Uphold vs. Coinbase: Which Crypto Exchange Is Right for You?

Coinbase and Uphold are both great ways to buy cryptocurrency, but they are very different platforms. Our Uphold vs. Coinbase comparison looks at the two exchanges side by side. Find out how they compare and which one stands out in terms of the range of cryptocurrencies, security measures, and other features.

It can be hard to compare apples with apples when you look at cryptocurrency exchange fees. In addition to fees to buy and sell crypto, check whether the platform charges deposit or withdrawal fees. Both platforms allow you to deposit and withdraw via a bank transfer but charge for other forms of deposit, such as debit and credit cards. This is common practice on cryptocurrency exchanges.

READ MORE: Full Coinbase review

Both Uphold and Coinbase also charge what's called a "spread," which is the difference between the purchase price and the sale price of an asset. Uphold says its spread is typically 1.5% on Bitcoin (BTC) and Ethereum (ETH) in the U.S., U.K., and Europe. Coinbase does not publish its spread, but it's typically around 0.5%. Use crypto price checking sites to be sure the rate you're getting is reasonable.

What sets Coinbase apart is that it also offers Coinbase Advanced Trade, which is designed for experienced traders. Coinbase Advanced Trade uses a maker/taker fee for trading. This varies from 0.05%/0% for extremely high volume traders to 0.6%/0.4% for investors who trade less than $10,000 a month. Coinbase Advanced does not charge a spread, making it a lower-cost way to buy and sell crypto for anyone who's able to get a grip with the trading tools.

One of the big differences between Uphold and Coinbase is that in addition to crypto, you can also buy gold, silver, and other precious metals as well as other currencies on the Uphold platform. All the platforms offer the popular coins you'd expect, like Bitcoin and Ethereum. Be aware U.S. investors will not be able to access the full range of cryptocurrencies on Uphold and Coinbase because of local regulations, either by country or by state. Here's how the platforms compare in terms of the number of available cryptos:

In certain countries (not the U.S.) Uphold customers can also use the platform to trade equities. Its so-called "anything-to-anything" interface lets you convert your Bitcoin directly into another cryptocurrency or into something else like gold or a fiat currency. And unlike some platforms where you might have to trade (and pay trading fees) twice to buy less common cryptos, Uphold lets you do it all in one trade. For example, instead of trading from U.S. dollars into a stablecoin like USDC, and then from USDC into a less-common coin, you'd be able to trade directly from dollars into any of the listed cryptos.

READ MORE: Cryptocurrency Availability: Where Can You Buy Your Favorite Tokens?

Both Coinbase and Uphold provide custodial wallets for their customers. A custodial wallet is a crypto wallet that's controlled by the exchange. Unlike Uphold, Coinbase also provides a non-custodial wallet called Coinbase Wallet. Even non-Coinbase customers can open a Coinbase Wallet.

READ MORE: Full Uphold review

The collapse of FTX and other crypto platforms in 2022 highlighted the dangers of leaving your crypto in a custodial wallet. Unlike money held in a bank account, crypto assets are not protected by FDIC insurance. Investors who had assets on platforms that collapsed are now stuck waiting for lengthy court proceedings to find out if they can recover any of their funds.

If your platform gets hacked or fails, your funds will be safer if they are in a crypto wallet that you control. As a result, it's important to know that both exchanges make it easy for investors to withdraw funds to their own external non-custodial wallet. However, make sure you understand the risks involved -- if you lose the security information for your crypto wallet, you may never be able to access your coins and tokens.

Cryptocurrency investing is a high-risk endeavor. In addition to the extreme volatility and uncertainty about how this relatively young industry will evolve, cryptocurrency exchanges themselves carry risks. FTX clients learned the hard way that centralized exchanges are not always transparent about what they are doing with customer funds. Following revelations about the huge hole in FTX's balance sheet, exchanges like Uphold and Coinbase sought to reassure clients.

• Uphold says they are the "pioneers of radical transparency." In addition to publishing its assets and liabilities in real-time, the platform says it never lends out customer money.
• Coinbase says that because it is a public company with audited financials, it already proves its reserves and liabilities through quarterly external audits and annual financial statements filed with the SEC. Coinbase also has third-party insurance to protect customers against crime.

Regulatory risk is also something to have on your radar. In June 2023, the SEC charged Coinbase with operating as an unregistered securities broker. It contends that a number of cryptocurrencies are actually securities, meaning those crypto projects should come under the SEC's remit. This would mean that exchanges need to register with the SEC in order to trade them. It isn't clear how this will play out, but if the SEC wins, it will have an impact on all crypto platforms in the U.S. The SEC has not brought any charges against Uphold, but the company is not completely free of issues. For example, a group of customers have filed a class action suit against Uphold in New York. The complaint says the exchange "failed to correctly implement essential security protections for its customers."

Here's how Uphold vs. Coinbase stack up in terms of other security measures:

Uphold and Coinbase are both solid cryptocurrency exchanges that will appeal to different types of investors.

Uphold has several novel features, such as its anything-to-anything trading, commodity trading, and a big selection of third-party integrations. Uphold is relatively easy to use, and we found the customer service to be pretty responsive.

Coinbase is a solid trading platform that's especially popular with new investors. Learning to use Coinbase Advanced Trade can considerably reduce the cost of buying and selling crypto and give you access to a wider range of coins and tokens. Coinbase also has a learn-and-earn feature that lets you earn crypto by watching videos and completing quizzes.

Don't be afraid to play around with both platforms before you deposit your money. And if neither of them appeal to you, check out our list of top cryptocurrency apps, exchanges, and brokerages for more options.