WHY YOU SHOULD STAY AWAY FROM COINBASE!steemCreated with Sketch.

in bitcoin •  7 years ago 

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Coinbase is one of the worst exchanges for beginner and intermediate traders. Coinbase is also one of the most used exchanges. Here are some reasons why you should never use coinbase.

The only reason you could argue coinbase is useful is that you can buy using a debitcard. This is good but you only have a $100 dollar limit per WEEK. After you buy with your credit card and pay the $3.75 fee per $100, you will transfer it to bitconnect or cloud mining etc. Coinbase charges a base fee or 4% for all transactions. Here is a chart showing fees per transaction type.

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This is considerably more than any other exchanges fees. Also you doubling the fee because you have to buy it and transfer your bitcoin. Coinbase also monitors your transaction history. If they think your using bitcoin for gambling or something els they don't like they will cancel your transactions or worse ban/suspend your account.

Transaction times are significantly LONGER than other exchanges. To test this I sent 0.0026 bitcoin to a blockchain address to convert it into STEEM POWER and it took 4 hours to complete the transaction

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Another reason to stay away from coinbase is because they provide minimal data and inaccurate charts, combined with the high fees this is the worst site to day trade/swing trade on. I recommend other platforms like Poloniex, and Bittrex.

In conclusion, coinbase uses new and inexperienced traders to there advantage offering a cheap, safe, and secure place to store bitcoin.

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Thanks for this! I am a beginner and I did go to Coinbase for those same reasons, like using a debit card, and it has been really annoying. My debit card purchase ended up being blocked by my bank anyway, which I am grateful for, because that was when I first realized how high the transaction fees would have been! So I used my bank account instead, with lower fees, but it takes 6 days to get my Bitcoin! It's extremely annoying.

So I take it Bittrex and Poloniex don't take debit? If I use a bank account will there be such a long delay on purchasing as there is with Coinbase? Are there buy limits?

You can use tools like kraken and other websites to buy bitcoin then transfer it to your wallet or whatever you want. Look up "bitcoin debit card purchase" there will be allot of exchanges, some you will reconise and go to those ones. I will make a post about it as soon as possible because this is a great topic thank you!

Thank you! I wasn't sure about Kraken.

A good friend of mine recommended kraken, what do you think of that?

Kraken is one of the top exchanges and I would recommend that to anyone! Low fees great interface!

The purchase fees are only 4% if you use a credit card. Purchases are instant. If you pay by bank draft the limits are higher but it takes 10 days to get what you bought.

Every other exchange I've seen doesn't let you pay with dollars.

Yes, at times it takes longer to process transactions. But some of that is because Bitcoin only processes 7 transactions per second.

To say it's a scam is ridiculous. No, Coinbase is not a criminal enterprise.

I used to use coinbase and I realized once I switched to other exchanges I was saving more money

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I started with Coinbase because it was easy to link my debit card but of course my bank blocked the initial transaction. I will definitely try Bittrex or Poloniex next time i purchase some coin. Thanks for sharing!

Welcome good luck friend