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Is Coinbase a good company?

Kevin VoigtNov 15, 2021

The short answer is “yes, Coinbase is a legitimate cryptocurrency exchange and broker”. That is because of its high profile investors and highly regulated location (San Francisco). Coinbase is very unlikely to run away with your money.

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Secondly, can Coinbase be trusted?

Is Coinbase a legitimate crypto exchange platform? Yes, Coinbase is widely considered to be one of the most reliable and legitimate cryptocurrency exchange platforms on the internet.

People also ask, is Coinbase a pyramid scheme? No, Coinbase is not a Ponzi scheme. Coinbase is a credible, staggeringly successful company that just reported revenue of over $1 Billion for 2017.

Hereof, is Coinbase a good place to buy Bitcoin?

Why We Chose It: If you are brand new to the world of bitcoin and cryptocurrency, Coinbase is an excellent place to start due to support for a number of popular cryptocurrencies, a strong security track record, and reasonable fees. Coinbase is a large cryptocurrency wallet provider and exchange based in San Francisco.

Has Coinbase ever been hacked?

Coinbase added that it had never been hacked. It said 0.004 percent of its users had experienced “account takeovers” in the past year, where someone breached their devices and then gained access to their Coinbase accounts. The company said it educated its users on how to keep their accounts secure.

Can you lose money on Coinbase?

Yes, you lose a quantity of your money, at the time you gave it away in exchange for the bitcoin you received. ... No; you lost the money when you used it to buy the Bitcoins. If the price goes down, you will get less money back if you sell them. If the price goes up, you will get more money back if you sell them.

Why is Coinbase fee so high?

In spite of being a reliable cryptocurrency exchange platform, Coinbase charges a fee of 4% on all transactions. It is vital to note that the exchange still attracts many customers due to its market reputation. Apart from the high charges affecting crypto-to-crypto trading, fiat conversions are expensive on Coinbase.

Does Coinbase report to IRS?

Yes, Coinbase does report your crypto activity to the IRS if you meet certain criteria. It's very important to note that even if you do not receive a 1099, you are still required to report all of your cryptocurrency income on your taxes. Not doing so would be considered tax fraud in the eyes of the IRS.

Can I trust Coinbase with my SSN?

Coinbase does require that you provide your Social Security number to them when opening an account on their platform. They use your SS# for several reasons such as checking your background information, tax reporting purposes as well as to comply with anti- money laundering laws of the United States.

What happens if Coinbase goes out of business?

If it's the case that Coinbase shut down and goes bankrupt due to things like bad business handling or bad capital and finance management, there's a decent chance that Coinbase would simply notify their users that their service is shutting down, while giving them ample amounts of time to withdraw their money.

Can you get scammed on Bitcoin?

The nature of Bitcoin scams has changed as the cryptocurrency's infrastructure and investor base has evolved. Bitcoin investors can increase their odds for success by identifying common scams, such as Ponzi schemes, fake ICOs, and fraudulent exchanges.

Who owns the most bitcoin?

Satoshi Nakamoto

How do I avoid Coinbase fees?

Bitcoin has the most expensive transfer fees on Coinbase. One way to reduce transfer fees is to exchange Bitcoin to another cryptocurrency such as Litecoin or Bitcoin Cash. These coins will be cheaper to transfer, and could be exchanged back to Bitcoin once the transfer is complete on the receiving exchange.

How much is Coinbase fee?

USA

Payment Method for Purchase/Payout Method for SaleEffective Rate of Conversion Fee (after waiver)
US Bank Account1.49%
Coinbase USD Wallet1.49%
Debit Card or PayPal3.99%***
Instant Card Withdrawalup to 1.5% of any transaction and a minimum fee of $0.55

Is Coinbase the only way to buy Bitcoin?

Coinbase is probably the fastest and easiest way to buy bitcoins in the USA. If you need bitcoins fast, then buying with a debit card is a good option. Coinbase charges 3.99% fees for debit card purchases but you can get your coins instantly. Another payment option for US customers is using a connected bank account.

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About The Author

Kevin Voigt

Kevin is an Entrepreneur, Digital Nomad, Student, and ICO Marketing Manager currently based in Berlin & Champaign. He is actively involved in the Blockchain space and has worked in numerous projects in the Silicon Valley since 2017. His interests revolve around Finance, Consulting, and Blockchain Research.

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