So whats going on with Coinbase?
People seem to be causing a bit of noise about one Bitcoin broker in particular, and it is not all good noise – actually, very little of it is the sound of softly sang appraisals.
Coinbase is the broker on trial today and this review will help you sift through all the information and personal reviews out there, so you can make an informed decision.
Coinbase was founded by Fred Eshram ad Brian Armstrong in 2012 and is one of the largest Bitcoin brokers, slash exchangers, operating on the market today, serving customers in over 30 countries. Their bitcoin is purchased at a fair market rate plus an acceptable 1.5% fee. They are dual functional as they also run a market exchange platform known as the Global Digital Asset Exchange (GDAX). On this exchange platform, users can trade either Bitcoin or Ethereum for an impressive low fee of 0.25%.
Some Additional Coinbase Benefits
Coinbase’s secondary trading function is not the only additional feature they promote. They also have some other little perks, namely:
- Verified customers can purchase up to $1000 USA dollars worth of Bitcoin, weekly!
- Multiple deposit and withdrawal options
- Debit cards can be linked to your coinbase account
- Hot wallet service with multistage security features
- Coinbase users are afforded instantaneous transfers between each other
- User friendly platform
- All Bitcoin deposits are insured
- Accepting a variation of payments including credit cards and PayPal.
From glancing at these simple and convenient features, it is unsurprising that Coinbase is regularly recommended as the best route for new cryptocurrency enthusiasts to purchase their bitcoins and get on the digital currency ladder.
So, why all the Rage?
A quick google search will leave you fleeing for the hills, or even fleeing to the mother-in-law to avoid getting involved with Coinbase. They seem to have built up a solid reputation for either letting people down, atrocious customer service and often completely neglecting any attempts at contact and queries, and some customers even claim the whole organisation is set up to scam people out of pocket. Customers have specifically complained about the imposition of verification at inconvenient timing when they are about to buy or sell which has cost them dearly. Another regular concern is their reported customer service’s lacking English proficiency which seem to be upsetting a few disgruntled customers even more. Especially when their money has been locked away until they follow company procedures. Instead of spending time and energy reading all the reviews, we have compiled a list of 3 things that are causing Coinbase some unwanted attention.
1. Closures and Cancellations
Coinbase are compliant with anti money laundering practices just like a regular bank, and for this, they should not be ashamed. Yet, they may take things a little too far and shut down your account for using the coins you have bought to pay for gambling habits, adult services, reselling coins on sites they do not feel are fit and proper, among other questionable, but not illegal, reasons. Whatever the situation, they will return your money to you but this is far from ideal when you may have had long term plans regarding how you were going to manage your cyber currency venture.
2. They’re Bankers (sort of!)
Cryptocurrency is the anti-establishment and anti banking method we hold dear to us for a future financial landscape. However, it does not take Sherlock Holmes to find out about Coinbase’s bed partners. They recieve a lot of investment from the financial sector such as banks i.e. the people that digital currency users are avoiding and exactly what cryptocurrency was designed to be a replacement for – even if that dream is a long way down the line. It is not a coincidence that Mr. Ersham also has very strong ties to the financial sector. Some cryptocurrency fanatics then see Coinbase as a way of letting in the enemy and for that reason avoid their services.
Similar to the previous point, the founders of Coinbase seem to have unpacked in the wrong hotel. They have repeatedly voiced their approval of cryptocurrency getting some type of pyramid hierarchical system where certain decisions can be made for everyone. The cryptocurrency community met this with full force and tore apart their social media posts due to their lack of respect for the purpose of the cryptocurrency world i.e. decentralisation and openness. It almost feels like Coinbase is that ex lover who came to the party with some decent wine but was not really welcome.
A few other aspects of Coinbase are worth mentioning. They have gone back on promises to give customers $75 who referred another person who would go on to make a deposit of over $100. They did so without notice which rubbed a few people the wrong way. A final issue worth column space is the fact that Coinbase have attempted to gain some control over the Bitcoin system using patents. The details may not be that interesting or necessary here, but you can again recognise their attempts at defacing the moral foundations that cryptocurrency was built on.
Coinbase – The Good, The Bad, and the..
Ugly! Our Coinbase review does uncover that the motives of Coinbase do not align with the values of the Bitcoin and altcoin community. Instead, opt for a broker that has Bitcoin’s openness and morality at the heart of its operations to avoid the system becoming compromised by faceless corporations. Coinbase may be secure and financially stable which could attract big time financial investors and traders, but other safe alternatives are available. Another point worth mentioning is that you should not use wallets provided by Coinbase or any other third party, as you give up an element of control in comparison to other hot wallets. You could also look for cold wallet alternatives.