How long does a Coinbase withdrawal take

Coinbase

Coinbase in the test - conclusion

Coinbase is by far the largest and most successful provider for the direct purchase and sale of cryptocurrencies. The American provider recognized very early on that getting started must be as easy as possible. In our test, Coinbase only came in Xth place. There were deductions mainly due to the comparatively modest selection of payment options and the small selection of currencies. Coinbase, on the other hand, scored points for the security of the platform, which is credibly conveyed to customers.

It is a bit strange that, according to the terms and conditions, Coinbase is not addressed to customers from Germany. However, registration or verification and trading in crypto currencies has been working for hundreds of thousands of German customers for years without any problems. The notice may only be a legal safeguard for Coinbase.

Usage information

Coinbase offers so-called “hosted wallets” for all crypto currencies offered. As a result, beginners do not initially have to deal with the sometimes complicated mechanisms for storing crypto currencies. By entrusting them, they nonetheless give up a piece of financial sovereignty, the analogy to a normal bank is obvious. This type of storage contradicts the core idea of ​​cryptocurrencies. As with all tested providers, you can of course transfer the purchased cryptocurrencies to your own wallet.

To buy cryptocurrencies at Coinbase, after verification, you first have to top up your euro “wallet”, i.e. deposit money. This works by bank transfer and takes 2 days. It's faster with a credit card. The high credit card fees make this payment method much more expensive. If the euro wallet is filled with capital, the euros can be exchanged for the offered crypto currencies within seconds.

Coinbase in the test: user-friendliness

User friendliness of the website In terms of usability, Coinbase is a clear pioneer. On no other platform was the entry into Bitcoin & Co. as easy as on Coinbase.com. Even if the market has caught up in the meantime, the intuitive user interface with website and app remains top-notch.
Number of cryptocurrencies Coinbase attaches great importance to security and compliance with the current regulations (see below). The provider therefore has a relatively strict catalog of criteria that a cryptocurrency must meet before it is considered for the trading platform. As a result, only a handful of cryptocurrencies are currently available for purchase. Coinbase has announced that it will add more cryptocurrencies in the near future. But so far the selection is very narrow compared to the competition.
Payment methods Coinbase is a provider with a global target group. However, payment methods are often shaped by local preferences. So one looks in vain for the SOFORTÜberweisung usual in Germany. Giropay or PayPal are also negative. Those who do not want to accept the high credit card fees can only do good old SEPA transfers. Users have to bring the two days of waiting with them. There were clear penalties in our test in this regard.
Registration and verification Coinbase requires a range of personal information for full use of the platform. The aim of the query is to meet the legal requirements, for example on money laundering. In addition to the ID data, however, it is also asked where the money used comes from. Questions about the professional situation also arise. Nobody seems to be checking that. Nevertheless, it is an invasion of privacy that other providers do not require in this form.

Registration and verification Verification is also carried out at Coinbase using a photo of the ID via webcam or mobile phone camera. The whole process takes a little longer than, for example, with Bitpanda. The final activation of the account takes additional time.

Other functions: Coinbase can score here. For example, the function of buying or selling a certain amount at regular, freely definable intervals by standing order is very helpful. The comprehensive report options also made a positive impression in our test. In addition, there is the option of using the “Coinbase bundle” to buy several cryptocurrencies at once. This is very close to a “crypto index fund”.
Last but not least, the ‘Vault' mentioned. It offers increased security for the cryptocurrencies managed by Coinbase. Payouts from this can be canceled at any time within 48 hours. Transactions can also be configured in such a way that the consent of several people is required before the transaction is sent. According to Coinbase, 98 percent of the deposits are secured in geographically distributed “cold storage” locations. That means they are not connected to the internet. Since the additional functions described go far beyond the services of other providers, we are awarding a bonus point in addition to the maximum number of points.

Coinbase: Fees and Conditions

Purchase and sale fees The fees when buying with SEPA transfer are 1.5 percent of the purchase price. With a credit card you pay 3.99 percent. In addition, Coinbase sets the purchase price itself. According to Coinbase, it can happen that this price differs by up to 0.5 percent from the actual price that Coinbase is buying for. This premium, known as the “spread”, is included directly in the price displayed.

Price compared to market prices In our test, the Coinbase purchase prices tended to be up compared to other providers.

Withdrawal Fees Coinbase requires 0.10 cents for the withdrawal of funds in euros. Sending cryptocurrencies only costs the miner's fee and is variable. This point goes to Coinbase!

Alternative Payment Fees Payment by credit card has an impact of 3.99 percent. This is significantly more expensive for users than is usual on the market.

Coinbase put to the test: security

Deposit protection / insurance of funds

According to its own statements, Coinbase stores around 98 percent of the cryptocurrencies in secure “cold storage”. The remaining 2 percent in the “hot wallet” is 100 percent insured. This measure and the transparency of the disclosure are exemplary in comparison.

regulatory clarity Coinbase is registered with the American FinCEN. She handles law enforcement for suspicious transactions. In addition, Coinbae fulfills the KYC & AML regulations for customer identification and compliance with the Money Laundering Act in all countries in which the provider has business relationships. It is a bit strange that, according to the terms and conditions, you are actually not allowed to use Coinbase from Germany. When asked, we received the following answer, which, however, does not shed any more light:

“Some accounts in Germany are supported, which makes the buy and sell feature available too. Please note that we will not be closing German accounts even if their area is not supported yet. These customers will still have the ability to use Coinbase to send and receive funds from external address, and store them on their accounts. "

Therefore there is a small point deduction at this point.

How long on the market? Coinbase is by far the largest provider and has been on the market since 2012. During this time there were no negative headlines about safety. Coinbase is now backed by powerful investors. The company is valued at billions of dollars. Even if an incident did occur, it is very likely that no users would be harmed.

known hacker attacks? Nothing. Nothing is known about successful attacks.

Bug bounties, audits We have nothing to do with internal audits of processes and security. Coinbase has an increasing number of institutional clients through its Pro and Custody programs. We therefore assume that the standards at Coinbase are very high in this regard. Hackerone has a bug bounty program that rewards any security vulnerabilities that are discovered.

Security precautions (login protection) Coinbase explicitly recommends the use of 2-factor authorization (2FA) in many places for additional protection against unauthorized access to the account. Users always have to verify new devices first. Withdrawals can be carried out without confirmation by email. But it doesn't work without a 2FA code.

Coinbase in the test: help & support

Coinbase's support, regardless of the channel, is currently only available in English. Both the relatively detailed online help and support inquiries by e-mail are answered exclusively in English. There is no telephone support. It seems a bit annoying that an automatically generated reply email is sent to every support request. So it tries to solve the problem without human intervention. For example, we got the same answer to different questions twice in our test. And even these answers took a few days. In our test, we had to wait between a few days to several weeks (!) For the correct answer.
Coinbase is very active on social media. There is a separate Twitter account that regularly answers questions and not only refers to e-mail support.