CeFi & CEX

Crypto.com vs. Coinbase, Which Exchange Should You Choose?

Crypto Exchanges Bitcoin

Crypto.com and Coinbase are two of the most popular cryptocurrency exchanges in the world today, both offering investors an inexpensive and accessible way to buy, sell, and transfer crypto. While Crypto.com is the cheaper of the two, Coinbase beats it in its ease of use.

In this review, we will discuss the two exchanges, and how they compare in terms of fees, security, available cryptocurrencies, and more, to help you decide which is the right one for you.

Coinbase at a glance

Coinbase is the largest cryptocurrency exchange in the United States by trading volume, with an annual transaction volume of $830 billion in 2022.

The parent company of the exchange, Coinbase Global has its headquarters in San Francisco, United States. The exchange offers a fast, reliable, and secure platform for new cryptocurrency traders.

In April 2021, Coinbase Global became the first major cryptocurrency company to go public on a U.S. stock market, after getting listed on the Nasdaq Stock Exchange.

The exchange has a simple interface which makes the platform better appeal to traders looking for convenience and to easily convert one cryptocurrency to another.

The Coinbase exchange has over 108 million customers as of Q4 2022, with more than 9 million transacting on the exchange at least once per month. The company has over 4,500 employees.

Crypto.com at a glance

Crypto.com is a Singapore-based company that offers an extensive selection of cryptocurrencies for traders. It has one of the best-optimized platforms for mobile trading among cryptocurrency platforms.

The company aims to accelerate and help the world transition to blockchain technology. It has a goal to bring cryptocurrency to every wallet.

Crypto.com is hugely invested in sports, and purchased naming rights to the Los Angeles Lakers Staples Center in 2021. The building has now been renamed the Crypto.com Arena.

The Crypto.com exchange offers more products than Coinbase, and its website can feel overwhelming for beginners traders at first glance.

The Crypto.com exchange appeals to cryptocurrency traders looking to process transactions with fiat currency and interact with decentralized finance, and more tokens.

Crypto.com has over 70 million customers as of Q4 2022, with a monthly active user base of 5.6 million. The exchange has over 4,000 employees.

Who is the Coinbase Founder?

Brian Armstrong, a former Airbnb engineer founded Coinbase in June 2012 along with Fred Ehrsamas co founder. Brian Armstrong holds three degrees from Rice University and now serves as the Chief Executive Officer of the exchange.

Although Ehrsam left the management of the company in 2017, he remains on the advisory board and owns a significant portion of the company’s stock.

Who is the Crypto.com Founder?

Crypto.com was initially founded in 2016 by Bobby Bao, Gary Or, Kris Marszalek, and Rafael Melo. The company was initially named “Monaco” and operated from Hong Kong.

The company announced a rename in 2019 after purchasing a domain owned by cryptography researcher and professor Matt Blaze.

Co-founder, Kris Marszalek serves as the CEO of Crypto.com, Rafael Melo serves as the company’s chief financial officer, and Bobby Bao heads Crypto.com Capital.

Gary Or left the team in December 2020 to launch Particle B, a startup accelerator focused on projects built on blockchains.

Native Cryptocurrency

Crypto.com launched its native CRO token in 2022 to be used for intermediary currency settlement across various assets. Using CRO to pay fees also reduces the amount customers will pay.

Despite being one of the oldest crypto exchanges, Coinbase does not have a native cryptocurrency.

After the launch of its new layer 2 network dubbed Base, in 2023, the company announced that it does not plan on releasing a token.

Crypto.com vs. Coinbase: Supported Crypto Assets

Both Crypto.com and Coinbase support the more popular cryptos. Most big market-cap digital currencies are supported on both digital exchanges.

Some of the cryptocurrencies supported by the exchange include but are not limited to Bitcoin (BTC), Dogecoin (DOGE), Shiba Inu (SHIB), Solana (SOL), Polkadot (DOT), Ethereum Classic (ETC), Cardano (ADA), Ethereum (ETH), Litecoin (LTC), Polygon (MATIC), USD Coin, (USDC), Stellar Lumens (XLM), Avalanche (AVAX), and other cryptocurrencies.

Coinbase exchange support over 250 assets, while the Crypto.com exchange supports more cryptocurrencies, with 290 currently available on the exchange.

Crypto.com vs. Coinbase: Features

Coinbase and Crypto.com offer a wide variety of services, with some identical features, including the option to buy, sell, send, receive, store, and exchange cryptocurrencies.

In terms of unique features, below are the differences between Crypto.com and Coinbase:

Account Types: Both cryptocurrency exchanges support personal and institutional investments.

Minimum Trade: The minimum trade amount supported on the Coinbase exchange is $2, while Crypto.com allows $1 trades on Bitcoin (other cryptos vary).

Advanced Trading: Crypto.com has advanced trade options, including support for spot trading, derivatives trading, margin trading, perpetual contracts, futures, the syndicate, Stop-Loss Limit/Stop-Loss Market, Limit orders, take-profit, One-Cancels-The-Other Order (OCO), and others. This makes Crypto.com more suited for advanced users.

Derivatives trading, margin trading, and other advanced trade orders aren’t available on the Coinbase exchange, which only supports basic transactions. However, customers can upgrade to Coinbase Pro to access them. Coinbase Pro is a platform created for advanced traders.

Rewards: Crypto.com users who purchase with supported Visa cards can enjoy up to 8% back on all spending, with no annual fees. Coinbase gives customers rewards for watching videos about different assets.

Cashback: customers receive up to 5% cashback when purchasing with the Crypto Visa card on Crypto.com. The Coinbase exchange has its dedicated card which gives cashback on spending.

Staking: Both cryptocurrency exchanges offer staking services, allowing customers to lock their supported cryptocurrencies to earn rewards. Coinbase offers up to 6% rewards on staking on the platform.

Crypto.com offers staking rewards of up to 14.5% for more than 40 cryptocurrencies, 12% for stablecoins, and 18% for its native CRO token. Rebates on Crypto.com are also paid daily.

Educational Materials: beginner traders will find Coinbase’s massive library of information about trading, cryptocurrencies, and blockchain a great help. They can even earn from completing these educational courses.

On the other hand, Crypto.com has a very limited library of educational materials. The materials are just sufficient to cover the basics of the platform.

Availability: Both exchanges have their respective mobile apps that work on Android and iOS devices along with a digital wallet.

Extra Services: both Crypto.com and Coinbase have their dedicated non-fungible token (NFT) marketplaces.

However, Crypto.com takes it a step further, offering users access to DeFi wallet, DeFi Earn, and DeFi token swapping.

Geographic Availability: Coinbase is supported in 49 states in America, with Hawaii being the exception. Outside the United States, Coinbase is available in over 100 different countries.

Similarly, Crypto.com is currently available in 49 states and other U.S. territories, excluding Hawaii. The cryptocurrency exchange is also available in more than 100 markets across the globe.

Crypto.com vs. Coinbase: Security

Coinbase and Crypto.com are very secure crypto exchange platforms built with industry-standard security measures required to operate in the United States.

There are options for two-factor authentication and biometric security (fingerprint and face recognition) on the two exchanges to protect their users.

Crypto.com allows users to create an Anti-Phishing Code to distinguish email notifications sent from Crypto.com from phishing attempts, further securing their data.

Coinbase exchange keeps 98% of the assets it holds in cold storage (offline), while Crypto.com keeps 100% in Cold storage.

Both cryptocurrency exchanges have Federal Deposit Insurance Corporation (FDIC) insurance on their U.S. dollar balances and insurance against damage or theft.

Because they request and hold information of users, there are Know Your Customer (“KYC”) requirements on Coinbase and Crypto.com.

Both companies have regular bug bounties to spot flaws and attacks, but Crypto.com also uses external firms to audit and stress test its exchange platform.

Crypto.com vs. Coinbase: Fees

Both platforms use a maker/take fee structure, which is dependent on the type of order and the size of the transaction.

For converting cryptos on the Coinbase digital wallet, users pay a 1% fee. However, this service is free on Crypto.com.

Coinbase charges a $10 fee on wire transfer deposits and $25 for withdrawals. However, both deposit and withdrawal wire transfers are free on Crypto.com, up to $1,000.

ACH (Automated Clearing House) transfers are free on both cryptocurrency exchanges, but Crypto.com has a minimum amount of $20.

For transactions under $10,000 maker and taker fee on the platform reaches as high as 0.4% and 0.6%, respectively.

These fees reduce as the size of the transaction increases. The fees paid on Coinbase may also differ from what is applicable on Coinbase Pro.

On the other hand, Crypto.com charges 0.4% for both maker and taker fees for all trades under $25,000, making Crypto.com the exchange with lower fees. The fees paid on Crypto.com reduces as the transaction size increases.

Crypto.com Wallet vs. Coinbase Wallet

Both crypto exchanges offer hosted hot wallets for users to buy, receive, send, and store cryptocurrencies. Users can also exchange cryptocurrency coins and tokens within each app.

The Coinbase exchange wallet is a reliable non-custodial digital wallet that integrates with the broader Coinbase ecosystem.

Via the Coinbase digital wallet, Coinbase users can access and self-store up to 4,000 crypto assets and non-fungible tokens (NFTs).

The Crypto.com DeFi wallet is also non-custodial but offers more functions and support than Coinbase’s. The Crypto.com DeFi wallet can be used to receive and store crypto assets and NFTs.

With the wallet, users can also interact with decentralized finance (DeFi) protocols on the Cronos Chain as well as Ethereum or Binance Smart Chain (BSC) to use dApps like OpenSea, Uniswap, and Pancake Swap.

In addition, the Crypto.com DeFi wallet app allows users to stake specific cryptos to earn rewards.

Cryptocurrency Exchanges Trading and Transaction Fees: 3.5 out of 5 stars

On Coinbase, transactions under $10,000 attract a maker and taker fee of 0.4% and 0.6%, respectively.

Maker-taker fees are transaction costs traders pay when they place or fill orders on an exchange. Maker-taker fees generally decrease as the transaction size increases.

While owning a Coinbase Pro account is not charged, the transaction fees charged are as follows:

0.6% taker, 0.4% maker fees for transactions between $0 and $10,000.

0.40% taker, 0.25% maker fees for transactions $10,001 and $50,000.

0.25% taker, 0.15% maker fees for transactions between $50,001 and $100,000.

0.20% taker, 0.10% maker fees for transactions between $100,001 and $1,000,000.

0.18% taker, 0.08% maker fees for transactions between $1,000,000 and $20,000,000.

The trading and transaction fee structure of Coinbase earns it a 3.5 out of 5 stars rating for having higher fees.

On the other hand, Crypto.com charges 0.4% for both maker and taker fees for all trades under $25,000, making Crypto.com the cheaper exchange. The fees paid on Crypto.com reduces as the transaction size increases.

0.40% maker, 0.40% taker fees for transactions between $0 and $25,000.

0.35% maker, 0.35% taker fees for transactions between $25,001 and $50,000.

0.15% maker, 0.25% taker fees for transactions between $50,001 and $100,000.

0.10% maker, 0.16% taker fees for transactions between $100,001 and $250,000.

0.09% maker, 0.15% taker fees for transactions between $250,001 and $1,000,000.

0.08% maker, 0.14% taker fees for transactions between $1,000,001 and $20,000,000.

The trading and transaction fee structure of Crypto.com earns it a 5 out of 5 stars rating.

How Much Are Coinbase Exchange Fees?

Coinbase charge a 1% exchange fee when converting digital currencies. Cryptocurrencies can be exchanged on the mobile app as well as the web platform. Read more on the exchange in Binance vs. Coinbase.

How Much Are Crypto.com Exchange Fees?

There are no exchange fees when converting cryptocurrencies on Crypto.com. Crypto.com has a mobile app that makes it easy to exchange cryptos.

Is it Cheaper to Buy on Crypto.com or Coinbase?

The fees charged to buy crypto on Coinbase or Crypto.com are charged based on the payment method, cryptocurrency type, and transaction size.

Coinbase charges $2.99 for a $200 Bitcoin purchase, or about 1.5%. In addition, Coinbase charges 3.99% for withdrawals. Fees vary depending on the option you use. However, you can deposit and buy crypto for free on Crypto.com using wire transfers.

The exchange of assets is also free on Crypto.com, whereas Coinbase users pay a 1% fee, in addition to other fees.

Both platforms have teamed up with Visa to help users easily buy crypto. But Crypto.com offers extra rewards the more you spend on the platform.

While the overall fees for purchasing and trading on Crypto.com are lower with better fee structures, Coinbase does offer additional deposit options with an easier payment method.

Number of cryptocurrencies: 5 out of 5 stars

Both crypto exchanges support a wide range of cryptocurrencies, more than most platforms. Coinbase supports over 250, giving it a 5 out of 5 stars. Crypto.com supports over 290, giving it a 5 out of 5 stars.

Crypto-to-crypto trading pairs: 5 out of 5 stars

To go with a wide range of cryptocurrencies supported, both exchanges have a great outstanding number of crypto-to-crypto trading pairs.

Coinbase lists more than 500 crypto-to-crypto trading pairs, earning it 5 stars.

Although Crypto.com doesn’t disclose the exact number of listed trading pairs, Bitcoin and other major assets have dozens of crypto-to-crypto trading pairs.

Security and storage: 3.5 out of 5 stars

Coinbase implements two-step verification and AES-256 encryption to secure users’ funds. Coinbase also has some insurance against cybercrime.

Crypto.com has several features to insure assets, including 2-Factor Authentication (2FA), withdrawal whitelist, management of devices, Anti-Phishing codes, AES-256 encryption, and tracking account activity.

In terms of storage, both cryptocurrency exchanges offer self-custody wallets and platform insurance against theft.

They are also FDIC-insured for USD balances of up to $250,000 and keep the assets of users in cold storage. 98% of assets on Coinbase are kept in cold storage, while Crypto.com keeps 100% in cold storage.

However, both exchanges have suffered breaches, causing them to have a security and storage rating of 3.5 out of 5 stars.

What is safer Crypto.com or Coinbase?

Coinbase and Crypto.com are very secure crypto exchange platforms built with industry-standard security measures required to operate in the United States.

Both platforms have a similar level of security and protection.

Insider trading

Insider trading is an illegal practice of using confidential information, like listing schedules, delisting, and announcements from an exchange, to trade to one’s own advantage.

Coinbase is known to have a severe insider trading problem, with the Securities and Exchange Commission (SEC) charging Ishan Wahi – a former Coinbase product manager to court, along with his brother Nikhil Wahi.

The recent case has been concluded, with Coinbase receiving $470,000 from the Wahi brothers.

However, the insider trading issue remains severe, with finance researchers at the University of Technology in Sydney, reporting that between 10-25% of Coinbase listings since 2018 involved insider trading.

Crypto.com has no reported history of insider trading.

Crypto.com vs. Coinbase, Which Should You Choose?

Crypto.com and Coinbase are excellent cryptocurrency platforms, that offer a wide range of reliable services. However, the services they offer may appeal to different types of crypto users.

For beginners or institutions looking for a streamlined platform to get the most out of their cryptocurrency, Coinbase will be the better of the two.

On the other hand, advanced traders who want to earn higher staking rewards, spend less on fees, and use DeFi services, will find Crypto.com more attractive. Read more about cryptocurrency staking to find out how to earn rewards on your crypto.

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