Is Coinbase Good for Beginners in 2025? My Honest Review
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Updated 25/01/2025
When I first dipped my toes into the world of cryptocurrency, I was overwhelmed. Wallets, private keys, exchanges—none of it made much sense. That’s when I came across Coinbase. The platform promised to be beginner-friendly, and for someone like me, with zero experience in trading or crypto, that sounded perfect.
In this article, I’ll share my honest thoughts on whether Coinbase lives up to its reputation as an ideal starting point for beginners in 2025. I’ll walk you through what Coinbase is, how it works, and why it’s both praised and criticised. You’ll also find practical insights and tips to help you decide whether it’s the right platform for you.
By the end, you’ll have a clear understanding of Coinbase’s strengths and weaknesses, as well as whether it’s worth using if you’re new to the crypto world. Let’s dive in!
Quick Answer: Is Coinbase Good for Beginners?
Yes, Coinbase is great for beginners due to its intuitive interface, educational resources, and strong security features. However, its fees can be high compared to other platforms, which is worth considering if you plan to trade frequently.
What Is Coinbase and How Does It Work?
Coinbase is one of the most well-known cryptocurrency exchanges in the world, and for good reason. Founded in 2012, the platform is designed to make it easy for anyone to buy, sell, and store cryptocurrencies like Bitcoin and Ethereum. Its intuitive design and straightforward processes have made it a popular choice, especially among beginners.
Here’s how Coinbase works in a nutshell:
- Buying and Selling: After creating an account, users can purchase cryptocurrencies using traditional payment methods like bank transfers or debit/credit cards. Similarly, you can sell crypto and withdraw funds directly to your bank account.
- Storing Crypto: Coinbase offers a built-in wallet where you can securely store your digital assets. For added security, it uses advanced encryption and two-factor authentication.
- Learning and Earning: One standout feature is the Coinbase Learn programme, which rewards users with small amounts of cryptocurrency for completing educational lessons.
What sets Coinbase apart is its global reach. It’s available in over 100 countries and supports more than 200 cryptocurrencies, making it one of the largest and most accessible exchanges in the world. Whether you’re looking to make your first Bitcoin purchase or explore altcoins like Solana or Cardano, Coinbase makes the process remarkably simple.
| Feature | Details |
|---|---|
| Founded | 2012 |
| Headquarters | San Francisco, USA |
| User Base | Over 100 million users globally |
| FCA Regulation in UK | Yes |
| Supported Cryptos | 200+ |
Why Coinbase Is Beginner-Friendly
Ease of Use
One of the biggest reasons Coinbase appeals to beginners is its simplicity. From the moment you sign up, the platform guides you through every step. Setting up an account is as straightforward as creating a social media profile—you just need to provide some basic information and verify your identity.
Once you’re in, buying and selling cryptocurrency is equally seamless. You simply select the coin you want, input the amount, and confirm the transaction. Coinbase even offers helpful prompts to explain each step, so you’re never left guessing. Its mobile app is equally intuitive, making it easy to manage your portfolio on the go. Whether you’re checking prices, buying Bitcoin, or withdrawing funds, it’s all just a few taps away.
Educational Tools
For those new to cryptocurrency, Coinbase’s educational resources are a game-changer. The platform’s “Coinbase Learn” section is packed with beginner-friendly guides and videos that explain everything from blockchain basics to how specific coins work.
Even better, Coinbase offers an “earn crypto while you learn” programme. By completing short lessons on various cryptocurrencies, you can earn small amounts of those coins. It’s a fantastic way to learn while building your portfolio without spending a penny.
Security Features
Security is another area where Coinbase shines. The platform uses two-factor authentication (2FA) to protect your account, and the majority of its funds are stored in cold wallets—offline storage that’s immune to hacking. Additionally, Coinbase insures the cryptocurrency held on its platform, offering an extra layer of protection.
For beginners who may feel apprehensive about diving into the crypto world, Coinbase’s strong security measures and transparent policies make it a platform they can trust.
Drawbacks Beginners Should Be Aware Of
High Fees
While Coinbase excels in accessibility, it’s no secret that the platform charges some of the highest fees in the industry. Its transaction fees, which can range from 1.49% to 3.99%, are significantly higher than those on platforms like Binance and Kraken. Additionally, Coinbase applies a spread (usually around 0.5%) on transactions, which means you’re often paying more than the market price for crypto. For frequent traders, these fees can quickly add up.
Limited Advanced Features
For beginners, Coinbase’s simplicity is a strength, but as you grow more comfortable with trading, you might find the platform limiting. While Coinbase Advanced offers advanced tools like detailed charting and lower fees, its interface can feel overwhelming for those transitioning from the main Coinbase platform. Confused about which Coinbase platform to use? Read our Coinbase vs Coinbase Advanced comparison to make the right choice..
Customer Support Challenges
Customer support is an area where Coinbase has faced criticism. While they offer email and chat support, users have reported delays in getting responses, especially during periods of high market activity. For beginners, this can be frustrating if they encounter issues that require immediate assistance.
Limited Altcoins
Although Coinbase supports over 200 cryptocurrencies, it’s still more limited than platforms like Binance, which lists thousands. If you’re interested in trading niche altcoins or new tokens, Coinbase might not meet your needs. This limitation is less of an issue for beginners, who typically start with popular options like Bitcoin or Ethereum, but it’s worth keeping in mind as you gain experience.
How to Get Started on Coinbase
Getting started on Coinbase is simple and beginner-friendly. Here’s a step-by-step guide to help you navigate the process:
Create an Account
Visit the Coinbase website or download the mobile app. Click “Sign Up” and provide your name, email address, and a secure password. You’ll also need to verify your identity by uploading a photo ID (e.g., passport or driver’s licence) to comply with regulatory requirements.
Link a Payment Method
Once your account is set up, you’ll need to link a payment method. Coinbase supports several options, including bank transfers for lower fees and credit/debit cards for instant purchases. Select the method that best suits your needs, keeping in mind that credit/debit cards may incur higher fees.
Buy Cryptocurrency
To make your first purchase, log in to your account, select a cryptocurrency like Bitcoin or Ethereum, and click “Buy.” Enter the amount you’d like to invest, review the transaction details, and confirm the purchase. Within minutes, the cryptocurrency will be added to your portfolio.
4. Use Wallet Features
Coinbase also acts as a secure wallet for storing, sending, and receiving crypto. For beginners, this feature is invaluable, as you won’t need to set up a separate wallet immediately.
Tips for Beginners
Start small—invest an amount you’re comfortable losing, as cryptocurrency markets can be volatile. Take advantage of Coinbase’s educational resources to understand the basics before diving deeper.
Comparing Coinbase to Other Beginner Platforms
While Coinbase is a great choice for beginners, it’s not the only option. Here’s how it stacks up against other beginner-friendly platforms:
| Feature | Coinbase ✅ | Binance Lite ⚠️ | eToro ✅ | Kraken ⚠️ |
|---|---|---|---|---|
| Ease of Use | ✅ Excellent: Simple and intuitive interface ideal for beginners. | ⚠️ Good: Simplified but still has technical terms that may confuse new users. | ✅ Excellent: User-friendly design with added social trading features. | ⚠️ Good: Functional but slightly complex for new traders. |
| Fees | ❌ High: 1.49%-3.99% transaction fees, plus 0.5% spread. | ✅ Low: Minimal fees, often below 0.1%. | ⚠️ Medium: Moderate fees, around 1% per trade. | ✅ Low: Competitive fees, usually under 0.2%. |
| Security | ✅ Strong: Cold storage, two-factor authentication, and insurance for funds. | ✅ Strong: High security with SAFU fund for user protection. | ✅ Strong: Regulated platform with robust security measures. | ✅ Strong: Advanced security features, including 2FA and cold storage. |
| Educational Tools | ✅ Yes: Comprehensive guides and "earn while you learn" programme. | ❌ No: No integrated educational tools. | ✅ Yes: Beginner resources and social learning features. | ⚠️ Limited: Basic educational content available, but not as robust. |
Summary
If ease of use and education are your top priorities, Coinbase or eToro might be your best bet. However, if you’re more concerned about fees, Binance Lite or Kraken may be worth exploring. Beginners should weigh their needs carefully before choosing a platform.
My Final Thoughts: Is Coinbase Worth It for Beginners?
After exploring Coinbase’s features, pros, and cons, it’s clear why the platform is often recommended for beginners. Its intuitive interface, robust educational tools, and strong security measures make it an excellent starting point for anyone new to cryptocurrency. However, its high fees are a significant downside, especially for those who plan to trade frequently or make larger investments.
In my experience, Coinbase is a great place to learn the ropes and build confidence in managing crypto. The ease of buying, selling, and storing cryptocurrencies is unmatched for first-time users. That said, once you’ve gained more experience, you might want to explore platforms with lower fees or more advanced features.
My recommendation? Start with a small deposit to familiarise yourself with how Coinbase works. Buy a small amount of a well-known cryptocurrency like Bitcoin or Ethereum, and take advantage of their educational resources. This approach lets you gain hands-on experience without risking too much capital.
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FAQs
Yes, Coinbase is one of the most secure platforms available. It uses two-factor authentication (2FA), stores 98% of funds in offline cold storage, and provides insurance coverage for assets held on its platform. However, it’s always a good idea to use an external hardware wallet for large amounts of cryptocurrency.
Coinbase charges relatively high fees, including a transaction fee (1.49% for bank transfers and 3.99% for card purchases) and a 0.5% spread on trades. While the fees are steep, beginners often find them justified due to the platform’s ease of use, educational tools, and robust security.
Yes, Coinbase allows users to transfer their cryptocurrency to external wallets. Simply go to the “Send/Receive” section of your account, input the wallet address, and confirm the transfer. This feature gives users full control over their assets and adds an extra layer of security.
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