Skip to content
Swan logo
Log InGet Started

Compare the 3 Best Coinbase Alternatives (What You Need to Know in 2024)

The uncertainty surrounding compliance and regulatory problems for Coinbase is intensifying. Bitcoin-only Swan is one of the most popular Coinbase alternatives for buying Bitcoin in 2024. Learn why!

Drew
Drew
Jan 29, 2024January 29, 202412 min read12 minutes read

A very important reason to seek out an alternative to Coinbase is their support for so many cryptocurrencies. These tokens are, at best, complete gambles, or, at worst, outright scams. The future of these tokens is uncertain. Bitcoin is a well-established, widely accepted, digital asset in good standing with the U.S. government. We recommend using Bitcoin-only companies.

Coinbase’s high costs, frequent outages, and unstable trading behaviors. Luckily, there are numerous Coinbase alternatives to choose from.

1. Swan Bitcoin

Fees: 0.99%*
Custody Provider: BitGo Trust Company
Trustpilot Rating: 4.5 out of 5 out of +1k reviews
Apple App Store: 4.8 out of 5
Google Play Store: 4.4 out of 5

Swan Bitcoin is a U.S.-based company founded in 2019 by Cory Klippsten, Yan Pritzker, and Brady Swenson. Swan has made it easy for anyone to invest in Bitcoin from the get-go. The user-friendly and intuitive platform simplifies investing in, storing, and learning about Bitcoin.

One of Swan’s key features that makes it the best Coinbase alternative is its ability to automate Bitcoin purchases at regular intervals, helping create a disciplined, low-time preference investment strategy to build wealth over time. 

How Swan DCA Works

Swan offers investors free withdrawals into self-custody of purchased Bitcoin with a secure, non-custodial Bitcoin wallet. This gives investors complete control over their digital assets and an added layer of security.

Fees

Swan charges a 0.99% fee on all Bitcoin buys, that’s all. No deposit fees, no withdrawal fees, no hidden fees. 

Key Features

  • Enhanced Knowledge Base

Swan’s knowledge base includes comprehensive educational resources, in-depth market analysis, and up-to-date information on Bitcoin and the greater industry.

  • Unparalleled Expertise in Bitcoin

Whether understanding technical aspects, market trends, or potential risks, Swan’s experts work round the clock to guide you every step of the way.

  • Advisor Services

Swan offers Swan Advisor Services to help financial advisors integrate Bitcoin into their clients' investment portfolios seamlessly.

  • Personalized Consultation

Investors get advice and strategic recommendations tailored to their financial goals and risk tolerance, ensuring Bitcoin becomes an accessible and beneficial asset.

  • Reliable Self-Custody Options

Swan’s Specter Labs offers a range of safe and easy-to-use self-custody options for Bitcoiners who prefer to be in direct control of their wealth.

  • Swan Support

Swan Support is the best in the industry for Bitcoin customer service. 

2. Uphold

Fees: 0.25% — 2.5%
Custody Provider: Uphold Vault
Trustpilot Rating: 3.3 out of 5 out of +8.8k reviews
Apple App Store: 4.6 out of 5
Google Play Store: 4.3 out of 5

Uphold offers a seamless and user-friendly experience for accessing and transacting a variety of cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), and Ripple (XRP), among others.

It also supports traditional fiat currencies like the U.S. dollar, Euro, and British pound, allowing users to convert between cryptocurrencies and fiat currencies easily.

NOTE: Swan does not recommend investing in or holding any altcoins, only Bitcoin.

Fees

In the U.S., U.K. and most of Europe, fees are typically:

  • Stablecoins: 0.25%

  • Major Market FX: 0.25%

  • BTC, ETH: 1.4% — 1.6%

  • Altcoins: 1.9% — 2.5%

  • Precious Metals: 1.9% — 2.5%

The complete fee schedule is available on their website. 

Uphold Fees

Uphold

Key Features

  • Easy Conversion 

Provides seamless conversions between cryptocurrencies and fiat currencies for convenient and fast exchanges, allowing investors to manage their portfolios and benefit from price fluctuations.

  • Protected Digital Wallets 

Investors can safely store their cryptocurrencies and digital assets in a digital wallet protected by multi-factor authentication and encryption.

  • Instant Transfers 

Uphold members can easily send and receive cryptocurrencies or fiat currencies to and from other Uphold users worldwide without delays or transaction fees.

  • Fractional Ownership 

Users can fractionally own cryptocurrencies, stocks, commodities, and real estate and diversify their investments through a single platform.

  • Prepaid Debit Cards 

They also get prepaid debit cards to spend cryptocurrencies at any location that accepts regular debit or credit card purchases.

3. Bitstamp

Fees: 1% — 1.5%
Custody Provider: BitGo
Trustpilot Rating: 2.2 out of 5 out of 800 reviews
Apple Store App: 4.6 out of 5
Google Play Store: 4.2 out of 5

With high liquidity and competitive trading fees, Bitstamp offers various order types, including market, limit, and stop orders, giving users greater control over their trading strategies. Bitstamp’s user-friendly interface and commitment to transparency and reliability have earned it the trust of many traders worldwide.

Fees

Bitstamp uses a complex maker-taker fee model to determine trading fees. The fees are calculated based on your current pricing tier at the time of your order execution. Generally speaking, you are paying between 1% and 1.5% in trading fees.

Key Features

  • Trust and Security 

Bitstamp is one of the first cryptocurrency exchanges to receive a BitLicense, ensuring compliance with strict regulatory standards.

  • Liquidity and Competitive Fees

It helps seamlessly execute trades even during periods of high market volatility. Bitstamp’s trading fees decrease as trading volume increases, making it attractive for traders of all levels.

  • Global Accessibility

Bitstamp’s services are available to users worldwide for international cryptocurrency trading. It also offers multilingual customer support so users can get help in their preferred language.

  • Industry-leading Compliance 

To ensure a secure trading environment, Bitstamp adheres to Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures.  

Why You Need a Coinbase Alternative

Although Coinbase is one of the most popular cryptocurrency exchanges and has established itself as a reputable platform, investors might consider alternatives for several reasons.

Regulatory Standing 

Coinbase received a Wells Notice on April 27, 2023 indicating the SEC is investigating possible violations by and may take legal action against the company.

Fees

Coinbase charges some of the highest fees in the cryptocurrency industry, especially for smaller transactions and retail investors.

A variable fee is charged, ranging from 1% to 3.99%, depending on the size of the transaction and the payment method used.

“Coinbase generates most of its revenue through trading, listing, and custodial fees. Because of this, Coinbase is incentivized to list more cryptocurrencies, promote speculative trading, and discourage self-custody. To put this into perspective, in 2017 Coinbase only listed 4 coins: Bitcoin, Bitcoin Cash, Litecoin, and Ethereum. Today, Coinbase has over 160 cryptocurrencies available to trade in the US.”

 — Sam Callahan, Swan Bitcoin 

Customer Service

  • Coinbase has a notorious reputation for its poor customer service.

  • Many users have reported issues with frozen or suspended accounts without explanation and no ability to receive personalized responses.

  • Customers regularly complain about this on Twitter, Trustpilot, and forums like Reddit.

  • Offers no live chat feature other than a bot with limited capabilities.

  • Many users have to wait several days for answers, if they receive them at all.

Coinbases Trustpilot Reviews

  • Only a 1.5 / 5 stars from +9.5k reviews.

  • 78% reviews received a 1-star rating.

  • 85% of reviews resulted in a negative (1 or 2-star ratings).

Coinbase also has a near-worst possible score of 1.06 stars of 5-star rating with BBB.

BBB Rating & Accreditation

Furthermore, the following ⚠️ CURRENT ALERTS FOR THIS BUSINESS message can be found on the company BBB page:

Technical and Security Issues

Coinbase is well-known for:

On February 28th, 2024 Coinbase suffered another glitch that left many users seeing a zero balance in their account.

Coinbase

Bitcoin, which had just spiked to its highest since November 2021, saw its price drop by about $2,800 in a matter of minutes as reports of an outage surfaced.

Asset Choices

Bitcoin is the best-performing asset in the last 14 years. However, Coinbase still offers a vast range of cryptocurrencies for sale. The overwhelming majority of these listings underperform Bitcoin dramatically.

“Coinbase, for example, made an official recommendation of the following tokens to retail investors as ‘Top Picks, ’ each of which dramatically underperformed Bitcoin within weeks, with an average drawdown of -40.6%.” 

 — Sam Callahan, Swan Bitcoin 

An announcement on October 17th revealed that Coinbase had halted trading for 80 pairs not denominated in USD for specific supported assets.

Account Restrictions

Coinbase has been known to freeze or limit user accounts without warning, often causing user frustration and loss of funds. Several, possibly thousands of Coinbase users have complained that their accounts were blocked due to 'Regulatory Compliance' — halting customer funds.

Multiple class action lawsuits have been filed against Coinbase Global Inc., the cryptocurrency exchange, and its subsidiary Coinbase Inc. Some have been dismissed, but not all. The lawsuits claim that Coinbase fails to maintain adequate security measures for its customers' accounts and conducts business operations without the necessary registration as a broker-dealer.

Swan, Your Best Practice Alternative to Coinbase

What makes Swan the best alternative to Coinbase

No Regulatory Hassles

The SEC has publicly stated that Bitcoin isn’t a security and doesn’t fall under the SEC’s regulatory mandate.

By focusing on this single asset class, Swan offers its clients a secure and hassle-free solution for accumulating Bitcoin while avoiding the complexities and regulatory challenges associated with the broader range of cryptocurrencies, trading options, and crypto exchanges that the SEC classifies as illegal securities offerings.

** UPDATE: It was reported on July 31st that, ahead of initiating legal proceedings against the exchange, the U.S. SEC instructed Coinbase to halt trading in all cryptocurrencies except for Bitcoin. This move indicates the agency intends to exert regulatory jurisdiction over a broader market section.

Low and Transparent Fees

Swan’s exclusive focus on Bitcoin allows it to cut costs and pass on the savings in lower fees, making it a great Coinbase alternative for users who prioritize low fees and wish to focus on Bitcoin-only.

There are no inactivity fees, withdrawal fees, overdraft fees, **custody fees, or fiat withdrawal fees involved. 

Unlike Coinbase, Swan also doesn’t charge a spread to its customers.

** There are no monthly fees for Swan entities or personal accounts. However, IRA accounts will incur a small monthly fee of $20 until your account reaches $100,000. If your account exceeds $100,000, an annual fee of 0.25% is deducted from your linked bank account.

Exceptional Customer Service

Swan uses a chatbot feature and instantly connects users to a Swan representative. This functionality allows users to engage in real-time conversations, enabling swift access to Swan Support and assistance.

Better Asset Choices

Being a Bitcoin-only company, Swan avoids the risks of volatile cryptocurrencies. By focusing solely on Bitcoin, Swan mitigates the potential uncertainty and unpredictability of investing in other highly volatile and multiple digital assets. 

Fewer Account Restrictions

Unlike Coinbase, Swan has a few account restrictions. It has a transparent framework openly available to the public

Swan Bitcoin IRA 

Swan recently launched a Bitcoin IRA product, offering its customer base a tax-deferred or tax-free solution.

Swan offers self-managed Traditional or Roth IRAs, with Bitcoin held in a legal, regulated trust account maintained by a qualified and authorized custodian.

Qualified custodians ensure:

  • Asset protection

  • Regulatory compliance

  • Fraud prevention

  • Independent oversight

  • Unauthorized use of funds

Other Primary Swan Services

If you’re a high net-worth individual, family office, or corporation looking to buy $100,000 or more worth of Bitcoin, you can sign up with Swan Private for customized services.

  • Best-in-class user experience for secure self-custody

  • Secure key backup to minimize the risk of loss

  • Concierge onboarding available

  • Inheritance planning for Swan Private clients

  • Built on Bitcoin Core and Specter, a fully open-source stack

Swan Vault

Swan Vault and custody solutions is your reliable partner for everything related to Bitcoin.

Get Priority Access

Swan Force is another Swan entity to earn Bitcoin by helping other users and businesses engage with the Bitcoin ecosystem. Swan has the best combination of fees and services and a sustainable business model with very low overhead costs and much lower regulatory risks. 

Coinbase’s fundamental difference is that it offers access to more digital asset options. But, if you take a closer look, as we shared with you above—there is no strong case for buying these altcoins over Bitcoin. 

If you care about customer service, education, and integrity and want a committed team of experts in your corner, available to help you whenever you need it, Swan Bitcoin is the best option to buy and hold Bitcoin. 

Start securing your Bitcoin future with Swan today. 

Drew

Drew

Drew is a Research Analyst for Swan Bitcoin. He is dedicated to helping onboard the next 10 million Bitcoiners.

More from Swan Signal Blog

Thoughts on Bitcoin from the Swan team and friends.

Own your future. Get started with Swan today.

Swan logo

Services

  • Swan IRA
  • Swan Private
  • Swan Vault
  • Swan Business
  • Swan Advisor
  • Bitcoin Benefit Plan
  • Swan API

Swan Bitcoin does not provide any investment, financial, tax, legal or other professional advice. We recommend that you consult with financial and tax advisors to understand the risks and consequences of buying, selling and holding Bitcoin.

© Swan Bitcoin 2024