Did you know that every three seconds, a post about Bitcoin goes up on social media? It points to the popularity that Bitcoin has achieved within 12 or so years of its existence. Even today, Bitcoin remains the most popular cryptocurrency, occupying just above 42% share of the market among over 10,000 cryptocurrencies.
This is remarkable considering the coin cost approximately $0.0008 when launched in 2010. Of course, today, its value hovers above the $40,000 mark, with many analysts suggesting this value could go much higher to $100,000.
Now, the question is, as a consumer, how do you get the blockchain and cryptocurrency foundation to start tapping into such incredible performance? Well, it begins with finding the right platform and talking about the top cryptocurrency exchanges, Crypto.com and Coinbase are definitely among the two highly-rated ones. Both of them are among the largest in terms of daily trading volume and supported currencies. But there are some things that you must know about these exchanges before you choose any one of them.
In this article, we will discuss what you need to know about both Crypto.com and Coinbase so that you can select the best option for your financial needs. Let's not wait for any further and start this Crypto.com vs Coinbase review.
An Introduction to Coinbase
Today, Coinbase represents a leading global brand that helps people convert digital currency into and out of their local fiat currency. Features worth noting when it comes to Coinbase include:
- A focus on making buying and selling cryptocurrency a cinch
- The ability to send or receive digital currency between friends, merchants, or a digital wallet through Coinbase wallet.
- Handling worry-free backups and security
In short, Coinbase remains a one-stop-shop offering a Coinbase wallet, merchant tools, and a crypto exchange with one streamlined interface. What's more, the company continues to push the envelope when it comes to offering convenient applications built using its API. Thus, Coinbase is striving hard to make it easy for the masses to buy and sell cryptocurrency.
Features of Coinbase
Besides the ability to connect your banking account to Coinbase, there are other reasons this company remains so popular. Many people love its easy-to-use, intuitive interface, which makes buying and selling Bitcoin a breeze.
When it comes to a payment method, Coinbase offers a variety of options. The most popular option to buy Bitcoin on Coinbase is understandably through a credit or debit card. If you, too, are planning to buy crypto on Coinbase through the cards, be prepared for additional fees. For example, you will have to shell out 2% in fees on credit card purchases, which may make this mode of payment less attractive for many. Besides the credit card purchases and debit card payments, you can also use Paypal, bank transfer, and more, depending on the country you reside in and hold the nationality of.Coinbase is a fantastic crypto trading platform for casual cryptocurrency investors who appreciate the user-friendly nature of this popular platform. That said, it's far from the ideal place to buy coins such as Bitcoin. You must be wondering, why? For starters, many users get frustrated by the platform's extensive anti-fraud features. You must wait three full days before transferring your currency to a digital wallet outside of the website.
What's more, get prepared to wait multiple days for funds to clear when you sell and transfer money to your bank account. Such delays could prove disastrous for traders involved in split-second decisions. For more advanced day traders who wish to make money on the often erratic cryptocurrency market, these policies make Coinbase unsuitable.
More Coinbase Considerations
What else do you need to know about Coinbase? The digital assets trading platform offers limited cryptocurrency options, which prove disappointing to some. You'll gain access to the most popular options, such as Ethereum (ETH) and Bitcoin (BTC), among others, but it pales in comparison to Binance, for example. Considering the stature of Coinbase, the limited number of supported digital assets compared to others in a similar league is definitely a disadvantage.
But if you're after more obscure options, look elsewhere. Although the company continues to pursue new coins, its diversity proves downright disappointing. The information above begs the question. Is Coinbase a worthwhile platform for cryptocurrency trading? It depends on your current needs and situation.
For example, if you want to invest casually and look at these activities as a novelty, Coinbase's convenience makes it well worth your time. Yes, you'll pay more in trading fees. This is what we found during our research for Crypto.com vs Coinbase review.
But the company goes to great lengths to decrease the learning curve. You'll also enjoy the great simplicity of the platform.
That said, if you're a more experienced investor, Coinbase likely isn't right for you. You'll want to consider alternatives such as Crypto.com. So, let's look where Crypto.com has an advantage in this Crypto.com vs Coinbase battle.
Who Should Use Coinbase?
Experts recommend Coinbase to those looking to gain more experience. Why? Because it's one of the most reliable and easy crypto exchanges to navigate in the world.
Coinbase lets you link your bank account, permitting direct transactions for buying and selling cryptocurrencies. For this reason, many consider it an ideal choice for traders still learning about digital currencies and funding wallets.
The platform also lets you track your portfolio over time. But you'll pay for this convenience. Coinbase comes with some of the highest trading fees you'll encounter when you purchase crypto like Bitcoin.
You'll also lack the agility necessary for day crypto trading and other quick adjustments based on the market. That said, it's hard to find a more secure platform when it comes to anti-fraud policies. Here's what else you need to know about Coinbase.
For more information about Coinbase, check out our comprehensive review: Coinbase Review: What You Need to Know Before Using it.
An Introduction to Crypto.com
Similar to Coinbase, Crypto.com is a cryptocurrency platform where you can stake and invest funds. It lets people sell, buy, and earn interest on their digital assets. Also, Crypto.com is among the top ten crypto exchanges in terms of daily trading volume. That being said, you can only access this platform via its app and not your desktop.
If you don't mind this inconvenience, the company provides access to various financial services. These include credit, earnings, an exchange, and even a Crypto.com Visa card. Besides their centralized services, Crypto.com also made a move into the decentralized finance space by launching a DeFi swap.
Ultimately, the platform's goal remains to promote the widespread adoption of digital currencies. Let's take a closer look at the features it offers to achieve these ends. Crypto.com also stores 100% of its user funds in cold storage to keep them secure. The funds they keep in the hot wallet are the corporate funds, which go towards supporting the trading and withdrawals on the platform.
Features of Crypto.com
When you use Crypto.com, you'll gain access to many powerful features. These features include the company's trendy Crypto.com Visa card, formerly MCO Visa Card, which lets you convert your crypto-assets into fiat for spending.
Where can you use the Crypto.com Visa card? Anywhere that the Visa logo is accepted, which translates into approximately 54 million different brands and businesses worldwide.
In other words, with the Crypto.com Visa card, you can use assets in Bitcoin to buy everything from coffee to clothes and much more. It doesn't get better than that!
But the excellent features don't stop there. The Crypto.com app permits you to exchange, buy, send, and track cryptos. And with the platform's Crypto Credit feature, you gain access to an instant loan enabling you to use credit to spend on your Visa card.
More Crypto.com Considerations
What else do you need to know about Crypto.com? The app includes a Crypto Earn feature, which lets users earn up to 14.5% interest on crypto deposits.
Crypto.com also comes with an exchange powered by its native tokens, Crypto.com Coin (CRO). Previously, it also had a second native token known as the MCO token, which the crypto exchange decommissioned in October 2021.
When it comes to its trading USP, this exchange offers low fees and deep liquidity. It comes with the best execution prices, and users may trade the most popular cryptos like Bitcoin. It also has lower fees compared to other major cryptocurrency exchanges.
Read our detailed review: Crypto.com Review: Pros and Cons. Is Crypto.com safe?
The CRO Token
Currently available in 38 crypto exchange platforms globally, CRO token includes cross-asset currency settlement. It settles block transaction fees, and nodes get rewarded with CRO upon validating and processing transactions.
When transacting directly in CRO, you must pay minimal fees. But users can access a 50% discount when they purchase cryptos with CRO through the exchange. With CRO tokens, you also gain access to the Syndicate.
The Syndicate is a spot where users can go to gain access to the most promising crypto projects. You'll find the coins from these projects listed on the exchange. Recently, the CRO token was rebranded into Cronos token from its previous name, Crypto.com token.
Who Should Use Crypto.com?
Countless advantages come with using Crypto.com. For instance, Crypto.com has an excellent card for individuals who would like to start transacting in cryptocurrencies in everyday life. The Crypto.com Visa card provides you with the freedom to turn crypto-assets into spending power usable anywhere Visa gets accepted.
The card comes with no monthly maintenance fees, and you'll enjoy cashback rewards of up to 8% on purchases. That said, it doesn't have the same anti-fraud reputation as Coinbase. But, in terms of fees, you are better off with Crypto.com as they charge comparatively lower fees.
What's more, there's a steeper learning curve when it comes to using Crypto.com. You'll need to devote more time to getting started as the interface isn't as intuitive as you'll find with Coinbase. Find out more about Crypto.com and whether it's right for you.
Crypto.com vs Coinbase: Security Features
The most pressing concern that crypto users have today is the safety of their funds. It also makes sense as the crypto hacking incidents have been rising for some time now, with many major names in the crypto industry suffering from cyberattacks. Thus, the first question that crypto users have is about the way crypto exchanges store user funds. The first one is do they store the user funds in cold storage or a hot wallet? After all, a crypto exchange that stores most of its funds in a cold wallet is likely to be more secured as cold wallets aren't connected to the internet. On the other hand, a hot wallet is connected to the internet, making them more prone to hacking attacks.
When it comes to Coinbase, they store 98% of user funds offline, in a cold wallet and physical vaults. The rest of the funds are kept in a hot wallet to fulfill obligations related to day-to-day trade on the exchange. As for Crypto.com, it stores 100% of its user funds in a cold storage wallet to ensure that the funds remain secure. On top of that, Crypto.com also has insurance of $750 million for the funds it stores in cold storage, which is among the highest insurance cover ever in the crypto industry. It does give Crypto.com an edge over Coinbase as although the user funds that are with on both exchanges aren't covered under FDIC insurance, Crypto.com's large insurance cover more or less makes up for it. To support day-to-day trading on its platform, Crypto.com uses corporate funds that it keeps in a hot wallet instead of individual user funds.
Both platforms also have other security features such as multi factor authentication to ensure security at an account level. Thus, you can rest assured that both Coinbase and Crypto.com are secure exchanges. That said, it is important to note here that both cryptocurrency exchanges are centralized, which means you aren't the one in control of the private keys.
How can we not talk about the fees, as it is what concerns both the new traders as well as the advanced traders? Coinbase follows a tiered fee structure and the highest taker fee is 0.6% and the highest maker fee is 0.4%, which triggers when the user's monthly trading volume is between $0-$10,000. To avail of the lowest Coinbase fees, a user must trade over $500 million in a month. Anyone who trades over $500 million in a month will be charged 0.05% in taker fees and there would be no maker fees, which surely makes it an interesting maker taker model.
Similar to Coinbase, Crypto.com, too, follows a tiered fee structure. The highest fee on Crypto.com is 0.4%, which is the same for both the taker and the maker. The fee can be brought down by 10% if you stake over 5000 Cronos tokens, which was previously known as Crypto.com coin but was recently renamed.
The crypto industry is a growing one and a record number of beginners are entering the market daily. It means millions of newbies are still doing all the market research they can do to learn the fundamentals of this burgeoning industry. Thus, educational resources are a must and that is something that Coinbase has really perfected. Besides a simple interface that makes it quite easy to trade cryptocurrency and straightforward fee structures, Coinbase is also known for its educational section. Plus, the users that go through these educational resources will also earn crypto for doing so, and this "Earn Crypto" for learning about crypto makes Coinbase even better for newbies.
Compare with the best alternative exchanges
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|Kraken||Best U.S. crypto exchange for advanced traders.||Go to site →|
Crypto.com vs Coinbase: The Final Verdict
What's the final verdict when it comes to Crypto.com vs Coinbase? Well, your current level of experience with cryptocurrencies and your investment goals should inform a final decision to choose between Crypto.com and Coinbase.
Carefully consider how much time you wish to devote to learning a new platform. While Crypto.com ultimately proves more complicated, it also comes with lower fees than Coinbase and more conducive regulations for trading and investing. Best of all, you'll gain access to the Crypto.com Visa card, which is one of the major advantages, especially for users wishing to spend crypto making real-world purchases.
Of course, your choice of crypto platforms should involve more than just considering Crypto.com vs Coinbase. Many other crypto exchanges exist that prove well worth your attention. With that in mind, explore our comprehensive list of crypto platforms now.