If you‘re looking to dive into the world of cryptocurrency, two of the most popular centralized exchanges to use are Coinbase and Crypto.com. But how do you decide which platform is better suited for your needs as an investor or trader?
I‘ve been actively trading crypto since 2017 and have used both exchanges extensively. In this comprehensive guide, I‘ll compare the key differences between Coinbase and Crypto.com to help you make the right choice in 2024.
Contents
An Overview of Coinbase and Crypto.com
First, let‘s start with a quick rundown of both exchanges.
Coinbase was founded in 2012 and is based in San Francisco, California. With over 89 million verified users, it‘s one of the largest crypto exchanges in the world. Coinbase has raised over $547 million in funding from top investors like ICE, Tiger Global Management, and Andreessen Horowitz.
Crypto.com was founded in 2016 under the name Monaco and rebranded to Crypto.com in 2018. Headquartered in Singapore, the exchange has over 10 million users worldwide. Crypto.com has raised $500 million in private token sales and aims to accelerate the global adoption of cryptocurrency through their products.
Now let‘s dig into the key differences between the two platforms across several categories:
Supported Cryptocurrencies
The variety of supported cryptos is often a major factor when choosing an exchange.
Coinbase supports 103 total cryptocurrencies including Bitcoin, Ethereum, Solana, Dogecoin, and popular altcoins like ADA and MATIC. Their selection has expanded over the years but still lags behind many other top exchanges.
Crypto.com, on the other hand, supports over 250 coins and tokens. This is more than double what‘s offered by Coinbase. In addition to major coins like Bitcoin and Ethereum, Crypto.com supports smaller cap altcoins across both layer 1 blockchains and ERC-20 tokens.
Here is a comparison of some popular altcoins supported on each platform:
| Coinbase | Crypto.com |
|---|---|
| Cardano (ADA) | Avalanche (AVAX) |
| Chainlink (LINK) | Cosmos (ATOM) |
| Litecoin (LTC) | Monero (XMR) |
| Polygon (MATIC) | Polkadot (DOT) |
| Stellar Lumens (XLM) | Tezos (XTZ) |
As you can see, Crypto.com generally has much wider coverage of the altcoin market. This gives traders and investors more diversification options compared to Coinbase.
However, Coinbase does offer some unique educational features around earning crypto such as Coinbase Earn. This lets users earn small amounts of crypto for free by watching videos and completing quizzes about new coins listed on their exchange.
Trading Fees
The fee structure is another major point of differentiation between the two platforms.
For Coinbase, fees range from 0% to 0.5% for Coinbase Pro users and up to 3.99% for credit card purchases. Here‘s a full breakdown:
- Coinbase Pro: 0% to 0.5% maker/taker fee
- Coinbase: 1.49% fee per transaction
- Coinbase Instant Buy: 1.49% + fixed fee per transaction
- Credit/Debit Card Purchase: 3.99% fee
Crypto.com uses a maker/taker model with discounts based on 30-day trading volume and CRO staking:
- Taker Fee: 0.4% without staking CRO, as low as 0.04% with CRO staking
- Maker Fee: 0.4% without staking CRO, 0% with staking
Based on these fee structures, Coinbase tends to be cheaper for low to medium volume traders. But for frequent traders who stake CRO, the discounted maker/taker fees on Crypto.com can provide significant savings.
It‘s important to note that credit/debit card purchases incur high fees on both platforms, so it‘s best to use bank transfers instead.
Security
As centralized exchanges that custody user funds, security is a top priority for both Coinbase and Crypto.com.
Coinbase stores 98% of users‘ crypto offline in cold storage. The exchange also carries private insurance to cover losses from breach of keys or hacking. Other safety measures include:
- 2-factor authentication on all accounts
- FDIC insurance up to $250,000 for USD wallet holdings
- Address whitelisting to prevent crypto being withdrawn to unknown wallets
- Biometric login with fingerprint or face ID on mobile apps
Crypto.com also utilizes cold storage and full encryption to secure crypto assets. The exchange carries a $750 million insurance policy through Marsh and other providers. Other key security features include:
- Mandatory 2-factor authentication for withdrawals
- Anti-phishing confirmation code at login
- Address verification when withdrawing funds
- Regular security audits from firms like KPMG
Based on their track records so far, both Coinbase and Crypto.com implement industry best practices around crypto asset security. There have been no major breaches reported to date.
For most average users, the core security on both platforms is very comparable.
Staking and Rewards
Staking has quickly grown into one of the most popular ways to earn yield on crypto holdings.
On Coinbase, users can stake around 9 coins including Ethereum, Cosmos, Tezos and more. The annual percentage yields range from 1.5% up to 7.5% based on the coin. A key advantage is that staked crypto on Coinbase remains liquid – there is no lockup period.
Crypto.com supports staking on over 30 different coins. By locking up assets for 1-3 months, users can earn yields up to 12% on stablecoins and 6-8% on coins like BTC and ETH. Crypto.com also pays up to 18% interest on CRO holdings.
Here is a comparison of estimated APY for staking on each platform:
| Coin | Coinbase APY | Crypto.com APY |
|---|---|---|
| Bitcoin (BTC) | N/A | 6.5% (with 3 month lockup) |
| Ethereum (ETH) | 5% | 6.5% (with 3 month lockup) |
| Cardano (ADA) | 4.5% | N/A |
| Polkadot (DOT) | 12% | 12% (with 1 month lockup) |
| USD Coin (USDC) | 4% | 12% (with 3 month lockup) |
The numbers clearly show that Crypto.com offers superior yields, especially for those comfortable locking up their coins for set periods of time. This incentivizes long-term holding.
However, Coinbase provides the flexibility to earn passive income while still accessing your crypto at any time. So there are advantages to both approaches.
Mobile App Experience
With crypto investing and trading happening 24/7, a stellar mobile experience is key for many users.
The Coinbase mobile app is targeted towards crypto beginners. It focuses on making buying, selling, and managing crypto assets simple through an intuitive interface. More advanced traders may find the trading capabilities lacking compared to the desktop experience.
Crypto.com‘s mobile app enables full trading functionality, staking, loans, debit card management, DeFi services, and more. The sheer amount of features can make the UI feel cluttered or overwhelming for some though. Unique perks include paying bills with crypto and earning cashback rewards.
Based on user reviews, Crypto.com offers the most robust mobile experience covering a wide range of services. But Coinbase still rules in terms of simplicity for those new to crypto.
Customer Support
With cryptocurrency still being a technical space, customer service is important for helping resolve user issues.
Coinbase provides 24/7 support via email, phone support, and Twitter/Facebook messaging. However, response times are often slow according to user complaints. There is also no live chat functionality.
Crypto.com offers email and social media support 24/7. But they also provide live chat support for the fastest response times. Their team is generally prompt and knowledgeable when answering user inquiries. Crypto.com also shares an extensive help center and FAQ.
Here is a comparison of average response times reported for each exchange:
| Channel | Coinbase | Crypto.com |
|---|---|---|
| Email Support | 1-2 days | 1-12 hours |
| Phone Support | 30-60 mins wait time | 15-30 mins wait time |
| Live Chat | Not Offered | <5 mins wait time |
While both exchanges aim to offer 24/7 support, Crypto.com‘s live chat and quicker response times ultimately provide a better customer service experience overall.
Final Verdict
Based on this in-depth comparison, here are some key takeaways:
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Altcoin Support – Crypto.com has 2x more coins and tokens available (250 vs 100 on Coinbase).
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Fees – Crypto.com offers lower fees for high volume traders who stake CRO. Coinbase can be cheaper for lower trading volumes.
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Security – Both utilize industry standards like cold storage, 2FA, and insurance. No major breaches to date.
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Staking/Rewards – Crypto.com provides higher yields on staking but requires lockup. Coinbase offers liquid staking.
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Mobile Apps – Crypto.com supports more features while Coinbase is easy for beginners.
-
Customer Service – Crypto.com‘s live chat and quick response time provides a better experience.
For investors looking for a simple entry point into crypto, Coinbase is easier to use and charges low fees for smaller traders. Their educational content also helps newcomers learn about the space.
However, more advanced users prioritizing altcoin options, high staking yields, and responsive customer support will prefer Crypto.com overall.
With that said, many active crypto investors choose to use both Coinbase and Crypto.com to enjoy the benefits of each platform. I personally keep the majority of my portfolio on Crypto.com due to lower trading fees and higher staking yields. But I still use Coinbase to easily buy newer altcoins or transfer funds.
There is no one-size-fits-all option when choosing a crypto exchange. Carefully consider your priorities around cost, coin selection, security, and rewards to determine which platform is the best fit. Evaluating both Coinbase and Crypto.com can help you maximize the value you get from each.
