Our review of Coinbase crypto platform: 4.7/5

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Coinbase in brief

Our opinion of Coinbase

We found Coinbase’s user-friendly interface to be a major advantage, making it easy for beginners to buy, sell, and store cryptocurrencies without any technical barriers. Its strong regulatory compliance reassured us, ensuring a secure and legal trading environment for Canadian users. The wide selection of over 200 cryptocurrencies stood out, providing plenty of opportunities beyond Bitcoin and Ethereum.

We appreciated the seamless fiat deposit and withdrawal options, especially the convenience of Interac e-Transfer for quick CAD transactions. The staking feature also impressed us, allowing users to earn passive income directly from their accounts without needing external wallets or platforms.

We would have preferred lower transaction fees, as Coinbase’s standard trading fees are noticeably higher than those of some competitors. Customer support could also be improved, with response times that felt slow and a lack of direct phone assistance. The absence of a crypto card for Canadian users was disappointing, especially when many other exchanges offer this option.

We also felt that more advanced trading tools should be available on the standard platform, rather than requiring users to switch to Coinbase Advanced to access lower fees and professional-grade features.

Who is Coinbase best for?

Coinbase is best suited for beginner to intermediate traders who prioritize ease of use, security, and a well-regulated environment over low fees and advanced trading features.

Let's find out more about our test results on Coinbase.

Reliability and Security 4.7/5

Founded in 2012, Coinbase is one of the longest-standing cryptocurrency exchanges, known for its strong security and regulatory compliance. With over 100 million users worldwide, the platform has built a solid reputation as a reliable and accessible gateway into the world of crypto. Coinbase has received multiple industry recognitions, including being publicly listed on the NASDAQ in 2021—an achievement that underscores its legitimacy and transparency.

For Canadian traders, Coinbase operates under Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) registration, ensuring compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations. While it does not currently hold direct approval from provincial regulators like the Ontario Securities Commission (OSC) or British Columbia Securities Commission (BCSC), it adheres to Canadian Securities Administrators (CSA) and IIROC guidelines, making it a safe and legal option for Canadians.

To enhance security, Coinbase offers two-factor authentication (2FA), cold storage for digital assets, withdrawal whitelisting, and insurance coverage for assets held on the platform. Additionally, users can set up customized spending limits and biometric verification for added protection.

Cryptocurrencies Available 4.5/5

Coinbase is a prominent cryptocurrency exchange that offers a diverse range of digital assets to its users. The platform provides access to a wide array of cryptocurrencies, including major coins like Bitcoin and Ethereum, as well as numerous altcoins. Additionally, Coinbase has ventured into the NFT space, allowing users to explore and trade non-fungible tokens.

Below is a table summarizing the types of crypto assets available on Coinbase, along with their quantities and the market averages offered by competitors:

Note: The numbers are approximate and can vary as new assets are added or removed.

Our opinion on Coinbase's offerings

Coinbase's extensive selection of cryptocurrencies and altcoins surpasses the market average, providing users with a broad spectrum of investment opportunities. The inclusion of NFTs further enhances its asset diversity, catering to the growing interest in digital collectibles.

Services and Tools 4.2/5

Coinbase provides a wide range of services to cater to both beginner and experienced cryptocurrency users. While it excels in some areas, it lacks certain features that other platforms offer, particularly for advanced traders.

• Staking: Coinbase allows users to stake several cryptocurrencies, including Ethereum, Solana, and Cardano, to earn passive rewards directly from their accounts. Staking rewards are competitive, making it a valuable option for long-term investors.
• Lending: Unlike some competitors, Coinbase does not offer crypto lending services, which means users cannot lend their assets to earn interest.
• Farming: Yield farming is also not available, limiting opportunities for decentralized finance (DeFi) enthusiasts.
• Crypto Card: Currently, the Coinbase Card is not available in Canada, which is a drawback compared to platforms like Crypto.com, which offer crypto-funded Visa cards.
• NFT Marketplace: Coinbase has an NFT marketplace, allowing users to buy, sell, and showcase non-fungible tokens, competing with platforms like OpenSea. However, adoption has been relatively slow.
• Advanced Trading: Coinbase offers Coinbase Advanced, a platform with lower fees and professional-grade charting tools, designed for experienced traders. While it is an improvement over the basic platform, it still lacks futures and margin trading, which are available on exchanges like Binance and Kraken.
• Educational Resources: Coinbase provides Coinbase Earn, an educational feature that rewards users with crypto for learning about new projects, making it a great tool for beginners.

Fees and Commissions 3.5/5

Coinbase positions itself as a user-friendly cryptocurrency exchange, but its fee structure is notably higher compared to many competitors. The platform employs a maker-taker fee model, where fees vary based on the type of order and the user's 30-day trading volume.

For standard trades, taker fees can reach up to 0.60%, while maker fees can be as high as 0.40% for users with a 30-day trading volume below $10,000. These fees decrease with higher trading volumes, but they remain above the industry average.

In contrast, many other exchanges offer more competitive fee structures. For example, Binance charges both maker and taker fees starting at 0.10%, which decrease with higher trading volumes. Kraken also offers lower fees, with maker fees starting at 0.16% and taker fees at 0.26%.

Below is a comparison of trading fees for some of the most traded cryptocurrencies:

Note: The market average taker fees are approximate and can vary among different exchanges.

In addition to trading fees, Coinbase imposes other charges:

• Deposit Fees: Deposits via bank transfer are generally free, but depositing via credit or debit card can incur fees up to 3.99%.
• Withdrawal Fees: Withdrawals to a bank account may incur a fee of 1.5% of the transaction amount, with a minimum fee of $0.55.
• Conversion Fees: onverting one cryptocurrency to another can incur a spread of up to 2%.
• Inactivity Fees: Coinbase does not charge inactivity fees, which is a positive aspect compared to some competitors.

Our opinion on Coinbase's fees and commissions

Coinbase provides a secure and user-friendly platform, but its fees are higher than many competitors. Trading fees can reach 0.60%, while deposit and withdrawal costs add to the overall expense. Credit/debit card deposits are particularly costly, and crypto conversions include spreads of up to 2%. While the platform excels in security and regulation, its fee structure is less competitive for frequent traders.

Customer Reviews 3.8/5

Coinbase has a Trustpilot rating of 3.8/5 based on over 14,611 customer reviews, reflecting a mix of positive experiences regarding its ease of use and security, alongside some criticism for its fees and customer support responsiveness.

Here are some recent reviews from Canadian users:

• Daniel R (January 15, 2024): "I’ve been using Coinbase for a few months now, and overall, it’s been a smooth experience. The platform is really easy to use, which was great for me as a beginner. I made my first Bitcoin purchase using Interac e-Transfer, and the funds were available in less than 30 minutes. However, I found the trading fees to be quite high compared to Binance. Still, I prefer Coinbase for its security and compliance with Canadian regulations."
• Michelle L (March 2, 2024): "I recently tried to withdraw funds to my Canadian bank account, and while the process worked, it took longer than expected—almost 5 days. The interface is clean, and I like that they offer staking rewards for certain cryptos, but I wish customer support was more responsive. I had to wait two days for a reply to a simple question about my withdrawal. Coinbase is reliable, but they could improve their support system."
• Jason M (February 1, 2025): "Coinbase has been my go-to exchange for a while because of its security and ease of use. I appreciate that I can stake my Ethereum and earn rewards without having to transfer it elsewhere. However, I recently had an issue with a deposit getting stuck, and the chatbot wasn’t helpful at all. After submitting a support ticket, it took almost a week to get a proper response. If they improved their customer service, I’d give them 5 stars instead of 3."

How does Coinbase compare to other Crypto brokers?

Conclusion of our analysis of Coinbase

Coinbase stands out for its vast selection of cryptocurrencies, staking opportunities, and an NFT marketplace, making it a strong choice for investors looking for a diverse trading experience. However, its higher fees and lack of a crypto card limit its appeal for cost-conscious traders. The platform is highly secure and regulated, ensuring a safe trading environment, but customer support and withdrawal fees could be improved.

Before opening an account on Coinbase, compare the best crypto brokers and platforms in Canada:

What types of accounts are available with Coinbase?

Coinbase offers different account types tailored to the needs of both beginners and experienced traders. Below is a comparison of the available account levels, highlighting their key features and differences.

Coinbase provides a seamless experience across both account types, allowing users to choose between a simplified trading platform or a more advanced environment suited for professional traders.

Coinbase Standard

Coinbase Standard is designed for beginner and casual traders who prioritize ease of use. The platform features a simple interface that allows users to buy, sell, and hold cryptocurrencies without navigating complex trading tools. Deposits and withdrawals are straightforward, and staking is available for select assets. However, trading fees are higher compared to the advanced account, making it less cost-effective for frequent traders.

Coinbase Advanced

Coinbase Advanced is tailored for more experienced users who require professional trading tools and lower fees. This account offers features like limit orders, advanced charting, and analytical tools to help traders make informed decisions. The fee structure is significantly better, with maker fees starting at 0.00% and taker fees at 0.05% for higher-volume traders. It provides the same security measures as the Standard account, ensuring asset protection while allowing greater flexibility in trading strategies.

With these account types, Coinbase ensures accessibility for beginners while providing advanced traders with a competitive platform to execute sophisticated strategies.

How do deposits and withdrawals work with Coinbase?

Coinbase offers several deposit and withdrawal methods for Canadian users, each with different processing times and fees. Below is a breakdown of the available options:

Coinbase offers a good variety of deposit methods, making it accessible for Canadian users looking for seamless transactions. Interac e-Transfer is a major advantage as it allows quick funding with no deposit fees, a feature that some competitors lack.

However, withdrawal fees can be relatively high, especially for wire transfers and credit/debit card deposits, making Coinbase more expensive than platforms like Binance or Kraken, which offer lower-cost alternatives. While cryptocurrency transfers provide flexibility, network fees can vary, impacting costs for frequent traders.

Overall, Coinbase provides convenience and security, but its fee structure makes it less competitive for users seeking low-cost withdrawals.

Does Coinbase offer crypto staking?

Coinbase offers a staking service that allows users to earn passive income by holding certain cryptocurrencies in their accounts. Staking rewards vary depending on the asset and network conditions, but the process is straightforward, making it accessible even for beginners. Users can stake directly from their Coinbase wallet without needing to set up external validators or manage private keys.

Below is a table detailing the available staking cryptocurrencies and their approximate annual yields:

Note: APY rates fluctuate based on network conditions.

Coinbase staking provides a simple and secure way to earn rewards on supported cryptocurrencies. However, staking fees apply, reducing the actual yield compared to decentralized staking options.

Good to know

Coinbase does not currently offer crypto lending services in Canada. Unlike some competitors that allow users to lend their assets to earn interest or use them as collateral for loans, Coinbase has focused on staking rather than lending functionalities. For those interested in lending, alternative platforms like Nexo or Crypto.com provide lending programs with varying interest rates based on the cryptocurrency and loan terms.

How are revenues generated by Coinbase taxed?

In Canada, income generated from cryptocurrency trading on Coinbase is subject to taxation under the Income Tax Act.

Taxation of Income from Crypto Trading on Coinbase in Canada

The Canada Revenue Agency (CRA) classifies crypto earnings in two primary ways: capital gains and business income, depending on trading frequency and intent.

• Capital Gains Tax: If trading is occasional or for investment purposes, only 50% of the profits are taxable at the individual's marginal tax rate. This applies when users buy and hold crypto before selling at a profit.
• Business Income Tax: If trading is frequent, speculative, or part of a structured activity (such as day trading), profits are taxed as business income, meaning 100% of the earnings are taxable.

How to declare your Crypto trading income in Canada

To declare income generated via Coinbase:

• Track Transactions: Keep records of all trades, including purchase price, sale price, transaction dates, and fees. Coinbase provides transaction history, which can be exported for tax reporting.
• Calculate Gains/Losses: Determine whether the earnings fall under capital gains or business income based on trading behavior.
• Report on Tax Return:
• Capital gains should be declared on Schedule 3 of the T1 General Tax Return.
• Business income should be reported under self-employment income on Form T2125.
• Include Staking Rewards: If staking on Coinbase, rewards are taxed as income at the time of receipt and must be reported accordingly.

Watch out!

Failure to report crypto income can lead to audits, penalties, or interest charges from the CRA, making accurate record-keeping essential for compliance. Using tax software or consulting a tax professional is recommended to ensure proper reporting.

Contact: How to contact Coinbase customer service?

Coinbase offers multiple contact methods to assist users with various requests. Below is a table detailing the types of requests, corresponding contact methods, and availability:

FAQs

Nishadh Mohammed

Nishadh Mohammed is a seasoned news editor and financial writer, working with HelloSafe since May 2023. Nishadh has developed expertise in financial markets, insurance, and investment products, with a deep understanding of the Canadian financial landscape. He has honed his SEO skills and content marketing strategies while writing for Canadian publishing houses. Armed with a master's in Business Analytics and extensive journalistic experience, Nishadh uniquely combines data proficiency and thorough research to deliver comprehensive and accessible information.