More and more neobanks offer crypto trading but they’re often not executing trades themselves and are acting as a user-friendly front-end interface, with the actual trading happening on the order books of a centralized exchange or broker. Here are ten arguments why crypto brokers like Coinbase are adding value to customers for their trading:
1. Broader coverage of tokens.
While some neobanks only offer a handful of popular cryptocurrencies like Bitcoin (BTC) and Ethereum (ETH), Coinbase provides a very broad selection of assets, including altcoins, stablecoins, and digital tokens. You can choose more than 300 coins and tokens from almost every category like layer 1s, gaming, memes, oracles, RWA (real world assets), DePin and AI.
2. Self-custody options that align with decentralization principles.
Through products like the Coinbase Base App (by Coinbase Bermuda Technologies Ltd – an entity not regulated by MiCA1) empowers users to take full control of their private keys and assets. Some neobanks crypto products only keep custody of the user’s assets which cannot be withdrawn into self-custody, which contradicts the core ethos of self-sovereignty that many crypto investors prefer.
3. Native Web3 integrations.
With the Base App you cannot only do self custody in a very comfortable and user friendly way, you can also access a DEX (decentralized exchange) like Uniswap to trade thousands of tokens without managing a multitude of wallets and keys.2 Additionally you get the ability to interact with non-fungible token (NFT) marketplaces, further DeFi apps and other decentralized applications (dApps) which allow you the full ownership of gaming items, content, identity, art and all kinds of data for the full crypto experience.
4. Deep, vertical-specific customer support.
When users face complex crypto issues like blockchain errors or failed transactions, a crypto-native company like Coinbase can provide specialized support from experts who truly understand the technical nuances of the space. A neobank’s generalist support team might be less equipped to handle such specialized issues.
5. High-end trading tools for advanced users.
Coinbase offers a comprehensive suite of advanced trading features. This includes sophisticated order types (e.g Stop-Limit & TWAP-orders), different chart types like candle stick, bar or line charts as well as detailed charting with numerous indicators like RSI, Bollinger bands, MACD, moving averages, Fibonacci tools and several others. Some Neobanks, by contrast, focus on simplicity and do not offer these powerful, advanced tools.
6. Leading the way in regulatory compliance and legitimacy.
With years of experience and a team of compliance and legal experts, Coinbase has built a robust framework for operating in the regulated crypto space in major markets worldwide. The company has a strong track record as a pro regulation player which ensures highest levels of security and trustworthiness for users. This achievement contributed to parent company Coinbase Global Inc. becoming the first crypto-native company and crypto exchange included in the S&P 500. Some neobanks rely on third-party licenses for their crypto trading services and regulatory compliance structures. Only recently, a neobank had to shut down its crypto offering due to the lack of a valid license.
7. Institutional-grade liquidity and pricing.
Coinbase traders benefit from competitive pricing and almost zero spread for Coinbase Advanced. Coinbase Global, Inc. provides deep liquidity as the no. 1 US crypto exchange by volume, which for high-volume advanced traders leads to as low as 0.0% volume-based maker fees.
8. Custody services for the broader crypto ecosystem.
Trusted by the world’s leading financial companies: Financial giants use Coinbase as a custodian for their billion dollar heavy BTC and ETH spot ETFs3. In addition, many other banks rely on Coinbase as a custodian for their crypto assets. Neobanks often don’t have the in-house infrastructure to provide this level of institutional-grade custody.
9. Your crypto actually works in real life.
For example you can pay with your cryptos using the Coinbase Debit Card.4 You can swap anytime in the app with which crypto you want to pay or whether you want to use your Euro balance. Hard to find a neobank offering the same.
10. Innovating within the crypto space, not just on the fringe.
With Coinbase Commerce¹ enabling merchants to accept hundreds of cryptocurrencies settled in USDC with instant on-chain confirmation, and the Base Layer-2 network providing a low-cost, developer-friendly bridge to scale Web3, Coinbase is delivering a truly innovative end-to-end crypto commerce stack. While neobanks integrate crypto as a secondary feature, Coinbase is at the forefront of crypto innovation, developing new protocols, payment solutions, and tokenization services to push the industry forward. This dedicated focus drives advancements that benefit the entire ecosystem.
1MiCA (Markets in Crypto-Assets Regulation) is the European Union’s regulatory framework for crypto-assets, establishing uniform rules for issuance, service providers, consumer protection, and market integrity across all EU member states.
2This service is not regulated under MiCA, and is powered by Coinbase Bermuda Technologies Limited or other Coinbase entities.
3This service is not regulated under MiCA, and is powered by other Coinbase entities. ETF availability may vary by region.
4This service is provided by Coinbase Ireland Limited, an e-money institution (No. 630350) regulated by the Central Bank of Ireland.
Disclaimer:
Trading in crypto is highly risky and may not be suitable for all as the entire amount invested could be lost. Information is provided for educational purposes only and is not investment advice. This is not a recommendation to buy or sell a particular digital asset. Coinbase makes no representation on the accuracy, suitability, or validity of any information provided or for a particular asset. “Coinbase Luxembourg S.A. is a crypto-asset service provider (No. N00000004) licensed by the Luxembourg Commission de Surveillance du Secteur Financier
This is an article written by Coinbase, Fintechnews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. Readers should do their own research before taking any actions related to the company. Fintechnews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
Please note this is no investment advice.
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