Works Coinbase in Europe

Comparison portal

The essentials in brief:

  • Investors can trade cryptocurrencies on Coinbase 34.
  • Payments via SEPA transfer are free of charge, an immediate purchase with a debit card costs 3.99%. The trading fee is 1.49%.
  • Significantly cheaper alternative from Germany: justtrade.com
  • Coinbase is licensed by the American authority FinCen - allegedly they are also trying to obtain a license in Germany.

Coinbase is one of the oldest and most famous crypto exchanges. With more than 30 million users and an estimated $ 8 billion enterprise value, Coinbase is rumored to be planning an IPO.

Although the company is based in the USA, the digital trading platform is also the first port of call for many German investors.

How does Coinbase work - a step by step guide

Registration

In contrast to many other providers, Coinbase requires the customer's full name when registering - plus the email address and a password.

Then it comes to the verification of the own person. This is possible either with an identity card, passport or driver's license.

Overall, the procedure is uncomplicated and often faster than with other providers.

  • Fees: 1.49% on the total amount
  • Spread: 0.50
  • Regulation: FinCEN

Deposit

A deposit of fiat money is not absolutely necessary - but recommended: Users have the option of depositing money free of charge using a euro bank account or an instant bank account.

Alternatively, investors can buy cryptocurrencies up to 3,000 euros directly with the debit card.

Trade: Buy Bitcoin at Coinbase

The process of trading is very simple. Investors choose the desired currency, a sum and the desired payment method - the coins are already in the buyer's possession.

Investments in derivatives, however, are not possible with Coinbase.

Trading fees

The fee model is not very clear and can only be viewed in English. Deposits via SEPA are basically free of charge, while withdrawals cost 15 cents.

For all purchases and sales, Coinbase charges a fee of 1.49 percent on the total amount - for instant purchases with the debit card, a fee of 3.99 percent.

Coinbase also charges a fee for the spread - this is usually 0.50 percent. However, this value is dependent on the fluctuations in the market.

An example of buying and selling Bitcoin on Coinbase:

The investment volume is 0.8 Bitcoin at a rate of 15,000 euros per coin:

0.8 BTC = 12,000 euros + [(12,000 euros * 1.49%) + (12,000 * 0.5%)] / 12,000 euros * 1.49% = 178.80 euros / 12,000 euros * 0.5% = 60 euros

At a rate of 25,000 euros per coin, the 0.8 Bitcoin should be sold again:

0.8 BTC = 20,000 euros - [(20,000 euros * 1.49%) + (20,000 euros * 0.5%)] / 20,000 euros * 1.49% = 298 euros / 20,000 euros * 0.5% = 100 euros

For 0.8 BTC you get 19,602 euros - this can then be paid out to your bank account or PayPal account for a flat fee of 15 cents.

The Coinbase Wallet

Coinbase offers the Coinbase Wallet for the subsequent safe custody of the purchased cryptocurrencies. The wallet is available as a mobile application for all iOS and Android devices.

If you prefer to use a different wallet, you can do that too. Cold wallets are particularly recommended: Ledger or Trezor, for example.

service

In addition to the Coinbase Wallet App, there is also a Coinbase App: Accordingly, trading is possible from anywhere as long as you have an existing internet connection.

Otherwise, apart from a blog, Coinbase offers few noteworthy additions. The website is basically available in German, but important information such as that in the help area is all in English -

  • EUR 0.00 custody account fees
  • 0.00 order costs
  • Minimum spread 0.3%
  • 5 cryptocurrencies
  • 19 cryptocurrencies - new since May 2021: Dogecoin
  • Payment methods: including credit card, SEPA transfer, PayPal
  • Security: 2FA, SSL, deposit protection € 20,000
  • Important: Cryptoassets are highly volatile, unregulated investment products (your capital is at risk).

security

Coinbase uses two-factor authentication: In addition to the password, users have to meet a second access requirement using a smartphone - this means that third parties hardly have a chance to access their own account.

The website uses AES-256 encryption to protect users' banking information.

Since data online is always more susceptible to hacker attacks than offline, Coinbase backs up 98 percent of all digital values ​​on offline storage.

The crypto values ​​that are online for daily trading are protected by insurance.

Respectability

Coinbase is licensed by the American authorities: The federal authority FinCEN is responsible for regulating the official financial service provider Coinbase.

The long existence of the company, the high number of users and well-known investors such as Facebook and Twitter also speak for the seriousness.

Comparison of fees

Coinbase is limited to the essentials

Beginners in particular will find their way around Coinbase quickly. The simple registration and quick deposit allow an uncomplicated entry into the crypto world. Coinbase restricts itself to the essentials.

The large amount of English-language content can make the trading experience more difficult for some users, and the trading fee is very high - alternative crypto exchanges are eToro or justTRADE, for example. Another large trading center, without broker functions, in German-speaking countries is bitcoin.de.

  • 19 cryptocurrencies - new since May 2021: Dogecoin
  • Payment methods: including credit card, SEPA transfer, PayPal
  • Security: 2FA, SSL, deposit protection € 20,000
  • Important: Cryptoassets are highly volatile, unregulated investment products (your capital is at risk).
  • EUR 0.00 custody account fees
  • 0.00 order costs
  • Minimum spread 0.3%
  • 5 cryptocurrencies

Common questions about buying and selling Bitcoin on Coinbase

How long does a transfer at Coinbase take?

A deposit at Coinbase can take up to five days, depending on the process.

How reputable is Coinbase?

Coinbase is a regulated and licensed crypto exchange and can be classified as reputable.