Is CoinBase a Scam? – My Experience With This Site
Ok, so I was on a few forums recently reading about people calling CoinBase a scam. Some people are claiming that they will not let them withdrawal funds, get into their account, and all sorts of things. But is CoinBase a scam really? I mean after all, you can’t trust 100% of what you hear.
In this short review I’ll be going over my own exprience using CoinBase. I have been getting more and more into cryptocurrency investment recently and CoinBase was one of the my choices to buy Bitcoin, Etherium, & LiteCoin. I’ll go over how this place works, how safe it is, any problems that I’ve had and more.
- Website: coinbase.com
- Type: Cryptocurrency marketplace
- Legit?: Yes
- Recommended?: Yes
CoinBase is what I call a cryptocurrency marketplace. I don’t know if that is the appropriate term for it but it seems to fit well. They have been around for a while and were founded on American soil (San Francisco) in 2012.
Right now they deal with 4 different cryptocurrencies, Bitcoin, Bitcoin Cash, Etherium, and LiteCoin. Whether you are looking to buy or sell, they make it easy to do through their platform.
Additionally they also offer members free wallets to store their coins. These are safe when it comes to internet based wallets. Of course an offline hardware wallet always the safest though.
How It Works
At CoinBase they keep track of the market prices of Bitcoin, Etherium, and LiteCoin in real-time. This way you can buy and sell at actual market prices. And when you buy you are not being connected to another individual to buy from. This is not a peer to peer marketplace like LocalBitcoins & Paxful are. When you buy you are buying through CoinBase.
You can hook up your bank account or your credit/debit card to buy from CoinBase. They also have a US dollar wallet where you can store US dollars in your account.
When you do make a purchase the currency is deposited into your account almost instantly. From my experience it will show up within a minute or so. The currency is then stored in your wallet at CoinBase. You are free to do with it as you please. This wallet has an address you can use to deposit more currency or you can choose to send your currency somewhere else.
The Buying Process
I have only been using CoinBase to buy cryptocurrency thus far so I’ll be going over this process.
First you will have to connect your credit/debit card or bank account CoinBase. This is a very secure process and will take a couple of days. I chose to connect my debit card. When you do this they will make two very small transactions which you will then have to verify in order be able to use the card.
After that you are free to purchase as you wish. You enter in either the US dollar amount you want to spend, or the cryptocurrency amount you want to receive and it will spit out the other number for you. After you confirm your purchase the currency will be available to you right way.
Is CoinBase Safe?
Of course there is always going to be some risk involved when it comes to site like this, but from what I have experienced and from what I see CoinBase is safe.
They make you jump through hoops to login to your account, hook up your payment method, and more. This can be a bit of a pain but its for the better.
As I mentioned just to hook up your debit/ credit card takes few days because you have to verify ownership by showing that you have access to the bank account it belongs to. And then to login to your account you have to go through a 2 factor authentication where you will be sent a code on your phone that you will need to enter.
I understand that some people have had problems with CoinBase and claim to have lost money… but stuff like this happens. No matter where you go to buy/sell cryptocurrency there is going to be risk because of how unregulated this industry is. There is some risk with CoinBase but they are still my go-to place.
One of the biggest complaints I came across was from users who have had their accounts frozen. Some of then claim they have done nothing wrong or out of the ordinary and all of sudden found themselves locked out. I can’t really speak on this, but I do know that much of this comes from security reasons.
They make user accounts very secure but the problem with this is that they are very sensitive… and you can get locked out easily if they think that someone is trying to hack into your account.
Another complaint that is more of my own, is the fact they they charge you a fee for your transactions. The more you spend the less the fee percentage will be.
Final Thoughts & What I Recommend
Honestly I like CoinBase and wouldn’t tell anyone to stay away from them. I know there are people that experience problems but risk is just something that comes along with all of this. Until a large authority steps in to regulate the cryptocurrency exchanges then this will continue to be like the wild west.
I would love to hear a better alternative to CoinBase from anyone. There is no alternative out there that isn’t going to have complaints from people that have been screwed over. All I know is that from my experience CoinBase has been good to me.
Also, another upside to CoinBase that I forgot to mention is their support. They do provide support and it is fairly good. This is a big deal because if you do get locked out of your account you can easily contact them to get back in. They usually respond in a timely manner but there are people that claim to have waited much too long for responses.
Anyways, that’s my review. I hope you found this helpful and all. If you have any questions, comments, or concerns leave them below in the comment section and I’ll get back to you soon 🙂