Is keeping your money on Coinbase really that bad?

[Ronaldo Vu]

TDIL Coinbase insures money lost from physical security, cyber attacks, and employee theft. they keep 98% of their funds offline. So back to my original point, is it really that important to keep your money off exchanges if they offer insurance and you personally make sure that your account isnt vulnerable to phone attacks? https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured-

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[bitmover]

They can be hacked.

We have seen this before many times. If they are hacked they will first disable all withdrawals, and a few time later say they have no money left. You will lose many forks, Airdrop etc too.

It's much safer and secure just to buy a hardwallet and secure your funds by yourself.

[reddev81]

Get a hardware wallet bro. It's cheap compared to how much you can lose. Ian Ballina just lost $2M because he wasn't using a hardware wallet.

[Xester]

TDIL Coinbase insures money lost from physical security, cyber attacks, and employee theft. they keep 98% of their funds offline. So back to my original point, is it really that important to keep your money off exchanges if they offer insurance and you personally make sure that your account isnt vulnerable to phone attacks? https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured-

I am not saying that coinbase is bad, but of course it can still be targeted by hackers and you could also lost your bitcoin in there. But it is not only coinbase but all exchanges out there are prone to hacking if they are not careful. I remember bitfinex the largest bitcoin trading site with the highest  volume of bitcoin was hacked and it took them a long time to refund the losses. Many conspiracy arose and they said that everything was an inside job but it was not proven. So my point is that do not keep your bitcoin in one exchange.

[mk4]

Besides hackers, theoretically Coinbase can lock up your account if they want to. Sure, they probably wont, but it's better to not take that risk instead. PayPal users had this very common problem of PayPal locking up their accounts for some reason with no chance of appeal. Will the same happen with Coinbase? Maybe, maybe not. But like I said, it's better not to take the risk.

[Fretcy]

I will not recommend people to store their bitcoins on online exchanges as there are more chances for losing of bitcoins when stored on online exchanges and are prone to hacking, when getting involved with bitcoins and other crypto currencies it is better to secure your crypto currencies in a secure and safe wallet. Currently there are many types of wallets available in the crypto market then why saving bitcoins on online exchanges. You can store your bitcoins on online exchanges only at the users risk, as many have lost their crypto coins by storing them in online exchanges. Hardware wallets , USB wallets and paper wallets are secure in storing bitcoins.

[hase0278]

TDIL Coinbase insures money lost from physical security, cyber attacks, and employee theft. they keep 98% of their funds offline. So back to my original point, is it really that important to keep your money off exchanges if they offer insurance and you personally make sure that your account isnt vulnerable to phone attacks? https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured-

Even if you have insurance, you can pretty much lose your balance when coinbase becomes fucked up(closed, and many more scenarios like what others points out). In fact, making sure your account is vulnerable or not is just one way to keep your funds safe from other users, but not to coinbase owners. It is still better to store big funds on a software wallet generated offline or a hardware wallet(like what others suggest) but in my case anything will do so long as you own and control your private key.

[butcherme]

If you just want to hold your bitcoin then hard ware wallet is the best wallet for you .
The best way to keep your bitcoin safe is by storing them in an offline wallet .

[merkuriya]

TDIL Coinbase insures money lost from physical security, cyber attacks, and employee theft. they keep 98% of their funds offline. So back to my original point, is it really that important to keep your money off exchanges if they offer insurance and you personally make sure that your account isnt vulnerable to phone attacks? https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured-

Any exchange can be hacked, it has happened multiple times in the past. However, personally I think coinbase is one of the most secure exchanges available currently.

[audaciousbeing]

TDIL Coinbase insures money lost from physical security, cyber attacks, and employee theft. they keep 98% of their funds offline. So back to my original point, is it really that important to keep your money off exchanges if they offer insurance and you personally make sure that your account isnt vulnerable to phone attacks? https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured-

Its really not bad until you wake up one morning and decide to check your balance on their website only to realize that its not going. The you decide to search all over the internet to know if you are the only one facing the same problem but nothing is coming up before you decide to visit the forum to realize that something terrible has happen and you begin to console yourself about the hope of whatever is going to happen next and the worst of all, is that the office of the site is not somewhere you can just enter the bus, train or plane to land the next day for you to see things yourself.

The above is the exact scenario of every one time all secured site have been without anything happening. If you are thinking they keep 98% offline is a lie because doing that would mean there would be liquidity issue and again, even when insurance is certain, there is no way you get the full amount because of the proration that would be done couple with the time you will have to wait for all the verification to be completed before disbursements. The best is to keep your funds yourself.

[avikz]

TDIL Coinbase insures money lost from physical security, cyber attacks, and employee theft. they keep 98% of their funds offline. So back to my original point, is it really that important to keep your money off exchanges if they offer insurance and you personally make sure that your account isnt vulnerable to phone attacks? https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured-

Keeping your money into any online wallet like Coinbase or Blockchain is risky. These online wallets are more prone to hacker attacks. I am not saying that your offline wallets are also safe. But offline or hardware wallets are safer than online wallets. However, coinbase always keeps your money into cold storage. Once you receive a transfer of bitcoins to your coinbase account, you will always see that the bitcoins are further transferred to another account which is their cold storage. This is an extra layer of security they provide along with the insurance cover. I have using their service since long time now, and I have never faced any issue till date.

[zolfa]

not bad, i think coinbase is one of the safe wallet, coinbase excess is easy verification, easy process, free transaction cost, and have app for online merchant.

but the lack of coinbase is often error, so have to reload or wait a few minutes.

[celtic99]

Coinbase is supposedly insured for lower amounts so It's not really an issue if the amount is under 200k or so.

[LuckyBtc]

TDIL Coinbase insures money lost from physical security, cyber attacks, and employee theft. they keep 98% of their funds offline. So back to my original point, is it really that important to keep your money off exchanges if they offer insurance and you personally make sure that your account isnt vulnerable to phone attacks? https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured-

If you keep your Bitcoins in Coinbase, You're aren't really in full control of your Bitcoins. You'd be better off buying a hardware wallet or create a paper wallet and keep it there. The problem with Coinbase could be..
Unavailability due to DDoS or some server issues in case of emergency and can also be hacked.
You can't sign a message to proof something.
You can't claim any new or all fork coin.

[bitmover]

Besides hackers, theoretically Coinbase can lock up your account if they want to. Sure, they probably wont, but it's better to not take that risk instead. PayPal users had this very common problem of PayPal locking up their accounts for some reason with no chance of appeal. Will the same happen with Coinbase? Maybe, maybe not. But like I said, it's better not to take the risk.

That's a good point. As they hold your funds, if government put some pressure they can lock your funds or charge taxes, things like that.
One more reason to avoid exchanges. You only own the funds when they are in your wallet

[Ahimoth]

Besides hackers, theoretically Coinbase can lock up your account if they want to. Sure, they probably wont, but it's better to not take that risk instead. PayPal users had this very common problem of PayPal locking up their accounts for some reason with no chance of appeal. Will the same happen with Coinbase? Maybe, maybe not. But like I said, it's better not to take the risk.

That's a good point. As they hold your funds, if government put some pressure they can lock your funds or charge taxes, things like that.
One more reason to avoid exchanges. You only own the funds when they are in your wallet

Of  course there will always be risk in storing your money in an online platform. But risk is always there. We cannot avoid it. We can just be careful. I think it would be advisable for small amount of money.Atleast it is useful and convenient to use.

[mk4]

Besides hackers, theoretically Coinbase can lock up your account if they want to. Sure, they probably wont, but it's better to not take that risk instead. PayPal users had this very common problem of PayPal locking up their accounts for some reason with no chance of appeal. Will the same happen with Coinbase? Maybe, maybe not. But like I said, it's better not to take the risk.

That's a good point. As they hold your funds, if government put some pressure they can lock your funds or charge taxes, things like that.
One more reason to avoid exchanges. You only own the funds when they are in your wallet

Of  course there will always be risk in storing your money in an online platform. But risk is always there. We cannot avoid it. We can just be careful. I think it would be advisable for small amount of money.Atleast it is useful and convenient to use.

You can avoid it, by simply not leaving funds on exchanges like Coinbase. They lock up your account? Too bad, but at least you didn't lose any money right? You could easily switch to another fiat-crypto exchange like Gemini for instance.

[rajsimran]

TDIL Coinbase insures money lost from physical security, cyber attacks, and employee theft. they keep 98% of their funds offline. So back to my original point, is it really that important to keep your money off exchanges if they offer insurance and you personally make sure that your account isnt vulnerable to phone attacks? https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured-

exchanger always risky.Many people claimed that their balance stolen from coinbase. I also use coinbase.But when I make a big Transactions i use desktop wallet.Everyone should use desktop wallet that provide private key.If you don't have own private key then your money is not secured

[raahi]

If you are a trader and doing trading on daily basis then keep money out of exchange is not possible because you have to do buy and sell all the time but if you are long term holder like me then its better to have hardware wallet and keep your coins in that wallet they will be more secure there.

[dothebeats]

With included insurance or not, still it isn't the best practice to keep your funds in an exchange, or use them for the sole purpose of safekeeping. The tendency of these services being hack is high, and they are under constant attacks from malicious users. Good thing their defense against hacks are pretty secure but that doesn't mean they are invulnerable. Also, they can change their ToS anytime if they want, so if you don't want to be dragged into a shitty situation, don't keep your money on an exchange unless you need to.