With over 1,600 Cryptocurrencies in the open market and hundreds of exchanges to choose from, it is important to select not only the most secure exchanges but the exchanges that offer the widest selection of cryptocurrencies.
Coinbase is what I like to call a fiat exchange, or your ‘main’ exchange. This is where you will be sending your money to in the first place. The intention of your main exchange is to buy either Bitcoin or Ethereum and to then use them to buy altcoins on your altcoin exchange(s).
Coinbase lists only 4 cryptocurrencies which is less than 0.25% of the wide selection that we can choose from. The main reason why they limit the amount of coins they list is for security reasons. Coinbase needs to adequately store and protect funds within their platform, quite often the smaller cryptocurrencies have several bugs within their wallets or coding that could potentially allow hackers access to either the wallet or a back door into their website. With an average daily volume currently sitting at 160 million, Coinbase is not willing to take these risks.
Coinbase is aiming to offer services to institutional investors. Although they have stated that they are going to expand their selection, I suspect that this will take quite some time. Here’s a list of all coins that Coinbase supports:
Bitcoin Cash (BCH)
Over time this will likely increase, but I personally would rather the selection remained smaller and the focus was on security and getting the big money involved!
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All the best,