In 2022, Coinbase disclosed in SEC filings that customer crypto assets could be treated as bankruptcy estate assets in an insolvency event, meaning users could become unsecured creditors. Coinbase later clarified it has no intent to enter bankruptcy and has since improved disclosures. This disclosure was a wake-up call: exchange-held crypto is a counterparty risk. Only assets in self-custodied wallets are guaranteed to be yours.
Is Coinbase good for beginners?
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Coinbase is one of the most beginner-friendly crypto exchanges: clean interface, fiat on-ramps via bank/card, FDIC-insured USD balances (not crypto), and strong regulatory compliance as a US public company. The trade-off is fees — Coinbase's retail interface charges among the highest spreads in the industry. Using Coinbase Advanced Trade (formerly Coinbase Pro) gives access to the same liquidity at significantly lower maker/taker fees.
