With 100 million registered users, Coinbase is one of the most well-known places in the world to buy and sell crypto. But we wanted to find out, is it actually one of the best choices for investors? Here's why it's not.
To find the best crypto exchange, we reviewed every popular Canadian exchange we could find. This test includes 20+ Canadian platforms across 60+ variables and 1050+ data points. Read on to see if Coinbase right for you.
The Bottom Line
Coinbase has 140+ coins, beginner and advanced trading, and industry-leading security but it comes with very high fees. The total fee to buy BTC was 4.54% (17th place) and the BTC spread was 3.07% (15th place). Overall, Coinbase is the most expensive platform for Canadians that we tested.
For its high fees, we don't recommend Coinbase for buying and trading crypto in Canada. There's many low-cost and safe alternatives for Canadians. However, Coinbase is good for things other than trading like the Coinbase Wallet and the Learn and Earn feature.
Pros & Cons
About Coinbase
Coinbase is considered one of the easiest and safest cryptocurrency exchanges in the world. The San Francisco based company was founded in 2012 and is available in 100+ countries serving 100M+ clients!
Their goal is to make crypto trustworthy and easy to use. When you visit Coinbase, You'll notice it's very beginner-friendly and has a beautiful user interface. They offer a variety of features like beginner trading, advanced trading, staking, learn and earn, a Dapp browser, and more.
Background
- Publicly traded company since 2021 (NASDAQ: COIN)
- Available in 100+ countries
- 100+ million verified users
- $250+ billion assets on the platform
- 3700+ employees
User Interface
Fees & Spread
Coinbase has a tiered fee structure and they make it hard to calculate because they stopped publishing it on their website. So, I used my Coinbase account to calculate the fees so you don't have to.
Overall, Coinbase has extremely high fees. The total BTC purchase fee was 4.54% (17th overall). If we use the highest deposit fee it would be 5.38%. The total BTC selling fee was 5.50% (13th overall) and the BTC spread was 3.07% (15th overall).
In comparison, NDAX had the lowest total BTC purchase fee in Canada at 0.49% (over 9x cheaper). VirgoCX was second place at 0.66%. Compare all Canadian Crypto Exchanges we tested.
Coinbase Fees | Amount |
|---|---|
*Total BTC Purchase Fee | 4.54% (17th place) |
*Total BTC Selling Fee | 5.50% (13th place) |
Trading Fee | Free |
Recurring Buys | 3.00%+ |
Staking Fee | 25% fee on rewards |
CAD Deposits (as of Mar 31/22) | $0.99 fee for $10 purchase $1.49 fee for $10-$26 $1.99 fee for $27-$54 $2.99 fee for $54-$78 3.84% fee for $79-$7,500 |
CAD Withdrawals (as of Mar 31/22) | $0.99 fee for $10 purchase $1.49 fee for $10-$26 $1.99 fee for $27-$54 $2.99 fee for $54-$78 3.84% fee for $79-$7,500 |
BTC Withdrawal Fee | Dynamic (Mining Fees) |
We tested 18 Canadian cryptocurrency exchanges at the same time to compare the true fees. This data was collected on Mar 2, 2022 at 4:41pm and is subject to change since spreads and prices change daily.
- Total BTC Purchase Fee = CAD Deposit Fee + Trading Fee + Reference Price Difference
- Total BTC Selling Fee = CAD Withdrawal Fee + Trading Fee + Reference Price Difference
You can compare all platforms from the price test on this page.
Deposit & Withdrawals
Coinbase has limited funding and withdrawal methods and it is not the best fiat on/off ramp for Canadians.
Canadian users can buy cryptocurrencies with Visa, Mastercard, or debit or fund their account by depositing cryptocurrency. There is no support for e-transfers or bank transfer deposits which makes Coinbase Canada more difficult than some other platforms. The fees are also high for credit/debit and it's an instant purchase. There is no CAD fiat wallet or CAD trading pairs in your account.
To cash out, Coinbase Canada only allows withdrawals with PayPal or cryptocurrencies. As of right now, there are no options like Interac e-Transfer and bank transfer. If you are considering whether you should use Coinbase, keep in mind that it's harder to cash out CAD than other exchanges.
CAD Deposit Methods
Type | Fee | Time | Limits |
|---|---|---|---|
Credit / Debit Card | $0.99 fee for $10 purchase $1.49 fee for $10-$26 $1.99 fee for $27-$54 $2.99 fee for $54-$78 3.84% fee for $79-$7,500 | Instant | $7,500/week (increases available) |
CAD Withdrawal Methods
Type | Fee | Time | Limits (24 hours) |
|---|---|---|---|
PayPal | $0.99 fee for $10 purchase $1.49 fee for $10-$26 $1.99 fee for $27-$54 $2.99 fee for $54-$78 3.84% fee for $79-$7,500 | ? | $30,000/day |
Crypto Withdrawal Fees
Type | Fee | Minimum Withdrawal |
|---|---|---|
Bitcoin | Dynamic (network fees) | 0.0001 BTC |
Ethereum | Dynamic (network fees) | ? |
USDC | Dynamic (network fees) | ? |
XLM | Dynamic (network fees) | ? |
Coinbase's Best Features
Coinbase offers a wide variety of features that go beyond just buying and selling crypto. Some of the popular products include Learn and Earn, Staking, a non-custodial wallet and the USDC stablecoin. Here's a look at what you can do on Coinbase Canada:
List of Features:
- iOS, Android and Web app
- 140+ cryptocurrencies
- Instant Buy and Sell
- Advanced Trade
- Built-in Dapp/Web3 browser
- Staking & Yield
- Coinbase Pro
- Coinbase Pay
- Learn and Earn
- Coinbase Wallet
- Affiliate Program
- Send a Gift
- USD Coin (USDC)
1. iOS, Android and Web App
2. Instant Buy and Sell
3. Advanced Trade
- No CAD trading pairs available in the advanced trade
- All fiat trading pairs are unavailable in my Canadian account
4. Coinbase Pro
5. Staking & Yield
- https://www.coinbase.com/yield
- https://www.coinbase.com/staking
- Official Staking updates
- Official Yield Updates
6. Learn and Earn
Coinbase offers the best Learn and Earn program in the industry right now. You'll get paid instantly by taking short quizzes about different cryptocurrencies.
7. NFT Marketplace
Other Coinbase Features:
- Recurring Buys
- Affiliate Program
- Build in Dapp/Web3 Browser
- Coinbase Exchange (Institutional)
- Crypto Gift Cards
- Coinbase Pay
- News
The Coinbase Ecosystem
Outside of the Coinbase app, they offer other crypto tools and services as well:
- USD Coin (USDC stablecoin)
- Coinbase Wallet
- Coinbase Ventures
- Coinbase Custody
Security
Is Coinbase Safe in Canada?
Coinbase is one of the safest platforms in the world, not just in Canada. In Canada, Coinbase is a registered money service business licensed by FINTRAC. Shakepay, Newton, or any other Canadian cryptocurrency exchange has the same requirements. Some of the security features include 2FA, a $255M insurance policy, digital assets held in cold storage, and more.
With Coinbase, you're also getting an established company that was founded in 2012. It has a long track record and has built one of the best security reputations in the industry. They're also a publicly traded company on the NASDAQ. This means regular audits are conducted, financials are public and an extra layer of safety is added.
There are only a handful of exchanges in the world with the same safety and reputation as Coinbase.
⚠️ Although Coinbase is safe, 44% of platforms we tested have had a hack or incident in the past. We strongly recommend storing and protecting your crypto on a hardware wallet or any wallet where you own the private keys.
Hacks & Incidents
We were able to find one hack in Coinbase's history since being founded in 2012.
In 2021, 6,000 Coinbase customers lost their cryptocurrency to hackers due to an SMS vulnerability. Coinbase worked with the customers to regain control of their accounts and reimburse them for funds lost.
Company Security Features
- 98% of assets are held in cold storage
- $255 million insurance policy on the 2% of crypto held in online hot wallets
- Sensitive data is stored on paper backups and USB drives in vaults and multiple locations
- Coinbase claims all personal information is encrypted
- Employees must pass a criminal background check
- Bug bounty program - white-hat hackers get paid to find security bugs and vulnerabilities
- See their security page for more
User Security Features
- 2FA for logins (via phone number, security key or authenticator app)
- 2FA for withdrawing crypto
- Crypto address whitelisting
- Coinbase Vault - Store your crypto here for time-delayed withdrawals, multiple approvers and offline storage
- Lock Your Account Button - Freeze all transactions if you see something suspicious
- Set up Pin or Touch ID for app login, sending transfers and more
- Security notifications via email, SMS and push (eg. Your password has been reset)
- Account activity notifications (eg. buys, sells, transfers, etc)
- View account login history (logins, locations, devices, IP addresses, etc)
- Coinbase offers an emergency phone number to lock your account
- Button to request your data to be deleted
- View website status in real-time
Customer Support
You can contact Coinbase support via live chat and it says "an agent should reply within 10 minutes." They also offer email support, phone support and a knowledge base with helpful FAQs, articles and walkthroughs. There is also a live website status where you can check for incidents or maintenance in real-time.
- Email Support
- Phone Support
- Knowledge Base
- Live Website Status
Here are the best crypto exchanges for Canadians right now. We assessed 18 platforms across 60 variables and 1080+ data points.
FAQ
Coinbase operates in Ontario and is legal to use. They are a registered Money Service Business and are a legitimate cryptocurrency exchange in Canada.
The Coinbase Credit Card is not eligible for Canadian residents and no official release date has been announced. So far, the card has rolled out in 40+ counties which are mostly in Europe. Canadian users can still open a Coinbase account to buy sell and trade cryptocurrencies.
If you’re not willing to wait, Canada has 9 other crypto credit cards which you can start using today to earn Bitcoin or crypto cash back.
Coinbase is an American cryptocurrency exchange that is available in over 100 counties, including Canada and Ontario.
