About Coinbase

In business since 2012 and based out of San Francisco, CA, Coinbase is a web-based digital wallet that allows you to send and receive bitcoins. The company is backed by several large venture capital firms, and claims to hold 617,000 consumer wallets, 16,000 merchants, as well as integration with U.S. banks.

Coinbase holds a C- rating with the Better Business Bureau, which is based on two closed complaints within the past three years. From a customer satisfaction standpoint, the company appears to have a mainly positive reputation, though online reviews are somewhat scarce due to the company’s newness.

By far the most common complaint we found is the amount of time it takes for Coinbase to approve your transaction.

Bitcoin valuations are volatile (e.g. they change often – similar to stocks), so you may purchase yours at one price, but after the minimum four-day waiting period has passed, find that it has significantly increased or decreased in value. However, Coinbase’s newer Instant Buy feature appears to directly address this concern.

What are Bitcoins?

In order to understand the benefit of using a “digital wallet” such as Coinbase, it’s important to first understand what bitcoins are.

Bitcoins have been in use since 2009, and represent a digital peer-to-peer payment system. Each bitcoin represents one unit of currency, and are specially encrypted to prevent theft, and to prevent the same bitcoin from being used as payment more than once. While bitcoins were initially associated with “underground” enterprises, they have more recently become accepted by larger vendors, such as the popular blogging platform Wordpress, and the dating site OkCupid.

According to Coinbase, bitcoins are the “world’s largest alternative currency,” and represent a “total market cap of approximately $10.3 billion.”

How Coinbase Works

To begin using Coinbase, you’ll first need to sign up for an account, which simply entails entering your email address and choosing a password. After verifying your email address, you’ll be redirected to your user home page, which will include a quickstart guide. This will help you buy your first bitcoin, learn how to accept bitcoin payments, and invite friends and earn a $5 bitcoin credit. On this home page, you’ll also be able to quickly view your account activity, current balance, as well as the ability to send and request money.

In order to add bitcoins to your Coinbase wallet, you’ll need to connect it to a bank account or credit card (Visa only), and verify your phone number. The number of bitcoins you can purchase each day depends on your “level”:

  • Level 1 – Verify your email address and phone number, and link your bank account. This will then give you the ability to purchase up to 10 bitcoins per day, and sell up to 50 per day.
  • Level 2 – Complete a purchase, and verify your identity. You’ll then be able to purchase and sell up to 50 bitcoins per day.

When purchasing bitcoins, Coinbase gives you two options: Regular buys and Instant Buys. Regular buys will take four business days to process, while Instant Buys will allow you to receive your bitcoins “in seconds.” Once bitcoins have been added to your account, Coinbase securely stores them, and allows you to send them out as needed, whether you’re investing, paying friends, or shopping online.

Coinbase also allows online merchants to accept bitcoins as well, as a whole section of their site is devoted to creating a payment button. Here, you’ll be able to choose your payment type (Buy Now, Donation, or Subscription), button style, and item name, amount, and description. Once you’ve filled in this information, Coinbase will generate the appropriate code so the button can be added to your website.

Coinbase implements several features to keep your bitcoins safe and secure, including AES-256 and SSL encryption, two-factor authentication, the Coinbase Bug Bounty Program, and even extensive background checks on all Coinbase employees.

Coinbase Pricing

Coinbase is free to sign up for, but will charge you a 1% fee for every bitcoin transaction you make. As an example: As of the time of this writing, one bitcoin cost $852.70, which means that Coinbase will charge $8.53 as their transaction fee. While the price of a bitcoin may initially seem very high, keep in mind that you can purchase fractions of a bitcoin (e.g. 0.1 bitcoin = $85.20).

Pros:

  • Allows you to quickly and easily purchase, send, and receive bitcoins.
  • Can be used by individuals as well as online merchants.
  • Numerous security features help ensure you’ll never have to worry about theft.
  • Free to sign up, and only 1% fee on all transactions.
  • Backed by several large venture capital firms, and is based on the U.S. dollar.

Cons:

  • Newer company, so there aren’t a whole lot of online reviews.
  • Many customers complained of the minimum four-day wait time for bitcoins to be available in your account, though their Instant Buy feature seems to directly address this.

Want to Learn Expert Tips for Online Safety?

Join over 3 million HighYa readers who receive weekly how-to guides, tips & reviews and get a FREE COPY of our Complete Online Safety e-book. Enter your email below to get started!

55 Consumer Reviews for Coinbase

Average Consumer Rating: 1.3
Rating Snapshot:
5 star: 4 4 star: 0 3 star: 0 2 star: 2 1 star:  49
Bottom Line: 7% would recommend it to a friend
Showing 1-11 of 55
Sort reviews by:

  • 2 out 2 people found this review helpful

    Terrible

    • West Virginia,
    • Dec 14, 2017
    • Verified Reviewer

    I originally attempted to register with the cellphone app, putting in all necessary information. Each time (about 6 attempts spread out over almost 2 weeks) I would constantly have to go through the same steps until it either locked me in ID limbo or if that got through (only one-time, mind you), then I would tget stuck in payment verification limbo.

    The last attempt was directly on their website (not through the app) to see if it would have better luck seeing as I am given the additional option to upload photos from a JPG. Same result; failed verification.

    I noticed other potential users having the same problems based on many of the reviews. The other thing I noticed were the conveniently placed "outages" when prices were at their highs.

    This is extremely pfishy. This company is not the future for digital currency exchange; it has failed that "verification."

    Bottom Line: No, I would not recommend this to a friend

    Help others find the most helpful reviews

    Was this review helpful?

    yes no
    Comments (0)
    View all 0 commentsHide comments

    Do you have an account? Log In before commenting.

    (If you don’t have an account – don’t worry, you can create it after)


  • 2 out 2 people found this review helpful

    Poor service quality when coin value rises

    • Taipei, Taiwan,
    • Dec 13, 2017
    • Verified Reviewer

    Seems weird as they always have service unavailable when needed, especially when it's time to sell or buy. I'm calling this a scam!

    Bottom Line: No, I would not recommend this to a friend

    Help others find the most helpful reviews

    Was this review helpful?

    yes no
    Comments (0)
    View all 0 commentsHide comments

    Do you have an account? Log In before commenting.

    (If you don’t have an account – don’t worry, you can create it after)


  • 6 out 6 people found this review helpful

    Buyer

    • Lawrenceburg, TN,
    • Dec 8, 2017
    • Verified Reviewer

    I have sent $250,000.00 on Monday, December 4th to buy bitcoin when it was trading at $11,000 and they still have not applied it to my account case # 2694820. It could have made $120,000 in profits by now. I have called numerous times only to be repeatedly hung up on. Also when they do apply my money to my account, it will be little too late because now bitcoin is overbought and coming down.

    And even if I wanted to use my money when they apply it to my account, I will be limited to $50,000 a week because they will not update my identity. And because they will not update my identity, my own cash I sent in is limited to a fraction of my buying power because they will not update my identity. I have sent over 20 times my driver license as proof of who I am through their website and mobile app and since Monday still no success.

    I am very unhappy and disgusted with Coinbase. As I look over the web I see this reoccurring theme that Coinbase is a stinking turd that DOES NOT have it together.

    Bottom Line: No, I would not recommend this to a friend

    Help others find the most helpful reviews

    Was this review helpful?

    yes no
    Comments (0)
    View all 0 commentsHide comments

    Do you have an account? Log In before commenting.

    (If you don’t have an account – don’t worry, you can create it after)


  • 4 out 6 people found this review helpful

    Bad experience

    I'm new to Coinbase and every time I want to login I have so much difficulty to get in and after all that I can't do anything. It appears that an error has occurred, what's that all about? Is it normal?

    I am still thinking if I would recommend it to a friend.

    Bottom Line: No, I would not recommend this to a friend

    Help others find the most helpful reviews

    Was this review helpful?

    yes no
    Comments (0)
    View all 0 commentsHide comments

    Do you have an account? Log In before commenting.

    (If you don’t have an account – don’t worry, you can create it after)


  • 6 out 6 people found this review helpful

    Nonfunctional and unprofessional

    I am from Germany but residing in Canada. I could not change the country for verification to unlock a bigger investment limit. Support couldn't help, and they blocked the $100 weekly limit I had instead.

    Bottom Line: No, I would not recommend this to a friend

    Help others find the most helpful reviews

    Was this review helpful?

    yes no
    Comments (0)
    View all 0 commentsHide comments

    Do you have an account? Log In before commenting.

    (If you don’t have an account – don’t worry, you can create it after)


  • 7 out 7 people found this review helpful

    Thieves?

    After more than 3 weeks I am still waiting for my SEPA bank transfer to be credited to my account and an email from their support was worse than useless. I agree with the majority of other reviews here: AVOID!

    Bottom Line: No, I would not recommend this to a friend

    Help others find the most helpful reviews

    Was this review helpful?

    yes no
    Comments (0)
    View all 0 commentsHide comments

    Do you have an account? Log In before commenting.

    (If you don’t have an account – don’t worry, you can create it after)


  • 9 out 9 people found this review helpful

    Rip off

    • Vancouver, British Columbia, Canada,
    • Oct 31, 2017
    • Verified Reviewer

    This is a rip off scam. It costs about 15+% in total fees to do a transaction. They are rolling in the money from stupid companies that force buyers to use their VERY COMPLICATED system. Stick with PayPal, at least it's trustworthy and reasonable on the fees, AND EASY TO USE!

    Bottom Line: No, I would not recommend this to a friend

    Help others find the most helpful reviews

    Was this review helpful?

    yes no
    Comments (0)
    View all 0 commentsHide comments

    Do you have an account? Log In before commenting.

    (If you don’t have an account – don’t worry, you can create it after)


  • 12 out 15 people found this review helpful

    Avoid

    • Cleveland, OH,
    • Oct 19, 2017
    • Verified Reviewer

    After all verification (phone, credit card, etc.) process, they want to get your ID and banking account. Scammers! Avoid!

    Bottom Line: No, I would not recommend this to a friend

    Help others find the most helpful reviews

    Was this review helpful?

    yes no
    Comments (0)
    View all 0 commentsHide comments

    Do you have an account? Log In before commenting.

    (If you don’t have an account – don’t worry, you can create it after)


  • 16 out 16 people found this review helpful

    Shady business

    • Marietta, PA,
    • Oct 18, 2017
    • Verified Reviewer

    Initially, I thought Coinbase was great even though the verification process and bank transfers took awhile. That is excusable, however, every time I try to trade at a certain price, Coinbase seems to mark up the price to whatever suits them. It's ridiculous! I would be more vulgar if I could here because I'm not happy.

    Sure the fees are high, and I can deal with that. However, EVERY TIME I make a purchase at a good price it seems Coinbase is skimming almost all of my profits! This has happened multiple times. Whether it should be a 5 dollar profit or a 15 dollar profit, I always end up with NO profit!

    I'm done with Coinbase; they're deceiving people and I hope people read this, so it doesn't happen to others. Such a disappointment.

    Bottom Line: No, I would not recommend this to a friend

    Help others find the most helpful reviews

    Was this review helpful?

    yes no
    Comments (0)
    View all 0 commentsHide comments

    Do you have an account? Log In before commenting.

    (If you don’t have an account – don’t worry, you can create it after)


  • 21 out 21 people found this review helpful

    Never use Coinbase

    Coinbase is a horrible company. I tried to send my payment to a vendor, and the transaction timed out. Coinbase couldn't process the transaction fast enough, and the vendor rejected the transaction. The money was supposed to return to my wallet, but it did not.

    I went to the FAQ, and it states if the transaction times out Coinbase will contact the vendor and submit the payment. I was in contact with the vendor for 7 days with no message from Coinbase. I then emailed them three times over the next 7 days. Their site states they will be in contact within 48 hours. It took them 21 days to respond to my emails. By then I filed a complaint with the BBB.

    Coinbase finally got a hold of me and said my account was being terminated for a policy violation. Turns out they don't like people reporting them, so they close your account. I was told I wouldn't receive a refund, but I can keep my remaining 26 cents in my account.

    Luckily, the vendor felt bad for me and sent me my order for free. So not only did Coinbase keep my money but the vendor had to send me a free order out of good will.

    I'd never use Coinbase EVER. They SCAMMED me out of $85.75. This company is a joke.

    Bottom Line: No, I would not recommend this to a friend

    Help others find the most helpful reviews

    Was this review helpful?

    yes no
    Comments (0)
    View all 0 commentsHide comments

    Do you have an account? Log In before commenting.

    (If you don’t have an account – don’t worry, you can create it after)


  • 14 out 14 people found this review helpful

    Do not use Coinbase

    • Georgia,
    • Sep 26, 2017
    • Verified Reviewer

    $1000 disappeared from a transfer two months ago, and I still can't get anyone from this company to email me back. I should have done my homework on this company. The Better Business Bureau has not ranked this company, but there is an overwhelming number of complaints registered with them. Again do not use this site. They WILL steal your money.

    Bottom Line: No, I would not recommend this to a friend

    Help others find the most helpful reviews

    Was this review helpful?

    yes no
    Comments (0)
    View all 0 commentsHide comments

    Do you have an account? Log In before commenting.

    (If you don’t have an account – don’t worry, you can create it after)


Showing 1-11 of 55

Write a Review for Coinbase!

Share your experience to help others shop smarter & discover great products.

Write a Review