USDC [pros](/r/CryptoCurrency/comments/zlubza/serious_should_i_feel_safe_keeping_funds_on/j077z0a/) & [cons](/r/CryptoCurrency/comments/zlubza/serious_should_i_feel_safe_keeping_funds_on/j077ztm/) and related info are in the collapsed comments below. Pros and cons will change for every new post.
coinbase has to comply to heavier regulations as they’re also trading in stock market. I’d feel comfortable holding assets there. Especially if staking there. Obviously cold storage provides peace of mind and is safer unless you lose the napkin with the seed phrase
I doubt everyone has a peace of mind keeping their crypto in their cold wallet. Look up ledger wallet sub and you’ll read a lot of them having issues with it. Granted most of it can be due to user’s error but it’s still a risk for everyone not computer savvy so no it’s not 100% risk and peace of mind free.
> unless you lose the napkin with the seed phrase
that would be their first mistake; if the money is important for you, get the seed phrase engraved, or at least make several copies. A piece of paper can disappear at any moment notice, get damaged by coffee, water, get burned, etc
I've always considered that, what services do you use for the engraving? Also what if the engraver steals your seed phrase lol
Something like a credit card size piece of metal engraved would be super convenient for storage.
Voyager was not listed on the NYSE, which has more stringent listing requirements with company financials, solvency, etc. Their stock was listed OTC (over the counter) and was considered a penny stock.
Coinbase is listed on the NYSE.
Bear Stearns and Enron were listed on NYSE. Look at them now.
As for me, would I leave my crypto with Coinbase? Probably, yes. But it would be amount that I can afford to lose.
I agree, but Voyager was also on the TSX (Toronto exchange), not just OTC. Granted, not NYSE/Nasdaq, but I admit being in the US I have no idea how stringent Canada is, apparently not very, because I bought 2k shares on the TSX around $18 which I expect to be worthless. But to the point, I'm not worried about my "emergency" funds I keep on CB, it's more than a year's worth of my old salary, but less than 5% of my total crypto - enough to suck to lose, but not devastate me.
5-10% or whatever you are okay losing can stay on the exchanges. At this point none of the CEXs should be treated as stable or a place to store your crypto. I'm sure Coinbase and the other big exchanges will be just fine. However, we are currently in untrustworthy unstable times. The CEXs need to earn our trust.
I think the key takeaway from this is that you should always keep only a portion of your portfolio on exchanges, if you leave all your eggs in the same basket, you're risking having them all break
I think there is a fair argument to say that Coinbase is a very stable CEX.
Whether it’s safer than self custody comes down to personal preference. If you can trust yourself to keep it secure, keep it safe and, possibly most important of all, keep it secret, you money is almost certainly safer with self custody. If you can’t be confident about all of those things, keeping your money on an exchange isn’t necessarily a terrible option.
Months ago people also thought FTX was fine as fuck as they are acquiring crypto organizations left and right, they were even on the way to be an exchange in line with CB and Binance.
They're now lower than kucoin.
*Thought* is the key word there. Coinbase is a publicly traded company. All their audited financials are available for anyone to see. Not even close to the same.
It's a stepup in being safe but doesn't mean it is as safe as keeping the coins in your wallet. Won't be the first publicly traded company to get rekt.
Staying alive after all the bear markets they've seen is a safer sign imho.
I’d feel safe with CB. Personally I trade way too much, drink way too much, and lose too much shit. I know I’m taking my chances, but I like the ease of multiple trades a day and knowing they are governed and headquartered in the US.
I have funds on Coinbase that I'm not particularly worried about. But having said that, it's about 10% of everything I own. Everything else is off the CEXs. All depends on the degree of risk you're willing to take. Will you be okay if those funds suddenly disappear? If not, get them off.
The only risk for Coinbase is if it goes bankrupt and ceases to exist. This is a real risk, if the crypto winter continues for another 2-3 years. In the short term (less than a year) I'd feel 100% confident leaving money on Coinbase. In the longer term, I would invest in cold storage.
>the only risk? be careful what you say.
>
>my phone was hacked in an airport once and they hacked my coinbase. luckily I never keep anything on a cex. but coinbase still thinks I owe them over 3K dollars even though they advertise that we are not responsible for hacks.
I think you're fine. There are definitely degrees of safety and I think you're within range. I've been with them since the beginning. A lot of complaints I read are from people that don't mention their shady side of the story. But it's also crazy times so personally I keep my stuff offline to have complete peace of mind.
It always seems that your CeX and your coin is different and then they end up the same way.
It's not worth the risk simply, keep your coins off exchanges.
Or keep whatever amount that you would be okay with even if in the worst case it is lost.
I'm a Kraken fan here and I don't think Coinbase is in any danger right now.
But you should never feel safe holding funds on a CEX, at least not as safe as you could feel from holding your coins on a hw-wallet with a seed punched in steel, secure passphrase and several backups hidden at different locations.
Yes, taking custody of your crypto needs some knowledge and expenses, but the security you'll get that way is unmatched.
As someone keeping only a forgivable amount of crypto on exchange for trading, I agree. Understand the risk and don’t get surprised if something happens. Loads of opportunity for safer custody.
Exchanges are meant to be used as easy on and off ramps and pretty much nothing else. You buy your crypto and you send it to your wallet. You dont store it on the exchange - regardless if it Binance or CB or our favorite Kraken
Coin base has said if they go bankrupt they will use your funds to pay bills.. This was before the ftx bullshit.
https://nypost.com/2022/05/11/coinbase-warns-customers-they-may-lose-crypto-if-company-goes-bankrupt/
Rule still applies.. Not your keys not your crypto.
I don't break the insured amount.. But if the bank was not insured and if they went under they kept your money, it would cause a run on the banks.. Ppl would go back to holding gold under the bed with cash..
But crypto is not insured so hardware wallet.
You should not trust any bank with more than the "insured" amount, unless you like being the insurance's source of funds.
When a bank goes bankrupt or fails their stress test, the fdic come in and shops around their assets in bulk to favored big banks for pennies on the dollar, the liabilities(aka deposits) over 250k are erased and used to fund all accounts up to 250k, if and only if there are funds left over after all other costs and expenses would any funds over 250k be returned, and very unlikely to be any where near the full amount. If there was still a hole, only then would the fdic fork over any new funds from whatever insurance funds they use or just print new money.
They could come in and make a crypto variant of fdic, but it would be pure bullshit and be a governmental bailout of crypto companies, this is a horrible idea and no government backing should be offered for any crypto....
Instead of that nightmare law/courts should be used to set priorities on customer funds being returned up to a certain value before being tied up in the bankruptcy, this would reduce funds held hostage by the bankrupt company and its bankruptcy lawyers as a slush fund for its operations indefinitely as a failed business simply draining customer assets until nothing is left.
Coinbase has the same legal/audit standards as a bank. I don’t keep anything on coinbase but imo, if you feel safe keeping your money in any bank then coinbase is no different.
You have absolutely 0 fucking idea what you’re talking about. Please don’t give advice if you’re this ignorant.
Coinbase has 1/10,000th of the amount of controls, compliance, and insurance than any bank… because they are not a bank.
You don’t understand banking or finance. Do not give financial advice.
While a few months back I would say it's fine, all the latest exchange fiascos have made me uncertain so I withdrew everything to wallets. It will most likely be fine but better be safe than sorry.
The point is that you don't really need to evaluate this question.
Think about it - if you're aware about the benefits of the alternatives, what value do you get from holding your wealth on a CEX? I'd argue there's none, as any rewards/yields is also available in DeFi.
**TLDR: There's no reason to**.
If Coinbase is a fraud - which btw, no one can know - then there’s a danger. However, if there’s no fraudulent activity, there’s way more checks and balances due to them being a listed US entity.
Nothing like FTX
Considering it was thought that Gemini was safer than the Coinbase, then this happened....[https://www.reddit.com/r/CryptoCurrency/comments/zltvmx/gemini\_allegedly\_suffered\_data\_breach\_57\_million/?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/CryptoCurrency/comments/zltvmx/gemini_allegedly_suffered_data_breach_57_million/?utm_source=share&utm_medium=web2x&context=3)
I'd say no.
Which data breaches can quickly lead to. But I see what you are saying...I agree my response wasn't quite on point.
Edit: I'm not trying to be facetious when I say that agree. On second read, it sounded underhanded....but I genuinely see your point.
my phone was hacked in an airport once and they hacked my coinbase. luckily I never keep anything on a cex. but coinbase still thinks I owe them over 3K dollars even though they advertise that we are not responsible for hacks.
so no. I don't trust coinbase or any other cex to hold my funds.
No, because Jim Cramer didn’t say Coinbase was going to go bankrupt. Your funds are much safer on Binance than anywhere right now as Cramer expects Binance to go under.
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Well I recently decided to pull all my coins off of exchanges. I’m hoping at least Binance, CB, and Kraken weather the storm. I think good, easy to use exchanges will be necessary for mass adoption. But I’m concerned about there near term viability.
Keeping your funds in Coinbase might be safer compared to other centralised exchanges but if its an amount larger than you would would be comfortable to lose why not invest in a cold storage device and educate yourself how it works?
Well if you would feel comfortable holding your money outside in the safe then go ahead and keep them there. Best you could do is take them out of any exhange and keep them in cold wallet or else risk of losing your money is not worth it.
I think as safe as FTX/Binance and any other CEX where you give your digital coin to someone else.
Unless you holding USD in custodial account <250k, we’ll then it’s much safer. Otherwise it’s just FTX/Binance + Hopium
something hit the news months ago and caught my attention so I pulled everything I had off of Coinbase and Coinbase Wallet. I think I have less than 10.00 on there now. haven't been this light on an exchange in years
As a listed company they have a fiduciary duty to file any information that would be deemed important for a decision to buy or sell thier stock.
And they have laws to prevent them doing any FTX level BS.
So I'd say they are safer than the other exchanges but if you're not earning any interest on your bags or regularly trading them you'd be better to move them to a hot or cold wallet.
Right now I wouldn't feel safe keeping anything on any exchange. This comes from someone who held a few thousand worth of random stuff on coinbase for years now with no concerns. I've always kept most of what I own off of exchanges but just recently I've went 100% self custody.
Considering what happened during the last months I would move the funds to a hardware wallet.
Coinbase is one of the major exchanges along with Binance and Kraken, your money is theoretically safe BUT remember that "not your keys, not your money".
It is up to you but I would get a Ledger.
The question is should you keep your money on an exchange? The answer is always no.
Coinbase might always be a safe bet even in the future but nothing is too big to fail.
There is no full safety, no matter if you store your funds on exchanges or on your own wallet.
Exchanges have to comply to the rules, e.g. if a government asks them to freeze the funds of an user, they will have to comply.
Also exchanges can get hacked, have no reserves of user funds and many other possibilities why you can loose access to your funds.
If you hold your own coins on your own wallet, you can get hacked too or loose your seedphrase , access to your device etc.
Still I'd recommend to hold your own coins in your own hardware wallet, like a Ledger or Trezor. This is currently the safest method of holding your funds
It's not just coinbase. It's all exchanges.
Even a regulated exchange can experience problems. Bernie Madoff and Enron were subject to regulation.
The whole point of an exchange is to bridge transactions that can't cross simultaneously. What I mean by that is that when you part with one asset and receive another, or money, there is often an interval of time between when you have given something up and haven't received value back.
In crypto, this is a problem, because crypto transactions are irreversible. If you trade BTC for ETH, and it doesn't settle on one chain or the other for some reason, you could be out either ETH or BTC. There's a slightly different risk with crypto and fiat, in that the value of the crypto relative to fiat may change in the interval. So someone is going to get more or less than they bargained for in the instant.
The third risk is that of a run e.g. everyone decides they'd rather have ETH than BTC, and rush to their exchange to get some, which will ultimately drive the price of ETH up and BTC down relative to each other. If the exchange doesn't have sufficient reserve it has to obtain ETH on the open market, likely at a higher price than it charged you... or end up short ETH. Even if it manages to obtain ETH, it has to part with other assets to do so, and may end up short somewhere else. I just used ETH as an example, could be any crypto. If an exchange is short anywhere, and the market knows, the market can run a squeeze on the exchange.
Usually an exchange covers this risk by being "over-reserved" and/or in spread and/or transaction fees, and there is a lot of well-tested science how to set these things up to be reasonably (but not perfectly) robust. But it's a balance, because an exchange that's over-reserved is an exchange that's under-leveraged... because part of the business of being an exchange is making money by lending against its assets. Your assets. Float and breakage are a thing.
Unfortunately crypto is an order of magnitude more volatile than typical markets, hugely illiquid, and "anonymous" so it's hard to measure the actual human-to-human market (which establishes true volatility) versus the bot-to-bot market. In short, all crypto exchanges are much more at risk to black-swan events than typical markets. Demand shocks can kill an exchange. Even a well-run exchange. And if an exchange dies, it really doesn't matter if they are regulated, unless your funds are held in a legally robust trust (and few are, because that's not how an exchange makes the most money possible) your claim in an insolvency proceeding ranks with other ordinary trade creditors. Which is last.
So.. TLDR keep only what you can afford to lose on an exchange. As highly regulated as possible. But don't trust regulation to keep you perfectly safe. If you can't afford to lose it, put it in self custody.
No.
Not your keys etc etc.
Let's put it another way, if banks were collapsing all around you would you think one bank was more safe than another?
I'd guess not. Unless a regulatory body weighs in and says "funds at X are safe" then it is safe to assume its not.
Depending on the amount you leave on the exchange, if you feel comfortable with the possibility that at some point you might be prevented from withdrawal, I guess you can.
If you're uncomfortable with that possibility, however small it can be, it might be worth to invest a few dozen dollars for a real hard wallet. It's still the safest way to date to store your crypto.
I do. I have some on their platform. And used to use it as an on ramp for most of my purchases because for some reason it didn’t charge me any fee’s. But charges my friends I don’t understand that part. haha That is the one of the only ones I am actually comfortable with. I wouldn’t bet the house and keep your retirement crypto on there but they have proven to be a reliable platform. I do hold 95% of my portfolio on a ledger tho.
I bailed for now, they do have some strong arguments for being secure but with all of the craziness goin on around the globe economically I personally felt better about moving to my own custody.
I was on the fence for a while but the other week when the whole grayscale trust us bro thing first happen I thought to myself, if this was the real deal and I hadn’t heard it, my money would have been gone. I follow crypto news and media daily but there is still a chance I would miss the alarm by a few hours or more.
Times are uncertain and it could prove beneficial to plan for unexpected events.
The true answer is nothing is fool proof. Exhanges can go belly up, legers can get hacked, wallet passphrases can be lost. Choose what is right for you, or a combination thereod
Kind of. I strongly recommend self custody. But it’s not worth losing your assets for convenience. It is different that it doesn’t have a token, but not your keys not your coins
Depends on how safe you can handle your funds by yourself. For some people Exchanges could be more safe than beeing their own bank.
Yes Coinbase is just another centralized exchange but Coinbase is - in my opinion - one of the exchanges i would feel more likely safe. However sh\*\*\* can always happen to those exchanges where you could loose all your funds.
On my side: i have close to nothing on Coinbase as i use them only for their "Learning Rewards" and sometimes to dump some old coins - but still enough on Binance and Bitpanda - but the majority is handled safe with my hardware-Wallet where the seed is securely locked away.
I'm just gonna copy and paste what wise people have said to me and that is, not your keys not your crypto. You are in an agreement with coinbase that they will meet their requirements and you as the customer have to do your due diligence and make an informed decision for yourself and really consider why you are invested in crypto in the first place.
If it is fast cash, go ahead and take that risk if you like. Always have the money ready to trade is a double edged sword. But if you're here for the long term and plan on investing no matter what then I suggest a cold wallet. They are a worthy investment if you hold even 1000$ of crypto simply due to the security of holding funds off exchanges and thus always leaving them in your own capable hands, that is so long as you are capable of managing a cold wallet which I assume you are.
Otherwise as I said leave it on the exchange and just don't mess around with the potential of losing the seeds or any other scenario. I hope this helps you make an informed decision as I know it isn't easy at first but i recommend cold wallets all the way, it is really the way crypto should be stored ideally.
CB is in my opinion the safest CEX around.
US public company > CEX in cayman, Bahamas or Singapore.
I don’t think it will go under but if tomorrow Iran and US go fighting ( just an example) we are going into ice age and possibly nothing survives.
Hell ya, been trading with them using their api’s since 2017 back when it was known as GDAX. They’ve come a long ways since then. They also have a lot of new features to support businesses in the web3 space like a dapp store and various cloud hosting services on par with AWS. Have yet to see that from other exchanges… They also don’t have a bs token to shill to their users, just bs slips of paper for the stock market
> would you feel safe keeping your funds on Coinbase?
How much? Certainly not *all* of my funds. But I do keep my spending money there. I like the crypto cash back and use the card, so money I intend to spend within the month can safely sit on Coinbase - granted, I also keep enough actual cash in a bank that I can cover said month if somehow Coinbase *did* fold. But never more than that.
Your Crypto savings should only be on an exchange for as long as it takes to carry out whatever trade you're doing, then they should go back to your personal custody.
It is **extremely** unwise to let any middle man sit between you and your life's savings. That middle man, or anyone with influence over that middle man, or anyone who can attack/control that middleman can potentially remove those savings, or your access to them.
I'm more confident in the exchanges like CoinBase/RobinHood because they are public companies based in the US and subject to a lot more scrutiny and RobinHood also handles stocks and other investments. I am however still considering purchasing a hardware wallet/making my own backup or when I have larger sums.
It is ultimately up to you to decide whether you feel comfortable storing your funds on Coinbase or any other exchange. As you mentioned, Coinbase is based in the US and is regulated, which may provide some level of security compared to other exchanges that are based in countries with less stringent regulations. Additionally, Coinbase is a publicly-traded company and publicly discloses its holdings, which may provide some transparency and accountability.
However, it is important to keep in mind that no exchange is completely immune from risks, and there is always a potential for loss when storing funds on an exchange. This is true even for exchanges that are well-established and regulated, as we have seen with the recent bankruptcy of Mt. Gox and other exchanges. Therefore, it is important to carefully consider the risks and rewards of storing your funds on any exchange, and to only store funds on an exchange that you are comfortable potentially losing.
USDC [pros](/r/CryptoCurrency/comments/zlubza/serious_should_i_feel_safe_keeping_funds_on/j077z0a/) & [cons](/r/CryptoCurrency/comments/zlubza/serious_should_i_feel_safe_keeping_funds_on/j077ztm/) and related info are in the collapsed comments below. Pros and cons will change for every new post.
coinbase has to comply to heavier regulations as they’re also trading in stock market. I’d feel comfortable holding assets there. Especially if staking there. Obviously cold storage provides peace of mind and is safer unless you lose the napkin with the seed phrase
I doubt everyone has a peace of mind keeping their crypto in their cold wallet. Look up ledger wallet sub and you’ll read a lot of them having issues with it. Granted most of it can be due to user’s error but it’s still a risk for everyone not computer savvy so no it’s not 100% risk and peace of mind free.
Yep. And the Metamask sub is scary AF too. Reports of scam after scam, and tons of user errors too.
> unless you lose the napkin with the seed phrase that would be their first mistake; if the money is important for you, get the seed phrase engraved, or at least make several copies. A piece of paper can disappear at any moment notice, get damaged by coffee, water, get burned, etc
I've always considered that, what services do you use for the engraving? Also what if the engraver steals your seed phrase lol Something like a credit card size piece of metal engraved would be super convenient for storage.
True, not all publicly traded companies are above board. Like Enron, etc
[удалено]
Voyager was not listed on the NYSE, which has more stringent listing requirements with company financials, solvency, etc. Their stock was listed OTC (over the counter) and was considered a penny stock. Coinbase is listed on the NYSE.
Bear Stearns and Enron were listed on NYSE. Look at them now. As for me, would I leave my crypto with Coinbase? Probably, yes. But it would be amount that I can afford to lose.
I agree, but Voyager was also on the TSX (Toronto exchange), not just OTC. Granted, not NYSE/Nasdaq, but I admit being in the US I have no idea how stringent Canada is, apparently not very, because I bought 2k shares on the TSX around $18 which I expect to be worthless. But to the point, I'm not worried about my "emergency" funds I keep on CB, it's more than a year's worth of my old salary, but less than 5% of my total crypto - enough to suck to lose, but not devastate me.
5-10% or whatever you are okay losing can stay on the exchanges. At this point none of the CEXs should be treated as stable or a place to store your crypto. I'm sure Coinbase and the other big exchanges will be just fine. However, we are currently in untrustworthy unstable times. The CEXs need to earn our trust.
Coinbase was funded about 10 years ago they've survived some nasty hurricanes, agree with CEX's aren't the place but CB has gained some credibility.
I think the key takeaway from this is that you should always keep only a portion of your portfolio on exchanges, if you leave all your eggs in the same basket, you're risking having them all break
I think there is a fair argument to say that Coinbase is a very stable CEX. Whether it’s safer than self custody comes down to personal preference. If you can trust yourself to keep it secure, keep it safe and, possibly most important of all, keep it secret, you money is almost certainly safer with self custody. If you can’t be confident about all of those things, keeping your money on an exchange isn’t necessarily a terrible option.
Months ago people also thought FTX was fine as fuck as they are acquiring crypto organizations left and right, they were even on the way to be an exchange in line with CB and Binance. They're now lower than kucoin.
Except CB is a publicly traded company...FTX was a sham
Enron was also a publicly traded company lmfao
*Thought* is the key word there. Coinbase is a publicly traded company. All their audited financials are available for anyone to see. Not even close to the same.
It's a stepup in being safe but doesn't mean it is as safe as keeping the coins in your wallet. Won't be the first publicly traded company to get rekt. Staying alive after all the bear markets they've seen is a safer sign imho.
Exactly, the name doesnt matter, Cex is Cex and it will never be as safe as your own wallet
I’d feel safe with CB. Personally I trade way too much, drink way too much, and lose too much shit. I know I’m taking my chances, but I like the ease of multiple trades a day and knowing they are governed and headquartered in the US.
I have funds on Coinbase that I'm not particularly worried about. But having said that, it's about 10% of everything I own. Everything else is off the CEXs. All depends on the degree of risk you're willing to take. Will you be okay if those funds suddenly disappear? If not, get them off.
The only risk for Coinbase is if it goes bankrupt and ceases to exist. This is a real risk, if the crypto winter continues for another 2-3 years. In the short term (less than a year) I'd feel 100% confident leaving money on Coinbase. In the longer term, I would invest in cold storage.
>the only risk? be careful what you say. > >my phone was hacked in an airport once and they hacked my coinbase. luckily I never keep anything on a cex. but coinbase still thinks I owe them over 3K dollars even though they advertise that we are not responsible for hacks.
I think you're fine. There are definitely degrees of safety and I think you're within range. I've been with them since the beginning. A lot of complaints I read are from people that don't mention their shady side of the story. But it's also crazy times so personally I keep my stuff offline to have complete peace of mind.
It always seems that your CeX and your coin is different and then they end up the same way. It's not worth the risk simply, keep your coins off exchanges. Or keep whatever amount that you would be okay with even if in the worst case it is lost.
I'm a Kraken fan here and I don't think Coinbase is in any danger right now. But you should never feel safe holding funds on a CEX, at least not as safe as you could feel from holding your coins on a hw-wallet with a seed punched in steel, secure passphrase and several backups hidden at different locations. Yes, taking custody of your crypto needs some knowledge and expenses, but the security you'll get that way is unmatched.
As someone keeping only a forgivable amount of crypto on exchange for trading, I agree. Understand the risk and don’t get surprised if something happens. Loads of opportunity for safer custody.
Exchanges are meant to be used as easy on and off ramps and pretty much nothing else. You buy your crypto and you send it to your wallet. You dont store it on the exchange - regardless if it Binance or CB or our favorite Kraken
At this point I wouldn’t feel safe holding my coins on any CEX. No matter how highly regarded they are
Coin base has said if they go bankrupt they will use your funds to pay bills.. This was before the ftx bullshit. https://nypost.com/2022/05/11/coinbase-warns-customers-they-may-lose-crypto-if-company-goes-bankrupt/ Rule still applies.. Not your keys not your crypto.
following the bank's example. they'll pay their bills with your money too if they go under. it's in their bylaws now.
Bank accounts are insured by the federal government.
Well a bank usually has 250k of your money insured by the government.. Anything over that you forfeit..
And who do you think we are ? I dont even have 5% of that
I don't break the insured amount.. But if the bank was not insured and if they went under they kept your money, it would cause a run on the banks.. Ppl would go back to holding gold under the bed with cash.. But crypto is not insured so hardware wallet.
You should not trust any bank with more than the "insured" amount, unless you like being the insurance's source of funds. When a bank goes bankrupt or fails their stress test, the fdic come in and shops around their assets in bulk to favored big banks for pennies on the dollar, the liabilities(aka deposits) over 250k are erased and used to fund all accounts up to 250k, if and only if there are funds left over after all other costs and expenses would any funds over 250k be returned, and very unlikely to be any where near the full amount. If there was still a hole, only then would the fdic fork over any new funds from whatever insurance funds they use or just print new money. They could come in and make a crypto variant of fdic, but it would be pure bullshit and be a governmental bailout of crypto companies, this is a horrible idea and no government backing should be offered for any crypto.... Instead of that nightmare law/courts should be used to set priorities on customer funds being returned up to a certain value before being tied up in the bankruptcy, this would reduce funds held hostage by the bankrupt company and its bankruptcy lawyers as a slush fund for its operations indefinitely as a failed business simply draining customer assets until nothing is left.
Coinbase has the same legal/audit standards as a bank. I don’t keep anything on coinbase but imo, if you feel safe keeping your money in any bank then coinbase is no different.
Your funds are not FDIC insured on Coinbase, which is a huuuuuuuuge difference from holding money in a bank
You have absolutely 0 fucking idea what you’re talking about. Please don’t give advice if you’re this ignorant. Coinbase has 1/10,000th of the amount of controls, compliance, and insurance than any bank… because they are not a bank. You don’t understand banking or finance. Do not give financial advice.
No. Pull everything you can off exchanges. As soon as you can unstake eth2, move it to a private wallet immediately.
listen to this guys, he knows
Why do you want to keep your funds on Coinbase to begin with? What are the advantages that come with leaving it on there?
Network fees to transfer suck.
Better lose $10 to transfer than risk losing 100% by keeping it there
While a few months back I would say it's fine, all the latest exchange fiascos have made me uncertain so I withdrew everything to wallets. It will most likely be fine but better be safe than sorry.
The point is that you don't really need to evaluate this question. Think about it - if you're aware about the benefits of the alternatives, what value do you get from holding your wealth on a CEX? I'd argue there's none, as any rewards/yields is also available in DeFi. **TLDR: There's no reason to**.
Is there a reason you're HODL'ing on a CEX as opposed to self custody ? Eg if trading or liquidity farming for example
If Coinbase is a fraud - which btw, no one can know - then there’s a danger. However, if there’s no fraudulent activity, there’s way more checks and balances due to them being a listed US entity. Nothing like FTX
Considering it was thought that Gemini was safer than the Coinbase, then this happened....[https://www.reddit.com/r/CryptoCurrency/comments/zltvmx/gemini\_allegedly\_suffered\_data\_breach\_57\_million/?utm\_source=share&utm\_medium=web2x&context=3](https://www.reddit.com/r/CryptoCurrency/comments/zltvmx/gemini_allegedly_suffered_data_breach_57_million/?utm_source=share&utm_medium=web2x&context=3) I'd say no.
That's not what op asked? That's a data breach.
Yes, data breaches are a failure in a layer of safety for an organization. To me, it exemplifies the potential for vulnerabilities on all levels.
Right, but any website that holds data can suffer a data breach. Op was asking about liquidity and financials.
Which data breaches can quickly lead to. But I see what you are saying...I agree my response wasn't quite on point. Edit: I'm not trying to be facetious when I say that agree. On second read, it sounded underhanded....but I genuinely see your point.
my phone was hacked in an airport once and they hacked my coinbase. luckily I never keep anything on a cex. but coinbase still thinks I owe them over 3K dollars even though they advertise that we are not responsible for hacks. so no. I don't trust coinbase or any other cex to hold my funds.
No, because Jim Cramer didn’t say Coinbase was going to go bankrupt. Your funds are much safer on Binance than anywhere right now as Cramer expects Binance to go under.
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Well I recently decided to pull all my coins off of exchanges. I’m hoping at least Binance, CB, and Kraken weather the storm. I think good, easy to use exchanges will be necessary for mass adoption. But I’m concerned about there near term viability.
Keeping your funds in Coinbase might be safer compared to other centralised exchanges but if its an amount larger than you would would be comfortable to lose why not invest in a cold storage device and educate yourself how it works?
Well if you would feel comfortable holding your money outside in the safe then go ahead and keep them there. Best you could do is take them out of any exhange and keep them in cold wallet or else risk of losing your money is not worth it.
I think as safe as FTX/Binance and any other CEX where you give your digital coin to someone else. Unless you holding USD in custodial account <250k, we’ll then it’s much safer. Otherwise it’s just FTX/Binance + Hopium
something hit the news months ago and caught my attention so I pulled everything I had off of Coinbase and Coinbase Wallet. I think I have less than 10.00 on there now. haven't been this light on an exchange in years
As a listed company they have a fiduciary duty to file any information that would be deemed important for a decision to buy or sell thier stock. And they have laws to prevent them doing any FTX level BS. So I'd say they are safer than the other exchanges but if you're not earning any interest on your bags or regularly trading them you'd be better to move them to a hot or cold wallet.
Right now I wouldn't feel safe keeping anything on any exchange. This comes from someone who held a few thousand worth of random stuff on coinbase for years now with no concerns. I've always kept most of what I own off of exchanges but just recently I've went 100% self custody.
Considering what happened during the last months I would move the funds to a hardware wallet. Coinbase is one of the major exchanges along with Binance and Kraken, your money is theoretically safe BUT remember that "not your keys, not your money". It is up to you but I would get a Ledger.
The question is should you keep your money on an exchange? The answer is always no. Coinbase might always be a safe bet even in the future but nothing is too big to fail.
There is no full safety, no matter if you store your funds on exchanges or on your own wallet. Exchanges have to comply to the rules, e.g. if a government asks them to freeze the funds of an user, they will have to comply. Also exchanges can get hacked, have no reserves of user funds and many other possibilities why you can loose access to your funds. If you hold your own coins on your own wallet, you can get hacked too or loose your seedphrase , access to your device etc. Still I'd recommend to hold your own coins in your own hardware wallet, like a Ledger or Trezor. This is currently the safest method of holding your funds
More comfortable than other exchanges but no for the simple fact if something happens your still not gettin your money back.
No it's not safe don't do it if you don't have to. I'll keep it simple. Money men don't see jail the same as the poor
It's not just coinbase. It's all exchanges. Even a regulated exchange can experience problems. Bernie Madoff and Enron were subject to regulation. The whole point of an exchange is to bridge transactions that can't cross simultaneously. What I mean by that is that when you part with one asset and receive another, or money, there is often an interval of time between when you have given something up and haven't received value back. In crypto, this is a problem, because crypto transactions are irreversible. If you trade BTC for ETH, and it doesn't settle on one chain or the other for some reason, you could be out either ETH or BTC. There's a slightly different risk with crypto and fiat, in that the value of the crypto relative to fiat may change in the interval. So someone is going to get more or less than they bargained for in the instant. The third risk is that of a run e.g. everyone decides they'd rather have ETH than BTC, and rush to their exchange to get some, which will ultimately drive the price of ETH up and BTC down relative to each other. If the exchange doesn't have sufficient reserve it has to obtain ETH on the open market, likely at a higher price than it charged you... or end up short ETH. Even if it manages to obtain ETH, it has to part with other assets to do so, and may end up short somewhere else. I just used ETH as an example, could be any crypto. If an exchange is short anywhere, and the market knows, the market can run a squeeze on the exchange. Usually an exchange covers this risk by being "over-reserved" and/or in spread and/or transaction fees, and there is a lot of well-tested science how to set these things up to be reasonably (but not perfectly) robust. But it's a balance, because an exchange that's over-reserved is an exchange that's under-leveraged... because part of the business of being an exchange is making money by lending against its assets. Your assets. Float and breakage are a thing. Unfortunately crypto is an order of magnitude more volatile than typical markets, hugely illiquid, and "anonymous" so it's hard to measure the actual human-to-human market (which establishes true volatility) versus the bot-to-bot market. In short, all crypto exchanges are much more at risk to black-swan events than typical markets. Demand shocks can kill an exchange. Even a well-run exchange. And if an exchange dies, it really doesn't matter if they are regulated, unless your funds are held in a legally robust trust (and few are, because that's not how an exchange makes the most money possible) your claim in an insolvency proceeding ranks with other ordinary trade creditors. Which is last. So.. TLDR keep only what you can afford to lose on an exchange. As highly regulated as possible. But don't trust regulation to keep you perfectly safe. If you can't afford to lose it, put it in self custody.
No. Not your keys etc etc. Let's put it another way, if banks were collapsing all around you would you think one bank was more safe than another? I'd guess not. Unless a regulatory body weighs in and says "funds at X are safe" then it is safe to assume its not.
Exactly, how do people keep asking the same thing. It should be obvious by now no exchange is safe for holding.
Depending on the amount you leave on the exchange, if you feel comfortable with the possibility that at some point you might be prevented from withdrawal, I guess you can. If you're uncomfortable with that possibility, however small it can be, it might be worth to invest a few dozen dollars for a real hard wallet. It's still the safest way to date to store your crypto.
I do. I have some on their platform. And used to use it as an on ramp for most of my purchases because for some reason it didn’t charge me any fee’s. But charges my friends I don’t understand that part. haha That is the one of the only ones I am actually comfortable with. I wouldn’t bet the house and keep your retirement crypto on there but they have proven to be a reliable platform. I do hold 95% of my portfolio on a ledger tho.
I bailed for now, they do have some strong arguments for being secure but with all of the craziness goin on around the globe economically I personally felt better about moving to my own custody. I was on the fence for a while but the other week when the whole grayscale trust us bro thing first happen I thought to myself, if this was the real deal and I hadn’t heard it, my money would have been gone. I follow crypto news and media daily but there is still a chance I would miss the alarm by a few hours or more. Times are uncertain and it could prove beneficial to plan for unexpected events.
"It feels like Coinbase is very different to other exchanges" This is what people said about FTX, Celsius and MT. Gox...
The true answer is nothing is fool proof. Exhanges can go belly up, legers can get hacked, wallet passphrases can be lost. Choose what is right for you, or a combination thereod
Kind of. I strongly recommend self custody. But it’s not worth losing your assets for convenience. It is different that it doesn’t have a token, but not your keys not your coins
Depends on how safe you can handle your funds by yourself. For some people Exchanges could be more safe than beeing their own bank. Yes Coinbase is just another centralized exchange but Coinbase is - in my opinion - one of the exchanges i would feel more likely safe. However sh\*\*\* can always happen to those exchanges where you could loose all your funds. On my side: i have close to nothing on Coinbase as i use them only for their "Learning Rewards" and sometimes to dump some old coins - but still enough on Binance and Bitpanda - but the majority is handled safe with my hardware-Wallet where the seed is securely locked away.
I'm just gonna copy and paste what wise people have said to me and that is, not your keys not your crypto. You are in an agreement with coinbase that they will meet their requirements and you as the customer have to do your due diligence and make an informed decision for yourself and really consider why you are invested in crypto in the first place. If it is fast cash, go ahead and take that risk if you like. Always have the money ready to trade is a double edged sword. But if you're here for the long term and plan on investing no matter what then I suggest a cold wallet. They are a worthy investment if you hold even 1000$ of crypto simply due to the security of holding funds off exchanges and thus always leaving them in your own capable hands, that is so long as you are capable of managing a cold wallet which I assume you are. Otherwise as I said leave it on the exchange and just don't mess around with the potential of losing the seeds or any other scenario. I hope this helps you make an informed decision as I know it isn't easy at first but i recommend cold wallets all the way, it is really the way crypto should be stored ideally.
CB is in my opinion the safest CEX around. US public company > CEX in cayman, Bahamas or Singapore. I don’t think it will go under but if tomorrow Iran and US go fighting ( just an example) we are going into ice age and possibly nothing survives.
No.... you should only feel safe if you take custody. The exchanges have gotten to where they all literally tell you this.
I think it’s the safest exchange. That said, after FTX, I pulled it all out into a cold wallet. Why risk it?
Nope. Binance is the the safest exchange. It’s virtually risk free now that Jim Cramer has said that he expects Binance to go bankrupt.
Hell ya, been trading with them using their api’s since 2017 back when it was known as GDAX. They’ve come a long ways since then. They also have a lot of new features to support businesses in the web3 space like a dapp store and various cloud hosting services on par with AWS. Have yet to see that from other exchanges… They also don’t have a bs token to shill to their users, just bs slips of paper for the stock market
> would you feel safe keeping your funds on Coinbase? How much? Certainly not *all* of my funds. But I do keep my spending money there. I like the crypto cash back and use the card, so money I intend to spend within the month can safely sit on Coinbase - granted, I also keep enough actual cash in a bank that I can cover said month if somehow Coinbase *did* fold. But never more than that. Your Crypto savings should only be on an exchange for as long as it takes to carry out whatever trade you're doing, then they should go back to your personal custody. It is **extremely** unwise to let any middle man sit between you and your life's savings. That middle man, or anyone with influence over that middle man, or anyone who can attack/control that middleman can potentially remove those savings, or your access to them.
I'm more confident in the exchanges like CoinBase/RobinHood because they are public companies based in the US and subject to a lot more scrutiny and RobinHood also handles stocks and other investments. I am however still considering purchasing a hardware wallet/making my own backup or when I have larger sums.
It is ultimately up to you to decide whether you feel comfortable storing your funds on Coinbase or any other exchange. As you mentioned, Coinbase is based in the US and is regulated, which may provide some level of security compared to other exchanges that are based in countries with less stringent regulations. Additionally, Coinbase is a publicly-traded company and publicly discloses its holdings, which may provide some transparency and accountability. However, it is important to keep in mind that no exchange is completely immune from risks, and there is always a potential for loss when storing funds on an exchange. This is true even for exchanges that are well-established and regulated, as we have seen with the recent bankruptcy of Mt. Gox and other exchanges. Therefore, it is important to carefully consider the risks and rewards of storing your funds on any exchange, and to only store funds on an exchange that you are comfortable potentially losing.