Is it safe to keep my money on coinbase? : Bitcoin

The Basics About Coinbase

I’ve bought and sold bitcoins thousands of times over the years and never had an issue with being scammed. Bitcoins can not be withdrawn into a bank account directly. You can either sell them to somebody who then transfers money to your bank account, or you can sell them at an exchange and withdraw the funds from there. The first method may be quicker to set up but is a bit more risky. However, given the recent Bitfinex hack, having money at an exchange is not without risk either.

For small transactions, the flat rates above will be higher than the variables unless you use a debit or credit card to make a purchase. Coinbase is the primary go-to for many users when it comes to investing in Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Ripple (XRP), and more, due to its user-friendly interface. But before you join them, know that the ease of use comes with a price. Coinbase charges fees for each transaction, and your bank might even add charges on top of that. When compared to Coinbase Pro, Coinbase’s fees are pretty hefty.

Safe and easy Bitcoin- & Ethereum-wallet with integrated buying or selling Bitcoin, Litecoin & Ethereum. Coinbase is an Bitcoin exchange that offers its services to traders located in 32 countries, around the world. The accepted purchase methods are bank transfers, credit or debit cards and PayPal. It is considered to be one of the largest platforms in the world when it comes to bitcoin trade.

coinbase review

Coinbase Bitcoin Wallet Review

You must sell using either a bank account or a USD account that will hold your money on Coinbase. 23.09.2019 Coinbase is considered to be one of the largest bitcoin exchanges in the world, even though it supports only 32 countries at the moment. With three payment methods (credit or debit cards, PayPal, and bank transfers), it is important to understand the fee structure in order to properly plan transactions at the platform. Buying cryptocurrency using a limit purchase or limit order is a simple way to save money on trading fees. For example, if you are in the United States and wish to purchase $100 of bitcoin and pay with a US bank account or your USD Wallet, the flat fee would be calculated as $2.99.

If you wanted to purchase bitcoin with a debit card, we would charge a fee of 3.99% since the variable percentage fee is higher than the flat fee. Keeping your wallet as secure as possible can’t be stressed enough because once your bitcoins, bitcoin cash, litecoins, or ether are gone, your chances of getting them back are almost impossible.

To back this up, Coinbase’s insurance policy won’t cover any losses you suffer due to your account being hacked and compromised. That said, Coinbase does offer some protection with regards to your both your USD and cryptocurrency wallets. Doing so will increase your daily and weekly limits as your trading volume get higher. If you see “international” charge notification, you may get a fee from your bank.

Your available balance is how much you can withdraw or transfer immediately out of your Coinbase account. It’s directly related to purchasing crypto or depositing fiat currency using a linked bank account. For security reasons, you will not be able to immediately withdraw fiat deposited using a linked bank account or send crypto purchased with such funds off of Coinbase (we call this “withdrawal availability”).

CEX.IO allows for the buying of bitcoins for low fees via credit card. The main difference is that you cannot sell using a credit card.

You also have the option to deposit USD from your bank account straight into your USD wallet free of any fees, though this can take up to five business days to complete. Buying digital currencies using your bank account used to take up to one week to complete, but Coinbase has since rolled out some changes to shorten the time frame. Now, any cryptocurrency you buy using a bank account will usually post instantly on your wallet as long as you’ve verified your identity. While you’re free to buy and sell digital currencies within the app, you won’t be able to take funds out of Coinbase until your initial payment clears. Your purchases or deposits are subject to any existing restrictions on the account, regardless of which payment method you used.

However, there is simply a fee to use your money to buy Bitcoin. If you want to buy Bitcoin with a debit card, you will receive your Bitcoin instantly, but there’s a fee associated with it. But if you are willing to wait for the transfer, use your bank account to avoid the associated fees.

There are no variable fees for digital currency conversions besides the spread. The fixed fee of $2.99 also covers transactions up to $204 within Coinbase if you use either your USD wallet or bank account for buying cryptocurrency.

They charge a 3.99% fee on credit/debit card transfers and a 1.49% fee on bank transfers. Coinbase users can buy or sell using a bank transfer, credit card or debit card, while enjoying high liquidity. The website doesn’t display fancy price charts, nor does it show any form of order book. The only options available to Coinbase users are to buy and sell. N/ABank Fees1.49%0.0% – 0.25%Easy to Use Coinbase Review Coinbase Pro Review Go to Coinbase Go to Coinbase Pro Buying cryptocurrency is confusing, especially if it’s your first time.

  • Although registering an account at Coinbase is completely free of charge, do note that most transactions carry with themselves costs that you should take into account when trading BTC at the platform.

Since it is a regulated financial company, traders are required to verify their identities with scanned ID and proof of address. In Australia buying and selling Bitcoins is just a matter of using their site to find a reputable vendor. Often I’d be dealing with the same vendors on a regular basis. LBC has escrow, so it’s just a matter of initiating the trade, and using bank details to fund a purchase or get funded for a sale.

As it turns out, Coinbase has been known to use a London-based company to process debit and credit card-based transactions. Though these reports are sporadic and don’t seem to affect everybody, it’s still worth double-checking with your bank with regards to international fees to minimize headaches. In addition to fees by Coinbase, it’s very important that you check with your bank, as it may tack on additional fees on top of what Coinbase is charging. For instance, some users report being charged with a 3% foreign transaction fee for trades made using a debit or credit card, which is a standard fee for international conversions.

In some cases, we may charge an additional fee on transfers to and from your bank account. If you don’t mind the higher fees, you can use either a debit or credit card to purchase digital currencies and/or deposit your proceeds into your PayPal account. When using a US bank or Coinbase US wallet to buy, the 1.49% kicks in for purchases made over $204. In the screenshots below, you can see the difference in fees from buying using a bank account (left) and debit card (right).

How do I get my money out of Coinbase?

Coinbase is a VC backed company with over $100 million in funding and likely has a very strong security setup. The point of Bitcoin, however, is that users have the ability to control their own money. So, move your bitcoins into a wallet you control after you buy.

Your method of funding your account with Coinbase will affect how long deposits take. For instance, if you use a credit or debit card to purchase your Bitcoin, the transaction is instant.

Coinbase Review

But if you choose to use a bank wire or an ACH transfer, your deposit could take 3 to 5 days. Credit and debit card purchases are charged a 3.99% fee and bank transfers are charged a 1.49% fee.

Does Coinbase Support Your Country?

Dealing with vendors that have the same bank usually means overnight; but trusted vendors can transfer or receive funds straight away in most instances. Of course, the rates are probably 5% in the vendor’s favour, but it’s worthwhile when you consider the transaction time is quick and escrow gives the transaction very low risk.

Since Coinbase is basically a cryptocurrency stock exchange or a bank, I’m fairly confident to say that you cannot cancel a sell/buy and get a refund (and then fees). With that said, Coinbase Pro doesn’t charge a fee to add money to your account because it isn’t a broker.

There are no flat fees for digital currency conversions besides the spread. The platform charges 4% for credit card deposits, and similar fees for bank transfers. They know that their exchange attracts a lot of newbie cryptocurrency users, and getting money from fiat into cryptocurrency is expensive.

Wire transfers and debit card purchases do not affect your withdrawal availability, but are subject to any existing holds on your Coinbase account. Coinbase only allows you to sell directly into your Coinbase fiat wallet. However, there is no limit on the amount you can sell to your wallet. After selling to your Coinbase fiat wallet, you can opt to either withdraw funds to your US bank account or repurchase cryptocurrency on the platform. Unlike private cryptocurrency wallets that gives you total freedom to use your bitcoins or ether as you see fit, Coinbase has placed some limitations with regards to spending and receiving digital currencies.

As noted below in the variable fee section, the variable percentage fee would be 1.49% of the total transaction, or $1.49. Since the flat fee is greater than 1.49% of the total transaction, your fee would $2.99.

Although registering an account at Coinbase is completely free of charge, do note that most transactions carry with themselves costs that you should take into account when trading BTC at the platform. Buying, selling, depositing and withdrawing bitcoins also carry fees that would increase the total price of cryptocurrency when purchasing and decrease the overall profit margin. When you request a cryptocurrency transaction, Coinbase will attempt to fill that order through one or more orders on Coinbase’s trading platform, Coinbase Pro. Coinbase establishes the exchange rate for cryptocurrency transactions (“consumer exchange rate”) by adding a margin, or spread (the “spread”), to the market exchange rate on Coinbase Pro (“Pro exchange rate”). Coinbase Fees may vary based on your location, payment method, and other circumstances.