Hi folks,

I just created an Coinbase account to receive (small amounts of) Bitcoin from another service. I would have looked into it more before doing so, but it was actually the only option, so I just dove in. However, from what I can tell, I don’t necessarily need to keep anything in my Coinbase account, and if I ever plan on doing anything else (buying, selling, making payments) with crypto, I’m curious if Coinbase is the right place to do it.

I’ve only done the most basic of research. I know more about blockchain and ledgers than I do about wallets and exchanges, and that still isn’t a lot.

So:

  • I need a Coinbase account to receive BTC, but I don’t need to keep it there
  • I don’t need to do anything with that BTC immediately - let’s call it small amounts of play money, for now
  • Since BTC is down right now (in my view) I might consider buying a bit, or potentially other cryptocurrency(ies)
  • I like the diversification of holding a bit of crypto even though I don’t totally trust the whole system nor its value
  • I travel and I can foresee potentially using crypto to make payments or withdraw cash as that pops up sometimes

Does it cost anything to move my BTC out of Coinbase? Are there better places to keep it that would make it worth it? Is Coinbase safe? Is it a terrible company? Would other places be safer, easier, harder? What am I not thinking of?

  • TragicNotCute@lemmy.worldEnglish
    3·
    11 days ago

    Generally the guidance is not to keep funds in an exchange any longer than needed. That’s what you should think of Coinbase as, so no, you shouldn’t keep coins in Coinbase long term. I’m not as deep into BTC, I only hold a little ETH, so my setup might be a little different to yours.

    I’d recommend Metamask for a wallet. I think they just added BTC support as well. You will get a recovery phrase when you set up any wallet, make sure you keep it in a safe place, this phrase IS your money. If someone gets it, they have your money. Guard it.

    Lemme address your other questions point by point:

    • I need a Coinbase account to receive BTC, but I don’t need to keep it there

    Nope. You don’t need Coinbase at all. Your wallet can send a receive directly. You need Coinbase to go back and forth between fiat currency (dollars or whatever).

    Does it cost anything to move my BTC out of Coinbase?

    Yes. All crypto transactions charge a fee. I don’t know if Coinbase charges on top of that, but probably a bit.

    is Coinbase safe?

    Eh, safe enough. They are publicly traded and US based so that should give you some comfort, but exchanges get hacked and fail, which is why even if they are the best company in the world, you shouldn’t let them hold on to your coins long term.

    Hope this helps!

    • JohnnyCanuck@lemmy.caOP
      2·
      11 days ago

      Thanks so much for your feedback. I’ll look at setting up a separate wallet. The fact that I didn’t have a passcode for my “wallet” in Coinbase is what made me start looking into what was going on, and whether it was a wallet or not. Thanks for the clarification.

      I’ll also test it out and see what I lose on the transaction.

      You don’t need Coinbase at all. Your wallet can send a receive directly.

      The service I’m receiving from specifically asks for a Coinbase account, not a wallet. I’m not sure why - maybe it’s a deal with Coinbase, or it might be a Canadian regulations thing. They give way more options for U.S. users.

      • TragicNotCute@lemmy.worldEnglish
        2·
        11 days ago

        Sometimes Coinbase is integrated into the checkout flow for “pay with crypto”, but it shouldn’t be needed for most crypto transactions.