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Coinbase South Africa Review 2024: Fees and More
Luis Clark
- URL: https://www.coinbase.com/
- Headquarter: No headquarters
- Year Founded: 2012
- Platform App: Desktop/Mobile
- No. of Cryptos: 240+
- Fiats Available: SGD/CAD/USD/GBP
- Withdraw Method: Bank Transfer/Crypto
- Payment Method: Credit and Debit Card/Wire transfer
Coinbase South Africa Review: Our Opinion
Coinbase offers a wide variety of cryptocurrencies, a user-friendly design, and useful educational content. For experienced cryptocurrency investors, it offers advanced trading tools. Being one of the largest cryptocurrency exchanges worldwide, the Coinbase trading platform has top-notch security.
Coinbase also offers a variety of investment options, such as crypto storage, Coinbase commerce services, and more. Early in June 2021, the exchange began offering Dogecoin access to Coinbase Pro customers and users of its standard accounts and mobile apps
Coinbase is one of the largest and most prominent crypto exchanges in South Africa and globally, with unprecedented trading volume and a well-established reputation for industry-leading security. Coinbase, a cryptocurrency exchange established three years after the invention of Bitcoin in 2009, enables active traders to buy, sell, or store more than 100 virtual assets, including Ethereum, Bitcoin, and others.
If you want to buy cryptocurrencies online from the convenience of your home, you might want to consider Coinbase. Although this crypto-asset broker is well-liked, it’s necessary to ascertain whether the platform is suitable for you before using it.
Our first objective is to inform our readers by providing honest reviews of the top cryptocurrency exchanges. Exchanges are only considered for assessment if they meet our safety, security, and liquidity standards and are either fully decentralized or governed by an appropriate body. It supports novice cryptocurrency investors in making wise choices.
In this detailed Coinbase crypto exchange review for South Africa, we cover all key aspects such as fees, supported digital currencies, payments, security features, regulations, etc.
An Overview of Coinbase
Coinbase is primarily an online cryptocurrency broker, the crypto trading platform that allows users to buy and sell crypto. The crypto trading platform covers many digital assets, including Bitcoin, Ripple, EOS, Ethereum, and others.
The key attraction of Coinbase is its user-friendly site. Users will not have trouble accessing the Coinbase website even if they have never bought digital currencies.
Coinbase crypto exchange is regulated and licensed. Leading investors like Rabbit Capital, Intercontinental Exchange, and Andreessen Horowitz have contributed more than $540 million to the company (the owners of the New York Stock Exchange). Since then, it has grown to have a clientele of over 35 million members, and as of April 2021, it has become a publicly traded stock on the NASDAQ. Our Coinbase review in South Africa shows that buying crypto assets on Coinbase is simple and straightforward – users can use a debit card or bank transfer to purchase cryptocurrency on the platform.
The trading platform is strictly governed, which entails receiving several licenses from US financial bodies. Through Coinbase Pro, the platform offers cryptocurrency trading facilities in addition to regular brokerage services. It suits those who want to trade cryptocurrencies in the short term.
Coinbase crypto exchange offers several additional products and services, including a fully-fledged crypto wallet. You can download this using a mobile app on your iOS or Android phone. You can also apply for a Coinbase debit card, backed by Visa, and it conveniently lets you spend your cryptocurrency holdings in the real world.
Pros
- Trade in more than 150 cryptocurrencies and new ones are constantly being introduced
- With Coinbase's simple trading interface, you can start investing easily. Discounts for large volume trading. When using Coinbase Pro, high-volume traders pay lower fees
- Use a Coinbase wallet to store your digital assets or create your own
- Supported countries - Coinbase provides services in 100+ countries worldwide
- The Coinbase debit card enables you to use your Bitcoin holdings like you would bank money
- Earn interest / free cryptocurrency using Coinbase Earn and its welcome bonus
- It supports a wide range of assets that institutional investors care about
- Coinbase users can trade on several trading platforms
- Easy to use web interface
Cons
- The basic account's pricing structure isn't the most affordable in the market. However, Coinbase Pro makes it more competitive with the market
- Except for Coinbase Pro, the fees of the Coinbase exchange is a complicated
- There are just six assets available for staking on Coinbase, and the payouts aren't the best in the business
Key Features of Coinbase
- With the help of its developer platform, Coinbase offers programmers the opportunity to create APIs that store real-time and historical data on the cryptocurrencies it supports.
- The company offers businesses a platform for using cryptocurrencies to pay for their goods and services. These companies can assess and use Coinbase products to build an easy and secure system to take cryptocurrencies as a payment method by supplying API documentation. As a result, Coinbase users can purchase coins using cryptocurrencies.
- Coinbase offers an intuitive platform. A few clicks will execute buy-sell orders, check balances, and compare prices.
- Traders have utilized the website as a launching pad into the Bitcoin market. Traders can buy different cryptocurrencies, including Bitcoin, Bitcoin Cash, Ether, Litecoin, and many others.
- Coinbase’s fees are somewhat higher than those of other exchanges, but they are reasonable given the services provided. These include transaction fees for buying, exchanging, and network withdrawal fees.
- The mobile Coinbase wallet enables traders to store their cryptocurrency securely. It provides a seed phrase that allows the user to get the cryptocurrency wallet’s keys.
- The Coinbase card is a prepaid Coinbase credit card that features an app that users can download from the Google Play or Apple Store. Investors can also apply for a Visa card, which enables them to use the cryptocurrencies they hold in their Coinbase wallet.
- For people that want to operate as affiliates or advertising partners, Coinbase offers a “Coinbase affiliate program.” You will be compensated with trading fees for the first three months that a user uses your referral link to trade on Coinbase.com.
- The fact that users may purchase Bitcoin and several other cryptocurrencies using fiat money by debit or credit card or bank transfer makes Coinbase one of the best cryptocurrency exchanges.
- When you need to transact with fiat currencies but want to send and receive money using Bitcoin, use Coinbase’s “instant exchange” tool. You can utilize an immediate exchange feature to make a smooth instant transfer rather than purchasing Bitcoin with fiat cash and sending it to the recipient.
- If you want to purchase, sell, and trade cryptocurrencies, you can upgrade to GDAX for free. You can transfer quickly to the GDAX or Coinbase Pro platforms. You can trade a variety of cryptocurrencies on GDAX, as well as among them.
Cryptocurrencies Available on Coinbase
In our Coinbase review in South Africa, we discovered that Coinbase supports dozens of digital currencies for direct purchase through the Coinbase exchange.
- 1INCH – 1Inch
- AAVE – Aave
- ADA – Cardano
- ALGO – Algorand
- ANKR – Ankr
- ATOM – Cosmos
- BAL – Balancer
- BAND – Band
- BAT – Basic Attention Token
- BNT – Bancor
- BSV – Bitcoin SV
- BTC – Bitcoin
- Celo – Celo
- COMP – Compound
- CRV – Curve
- CVC – Civic
- DAI – Dai
- DASH – Dash
- DNT – district0x
- ENJ – Enjin
- EOS – EOS
- ETC – Ethereum Classic
- ETH – Ethereum
- FIL – Filecoin
- FORTH – Ampleforth
- GNT – Golem
- GRT – The Graph
- KNC – Kyber
- LINK – Chainlink
- LOOM – Loom
- LRC – Loopring
- LTC – Litecoin
- MANA – Decentraland
- MATIC – Polygon
- MKR – Maker
- NKN – New Kind of Network
- NMR – Numeraire
- NU – NuCypher
- OGN – Origin Protocol
- OMG – OMG Network
- OXT – Orchid
- REN – Ren
- REP – Augur
- SKL – SKALE
- SNX – Synthetix
- RJ – Storj
- SUSHI – SushiSwap
- UMA – Universal Market Access
- UNI – Uniswap
- USDC – USD Coin
- USDT – Tether
- WBTC – Wrapped Bitcoin
- XLM – Stellar Lumens
- XRP – Ripple
- XTZ – Tezos
- YFI – Yearn.finance
- ZEC – Zcash
- ZRX – Ox
Coinbase Fees
The Coinbase platform has a lot going for it, especially in terms of usability and supported digital currencies. However, the broker lags when it comes to pricing, according to our Coinbase South Africa Review.
Our Coinbase review discovered that one of the most expensive Bitcoin brokers in South Africa is Coinbase. Fees will differ depending on what you want to accomplish on the Coinbase website.
Deposit Charges
When using the Coinbase website, you’ll pay the highest fee when you use a debit card in South Africa to purchase Bitcoin or any other digital currency. Because buying cryptocurrency with a debit card is the most practical way to start trading. There will be a transaction fee of 3.99% when using the Coinbase platform, which is relatively high.
Trading Fees
Our Coinbase review in South Africa further uncovered that the platform is expensive regarding trading fees, much as the broker’s deposit fee. It amounts to a staggering 1.49% of the total cost of the purchase or transaction. The 1.49% commission is included in the 3.99 percent deposit charge if you buy cryptocurrency with a debit card.
However, the 1.49% commission comes in if you already have money on the exchange and decide to buy or if you want to cash out part of the coins you currently own.
Conversions of Cryptocurrencies
Our Coinbase Review South Africa highlights that users can make direct cryptocurrency conversions – so-called swaps. Users can instantly convert between different digital currencies, for example, convert XRP into Bitcoin Cash. The fees are expensive in this scenario as well, despite Coinbase’s claim that you can achieve a direct conversion through a single trade.
In actuality, this will result in an average spread of 2%. The spread is a “mark-up” between the current spot price of the pair you are converting – a charge that a user must consider.
Coinbase Pro Fees
A different pricing structure applies if you trade cryptocurrency pairings using Coinbase Pro. For monthly volumes of less than $10,000, Coinbase Pro charges 0.50% as a trading fee instead of 1.49%.
When you look at how much it costs to use Coinbase Pro compared to Coinbase, you’ll see that Coinbase’s fees are quite high. If you use a debit card to transfer funds, Coinbase charges a fee of 3.99%, and for bank transfers, the fee is 1.49%. On the other hand, Coinbase Pro charges much lower fees than Coinbase.
Coinbase Payment Methods
With regards to payment methods, Coinbase crypto exchange streamlines the process. Our Coinbase exchange review found that users can use different payment methods like a debit card, credit card, wire transfers, a bank account transfer, deposits via PayPal.
Coinbase Minimum Deposit
One thing to note about the Coinbase website is that there is no requirement for minimum deposits. If you are new to digital currencies and would like to start with little sums, this is good news.
You should be aware of transaction costs, though, since they can add up to more than the previously mentioned 1.49% commission for minor deals.
Coinbase Security
Our Coinbase exchange review found that one of the most crucial features is that 99% of Coinbase’s assets are kept in offline cold storage, protecting them from hacking and keeping Coinbase safe. 1% of the crypto assets that are available online are insured. Hence, traders get compensation in case of any unfortunate event.
In addition to storing 99% of users’ funds in offline cold storage, Coinbase makes several security features available to users, such as biometric fingerprint logins, 2-step verification, and insurance if the Coinbase crypto exchange itself is compromised (this insurance will not apply if the account is compromised due to your own lack of security measures).
Only a small portion of customer money is stored online by Coinbase; the remainder is kept in cold storage. Be aware that any losses due to a breach in Coinbase’s physical security, cybersecurity, or embezzlement are covered by the insurance coverage. Any losses incurred as a result of the compromise of your specific Coinbase account are not covered by this insurance policy.
It would help if you used Authenticator software on your phone to scan the QR code that Coinbase displays to reveal the private key.
Coinbase Regulation & Licensing
Since Coinbase is a US-based firm, South Africa has no regulation. It shouldn’t worry you, though, as Coinbase has one of the best regulatory records in online cryptocurrencies.
As it is legally permitted to operate in all countries, its services comply with all rules/regulations concerning anti-money laundering and client fund segregation. Coinbase is also listed with FinCEN as a Money Services Business.
The UK’s Financial Conduct Authority has authorized and regulated Coinbase outside the US (via CB Payments Limited) (FCA).
All fiat currency (cash issued by the government) belonging to US customers, Coinbase stores in custodial bank accounts or U.S. Treasury securities. Your Coinbase USD Wallet is insured by the FDIC up to a maximum of $250,000 if you reside in the United States.
Opening a Coinbase Account
If a user wants to open an account with Coinbase crypto exchange, then Coinbase requires the following.
Step 1: Open an Account
You must first visit the Coinbase website and create an account. Your name, home address, and other personal information will be needed for this. Your mobile number and email address, both of which must be validated, are additional requirements.
Step 2: Submit ID
Since Coinbase is subject to strict regulation, as we have covered, it will need to confirm your identification. You will be required to provide a copy of your passport or license for this. This cannot be done through a PDF upload since Coinbase needs you to snap a picture using your webcam.
This might be a frustrating process because you may be requested to take another picture if the quality of the first one is insufficient. If Coinbase still doesn’t accept your paper after several tries, you might think about downloading the app and using the phone’s camera.
Step 3: Buy Cryptocurrency
You can proceed to buy cryptocurrencies after Coinbase has confirmed the validity of your ID. You can do this immediately if you’re using a debit card.
Choose the digital currency you want to buy first. Enter your debit card information after that, and then decide how much to spend.
Trading Experience on Coinbase
As we’ve mentioned in this Coinbase South Africa Review, the platform’s outstanding user experience is one of its key USPs. The broker is considered the best choice if you’re looking to make your initial foray into cryptocurrencies in South Africa. Coinbase assists you at every step of the way to begin making a purchase. Opening an account, submitting your ID, and adding a payment method are all included in this. You can enter the value in South African rands when determining how much cryptocurrency you want to purchase.
The “Amount” box will then display an approximation of the value in the chosen digital currency. It is also simple to view your portfolio, convert cryptocurrencies, and withdraw money. However, the user experience is far more difficult if you move over to the Coinbase Pro platform.
It is due to the abundance of trading tools and features in Coinbase Pro, which may appear unduly complex to untrained eyes. Therefore, sticking with the main Coinbase platform is best if you want a straightforward user experience appropriate for novices.
Trading Tools and Features on Coinbase
Whether you are using Coinbase Pro or the basic Coinbase platform will determine which key trading tools you can access. Coinbase contains sophisticated features, such as detailed pricing charts, various order types, and volume books.
However, you will only have access to essential functions, including placing market buy/sell orders, if you choose to use the main Coinbase interface to acquire cryptocurrency. Coinbase Pro is the place to go if you want to execute more complex trades and risk-management instruments like take-profit and stop-loss orders.
You should include the Coinbase debit card because it is a unique feature accessible to all platform users.
Bitcoin Debit Card
Since Visa endorses it, the Coinbase Card functions mainly like any other debit card. We can therefore use it to make purchases both online and offline, as well as to get cash from an ATM. Given that the debit card is connected, this is an intriguing idea.
It indicates that you can use the Bitcoins stored in your Coinbase wallet can be used to facilitate your payment. The Coinbase Card can be pricey, much like the fees and commissions, it levies on deposits and trades. For instance, 3% of the purchase price is spent on overseas transactions.
If you want to know how much it will cost you to use your Coinbase Card, just take a look at your Cardholder Agreement. It provides a clear explanation of all the expenses that come with using the card.
Coinbase Pro
It refers to a “Digital Asset Exchange,” a subsidiary of the broker’s main website. The Pro website may be better suitable for individuals who want to day trade cryptocurrencies or swing trade. It is due to the platform’s plethora of advanced trading tools and capabilities that the ordinary trader may find overwhelming or intimidating.
The supported markets comprise a wide range of crypto-to-crypto and crypto-to-fiat pairs. The former describes a pair of digital assets consisting of a fiat currency and a cryptocurrency. Most pairs, such as BTC/USD or ETH/USD, contain the US dollar. With pro, withdrawals and deposits must be made via a bank account. No debit or credit card purchases are allowed. However, wire transfer fees apply.
Coinbase Customer Support
Our Coinbase Review South Africa found that Coinbase falls short in the customer service department. Even though a phone number is provided on the website, it is an automated service. As a result, you won’t be able to communicate directly with a live agent.
There is a live chat button on the bottom left-hand side of the webpage. However, since this is an automated bot, you once more cannot get help from a live support agent. Therefore, the only option to get assistance with your account is to submit a support ticket through your account. The support team’s workload will impact how quickly they respond.
Coinbase Wallet
The wallet is similar to other mobile wallet apps in that the private key to your coins is stored on your mobile device, unlike the Coinbase app, which enables you to purchase, sell, and manage your fiat and coin holdings on the Coinbase platform. To use the wallet, you don’t need a Coinbase account. Our Coinbase review found that you have three options.
Web Wallet
Using the Coinbase web wallet, you can potentially easily store your digital coins. It indicates that you don’t need to download software to access your funds and make transfers.
Instead, all you have to do is go into your Coinbase account and complete the transaction. Even though this is the most practical storage choice available, it’s important to remember that you’ll be using a “custodial” wallet. It indicates that a third party, in this case, Coinbase, has your private keys.
If something really bad happens and the Coinbase server gets hacked, there’s a chance that your money might be in danger. However, Coinbase has put in place lots of security measures and protocols to protect against this kind of situation.
Coinbase Mobile Wallet
You can download the Coinbase mobile wallet on iOS and Android smartphones, so that is your choice. It is a “non-custodial wallet,” in contrast to its web wallet equivalent. Hence, your private keys are only accessible to you.
On the one hand, this does imply that you always maintain complete control over your crypto assets. It does, however, carry risks of its own. Furthermore, Coinbase would not be able to assist you in regaining access if you were to misplace your private keys. Instead, you will permanently lose the money in your wallet.
Withdraw to Private Wallet
Withdrawing your digital currency to a private wallet is your third choice for storage, according to our Coinbase review from 2021. It might take the shape of the hardware wallet of your choice, a desktop wallet, or even a mobile wallet. It only takes a few clicks to finalize the transfer after pasting the address of your private wallet into your Coinbase account.
Coinbase Mobile App
The cryptocurrency platform, which should not be confused with the Coinbase wallet, also has an app that you may link to your primary account. The app offers you access to all the functions that are available on the Coinbase online platform and is also available for iOS and Android devices. Using the mobile app, you can
- Use a debit card to purchase cryptocurrencies.
- Sell cryptocurrency
- Convert one crypto to another
- View your holdings and the value of each coin on the market.
- Gain market knowledge about the supported digital currencies.
Similar to the main Coinbase website, the app is free to download and easy to use.
Final Thoughts
In conclusion, according to our Coinbase South Africa Coinbase Review, the exchange is an excellent choice for newcomers seeking a simple way to get started in the cryptocurrency market and begin a crypto investment. Users can simply create an account and use their debit card to buy the digital assets of their choice. Crypto trading on Coinbase is straightforward and arguably one of the best trading platforms for South African residents.
Our extensive analysis of the South African Crypto Exchanges doesn’t stop here. You can also read about our Luno review as an alternative to Coinbase or you can check out our Guide on the best crypto exchanges available to South Africans to choose the right crypto exchange for you among our picks.
See how Coinbase Compares with Other South African Crypto Exchanges:
FAQ
Most frequent questions and answers
We believe so since Coinbase stores your cryptocurrency balance in a secure offline wallet under their ownership. Since they cannot completely control their own wallet, this may turn some people away. You can, however, take this money out whenever you want into your own physical wallet.
Yes, Coinbase is a secure platform to use, despite being one of the priciest Bitcoin brokers in the market.
Yes, according to the results of our analysis of the Coinbase exchange, the business is permitted to provide crypto brokerage services to South African citizens.
The service could probably improve its customer care a little more. There are several ways to get in touch with the support staff, including by phone, email, or through their Twitter account.
We always try to provide the most accurate information available, and make sure our team follow through.
If you want to know more about our Crypto Exchanges Review Methodology follow the link below
Skrumble.com provides all its content for informational purposes only, and this should not be taken as financial advice to buy, trade, or sell any investment instruments or products, including but not limited to cryptocurrencies, or use any specific exchange. Please do not use this website as investment advice, financial advice, or legal advice, and each individual’s needs may vary from that of the author. Investing in financial instruments, including cryptocurrencies, carries a high risk and is not suitable for all investors. It is possible to lose the entire initial investment, so do not invest what you cannot afford to lose. We strongly advise conducting your own research before making any investment decisions. This post includes affiliate links with our partners who may compensate us.
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