Founded in 2012, Coinbase is a US-based cryptocurrency exchange that claims to serve over 120 million verified users globally, via its website and mobile app. It serves as a platform for both individuals and institutions to buy, sell, or trade 250+ cryptocurrencies. 

Coinbase was created with the mission to make crypto accessible and easy to use for everyone. As a part of that effort, it allows users to convert their dollars into crypto with a few clicks. The platform claims to manage over $400 billion worth of crypto assets, with operations spanning 100+ countries.  

[Note: Coinbase reported a data breach in May 2025 wherein attackers managed to illegally access personal details of 70,000 accounts by bribing the exchange’s support staff. No user funds were lost.]  

Coinbase: Key Points

• Regulated and publicly traded company on the Nasdaq
• KYC and identity verification mandatory for full account access
• Suffered a data breach in May 2025; no user funds lost
• Available in US, EU, and 100+ countries
• 98% of funds held offline in cold storage

History of Coinbase

Coinbase was launched from a two-bedroom San Francisco apartment in 2012 by Brian Armstrong, a former Airbnb engineer and Fred Ehrsam, an ex-Goldman Sachs trader. For context, Bitcoin (BTC) was worth around $6 at the time. 

It took off after Ethereum’s launch in 2015, adding more cryptocurrencies and services for institutions by 2018. A NASDAQ listing in 2021 made Coinbase the first crypto exchange of its size to get publicly traded on the platform. 

However, in 2023, the US Securities and Exchange Commission (SEC) hit it with a lawsuit alleging that it operated as an unregistered securities exchange, broker, and clearing agency, selling unregistered securities via its staking program. The suit was dropped in February 2025, coinciding with the country’s notable shift towards clearer crypto regulations.

In 2025, Coinbase expanded operations by acquiring Deribit exchange for $2.9 billion, investing in India’s CoinDCX exchange, taking over the development team behind the Iron Fish blockchain, and buying LiquiFi (a token management platform) and Spindl (an on-chain advertising and attribution service provider). The same year it also joined the S&P 500, integrating further into the US financial ecosystem. 

Coinbase: Functions and Services

Coinbase provides a range of tools for buying, selling, trading, and managing crypto. Here’s a quick look at some of its main features:

• Normal and advanced mode: You can toggle between two interfaces on Coinbase. The normal mode features a simple view facilitating buying and selling of crypto assets using fiat (traditional money), and swapping between different coins. The advanced mode comes equipped with complex charting functions, enabling services like spot trading (basic crypto-to-crypto trades) and derivatives (betting on crypto assets’ future prices).

• Coinbase ‘Staking’ and ‘Earn’: Built for passive income, staking involves locking-up your crypto coins and receiving rewards in return.

‘Earn’ pays you an annual percentage yield (APY) on your USDC balance. To use these, sign into your account, click the ‘My Assets’ tab, and opt for ‘Staking’ or ‘USDC rewards’ under ‘Crypto’ or ‘Cash’ sections respectively.

• Subscription service (Coinbase One): This is a monthly/annual paid subscription service with exclusive benefits. It comes in three tiers – basic ($4.99/month or $49.99/year), preferred ($29.99/month or $299.88/year), and premium ($299.99/month). These tiers differ based on user benefits, including trading fees waivers, boosted staking rewards, priority customer support, and enhanced account protection.

• Derivatives trading: Experienced traders can switch to ‘Advanced’ platform and access complex trading services like derivatives which involves speculating on a coin’s future price movements without holding the actual asset.

• Spot trading: Also accessible in the ‘Advanced’ mode, this one’s a simpler form of trading than derivatives. It allows swapping of one crypto for another at the current market price. You can also opt for ‘Limit’ orders and preset a price at which you’d like to automatically buy or sell a crypto asset.

Is Coinbase safe to use in 2025? 

While it’s not impervious to phishing scams, hacks or extortions, Coinbase is generally perceived as a safe crypto trading platform. 

In May 2025 cybercriminals stole the company’s customer data by bribing its overseas support agents, and demanded $20 million ransom. Coinbase refused and set up a matching reward fund for info on attackers instead. It reimbursed nearly 70,000 impacted users and strengthened its staff oversight. No user passwords, funds, or private keys were compromised.

As a publicly traded company (NASDAQ: COIN), Coinbase’s model is based on strict regulatory compliance, giving it a healthy security shield. The exchange is registered with the Financial Crimes Enforcement Network (FinCEN) of the US, and has regulatory licenses to operate in several regions, including the EU, UK, US and India.

It stores almost 98% of its funds in offline cold wallets, and is audited annually by Deloitte. Additional protections include two-factor authentication (2FA), biometric logins, end-to-end encryption for all trades and transfers, and strict Know-Your-Customer (KYC) & Anti-Money Laundering (AML) protocols. 

Coinbase FAQs

How do I sign-up with Coinbase?

Access the platform’s official website or mobile app. Enter an email address, verify with the emailed code, and set a strong password. As an alternative, you can login directly with your Google or Apple account too. Please note, personal details and identity verification are mandatory for account set-up.

Does Coinbase have 24/7 customer support?

Yes, Coinbase provides round-the-clock customer support, but only through an AI-powered virtual assistant. For manual assistance, you’ll need to write to them from their ‘Contact Us’ page. Besides these, they also have a Help Center featuring several articles and guides.

Does Coinbase offer a demo account?

No, Coinbase does not have a provision for a demo account at the time of writing. 

How do I withdraw funds from Coinbase?

In regular mode, head to ‘My Assets,’ select the asset you’d like to withdraw, and then initiate a withdrawal from ‘Vault’ under the ‘Balance’ tab. You can also initiate withdrawals from ‘Manage Funds’ in the top navigation bar, in ‘Advanced’ mode.

What payment methods does Coinbase accept?

Coinbase normally accepts bank transfers, wire, and debit/credit cards for fiat deposits. The choices and applicable fees may vary from region to region. Crypto funds can be deposited for free, but may involve network fees.