Coinbase; the most popular cryptocurrency exchange in the USA. Has long been the poster child for how a crypto exchange should be run. Trying to do everything by the book. Growing users quickly, yet being extremely conservative at adding new features. Which allowed other exchanges like Binance to pass them in popularity around the world. Throughout my time in the crypto market, my relationship with Coinbase has been complicated, to say the least. I began loving the exchange, but that love soon changed into disappointment, but recently has once again changed back to love.
Let me tell you about my experience with Coinbase.
Loving Coinbase Stage
Just like so many others before me, the first exchange that I began buying crypto on was Coinbase. I had very little experience and knowledge back then. Coinbase’s simple UI and ease of use really appealed to me. Another factor that I liked was how strict they appeared to be with launching new tokens on their exchange. For a cryptocurrency to be listed on Coinbase, it was a really special thing. It gave those projects a real boost in confidence and trust. This is why we would often see a “Coinbase pump” after tokens were listed on the exchange.
There were other small features on the exchange that really appealed to me as well. Learning rewards, where you could earn free crypto for watching a few short videos and then taking short quizzes about them. Also, the fact that Coinbase seemed to be one of the few exchanges that didn’t charge a flat fee for withdrawals, but instead was as close to the cost of gas as possible.
The Disappointment Stage
Coinbase was often considered to be the first exchange that people should use. But once they have enough experience they should move on to other options.
One of the key reasons for this was fees. Coinbase charged the highest fees on purchases by far. While a few dollars here and there wasted on fees might not seem like much. During a bull cycle, those wasted fees could have been a substantial amount of crypto. While there were workarounds to having lower fees such as using the Coinbase Pro app. The truth is that a very small amount of people used it, or even knew it existed. Normal users just stuck to the main app.
Personally, I had no issue using the Coinbase Pro app to save on fees, but the area that really began my disappointment in Coinbase was their new token listing strategy. As I mentioned before, I valued the idea that in the past they only listed the best of the best. But during the last cycle, they began listing questionable projects. Projects that most of us had never heard of, or projects that they were investors in.
But the real issue was that it seemed like their innovation and addition of new features to the exchange came to a halt. Other exchanges like Binance were also listing questionable tokens on the exchange, but their constant addition of new features seemed to make up for it.
Back to Love Stage
My opinion on Coinbase once again began to shift late last year after the FTX fraud took place. If there is anything we can all agree on about Coinbase, it is that they are one of the most trusted brands in the space. Especially to hold your crypto on.
It made me reflect on their addition of questionable tokens during the last cycle. The truth is that meme coins were the fad of the last cycle, and Coinbase likely needed to find ways to attract traffic to their exchange to remain profitable. One of my favorite features they have added recently is Advanced Trading in the main app. With just a few tab clicks in the app, you can save a large percentage on fees.
But, there is one thing over everything else that has made Coinbase my favorite exchange once again.
That they have come out willing to take a stand against the US government & SEC and fight them. In a world where the US government is trying to attack the cryptocurrency industry. We need all of the allies that we can find. The truth is that few exchanges in crypto have the power to stand up and fight. The list has only 2 names; Coinbase and Binance. No matter how you feel about Coinbase, there is no denying how important their fight against the US government will be. And for the time being, that’s why I’m choosing to support them.
How about you? What are your thoughts on Coinbase?
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