transaction value.
Coinbase Pro uses a maker-taker fee schedule for determining trading charges. Taker fees are based on total USD trading volume over a 30 day period. Fees are also calculated based on the current pricing tier you are in when the order is placed rather than the tier after a trade is completed. For example, a pricing tier of $50 – $100k comes with a taker fee of 0.25% vs a maker fee of 0.15%.
Head to the crypto broker’s fee calculator to work out specific trading charges.
Payments
When it comes to deposits and withdrawals, Coinbase supports a number of payment methods for UK customers:
- 3D secure card – Best for quickly buying cryptos. These are processed instantly
- Faster payments – Best for large GBP deposits or withdrawals. Takes 1-3 business days
- SEPA transfer – Best for large EUR deposits or withdrawals. Takes 1-3 business days
- Instant card withdrawals – Best for withdrawals only. These are processed instantly
- PayPal – Best for withdrawals only. Takes 1 business day
The process and rules are different for each payment method. For example, to make a GBP deposit with a UK bank account, your ID and mobile number need to be verified. Additional information on how to deposit and withdraw can be found on the website.
Note that GBP is not currently supported on the Coinbase Pro mobile app, but it is available on the desktop website platform.
How To Open A Coinbase Account
Before you start trading on Coinbase, you need to open an account. Simply follow these steps:
- Sign up – Head to ‘Get started’ on the website. Here, you will be asked to fill in your personal information, verify your email address, identity and phone number. The verification time can take just 2-3 minutes.
- Connect – You need to link with your chosen payment method i.e. debit or credit card. This is so that you can purchase cryptos directly from the exchange. However, if you already have a digital wallet, you can transfer assets onto the platform.
- Start investing – Once you’ve signed up and funded your account, you can login and start trading cryptocurrency.
Customer Support
You can keep up with Coinbase updates or get help from the customer service team via:
- UK contact number – 0808 168 4635 (only use this number to lock your account if you encounter suspicious activity)
- Twitter – Keep updated with regular Coinbase product news. Account specific issues cannot be dealt with on Twitter
- Email – Submit a request for email support on the Coinbase help centre
- UK address – 5 Fleet Place, London, EC4M 7RD, United Kingdom
Unfortunately, Coinbase does not offer comprehensive phone support with a live agent or a chat feature.
Trading Rules
Before you start trading on Coinbase, it’s important to understand the trading limits. UK customers have a £250,000 limit on all deposits into Coinbase. Any deposits over that amount will be rejected. To increase your buy/sell limits, you need to complete a verification process to enable additional account features. You will need to provide identification documents, among other details.
Should You Trade With Coinbase?
Coinbase is an industry-leading crypto exchange for good reason. It offers multiple services plus a powerful and secure trading platform. On top of that, UK traders can be assured of their reputation as an FCA-regulated exchange. However, users need to be aware of the expensive transaction fees with the standard Coinbase platform. Experienced investors will benefit from a more competitive trading experience on Coinbase Pro.
FAQ
Does Coinbase Offer A Wallet?
Yes. Coinbase offers a safe and secure digital wallet that allows you to store cryptocurrencies and other digital assets like NFTs. A major advantage to the Coinbase wallet is having control and ownership over your tokens and access to private keys. Coinbase does not charge any storage or transfer fees. However, you may incur miner fees for transactions on crypto networks.
Is Coinbase Safe And Legit?
Coinbase offers a relatively safe and secure platform. The exchange keeps its assets in offline cold storage that cannot be accessed or hacked. On top of that, assets on the platform are insured. As an FCA-regulated exchange, UK traders can be reassured that Coinbase abides by regulatory conditions. KYC rules also mean you can’t use the platform anonymously to reduce crimes like money laundering. All of these protocols help to make the platform legitimate.
How Do I Contact The Coinbase?
If the user’s account is restricted, they are unable to sell, you want to delete your account, have an account under review, or find that the platform is down, you should contact Coinbase customer service. The best way is to submit a request for email support via the help centre. The Coinbase blog or Reddit discussion forums also offer useful information.
How Do I Withdraw Funds On Coinbase?
There are a number of withdrawal methods available on Coinbase i.e. faster payments, SEPA transfer, PayPal or instant card withdrawals. However, each payment method has a different process for withdrawing funds. For specific withdrawal steps, refer to the help centre.
Is Coinbase A Good Exchange?
Yes, Coinbase is an industry-leading crypto trading exchange. It offers a powerful and secure platform with over 60+ coins. It is also suitable for new traders as well as experienced investors. Its regulation and robust security protocols, including an authenticator app, make it a great exchange for anyone looking to invest in crypto trading pairs.
Top 3 Coinbase Alternatives
These brokers are the most similar to Coinbase:
IG – Established in 1974, IG is a unit of IG Group Holdings Plc, listed on the LSE as IGG. It provides access to over 17,000 markets through intuitive platforms and apps. For half a century, IG has remained an industry leader, excelling in all vital aspects for traders.
Interactive Brokers – Interactive Brokers (IBKR) stands as a leading brokerage, offering access to 170+ markets in 40 nations alongside extensive investment services. With 40+ years in finance, this Nasdaq-listed entity complies with regulations from the SEC, FCA, CIRO, and SFC, ensuring global trustworthiness in trading.
Kraken – Kraken excels as a top cryptocurrency exchange, offering a unique trading platform and access to over 600 crypto tokens. It provides leverage of up to 5 times for spot trading with consistent fees and up to 50 times on futures.
Coinbase Feature Comparison
| Coinbase | IG | Interactive Brokers | Kraken | |
|---|---|---|---|---|
| Rating | 3.5/5 | 4.5/5 | 4.3/5 | 3.9/5 |
| Markets | Crypto, Stocks, ETFs (US only), Pre-IPO Perpetual Futures (non-US), Tokenized Stocks | CFDs (not in US), Forex, Stocks, Indices, Commodities, ETFs, Futures, Options, Crypto, Spread Betting (UK only) | Stocks, Options, Futures, Forex, Funds, Bonds, ETFs, Mutual Funds, Cryptocurrencies, CFDs | Cryptos, Pre-IPO Perpetual Futures, Tokenized Stocks |
| Minimum Deposit | $0 | $0 | $0 | $10 |
| Minimum Trade | $2 | 0.01 Lots | $1 | Variable |
| Demo Account | ||||
| Regulators | CSSF, CBI, CySEC, BaFin, MAS, OSC, ASIC, BMA | CFTC, NFA, FCA, BaFin, ASIC, FINMA, MAS, JFSA, FMA, DFSA, BMA, CONSOB | SEC, FINRA, CFTC, NFA, CIRO, FCA, CBI, ASIC, SFC, SEBI, JFSA, MAS | FINTRAC, AUSTRAC, CySEC, CBI, FCA |
| Education | ||||
| Platforms | - | MT4 | - | - |
| Leverage | - | 1:30 (Retail), 1:222 (Pro) | 1:30 | - |
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| Review | Coinbase review | IG review | Interactive Brokers review | Kraken review |
Trading Instruments Comparison
| Coinbase | IG | Interactive Brokers | Kraken | |
|---|---|---|---|---|
| CFD | ||||
| Forex | ||||
| Stocks | ||||
| Crypto | ||||
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| Spreadbetting | ||||
| Volatility Index |
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