Discussing... CoinBase's Buy/Sell System

[maco]

I'll start: This is for experienced traders... Your opinion is wanted.
Do you trust linking a Bank Account to the Bitcoin Ecosystem with CoinBase?

Imagine if you were doing $5,000 worth of transactions every 2 weeks, or maybe you currently are, who knows
And you are withdrawing increments of $5,000 to your Bank account.  Would you use CoinBase to do this with?

And would you trust it going to your bank account in such large amounts?

[mgio]

Yes definitely, and for a time I was doing $5,000 worth of transactions PER DAY.

You are covered if they tried to take more than authorized out of your bank account. It's not like bitcoin, ACH transactions can be reversed.

[zoinky]

Yes definitely, and for a time I was doing $5,000 worth of transactions PER DAY.

You are covered if they tried to take more than authorized out of your bank account. It's not like bitcoin, ACH transactions can be reversed.

I would have just wired money if I was moving 5k PER DAY.

[maco]

Awesome. So using CoinBase is a good way to go? and what about selling it at a price,
and the price goes up or down... what does CoinBase base the transaction on?

For Example: if you sell the 1/BTC at $100 - then 10 minutes later, it goes to $105,
but the transaction hasn't hit your account yet. Do you get $105 or $100?

I would assume $100 because it was during that exchange time.

Yes definitely, and for a time I was doing $5,000 worth of transactions PER DAY.

You are covered if they tried to take more than authorized out of your bank account. It's not like bitcoin, ACH transactions can be reversed.

[tclo]

Coinbase is the about the best to send BTC to sell and about the worse to buy BTC from.

[ThatDGuy]

Awesome. So using CoinBase is a good way to go? and what about selling it at a price,
and the price goes up or down... what does CoinBase base the transaction on?

For Example: if you sell the 1/BTC at $100 - then 10 minutes later, it goes to $105,
but the transaction hasn't hit your account yet. Do you get $105 or $100?

I would assume $100 because it was during that exchange time.

Yes definitely, and for a time I was doing $5,000 worth of transactions PER DAY.

You are covered if they tried to take more than authorized out of your bank account. It's not like bitcoin, ACH transactions can be reversed.

I've had a great experience with Coinbase so far as well.

As to your question: Coinbase transactions record the price when you made the transaction.  If I buy a coin today at $108 the amount is deducted immediately/soon and then usually receive the coin in around 5 days, regardless of what the price is at that future point.

[mgio]

Yes definitely, and for a time I was doing $5,000 worth of transactions PER DAY.

You are covered if they tried to take more than authorized out of your bank account. It's not like bitcoin, ACH transactions can be reversed.

I would have just wired money if I was moving 5k PER DAY.

I was using coinbase to sell, not to buy. And you will quickly run into monthly withdrawal limits if you sell $5k per day on mtgox while there are no monthly limits on coinbase.

[siggy]

Coinbase is the about the best to send BTC to sell and about the worse to buy BTC from.

I've not had much experience with buying, but selling has been smooth.  Sell coin, 7 days later the money shows up in your checking account.  If you can deal with the 7 day lag, this is pretty much the most painless method for selling btc.

Sigg

[maco]

That's awesome. 5 Days isn't bad, but I wonder if there is a faster way to receive and sell. I wonder why it takes long for the entire transaction of receiving them.

I've had a great experience with Coinbase so far as well.

As to your question: Coinbase transactions record the price when you made the transaction.  If I buy a coin today at $108 the amount is deducted immediately/soon and then usually receive the coin in around 5 days, regardless of what the price is at that future point.

[justusranvier]

My bank (USAA) allows me to easily create as many checking accounts as I want so I made a special one just for services like Dwolla, Coinbase and PayPal so that they would not have access to my primary account.

[hambalan]

I wonder why it takes long for the entire transaction of receiving them.

part of the banking system? it takes time for the bank to move money around!

[ThatDGuy]

I wonder why it takes long for the entire transaction of receiving them.

part of the banking system? it takes time for the bank to move money around!

So awesome, even getting money in/out of banks reinforces BTC's aspect of usability

[maco]

That's great. I am familiar with people who use USAA. It's restricted for the military or any special services for the USA, right?
or can the general public join them? I like your concept because of many trust factors.

My bank (USAA) allows me to easily create as many checking accounts as I want so I made a special one just for services like Dwolla, Coinbase and PayPal so that they would not have access to my primary account.

[justusranvier]

That's great. I am familiar with people who use USAA. It's restricted for the military or any special services for the USA, right?
or can the general public join them? I like your concept because of many trust factors.

Their banking services are available to everyone. It's only the insurance products and possibly loans which are restricted.

[Maged]

Coinbase is the about the best to send BTC to sell and about the worse to buy BTC from.

I've not had much experience with buying, but selling has been smooth.  Sell coin, 7 days later the money shows up in your checking account.  If you can deal with the 7 day lag, this is pretty much the most painless method for selling btc.

Sigg

Does anyone know how much of this is bank lag and how much of this is Coinbase lag? Basically, how does this compare to Dwolla?

[justusranvier]

Basically, how does this compare to Dwolla?

They are about the same in my experience when it comes to how quickly they can process a withdrawal from your bank account.

Your bank's policy will affect how quickly funds arriving from Dwolla or Coinbase become available for spending.

[maco]

Ahh perfect. That's what I figured. I need to get with USAA because it seems like the benefits outweighs the regular banks like BOFA/WELLS/ETC..

What about Credit Unions? Does anyone use multiple credit union checking accounts for it?

That's great. I am familiar with people who use USAA. It's restricted for the military or any special services for the USA, right?
or can the general public join them? I like your concept because of many trust factors.

Their banking services are available to everyone. It's only the insurance products and possibly loans which are restricted.

[justusranvier]

Ahh perfect. That's what I figured. I need to get with USAA because it seems like the benefits outweighs the regular banks like BOFA/WELLS/ETC...

Their only disadvantage is a lack of local branches, but other than dealing with things like cash and money orders this isn't a problem because you can do absolutely everything else on your phone, web browser or at worst via a phone call. Unlike almost every other bank they don't nickle and dime you with bullshit fees and onerous balance requirements.

[maco]

Does anyone know why there is a GAP between the two prices on CoinBase?  (BUY VS. SELL)

[ThatDGuy]

Does anyone know why there is a GAP between the two prices on CoinBase?  (BUY VS. SELL)

Hmmm, guessing the difference between buying from the first sell order compared to selling to the first buy order?