Crypto.com vs. Coinbase – Forbes Advisor

Crypto.com and Coinbase are two popular cryptocurrency trading platforms. Both offer inexpensive and accessible ways to buy, sell and transfer crypto.

In this review, we’ll explore the similarities and differences between the two platforms and detail which is best for different types of investors. That way, you can decide which one is right for you.

Crypto.com vs. Coinbase: Similarities

Crypto.com and Coinbase were designed with crypto investors in mind. As a result, they have very similar structures and offer similar investment line-ups and experiences.

KYC Requirements

As online trading platforms that handle users’ sensitive information, Crypto.com and Coinbase have Know Your Customer (“KYC”) requirements.

These requirements involve both platforms gathering certain pieces of information about people who use their platforms. Crypto.com and Coinbase use technology to verify users’ identities before they can use the platforms to buy, sell or transfer crypto. While the specific data points they gather may vary slightly, it’s mostly the same information.

Tradable Coins

Coinbase and Crypto.com offer investors access to more than 150 cryptocurrencies.

Crypto.com gives investors access to the top 10 coins by market cap, while Coinbase offers access to all of the top coins except Binance Coin (BNB) and XRP.

Fees

Coinbase and Crypto.com use a maker-taker fee structure, which involves paying a fee that varies based on the size of the transaction and whether your order generates or reduces liquidity for a particular cryptocurrency.

Overall, Crypto.com is cheaper for taker fees. Coinbase has a tiered structure for how maker/taker fees are charged. For instance, a pricing tier of $0 to $10,000 on Coinbase is associated with a 0.6% taker and 0.4% maker fee. The next tier up, $10,000 to $50,000, can incur a 0.4% taker and a 0.25% maker fee.

For trades of $25,000 or less on Crypto.com, the maker/taker fees are both 0.4%, respectively.

Here’s how the maker/taker fee structure works. If you enter an order and there is not already an existing order that can be matched with yours to complete your transaction, that requires paying a “maker” fee because you are creating liquidity in the market. If, on the other hand, your order can be easily matched with an existing market order, that saps liquidity and incurs a “taker” fee.

Trading Tools and Features

Crypto.com and Coinbase offer intuitive dashboards allowing users to trade various cryptocurrencies.

In addition, both platforms also offer numerous tools and other features, including:

• The ability to do additional trading features, such as limit and stop orders.
• Volume discount.
• A crypto wallet that gives users control of their private keys
• The ability to stake coins for interest/or rewards.

Crypto.com vs. Coinbase: Differences

While there are a lot of similarities between Crypto.com and Coinbase, there are also several differences. The two platforms both pay interest on crypto held on the platform, but rates vary. There are also different opportunities for rewards.

Geographic Availability

Both platforms are available in 49 states. Crypto.com is still evaluating the steps needed to offer its services in New York, whereas Coinbase is awaiting approval in Hawaii.

Ease of Use

Coinbase is extremely easy to use. Investors in the U.S. can sign up in just a few minutes and fund transactions immediately once you link a bank account, debit card, or PayPal account.

The system makes it easy for users to find and buy crypto, check their portfolios, or watch videos to earn free crypto.

Crypto.com is also fairly easy to use. However, the system offers additional features, such as futures trading and volume discounts, which are generally well-suited for more experienced investors. Both Crypto.com and Coinbase also allow users to stake certain tokens.

Crypto.com pays users up to 14.5% per annum in interest—some of the highest rates available. At the time of this writing, $1,000 of staked Cardano (ADA) locked for three months, would earn you $20 or 2% on Crypto.com.

Coinbase allows users to earn staking rewards up to 5.75% on select coins, such as Ethereum (ETH), Algorand (ALGO), and ADA, to name a few. For example, users can earn up to a 2.6% annual percentage yield for their ADA.

Who Should Pick Crypto.com?

Crypto.com has a ton of features. The platform offers access to more than 250 cryptocurrencies, including several top coins that Coinbase doesn’t support.

With so many features, Crypto.com can be a little more difficult to use, so it’s generally better for investors who already have some experience trading in crypto.

Crypto.com Pros

• Over 250 cryptocurrencies available to U.S. traders, including all of the top 10 coins by market cap
• High annual percentage yields for staking rewards.
• Lower trading fees than Coinbase.

Crypto.com Cons

• Chatbot/virtual assistant support is available but can be slow.
• Educational resources are not readily available.

Who Should Pick Coinbase?

Coinbase is a much simpler platform than Crypto.com, with a far less complicated trading dashboard. This simplicity makes Coinbase a better bet for people new to cryptocurrency, while more experienced traders might prefer Crypto.com.

Coinbase Pros

• Simple, easy-to-use trading dashboard.
• Easy purchase process.
• Low account minimums.
• Several types of customer service are available, from chatbot to phone support.

Coinbase Cons

• Coinbase’s fees are slightly higher than Crypto.com.
• You have to pay a subscription fee to get lower trading costs.