Coinbase vs Swan Bitcoin — Head-to-Head Custody Comparison

An independent, data-driven comparison of Coinbase and Swan Bitcoin across security, insurance, fees, regulatory compliance, and more.

Verdict

Quick Verdict

Coinbase scores 7.8 vs Swan Bitcoin's 6.7. Coinbase leads in 5 of 8 categories.

Coinbase is better suited for Beginners, US-based investors, Passive holders. Swan Bitcoin is better suited for Bitcoin savers (DCA), IRA investors, Bitcoin education seekers.

7.8

GoodCustody Score

Coinbase

6.7

FairCustody Score

Swan Bitcoin

Scores

Score Comparison

Weighted scores across all 8 custody criteria.

Criterion	Weight	Coinbase	Swan Bitcoin	Winner
Security	20%	8.0	7.0	Coinbase
Insurance	15%	7.0	5.5	Coinbase
Regulatory	15%	9.5	7.0	Coinbase
Fee Transparency	10%	6.0	8.0	Swan Bitcoin
Track Record	15%	8.5	6.5	Coinbase
Withdrawal Flexibility	10%	8.0	8.5	Swan Bitcoin
Reporting & Audit	10%	9.0	6.0	Coinbase
Counterparty Diversification	5%	2.0	3.5	Swan Bitcoin
Overall Score	100%	7.8	6.7	Coinbase

Visual

Score Radar

Visual overlay of Coinbase and Swan Bitcoin across all categories.

CoinbaseSwan Bitcoin

Deep Dive

Category-by-Category Analysis

A deeper look at how each provider performs in every scoring criterion.

Security (8.0 vs 7.0)

Coinbase uses Institutional cold storage system key management with 98%+ in cold storage and regular penetration testing. Compliance: SOC 2 Type 2. Incident history: 2021 account takeover attacks (phishing, not platform breach).

Swan Bitcoin uses Fortress Trust / BitGo custody key management with Majority cold (via partners) in cold storage and regular penetration testing. Compliance: Via partners. Incident history: No incidents.

Insurance (7.0 vs 5.5)

Coinbase offers Crypto insurance for hot wallet portion. FDIC on USD (up to $250K). via Crime insurance policy. Publicly traded company. FDIC insurance on cash. Crypto hot wallet insured.

Swan Bitcoin offers Via Fortress Trust / BitGo custody partners via Via custody partners. Custody through regulated partners with their own insurance.

Regulatory (9.5 vs 7.0)

Coinbase holds NASDAQ listed (COIN), FinCEN MSB, NY BitLicense, State licenses, Multiple international licenses and is a qualified custodian operating in United States / Global. Most regulated US exchange. Publicly traded. Custodian for multiple Bitcoin ETFs.

Swan Bitcoin holds FinCEN MSB, State licenses via partners and is not a qualified custodian operating in United States. US-based. Custody through Fortress Trust (regulated trust company).

Fee Transparency (6.0 vs 8.0)

Coinbase charges None in annual custody fees with ~1.5% (Simple) / 0.05-0.6% (Advanced) per transaction. Simple interface has higher fees. Advanced trading has competitive fees.

Swan Bitcoin charges None (exchange) / 0.39% (IRA) in annual custody fees with 0.99% (instant) / 0.49% (auto-DCA) per transaction. Automated DCA with competitive fees. IRA available. Free auto-withdrawal to own wallet.

Track Record (8.5 vs 6.5)

Coinbase was founded in 2012 and is headquartered in San Francisco, CA. AUM: $130B+ assets on platform. Incident history: 2021 account takeover attacks (phishing, not platform breach).

Swan Bitcoin was founded in 2019 and is headquartered in Los Angeles, CA. AUM: Not publicly disclosed. Incident history: No incidents.

Withdrawal Flexibility (8.0 vs 8.5)

Coinbase withdrawal fees: Network fees. Minimum account: No minimum ($1). Supported assets: Bitcoin, Ethereum, 250+ cryptocurrencies.

Swan Bitcoin withdrawal fees: Free auto-withdrawals. Minimum account: $10 minimum. Supported assets: Bitcoin only.

Reporting & Audit (9.0 vs 6.0)

Coinbase: SOC compliance is SOC 2 Type 2. As a qualified custodian, it meets SEC reporting requirements.

Swan Bitcoin: SOC compliance is Via partners. Not classified as a qualified custodian.

Counterparty Diversification (2.0 vs 3.5)

Coinbase is a exchange custody provider. Key management: Exchange-managed custody with institutional-grade cold storage infrastructure..

Swan Bitcoin is a exchange custody provider. Key management: Bitcoin savings platform with Fortress Trust / BitGo custody partnership..

Fees

Fee Comparison

Side-by-side fee breakdown for Coinbase and Swan Bitcoin.

Fee Type	Coinbase	Swan Bitcoin
Setup Fee	Free	Free
Annual Custody	None	None (exchange) / 0.39% (IRA)
Transaction	~1.5% (Simple) / 0.05-0.6% (Advanced)	0.99% (instant) / 0.49% (auto-DCA)
Withdrawal	Network fees	Free auto-withdrawals

Coinbase: Simple interface has higher fees. Advanced trading has competitive fees.

Swan Bitcoin: Automated DCA with competitive fees. IRA available. Free auto-withdrawal to own wallet.

Features

Feature Comparison

Checklist of features across both providers.

Feature	Coinbase	Swan Bitcoin
98%+ cold storage	✓	✗
Advisor services	✗	✓
Automated DCA	✗	✓
Beginner-friendly interface	✓	✗
BitGo custody	✗	✓
Bitcoin IRA	✗	✓
Bitcoin education	✗	✓
Coinbase Vault for extra security	✓	✗
ETF custodian (BlackRock IBIT)	✓	✗
FDIC on USD	✓	✗
Free auto-withdrawal to own wallet	✗	✓
Publicly traded (NASDAQ)	✓	✗

Recommendation

Who Should Choose Which?

Coinbase is better if you…

✓Are a beginners
✓Are a us-based investors
✓Are a passive holders
✓Are a mainstream adopters
✓Want: Publicly traded — maximum transparency
✓Want: Custodian for BlackRock and other ETFs
✓Want: 98%+ cold storage

Swan Bitcoin is better if you…

✓Are a bitcoin savers (dca)
✓Are a ira investors
✓Are a bitcoin education seekers
✓Are a long-term accumulators
✓Want: Best Bitcoin DCA platform
✓Want: Free auto-withdrawal to own wallet
✓Want: Bitcoin IRA offering

FAQ

Frequently Asked Questions

Is Coinbase or Swan Bitcoin better for Bitcoin custody?

Coinbase scores 7.8 vs 6.7 in our weighted Custody Score. Coinbase leads in 5 of 8 scoring categories. However, the best choice depends on your specific needs: Coinbase is best for Beginners and US-based investors, while Swan Bitcoin suits Bitcoin savers (DCA) and IRA investors.

What is the difference between Coinbase and Swan Bitcoin?

Coinbase is a exchange custody provider, while Swan Bitcoin is a exchange custody provider. Coinbase excels in Regulatory, whereas Swan Bitcoin is strongest in Withdrawal Flexibility.

How do Coinbase and Swan Bitcoin fees compare?

Coinbase charges None annual custody fees with ~1.5% (Simple) / 0.05-0.6% (Advanced) transaction fees. Swan Bitcoin charges None (exchange) / 0.39% (IRA) annual custody fees with 0.99% (instant) / 0.49% (auto-DCA) transaction fees.

Which is more secure, Coinbase or Swan Bitcoin?

Coinbase scores 8.0/10 for security while Swan Bitcoin scores 7.0/10. Coinbase uses Institutional cold storage system key management, and Swan Bitcoin uses Fortress Trust / BitGo custody.