Some problematic things about Coinbase

Mashfiqun

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Quote from: goinmerry on December 03, 2019, 02:42:13 PM

Why use Coinbase for that purpose? Just use their features instead.

And where did I say don’t use Coinbase to exchange? Believe it or not, most of the beginners in crypto use Coinbase to store their crypto-currencies. I personally live in a country where all other features of Coinbase is blocked. I can't trade, can't buy or sell on the platform. The only thing I can do is use their site as a wallet to enjoy free transactions between users. That's it.
If you can use other features, use it. Just don’t store coins for a long term. That's my point.

Mashfiqun

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Quote from: Taskford on December 03, 2019, 10:26:37 PM

Quote from: Mashfiqun on December 03, 2019, 02:21:21 PM

Quote from: conex on December 03, 2019, 01:53:39 PM

Here's also sth problematic to consider: https://beincrypto.com/coinbase-holds-a-whopping-966230-bitcoin-7b-in-cold-wallet/

Coinbase holds almost 98% of their funds in cold wallets so it's less error prone to get hacked. You may get your funds back if you are hacked. But still, there's literally no good reason to store any funds on any exchange in my opinion. Why would somebody risk their funds? And KYC, locking gambling money, the app could also be a downside for them.

That's why it's better to have your own hardware wallet if you want to have a safety feeling for storing your huge volume assets, but if you are a regular user which not hold to much then I think coinbase is good since for sure the people wants from it is the convenience for using on their daily transaction and I got no issue using it even from now but evethough no issue for me occur still I'm still careful since for me exchangers still not safety since it's prone from attacks and other forms of it.

This was actually the case for me. But after my funds were locked a month ago, I thought this can't be the way to store coins anymore.

Taskford

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Quote from: Mashfiqun on December 03, 2019, 02:21:21 PM

Quote from: conex on December 03, 2019, 01:53:39 PM

Here's also sth problematic to consider: https://beincrypto.com/coinbase-holds-a-whopping-966230-bitcoin-7b-in-cold-wallet/

Coinbase holds almost 98% of their funds in cold wallets so it's less error prone to get hacked. You may get your funds back if you are hacked. But still, there's literally no good reason to store any funds on any exchange in my opinion. Why would somebody risk their funds? And KYC, locking gambling money, the app could also be a downside for them.

That's why it's better to have your own hardware wallet if you want to have a safety feeling for storing your huge volume assets, but if you are a regular user which not hold to much then I think coinbase is good since for sure the people wants from it is the convenience for using on their daily transaction and I got no issue using it even from now but evethough no issue for me occur still I'm still careful since for me exchangers still not safety since it's prone from attacks and other forms of it.

Velkro

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Quote from: bileq on November 21, 2019, 12:32:59 PM

why are you targetting Coinbase? i did not use it before but as you said all of these possibilities same for all markets without DEX's. i did not see any special reason to not use coinbase.

One of reasons could be they hold over 900 000 bitcoins in cold wallet.
If that will get hacked, it will crush bitcoin market worldwide.
People are careless and keeping BTC on coinbase as some kind of bank, and its not.

goinmerry

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Quote from: jseverson on November 27, 2019, 09:23:39 PM

Quote from: goinmerry on November 21, 2019, 06:10:35 PM

Quote from: Mashfiqun on November 21, 2019, 11:06:25 AM

Because generally exchanges are rather insecure comparing to other wallets like Electrum or Coinomi. It could be hacked or might also be a scam, you can't be

Where did you get this idea? Electrum and Coinomi do have their own feature on which Coinbase or any exchanges didn't have. Vice-versa, Coinbase, and any exchange also have their unique feature that hardware wallets, desktop wallets don't have.

Regardless of features, non-custodial wallets (like Electrum and Coinomi) are generally considered safer because they have fewer attack vectors (more resistant to phishing, don't have to worry about password leaks, etc.). They don't have the capability to hold your funds for any reason either.

Coinbase does have the advantage of insuring their customers' funds (so they might actually be better than a lot of exchanges for storage), but you won't really need insurance if you know how to take care of coins.

Of course, and I think everyone already knows that Electrum and Coinomi are generally much safer compared to any centralized exchanges out there even how reputable it is when we are talking about storing our own coins.

What I'm pointing to my statement there is not about the security between those wallets but where did OP got the idea that exchanges are insecure to those non-custodial wallets.

OP is telling anyone not to use Coinbase to store their coins which is already a general and basic rule, guidelines and a must thing to do. Why use Coinbase for that purpose? Just use their features instead.

Mashfiqun

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Quote from: conex on December 03, 2019, 01:53:39 PM

Here's also sth problematic to consider: https://beincrypto.com/coinbase-holds-a-whopping-966230-bitcoin-7b-in-cold-wallet/

Coinbase holds almost 98% of their funds in cold wallets so it's less error prone to get hacked. You may get your funds back if you are hacked. But still, there's literally no good reason to store any funds on any exchange in my opinion. Why would somebody risk their funds? And KYC, locking gambling money, the app could also be a downside for them.

conex

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crypto enthusiast

Here's also sth problematic to consider: https://beincrypto.com/coinbase-holds-a-whopping-966230-bitcoin-7b-in-cold-wallet/

Mashfiqun

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Quote from: Nawrod on December 02, 2019, 11:02:19 AM

Well, if you don't like Coinbase, just find another exchange. Coinbase is commonly known as very reliable and professional exchange, so I'm surprised by these problems. Personally, I don't use Coinbase, better try Kraken or CoinDeal. These two are safe and user-friendly with low fees.

Did you read the post? I talked about Coinbase as a wallet not an exchange. And if you don't use Coinbase then you literally didn't know about these problem. What I wrote are the truth. If you're surprised, I have nothing to do about it.

Nawrod

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Well, if you don't like Coinbase, just find another exchange. Coinbase is commonly known as very reliable and professional exchange, so I'm surprised by these problems. Personally, I don't use Coinbase, better try Kraken or CoinDeal. These two are safe and user-friendly with low fees.

Mashfiqun

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Quote from: TimberWolf on November 30, 2019, 07:37:17 PM

Quote from: Mashfiqun on November 26, 2019, 09:32:20 AM

Quote from: TimberWolf on November 26, 2019, 05:00:42 AM

Great topic to read. Thank you for all the posts. I will try electrum.

Has anyone tried Exodus Wallet (desktop)?

Exodus wallet is also good. It allows you to store the seed phrases, has an exchange, stores private keys locally. But does it allow using custom fees? I'm not sure about that. Somebody else could help you out on this one.

Quote from: TryNinja on November 26, 2019, 09:35:59 AM

Quote from: Mashfiqun on November 26, 2019, 09:32:20 AM

But does it allow using custom fees? I'm not sure about that. Somebody else could help you out on this one.

It doesn't. If you use Exodus and want to send a tx with custom fees, you will need to import it in Electrum or a similar wallet, then make the transaction from there. Some people use Electrum for BTC and Exodus for the other alts (all with the same seed).

@TryNinja @Mashfiqun Thank you very much for your reply! VERY helpful for you to stop and help us new peeps

It's all about helping people here at the forum. Stick around and you'll see there's plenty of guys who are willing to help.

TimberWolf

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Quote from: Mashfiqun on November 26, 2019, 09:32:20 AM

Quote from: TimberWolf on November 26, 2019, 05:00:42 AM

Great topic to read. Thank you for all the posts. I will try electrum.

Has anyone tried Exodus Wallet (desktop)?

Exodus wallet is also good. It allows you to store the seed phrases, has an exchange, stores private keys locally. But does it allow using custom fees? I'm not sure about that. Somebody else could help you out on this one.

Quote from: TryNinja on November 26, 2019, 09:35:59 AM

Quote from: Mashfiqun on November 26, 2019, 09:32:20 AM

But does it allow using custom fees? I'm not sure about that. Somebody else could help you out on this one.

It doesn't. If you use Exodus and want to send a tx with custom fees, you will need to import it in Electrum or a similar wallet, then make the transaction from there. Some people use Electrum for BTC and Exodus for the other alts (all with the same seed).

@TryNinja @Mashfiqun Thank you very much for your reply! VERY helpful for you to stop and help us new peeps

Mashfiqun

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Quote from: Febo on November 27, 2019, 11:19:14 PM

Quote from: Mashfiqun on November 21, 2019, 11:06:25 AM

Some problematic things about Coinbase

Coinbase is good if you treat it as an exchange and not as a wallet. It is simple as that. Problem is people use it as a wallet and sooner or latter will get burned.

Actually that's the whole point here. Some people aren’t reading the thread quite well. Some maybe didn't simply understand the things.

Febo

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Quote from: Mashfiqun on November 21, 2019, 11:06:25 AM

Some problematic things about Coinbase

Coinbase is good if you treat it as an exchange and not as a wallet. It is simple as that. Problem is people use it as a wallet and sooner or latter will get burned.

jseverson

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Quote from: Krislaw on November 27, 2019, 06:13:40 PM

I disagree to the second point of yours. Whose ID do you plan on using and don't you think it is against ToS and it would somehow affect the account in the future whereby they ask seize your funds asking you to do a live verification. And you also agreed to the ToS during sign up which is a disclaimer that says they are not responsible for lose of funds.

I don't think OP is implying that you use another person's ID. He's simply discouraging people from undergoing KYC. Trying to use a fake ID or another person's ID for KYC is a horrible idea with dire consequences.

Quote from: goinmerry on November 21, 2019, 06:10:35 PM

Quote from: Mashfiqun on November 21, 2019, 11:06:25 AM

Because generally exchanges are rather insecure comparing to other wallets like Electrum or Coinomi. It could be hacked or might also be a scam, you can't be

Where did you get this idea? Electrum and Coinomi do have their own feature on which Coinbase or any exchanges didn't have. Vice-versa, Coinbase, and any exchange also have their unique feature that hardware wallets, desktop wallets don't have.

Regardless of features, non-custodial wallets (like Electrum and Coinomi) are generally considered safer because they have fewer attack vectors (more resistant to phishing, don't have to worry about password leaks, etc.). They don't have the capability to hold your funds for any reason either.

Coinbase does have the advantage of insuring their customers' funds (so they might actually be better than a lot of exchanges for storage), but you won't really need insurance if you know how to take care of coins.

Krislaw

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I disagree to the second point of yours. Whose ID do you plan on using and don't you think it is against ToS and it would somehow affect the account in the future whereby they ask seize your funds asking you to do a live verification. And you also agreed to the ToS during sign up which is a disclaimer that says they are not responsible for lose of funds.

TryNinja

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Quote from: Mashfiqun on November 26, 2019, 09:32:20 AM

But does it allow using custom fees? I'm not sure about that. Somebody else could help you out on this one.

It doesn't. If you use Exodus and want to send a tx with custom fees, you will need to import it in Electrum or a similar wallet, then make the transaction from there. Some people use Electrum for BTC and Exodus for the other alts (all with the same seed).

Mashfiqun

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Quote from: TimberWolf on November 26, 2019, 05:00:42 AM

Great topic to read. Thank you for all the posts. I will try electrum.

Has anyone tried Exodus Wallet (desktop)?

Exodus wallet is also good. It allows you to store the seed phrases, has an exchange, stores private keys locally. But does it allow using custom fees? I'm not sure about that. Somebody else could help you out on this one.

TimberWolf

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Great topic to read. Thank you for all the posts. I will try electrum.

Has anyone tried Exodus Wallet (desktop)?

crairezx20

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Quote from: Mashfiqun on November 22, 2019, 02:34:54 PM

Quote from: crairezx20 on November 22, 2019, 02:21:22 PM

Thanks, it works I thought it won't work but it works.
What is the reason why it works if you use apps than desktop?

Well, the transaction already get 1 confirmation so it means it works and I see my wallet right now shows my transaction and up coming transaction.

Told you. The app only requires 2FA when signing in from the first time. After that it's rather easy to send transactions without using 2FA at all. Enjoy and don't deposit that much again in there. Use something like Electrum to store coins. You'll be able to send for a much smaller fee than Coinbase.

Yeah, I'm going to use Electrum again I made a new wallet with Segwit to make sure I can send bitcoin with a lesser fee.
But I still stay using Coinbase because my old addresses are under their wallet. I'll post a new stake address here on the forum as a proof that I own the wallet for future reference I just need to do this because Coinbase might discover this and they will start to ask for KYC verification if I receive and send another bitcoin from their app just like what happen to me in their web wallet.

Mashfiqun

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Quote from: nutella_11 on November 25, 2019, 08:32:41 AM

Well, I've never used Coinbase to be honest, and that's because of various opinions about their platform. I've noticed that many people have problems with Coinbase, so I decided to use other cryptocurrency exchanges like Kraken or CoinDeal. I've been still using the second one and I can recommend it, never had any problems with withdrawals or deposits. What's more CoinDeal has its mobile app too, but it's still a pretty new topic.

It's not about Coinbase being an exchange. It's about being a wallet mostly used by newbies. You don't own your exchange addresses. So basically, you are not in control of your money after depositing. Despite being scammed by well-known exchanges are rare, they can still get hacked or act like an exit scam. It is highly recommended not to store funds for long term in exchanges. Get your own wallet and store them there.

Topic: Some problematic things about Coinbase (Read 467 times)