If you are a professional or even new to crypto, you probably would have heard of the name “Coinbase,” whether you are from the USA, Pakistan, or any other Tier-1 country. It is one of the leading crypto exchanges well-known for a large number of cryptocurrencies’ support and safety. Not only it is one of the world’s largest exchanges in terms of market cap, but it also is the first cryptocurrency-related company to get a public listing on NASDAQ as an authorized U.S. stock exchange.
In this Coinbase review, we’ll do a thorough rundown of the platform and closely examine the services they provide while discussing its features such as costs, acceptable payment methods, and other benefits along with drawbacks of using it.
We’ll also share details if Coinbase adheres to the legal ethics of blockchain technology. So, without wasting any time, let’s get started.
What is Coinbase?
Known for its easy-to-navigate UI, Coinbase is a popular cryptocurrency exchange with almost $0.90 Billion dollars in 24h trading volume, right below Binance, which has comparably higher trading volume on average.
Who created Coinbase?
Coinbase exchange was initially established in May 2012 by Brian Armstrong and his partner Fred Ehrsam at the very beginning of blockchain technology and Bitcoin. Considering its launch date, it won’t be wrong if we say it is one of the oldest exchanges functional right now after Bitstamp, which was launched a year before in August 2011. Although, you wouldn’t have heard of the name Bitstamp because of its accessibility and regulation issues.
Why is Coinbase on NASDAQ?
One of the main reasons why Coinbase is the first Exchange that got listed on NASDAQ and is very famous among U.S., Indian, and Pakistanis traders is because it complies with the laws and regulations of traditional centralized systems and operates under the scrutiny of U.S. regulators.
Coinbase was given $75 million in funding in 2015 by different financial institutions, with the New York Stock Exchange serving as the organization’s primary backer. This grant has significantly aided in its expansion since then. According to the financial report 2021, the Exchange has generated more than $7.84 Billion in revenue in a single year.
Pros and Cons of Coinbase for Pakistani users
- Offers more than 200 cryptocurrencies
- Provides an NFT market for buying and selling from Pakistan
- Provides accounts for institutional investors including for Pakistan institutions if you wanted to purchase coins on behalf of your local company
- Based on more than a hundred nations
- Gives access to a derivatives market
- Purchase cryptocurrencies using the local currency of Pakistan (PKR) using a visa or debit card
- Offers tutorials and educational materials
- Enables borrowing of money
- New in 2022 are advanced trading features.
- Withdrawals in crypto are speedy.
- Low minimum for account funding.
- APY for staking coins is low.
- More KYC and I.D. documentation are required.
- Higher trading fees compared to alternative cryptocurrency exchanges
Is Coinbase safe in Pakistan?
Yes, Coinbase is as safe for trading as crypto for Pakistani users, and let us explain why.
Unlike cash in the bank and other traditional financial institutions, Federal regulations do not protect cryptocurrency or give assurance. However, after all that, Coinbase was the first U.S. cryptocurrency exchange to complete an initial public offering successfully. Coinbase offers multi-layer of protection, and 98% of customer assets are safely stored in cold wallets, making it one of the most regulated and secured exchanges in history.
The Exchange also has an insurance policy to safeguard its cryptocurrency assets. Although the platform has insurance, users can still lose their money if their cryptocurrency is stolen in a significant security breach. There is no guarantee that coins will return to your wallet if overall losses exceed insurance reimbursements. Also, the insurance policy does not cover damages brought on by unauthorized access to your account. In other words, traders might not be able to recover their lost funds if their identity gets stolen or if someone discovers their Coinbase account password and steals it from their wallet.
How to secure assets on Coinbase
If you are a newbie trader, then make sure to bind your phone number with the code they text to verify your number. It is also suggested to set up a two-factor authentication mechanism after verifying your phone number to keep your account secure. Data encryption and biometric logins are some additional security measures provided by the Exchange.
In order to provide users with a variety of options, users are free to choose their wallet type from a Third-Party private wallet to a non-custodial built-in centralized wallet on the platform. Private wallets are more secure as if a security breach occurs, you still won’t lose access to your wallet or assets.
However, the ability to engage in more advanced activities, such as yield farming, which enables cryptocurrency owners to lend out their assets to produce greater profits, comes with having a non-custodial wallet.
Make use of all the security tools that Coinbase provides because more is usually better when it comes to security. Always use strong passwords, avoid using the same password across several accounts, use two-factor authentication, and keep a close eye on your accounts for any suspicious behaviour to protect your security.
How to use Coinbase more safely in Pakistan
Although Coinbase takes numerous security precautions to keep your account and investments as secure as possible, security is ultimately a shared responsibility. Here below are some concrete actions you can take to protect your money and prevent illegal access to your account.
Use the strongest form of 2-step verification
The basic step in protecting your internet accounts, including Coinbase, Gmail, Facebook, Dropbox, Instagram, Twitter, and YouTube, is using a very powerful security key.
The next best choice is a Time-based One-Time-Password (TOTP) with mobile authenticator software like Duo or Google Authenticator which is available in Pakistan in Play Sotre.
Additionally, if you are a newbie, then we would recommend considering setting up two-step verification for any cryptocurrency transaction to offer additional security to your account. From the security settings, users can enable this capability with ease as well.
If you are a mobile user in Pakistan, set up a passcode as well from the Coinbase Mobile app. The passcode can be made available for both opening the app and sending money through it.
Protect your cloud storage accounts
Many smartphone users frequently use cloud storage services like Google Drive or iCloud to create backups of the information stored on their portable devices. This data often includes messages, contacts, emails, photographs, and other data.
The device backup will be restored onto a device under the attacker’s control if they acquire access to your cloud storage account. At that point, they will have access to a wealth of data that will enable them to compromise your different online accounts, including Coinbase. Do not underestimate the capability of an attacker who has access to this data!
Secure your email
Your email address is one of the essential things that connect your Coinbase account to you. Make sure it is safe! Coinbase interacts with its user via email if needed for any support, such as confirming new devices or sending crucial account alerts.
Check if your email address has ever been exposed to a third-party data breach. If that’s the case, reset any passwords connected to that email address. Your email account should also have two-step verification enabled.
Services provided by Coinbase as of 2023 for Pakistani users
NFT Marketplace on Coinbase
The NFT marketplace is a brand-new feature of the platform, debuting in May 2022 after the hype of Beeple and Cyberpunk Non-Fungible art pieces auction. NFTs lovers can now store their favourite paintings and digital portraits in their Coinbase wallet. Since the integration of the marketplace, the platform now allows for the collection and creation of NFTs, allowing artists to diversify their portfolios with a new digital asset class and showcase their talent.
For the time being, buying and minting NFTs on Coinbase’s NFT marketplace is also commission-free including for Pakistani users. Artists interested in Arts can also look through many popular collections to discover their next NFT.
Coinbase Pro Account for Pakistani users
For investors who want to acquire and collect lesser amounts of cryptocurrency while also learning as they invest, Coinbase provides its primary account. But there is Coinbase Pro for aggressive traders who want to execute more significant trades at minimal costs.
Investors with Coinbase Pro can get access to more cryptos to invest compared to traders with a free plan, as dozen of cash (fiat) and cryptocurrency trading is available on Pro including PKR (the local Pakistani currency.)
Another worth noticeable point is if you have a Pro account, then you can directly trade in cryptocurrencies using fiat currencies like USD without converting it to USDT or blockchain-based stablecoins.
There are no restrictions on who can get access to the Pro account. Anyone who meets the requirements for a Coinbase account can use Coinbase Pro services. It provides a user-friendly interface, a straightforward ordering procedure, charting tools, trade histories, and real-time order books.
Coinbase Advanced Trading
Coinbase enables simple spot trading for novice traders with few clicks with its advanced trading option. To get started, select the cryptocurrency you wish to purchase. Then input the desired quantity, and choose whether to pay in fiat or cryptocurrency.
To address the needs of more experienced traders on the free plan who aren’t using Coinbase Pro, then the company has launched Advanced Trading. Easily from the navigation menu of the Exchange, traders can switch between basic and advanced trading.
It consolidates the most excellent charting and trading capabilities from Coinbase Pro with your primary Coinbase account. Advanced Trading combines the best of Coinbase with Coinbase Pro to help you trade and manage your money all under one solution.
The taker fee for trading on Coinbase varies from 0.40% to 0.60%, similar to the basic plan. Exchange doesn’t limit your order accessibility on both plans (basic+advanced), as you are free to place limit, market, and stop limit orders in both Spot and futures trading.
Coinbase Learn to Earn
To make crypto and blockchain in general interesting for newbies to learn, traders can learn more about particular cryptocurrencies using the library of courses offered by Coinbase. Many of those courses let you make money while learning about cryptocurrency and blockchain technology.
For instance, you may get up to $3 in MATIC tokens by enrolling in the Polygon MATIC course on resolving Ethereum’s scale challenges by creating an internet of blockchains.
Even though this isn’t much, it’s worth it while you are gaining knowledge. Newbies are free to enrol and complete multiple courses at the same time and earn up to as much as $20 to $30 free in crypto by just completing these small courses.
For proof-of-stake coins, locking up your cryptocurrency will assist the blockchain in validating transactions. You receive free cryptocurrency as payment for validating transactions.
Many exchanges have staking services that allow investors to stake their favourite cryptos on the Exchange and earn passive income. Here on Coinbase, by staking your cryptocurrencies for a fixed term or flexible, traders can earn a high yield of up to 6.12% on Major currencies like SOL, ETH, ATOM, and more.
This rate is less than what you would get on lending marketplaces like BlockFi or Nexo. However, it’s comforting to know that if you use Coinbase frequently, you can get extra benefits via their staking program.
Coinbase card has benefits similar to centralized banks, such as Visa Debit Card accessibility. After opening an account on Coinbase, investors can activate Visa Debit Card integrated with Coinbase as a funding source.
With the card, you may make regular transactions using your earned cryptocurrency balance, just like a debit card. Or use an ATM to withdraw money using the card.
Conclusion of Coinbase Review
Overall, based on our experience with the Coinbase exchange as well as the security measure maintained for more than the past ten years described in this Coinbase review, we would say it’s as legitimate as crypto businesses can be. With attractive features like access to hundreds of cryptos, including Bitcoin and Ethereum, Support for fiat currencies, and tons of charting and customization tools, we believe it is worth using Coinbase for crypto trading.
- Is Coinbase available in Pakistan?
Yes, Pakistan is one of 16 Asia countries supported by Coinbase. Users from Pakistan can easily register an account on the official domain, do the KYC process and access all the features just like any other Global user. However, keep in mind Coinbase is not registered as an Entity according to official government sources and PTA (Pakistan Telecommunication Authority).
- Is Coinbase safe?
Coinbase exchange offers multi-layer of protection, and 98% of customer assets are safely stored in cold wallets, making it one of the most regulated and secured exchanges in history. The Exchange also has an insurance policy to safeguard its cryptocurrency assets. However, although the platform has insurance, users can still lose their money if their cryptocurrency is stolen in a significant security breach.
- Who created Coinbase?
Coinbase exchange was initially established in May 2012 by Brian Armstrong and his partner Fred Ehrsam at the very beginning of blockchain technology and Bitcoin.