If you want to get started with cryptocurrency, you’ve probably encountered two prominent exchanges – Crypto.com and Coinbase. The first one is popular for its wide range of features like staking and cashback rewards, while the latter is known for its ease of use, strict compliance with US regulations, and its stablecoin, USDC.
But which exchange should you choose in 2024? This article will explore the details of each platform to help you make an informed decision.
Coinbase is a well-established US-based cryptocurrency exchange that offers a wide range of services, including buying, selling, storing, and exchanging digital assets. The platform has gained the trust of millions of users, with an overall user base standing at 100+ million as of 2023.
Coinbase is a trusted name not only among retail investors but also among big institutions and hedge funds like BlackRock and DCG. The exchange is a custodian for eight spot bitcoin ETFs, which were approved by the SEC at the beginning of 2024.
Moreover, Coinbase is a publicly traded company listed on Nasdaq under the ticker symbol COIN, which adds credibility to the platform.
The platform provides users a wide range of features that set it apart from other exchanges. These include:
Coinbase caters to beginner traders and seasoned investors with its two platforms – Coinbase and Coinbase Advanced (previously known as Coinbase Pro). While the first one is more suitable for beginners, the advanced option caters to experienced traders with its sophisticated charting tools, real-time market data, and many types of orders.
One of Coinbase’s standout offerings is the Coinbase Card – a Visa debit card that allows users to seamlessly spend their cryptocurrency at millions of merchants worldwide. The card also offers a rewards program, making it an attractive option for frequent crypto users.
Coinbase aims to educate its users through the Coinbase Learn section, which offers earn-to-learn programs where users can study crypto topics and earn rewards. Additionally, members of Coinbase One – a subscription-based service – receive perks such as reduced trading fees, prioritised customer support, and enhanced staking opportunities.
For those looking for more control over their digital assets, Coinbase also offers a non-custodial wallet that supports the buying, sending, receiving, and storing of popular crypto assets and NFTs.
Coinbase Commerce offers a service for merchants to accept cryptocurrency as payment for goods and services.
Crypto.com, formerly known as Monaco Technologies GmbH, is a global cryptocurrency exchange that was launched in 2016 with the vision of empowering individuals to access and control their own digital assets.
The platform has since evolved and now offers a range of features and services to cater to the needs of crypto enthusiasts. It currently boasts a user base of over 80 million users worldwide.
Crypto.com’s main offerings include spot and derivatives trading, on-chain staking, lending, a crypto debit card, and more. The platform is also known for its popular Earn program, which allows users to earn passive income from their crypto holdings.
The exchange has recently obtained Electronic Money Institution (EMI) status from the UK’s Financial Conduct Authority (FCA), which adds to its credibility and reputation as a compliant exchange.
The following are some of the noteworthy features offered by Crypto.com:
Crypto.com is famous for its feature-rich mobile application for Android and iOS devices. The app offers an easy-to-use interface, facilitating trading, staking crypto, or making payments on-the-go.
Crypto Earn is an earning program that allows users to receive rewards by locking up their cryptocurrencies. The feature is popular among users who want to maximise their crypto holdings and earn passive income.
Crypto.com offers Visa cards that offer rewards for making payments with cryptocurrencies. These cards come with various perks like cashback, airport lounge access, and more, making it convenient for users to use their cryptocurrencies in real-world transactions.
Additionally, Crypto.com offers a decentralised finance (DeFi) wallet that grants users access to multiple blockchains and apps built on different networks. This allows users to buy, sell, stake, and swap tokens seamlessly.
Both trading platforms have their own unique set of features and services. Let’s compare them in detail.
One of the key factors in choosing a cryptocurrency trading platform is the selection of coins available for trading. Both Crypto.com and Coinbase offer investors access to an extensive range of cryptocurrencies with diverse market caps and prices.
Crypto.com provides access to more than 300+ instruments, including all of the top 10 coins by market capitalisation. Coinbase, on the other hand, offers access to over 238 assets for trading.
Crypto.com and Coinbase provide users with intuitive dashboards and a range of tools and features.
Coinbase Advanced Trader offers advanced charting tools, customisable market data, and margin trading for experienced users, which is unavailable in the basic version. Crypto.com’s platform also includes advanced charting capabilities and features like limit orders, stop-loss orders, and more.
Moreover, both platforms offer similar options, such as staking and the Earn program. Crypto.com also offers grid bots for automated trading strategies, advanced margin and futures trading. The crypto exchange platforms also offer rich DeFi opportunities, like dApps, NFTs, and more.
Fees can significantly impact the profitability of your cryptocurrency investments. Crypto.com and Coinbase employ a maker-taker fee structure, where the fees vary based on the size of the transaction and whether it generates or reduces liquidity for a particular cryptocurrency.
Crypto.com charges maker fees ranging from 0.0% to 0.075% and taker fees ranging from 0.05% to 0.075%. Conversely, Coinbase’s fees vary depending on the platform used. For the basic Coinbase, fees can vary from 1.49% to 3.99%. However, for Coinbase Advanced, fees range from 0.00% to 0.40% for makers and 0.05% to 0.60% for takers per trade, which are lower compared to Crypto.com.
A taker refers to an individual who takes liquidity from the market by placing an order that is immediately matched with an existing one, while a maker creates liquidity by placing an order that remains on the order book.
Coinbase is renowned for its user-friendly interface, making it extremely easy for investors to sign up and start trading within minutes. The platform offers seamless integration with bank accounts, debit cards, and PayPal accounts, enabling swift and convenient transactions. Coinbase also provides educational resources and video tutorials to help users navigate the platform and learn more about cryptocurrencies.
For more experienced users, Coinbase Advanced Trader offers advanced charting tools and real-time market data for a deeper analysis of the markets. Thus, Coinbase is a universal platform that caters to both beginners and professional traders.
Crypto.com, on the other hand, is focused on advanced functionality, catering to more seasoned crypto investors. The platform offers a comprehensive range of tools and features for managing your transactions, staking, lending, and more.
Crypto.com and Coinbase are centralised cryptocurrency exchanges that adhere to Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, which involve verifying the identities of their users.
These platforms demand specific information about the user during registration to ensure compliance with regulatory standards and protect against fraudulent activities. While the exact data points gathered may vary slightly, the purpose remains the same – to create a secure and transparent environment for cryptocurrency transactions.
While both exchanges are widely available in the 100+ countries around the world and position themselves as global venues, there are some variations in their geographic reach.
Crypto.com is available in only 49 states in the US, with the exception of New York, where the platform is still evaluating the necessary steps to offer its services. On the other hand, Coinbase is awaiting approval in Hawaii. If you reside in New York or Hawaii, you should take into account these availability restrictions when choosing a platform.
If you are an international user, you have certain bonuses when trading with Coinbase. In May of 2023, the company opened an offshore branch, which provided overseas users with access to crypto trading benefits not available to US citizens, like derivative trading.
Both Crypto.com and Coinbase provide opportunities for users to earn rewards and interest on their cryptocurrency holdings.
Crypto.com offers high annual percentage yields for staking rewards, with rates reaching up to 10% per annum. Users can stake 25+ various coins as of the time of writing, including Dai, Algorand, Chronos, Cosmos, and NEAR, earning substantial returns on their investments.
In contrast, Coinbase allows users to earn staking rewards on just six tokens: Tezos, Cosmos, Ethereum, Solana, Cardano and Polkadot. The annual percentage yields for staking on Coinbase reach a maximum of 10%.
The security of your cryptocurrency holdings is paramount when selecting a trading platform. Both Crypto.com and Coinbase employ robust security measures to protect their users’ assets.
These exchanges implement two-factor authentication (2FA) for account logins, requiring a user-generated code in addition to their password. In addition, all USD balances on the platform are FDIC-insured up to $250,000.
Coinbase also offers platform insurance against theft and utilises cold storage for most of its users’ funds. Similarly, Crypto.com stores 100% of its cryptocurrency reserves in cold storage.
Both platforms also have bug bounty programs in place to incentivise users to report any potential vulnerabilities, making them less susceptible to security breaches.
Crypto.com’s wallet boasts multi-factor authentication (MFA) and biometric security features. Additionally, private keys are locally encrypted on the user’s device for added security.
Coinbase’s mobile wallet uses AES-256 encryption and offers multi-signature wallets for added protection – multiple signatures are required to access and withdraw funds, making it more difficult for malicious actors to steal cryptocurrency holdings.
Crypto.com is ideal for experienced investors looking for a more advanced platform with a comprehensive range of tools and features. The platform’s higher staking rewards, grid bots, and DeFi opportunities make it a popular choice among seasoned traders.
Moreover, Crypto.com offers a wide selection of cryptocurrencies to trade, making it an attractive option for those looking to diversify their crypto holdings. While the platform may have a steeper learning curve for beginners, its advanced functionality and features make it a top choice for advanced traders.
Coinbase is a user-friendly platform that is perfect for beginners entering the world of cryptocurrencies. Its simple trading dashboard and easy purchase process make it accessible to investors with limited experience.
Furthermore, Coinbase provides various customer support options, including chatbot and phone support, ensuring users can seek assistance whenever needed. While Coinbase’s fees may be slightly higher than Crypto.com, its user-friendly interface and accessibility make it an attractive choice for newcomers to the crypto market.
While Crypto.com and Coinbase are popular choices, you might also want to consider alternative most reputable cryptocurrency exchanges. Here are a few noteworthy options:
It doesn’t end here. Check out our list of the best crypto exchanges for 2024 to discover more platforms.
Is Crypto.com available in the US?
Yes, Crypto.com is available in the United States, except for New York. However, it should be noted that not all of Crypto.com’s offerings and services are available to certain US territories.
Can I use Coinbase in my country?
Coinbase offers services in 100+ countries, but be sure to check if your country is supported before creating an account. Coinbase is continuously expanding its geographic availability, but there may still be some regions where the platform is inaccessible.
Which exchange has lower fees, Crypto.com or Coinbase?
Crypto.com generally has lower fees compared to Coinbase, especially for taker fees. However, it’s crucial to consider each platform’s specific trading volumes, payment methods, and fee structures, as fees may differ depending on these factors.
Are there any risks involved in using cryptocurrency exchanges?
While exchanges take precautions to ensure the security of user funds, there are inherent risks that go along with using any exchange. For example, users can suffer from hacking attacks, server downtime, and regulatory changes. Also, one should not forget that cryptocurrency prices fluctuate tremendously, which can lead to severe financial losses for investors and traders.