Coinbase - Quick Overview
Coinbase is a really popular crypto exchange, and is the largest in the USA. What makes it so widely used, and is it suitable for Australian users? The quick answer is that Coinbase is not a great choice in Australia, due to two main reasons. The first is that the fees are much higher than Australian crypto exchanges, and the second, more pressing issue is that you cannot withdraw AUD from the exchange. There is no option to sell your crypto and withdraw fiat currency to an Australian bank account. For a more suitable exchange in Australia, read our list of the top exchanges (found here).
Keep reading to learn more about Coinbase and see whether the benefits outweigh the disadvantages for your personal situation.
Coinbase Pros & Cons
Coinbase has gained so much popularity in the USA because it is made with beginners in mind. The platform is really easy for anyone to use, even with no prior crypto experience. The sign-up and verification process is also quick and simple, so you can get started buying crypto as soon as possible.
Coinbase has a decent range of over 70+ coins. While it's not as wide of a selection as some of the Australian crypto exchanges, such as Swyftx (280+ coins), Digital Surge (280+ coins) and CoinSpot (330+ coins), there is still enough to choose from. Of course, all the most popular cryptocurrencies such as BTC, ETH, SOL and ADA are available to purchase.
Earn Free Crypto by Watching Educational Videos
Coinbase has a feature called Coinbase Earn, where you are rewarded in free cryptocurrency when you watch short videos. This is an excellent way to learn about new coins while getting paid for it! For example, you can earn $3 in COMP token by watching a short 3 minute video about COMP. The videos that are available change from time to time, so you can keep checking back to see if you can earn more.
Coinbase Pro for Advanced Users
If you are an experienced crypto investor or trader, you can opt for a separate exchange called Coinbase Pro. On Coinbase Pro you can access much lower trading fees, advanced charts, more order types, and trading tools.
Coinbase Fees & Deposit Methods
Coinbase charges high fees compared to other cryptocurrency exchanges in Australia. You are also limited in your payment methods when using Coinbase in Australia. There is no option to deposit AUD into your Coinbase account, before purchasing crypto. If you want to buy crypto, you have to pay for it at the time of purchase, using your debit card. The fee incurred when using your debit card is 3.99%, plus there is an additional 0.5% base fee charged. This comes to a total of 4.49% in fees to buy some crypto.
When it comes to selling cryptocurrency, this is the first downfall of Coinbase for Australians. There is NO OPTION to sell your cryptocurrency if you are an Aussie Coinbase user. You can only purchase crypto, and transfer it to another crypto exchange, or a personal wallet. To learn about why this is the case, read this Coinbase article.
The second problem with Coinbase for Australians, is that you cannot withdraw any AUD from the exchange. This is linked to the inability to sell your cryptocurrency on the exchange.
You can trust Coinbase with your funds, as they are extremely secure, and store 98% of their cryptocurrency offline in cold storage. They utilise security measures such as 2FA, data encryption, biometric logins, and storage of USB drives and paper backups geographically distributed globally in safes.
Coinbase even carries crime insurance cover to ensure that their users are always protected, even if the exchange is hacked. You can find out the extent of their insurance cover here.
Coinbase is a great app for beginners in the USA, but it hasn't adapted well for the Australian market. The fees are much higher than competitors in Australia, and there is no option to sell crypto in Australia, nor can you withdraw AUD. These are very basic functions needed from any crypto exchange, so I would not recommend Coinbase for Aussie users. If you are after a simple exchange like Coinbase, I would suggest you try out Swyftx. It is a very user-friendly platform, with over 280+ coins, Live Chat support, and even a demo mode where you can practise trading without risking real money. You can also have a look at my article on the best crypto exchanges for Australians (read here), with plenty of detailed info.
Frequently Asked Questions
Is Coinbase safe in Australia?
Yes, Coinbase is a secure exchange, but I would not recommend you use it in Australia. There is no option to sell your crypto nor can you withdraw your money from the account if you are based in Australia.
How do I get money out of Coinbase in Australia?
Coinbase is not well-suited for the Australian market, and it does not allow sale of crypto or withdrawing AUD from the account. I would recommend you use a different exchange, such as Swyftx. If you have already got cryptocurrency in Coinbase, and you want to sell it, you will need to transfer the crypto to another platform, such as Swyftx, where you can sell it and withdraw your money.