What is Coinbase and how does it work?

In a nutshell, Coinbase is a cryptocurrency exchange where you can buy popular coins like Bitcoin, Ethereum, and Litecoin. Not every coin is supported on Coinbase, but there are more than 90 different types of cryptocurrencies on the platform. Meanwhile, there are thousands of different cryptocurrencies available worldwide.

How much does Coinbase charge when you buy or sell cryptocurrencies?

Coinbase charges what's called a spread of about 0.50% when you buy or sell cryptocurrencies, as well as a Coinbase Fee, which is a flat fee or determined by factors like where you’re based and what type of payment you’re using. That flat fee depends on the transaction amount and is laid out by Coinbase on its fee page.

Is Coinbase FDIC-insured?

A dollar balance of up to $250,000 is FDIC-insured for both Coinbase and Coinbase Pro. If you want full control of your cryptocurrency without a third party's involvement, you can opt for what's called a non-custodial wallet.

What is Coinbase's fee structure?

Coinbase has an easy-to-use platform, but a complicated fee structure. The basic Coinbase platform has an extremely convoluted fee structure. You don’t pay maker/taker fees or a flat fee, but a spread fee that temporarily locks in the price for the transaction. You don’t get to see the fee you’ll pay until you’re about to submit the trade.