Is it really safe to buy bitcoin on Coinbase?
As one of the mainstream cryptocurrency exchanges in the U.S., Coinbase is a fully licensed and regulated exchange platform in 40 U.S. states and territories. Initially, the platform began as only a bitcoin trading platform. It soon expanded its list of trading cryptocurrencies to include Litecoin, Ethereum, Bitcoin Cash, XRO, and other cryptocurrencies.
What are some disadvantages of buying bitcoin on Coinbase?
Although Coinbase offers a variety of products to its users, it also has some downsides. Some of them include:
a). Limited account spending
Coinbase limits the amount you spend and how often you can spend from your Coinbase wallet. Based on certain factors, including your account's age, preferred payment method, and buying history, the platform implies limits that are calculated automatically.
b). High fees
Compared to its competitors, Coinbase charges relatively high fees. This is mainly because it offers a wide variety of payment platforms and in many different currencies. However, Coinbase Pro has lower fees compared to the standard version. It is also free to switch to and offers more useful features for beginners in the crypto market.
c). Lack of control of wallet keys
When users buy cryptocurrency on any exchange, they are stored in a digital wallet that Coinbase controls. Like with other centralized exchanges, Coinbase has full autonomous control over the user's holdings. However, users can avoid this by withdrawing their crypto into their personal wallet, preferably a hard wallet.
d). Lack of altcoin variety for altcoin traders
New investors in bitcoin have an array of altcoins to use on the platform. However, serious and experienced traders will not find enough options of altcoins to trade on this platform. However, Coinbase is continuously adding altcoins over time.
