How safe is Coinbase / Coinbase Pro?

[Bergkampsballs]

Hi,

I have started investing in Coinbase and am using a Coinbase Pro wallet to store my bitcoins. My bank has serious concerns about my payments to them and has advised me that a lot of people have lost their money and been unable to claim it back. I appreciate that it's their job to be extra cautious but I want to make sure that I am making the right decisions. I have picked a secure password that I don't use for anything else and have 2 factor authentication enabled. I am planning on investing more in Bitcoin but am concerned about having it all in once place. Other than making sure that I don't give any of my information away, can I be safe in the knowledge that my bitcoin is safe enough with Coinbase? Or should I use 2 or 3 different types of wallets to store my coins?

Thanks

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[Bitcoin_Arena]

As a company, Coinbase is legit, well known and has been operating for a number of years. But when you keep coins in their custodial wallet, there are chances they can easily block your funds citing suspicious activity (this is probably what your bank is basing on to warn you)

The Coinbase has 3 different products

1. Coinbase Pro (advanced exchange) -  https://pro.coinbase.com (You don't have full control of your private keys/bitcoins)
2. Coinbase (Simple exchange and custodial wallet) - https://www.coinbase.com (You don't have full control of your keys/bitcoins)
3. Coinbase wallet (Non-custodial wallet) - https://wallet.coinbase.com (You have full control of your keys/bitcoins)

I would suggest you use Coinbase pro or any other good exchange to buy your bitcoins and then transfer them to a wallet where you have full control of your private keys like the third option of Coinbase wallet or Electrum wallet(https://electrum.org) or better still a hardware wallet like Ledger or Trezor

[Bergkampsballs]

As a company, Coinbase is legit, well known and has been operating for a number of years. But when you keep coins in their custodial wallet, there are chances they can easily block your funds citing suspicious activity (this is probably what your bank is basing on to warn you)

The Coinbase has 3 different products

1. Coinbase Pro (advanced exchange) -  https://pro.coinbase.com (You don't have full control of your private keys/bitcoins)
2. Coinbase (Simple exchange and custodial wallet) - https://www.coinbase.com (You don't have full control of your keys/bitcoins)
3. Coinbase wallet (Non-custodial wallet) - https://wallet.coinbase.com (You have full control of your keys/bitcoins)

I would suggest you use Coinbase pro or any other good exchange to buy your bitcoins and then transfer them to a wallet where you have full control of your private keys like the third option of Coinbase wallet or Electrum wallet(https://electrum.org) or better still a hardware wallet like Ledger or Trezor

Thank you for the helpful advice. For one reason or another, I actually feel less comfortable about having a hard wallet in my house. I think I would actually be quite nervous about it somehow getting lost, stolen or something going wrong with it. With this being the case I assume that it would be cautious enough for me to set up an account at https://wallet.coinbase.com and store my coins here going forward?

[harizen]

Thank you for the helpful advice. For one reason or another, I actually feel less comfortable about having a hard wallet in my house. I think I would actually be quite nervous about it somehow getting lost, stolen or something going wrong with it. With this being the case I assume that it would be cautious enough for me to set up an account at https://wallet.coinbase.com and store my coins here going forward?

I understand your concern. But in terms of "safety", it's highly recommended that you need to store the coins in your own hands. Yes, with your own private key. Those concerns that your hard wallet might be lost or stolen in your possession is just on your mind because it's new to your vocabulary. Eventually, as you progress. you will be used to that.

It's not totally wrong* though to store your bitcoin at Coinbase given they are legit and one of the well-established platforms in the world of crypto. But since we are talking about 100% safety here, at least, then it makes sense that we are the only ones who should have the total authority over our coins. As you also mentioned, you are planning to invest more but you are concerned about having it all in one place. In the future, you might experience having an account problem in Coinbase which we like to avoid (search for Coinbase problems). Just to be clear, I'm not saying it will happen but at least you have a reference.

If you aren't comfortable with the hardware wallet, you can try Desktop Wallet such as Electrum. That requires another research though.

[Charles-Tim]

Thank you for the helpful advice. For one reason or another, I actually feel less comfortable about having a hard wallet in my house. I think I would actually be quite nervous about it somehow getting lost, stolen or something going wrong with it. With this being the case I assume that it would be cautious enough for me to set up an account at https://wallet.coinbase.com and store my coins here going forward?

I will not recommend you coinbase.com, they do not give users private key, not you key not your coin, which mean you are not the owner of the coin stored on coinbase.com on the blockchain, it also compromise your privacy, holding your bitcoin yourself by making use of noncustodial wallet will be fine. Hardware wallets are the safest, but you can consider electrum if the amount you want to hold is not much.

About you afraid of your hardware wallet not to be stolen, hardware wallet like ledger nano and trezor do have pin that you will need to create and always input before accessing it, it also support passphrase you can enable, it will request for the passphrase anytime you want to spend your coin, I think this two are enough to safely keep your hardware wallet. And if lost, you can make use of your seed phrase backup to retrieve your coin on many wallets that support BIP39.

If the amount you want to hold is huge, having hardware wallet for it is the best, and if you even get it for holding low amount, there is nothing bad, it is advisable and it is worth it.

[aesma]

I wouldn't have huge concerns about coinbase, I actually have a coinbase visa card.

However storing assets you're not trading on an exchange isn't a good idea, they're a big target for hackers.

I suggest you learn about wallets, hardware wallets but also paper wallets, how safe they are, how you can minimize risks. For example you can have a backup of your private key in a bank vault.

[Coyster]

<...>it also support passphrase you can enable, it will request for the passphrase anytime you want to spend your coin, I think this two are enough to safely keep your hardware wallet. And if lost, you can make use of your seed phrase backup to retrieve your coin on many wallets that support BIP39.

+1 to all you said, but mind you that op is somewhat of a newbie to the Bitcoin network, so we should be careful how quickly we introduce him to some features on the network, and even if we do, the risks should also be made known to the user, the passphrase is good for extra security, but op should know that if it's lost or forgotten, then the seed becomes useless. Some newbies can have the misconception that even without the passphrase, they could still access their funds with their seed phrase, it's better they know how delicate the passphrase is and once set, without it, the funds are gone.

[Bitcoin_Arena]

Thank you for the helpful advice. For one reason or another, I actually feel less comfortable about having a hard wallet in my house. I think I would actually be quite nervous about it somehow getting lost, stolen or something going wrong with it. With this being the case I assume that it would be cautious enough for me to set up an account at https://wallet.coinbase.com and store my coins here going forward?

Even with Coinbase's software wallet I suggested, You will still have to back up your private keys/12- word recovery phrase and keep it somewhere safe so it's almost the same as keeping your hardware wallet except that you have to enter a passphrase to access your funds for the case of the hardware wallet

The most important thing is the safety of your private keys or the 12- word recovery phrase. Even if your hardware wallet got lost and the thief can't guess the password. You can still recover your money using your private keys or the 12- word recovery phrase on any compatible and trustworthy software wallet

But If you read much about;
1. Securing your funds and how best you can keep your private keys/ 12-word recovery phrase
2. Avoid phishing attacks(some of this fake wallets keep appearing on google play)
Then you can still use a software wallet. But I highly recommend, if the BTC you are planning to buy a lot of BTC, a hardware wallet better. They don't cost that much.

I will not recommend you coinbase.com, they do not give users private key, not you key not your coin, which mean you are not the owner of the coin stored on coinbase.com on the blockchain, it also compromise your privacy, holding your bitcoin yourself by making use of noncustodial wallet will be fine. Hardware wallets are the safest, but you can consider electrum if the amount you want to hold is not much.

He quoted option 3 which was https://wallet.coinbase.com which is noncustodial. Check it out on Google Playstore/ Appstore

[Bergkampsballs]

Thank you guys. I really appreciate how helpful you all are. For now, I don't even have half a bitcoin to my name so it's not like I'm dealing with a huge amount of money but I am hoping to increase that investment. I may take this in stages, starting with moving my Bitcoin to a non-custodial Coinbase wallet temporarily so that my Bitcoins are at least not held on an exchange. From there I can take the time to look into more secure storage options for the future. Thank you!

[hugeblack]

Safety is a relative term. Problems may occur sooner or later, and hacking will prove whether they are able to compensate users or not.
Coinbase is a popular platform, so the possibility of losing your money is small, but this does not mean that you will not lose it.
Use this platform for trading for the purpose of buying or selling and transfer any money in excess of the need for trading to portfolios you use so that you own your private key.

[socks435]

Why would you trust online wallet like Coinbase or Coinbase pro if you can be able to own your own bank and protect it to any online hacking?

Coinbase doesn't help you if they lose control of their database and you don't have full control of your own wallet incase in the future recovery except for Coinbase commerce it seems you can be able to backup your seed with Coinbase commerce.

It's only safe if you are going to buy or sell a bitcoin but you shouldn't hold or store your bitcoin from coinbase for too long.

Always be your own bank by using non-custodial wallets if you want to store big amount of bitcoins or use it for everyday's life.

[Maus0728]

From there I can take the time to look into more secure storage options for the future. Thank you!

If you really want to have an in-depth comparison to know which wallet you are going to use then there is a good wallet comparison and discussion that can help you decide for storing your coins. This table will help you sort out what are your needs and which wallet you are comfortable storing your stash. Also please note that you must complement the table while carefully reading this thread [1] FOR NEWBIES, wallets to choose from and analysis by Veriphi for you to be able to distinguish what are the recommendations and error stated in the spreadsheet.

[2] https://veriphi.io/en/blog/software-wallet-analysis

Much of the wallet tips and reminders regarding the security of your wallet has been discussed by other members, so all you need to do is to apply and  make it as a habit of precautionary measures.

[libert19]

If you just want to store your assets just use hardware wallet like ledger/trezor/etc.

[hd49728]

Coinbase wallet is non-custodial wallet but you have to do KYC on Coinbase due to their KYC/ AML protocol. If you don't want to give up your Identity, you can use Bitcoin Core or Electrum wallet.

https://electrum.org/#home
https://bitcoin.org/en/bitcoin-core/

How do I protect against losing access to my funds?
Coinbase Wallet is a user-controlled, non-custodial product. The app generates a 12 word recovery phrase which is what gives you, and only you, access to your account to move received funds. Coinbase will never have access to this seed, meaning that we cannot move funds on your behalf even if you lose access to your recovery phrase.

We built an encrypted Google Drive and iCloud recovery phrase backup feature to help protect against seed loss. We encourage you to back up your recovery phrase using both the cloud backup feature as well as writing down your recovery phrase and storing it in a secure location. To access the backup features, tap Settings, and then Recovery Phrase.

What is Identity Verification?
Coinbase uses Identity Verification in order to comply with KYC (Know Your Customer) regulations. KYC is a way of identifying and confirming that a customer is who they say they are. It’s a multi-step process that helps to prevent the creation and use of fraudulent accounts.

You can read more details with links to their Help center and FAQ.

https://wallet.coinbase.com/faq/
https://help.coinbase.com/en/coinbase/managing-my-account/account-information/identity-verification-faq?

[CryptopreneurBrainboss]

You just have to find a way to be comfortable been in charge of your own finance because that's exactly what investing in bitcoin is all about especially when you don't hand over the responsibility to a third party service providers like you're doing using coinbase. Just like others have highlighted coinbase as an exchange is quite ok especially since t you'll be comfortable giving our some sensitive/private information but they're not to be used when storing funds is concerned, irrespective of the service they offer, their wallet would still be centralized.

Electrum wallet is the most obvious choice (based on my opinion) if you're not into the idea of holding a flash drive that contains your assets. You can download the mobile version or desktop version quite easily from their website (https://electrum.org)

[SquirrelJulietGarden]

How to Safely Download and Verify Electrum

Warning: https://electrum.org/#home

Warning: Electrum versions older than 3.3.4 are susceptible to phishing. Do not download Electrum from another source than electrum.org, and learn to verify GPG signatures.

Download: https://electrum.org/#download

[DrG]

As other have mentioned ad nauseam Coinbase is pretty safe to use  - just like buying a money order at Walmart. Would you trust Walmart to hold your money safely? They're a big multi-billion dollar company and if something happens you'll probably be unable to go after them for loses. Coinbase is in the same boat. If your own circumstances and security are more precarious then perhaps it is wiser to just leave the coins there, but otherwise it's usually better to have them in your possession.

Move slowly and carefully though when moving funds. Once crypto is moved it is for all intents and purposes unrecoverable, so ask questions if you unsure about any wallets or security.

[mich]

Using Coinbase / Coinbase Pro is a very safe Crypto exchange and wallet to trust your coins with.
The company has been in business since 2012 and is available for use in more then 100 countries- https://www.coinbase.com/places
Remember that you have to abide with KYC rules so if this is issue for you then you should not use them.

[bakasabo]

Please explain what exactly do you understand under the word "safe". Safe to keep your funds there or safe to trade?

If you are a trader, I think you need an alternative exchange to have for trading. There are cases, when during Bitcoin price drop, coinbase exchange went down. . That is something no one wish to face.

Safety of your funds - every exchange and wallet are safe, as long as you follow all the precautionary measures.
.

[mk4]

Thank you for the helpful advice. For one reason or another, I actually feel less comfortable about having a hard wallet in my house. I think I would actually be quite nervous about it somehow getting lost, stolen or something going wrong with it. With this being the case I assume that it would be cautious enough for me to set up an account at https://wallet.coinbase.com and store my coins here going forward?

It's really up to you which risk profile you prefer:

1. With custodial exchanges such as Coinbase, yes, you will be able to access your funds if it's the case that you lost your phone or any of your devices, as long as you have access to your login credentials. The downside though, is that exchanges do get hacked A LOT[1]. Which is definitely not a good option if you're planning on holding your funds for years and years.

2. With a hardware wallet, as long as you don't do anything stupid like save your 24 word backup on an app on your phone or computer(or anywhere in general), the chances of your funds getting stolen are virtually almost zero. Of course, the risk is if you lose access to your hardware wallet and your 24 word backup, you pretty much lost access to your funds. You're going to be fine as long as you protect your backups though.

3. With a reputable software wallet like Electrum[2] and BlueWallet[3], there's a chance that your funds might get stolen if it just so happens that your computer/phone gets compromised by a malware. Also, you lose access to your funds if you lose both your computer/phone and your 12-24 word backup.

Completely up to you.

[1] https://cryptosec.info/exchange-hacks/
[2] https://electrum.org/
[3] https://bluewallet.io/

[o_e_l_e_o]

The best option for a newbie like yourself who is planning to hold for the medium to long term is undoubtedly a hardware wallet. It is safer, more secure, more private, far less prone to hacks, you aren't at risk of Coinbase freezing your account, seizing your coins, going bankrupt, fractional banking, etc.

Rather than having a dozen different people give you a dozen different opinions, you should identify what it is about holding your coins yourself that makes you nervous. If an attacker steals the device, they cannot access the coins.* As long as have your seed phrase backed up, the device can be lost/stolen/destroyed and you can always recover your wallets. Why do you not want to hold your own coins?

*This is not true with Trezor devices, which are vulnerable to attack if the attacker has physical access.

[Bergkampsballs]

Thanks again for all the responses. I've now got myself in a bit of a pickle as I've got a reasonable amount of money in my Coinbase Pro account and transferring it into something more secure has been a bit daunting as I'm using lots of new software that I'm not sure about to transfer the coins.

I've set up a wallet.coinbase account as well as an Electrum account and I couldn't easily work out how to transfer money directly from my Coinbase Pro account into either of these so I transferred about $12 as a test amount back into my main Coinbase account and successfully managed to transfer a portion of that into my wallet.coinbase account and a small amount into my Electrum account.

The transfer into my Coinbase Wallet account didn't seem to charge any fees, however when I tried transferring $2 back into my main Coinbase account it wanted to charge over $4 in fees.

The small transfer of about $4 into my Electrum account is now showing in the account as an amount of 0.28616, of what I'm not actually sure.

Judging by the advice of the majority here and wanting to secure my Bitcoin without paying too much in fees, I'm assuming that my sensible next steps should be to transfer my funds from my Coinbase pro as well as my Electrum account and my Coinbase Wallet account into my main Coinbase account and order a Ledger Nano S Hardware wallet which I can then safely transfer the funds from my Coinbase account into once that arrives. Would this be the most sensible thing to do here? Or maybe just leave the funds where they are and try to transfer the funds from each account directly onto the hard drive when it arrives?

[bakasabo]

Why do you want to make things more complicated and not pay for ledger nano s directly by card ?
As you are buying simplest version of hardware wallet, I presume that money matters. So why you an intermediary like Coinbase to make a purchase? Coinbase will charge you 4$ for a transaction, and this is half of ledger shipment fee

[Bergkampsballs]

Why do you want to make things more complicated and not pay for ledger nano s directly by card ?
As you are buying simplest version of hardware wallet, I presume that money matters. So why you an intermediary like Coinbase to make a purchase? Coinbase will charge you 4$ for a transaction, and this is half of ledger shipment fee

Apologies, I wasn't very clear there. I want to order the Ledger Nano S from my Amazon prime account using cash moneys straight from my debit card

I had a bit of a long day at work then came home to try to figure this all out. In hindsight I started with one question then kind of moved on and started asking other questions without really being sure what I wanted to ask.

I guess what I really want to ask is, will I be able to transfer money directly from all 4 seperate accounts directly onto my hard wallet (Coinbase Pro, Coinbase, Coinbase Wallet and Electrum) or will I need to transfer any of the Bitcoin from any of the other accounts into my main Coinbase account in order to then transfer onto the hard drive when it arrives?

[o_e_l_e_o]

The transfer into my Coinbase Wallet account didn't seem to charge any fees, however when I tried transferring $2 back into my main Coinbase account it wanted to charge over $4 in fees.

All bitcoin transactions require a transaction fee to be paid. This fee is picked up by the miners who mine your transaction and add it the blockchain. When withdrawing from the Coinbase exchange, Coinbase cover the fee so you don't see it being paid, but from any other wallet you will be charged a transaction fee.

The small transfer of about $4 into my Electrum account is now showing in the account as an amount of 0.28616, of what I'm not actually sure.

The default display unit in Electrum is mBTC, or milli-bitcoin. 0.28616 mBTC is equal to 0.00028616 BTC, which is indeed equal to $4. You can change the display unit by going to Tools -> Preferences -> Base unit.

Would this be the most sensible thing to do here? Or maybe just leave the funds where they are and try to transfer the funds from each account directly onto the hard drive when it arrives?

Fees are quite expensive at the moment, so making unnecessary transactions probably isn't a great idea. Might as well just wait for your Ledger to arrive and then transfer from all the separate wallets to the Ledger.

I guess what I really want to ask is, will I be able to transfer money directly from all 4 seperate accounts directly onto my hard wallet (Coinbase Pro, Coinbase, Coinbase Wallet and Electrum)

Yes, absolutely.

[Bergkampsballs]

The transfer into my Coinbase Wallet account didn't seem to charge any fees, however when I tried transferring $2 back into my main Coinbase account it wanted to charge over $4 in fees.

All bitcoin transactions require a transaction fee to be paid. This fee is picked up by the miners who mine your transaction and add it the blockchain. When withdrawing from the Coinbase exchange, Coinbase cover the fee so you don't see it being paid, but from any other wallet you will be charged a transaction fee.

The small transfer of about $4 into my Electrum account is now showing in the account as an amount of 0.28616, of what I'm not actually sure.

The default display unit in Electrum is mBTC, or milli-bitcoin. 0.28616 mBTC is equal to 0.00028616 BTC, which is indeed equal to $4. You can change the display unit by going to Tools -> Preferences -> Base unit.

Would this be the most sensible thing to do here? Or maybe just leave the funds where they are and try to transfer the funds from each account directly onto the hard drive when it arrives?

Fees are quite expensive at the moment, so making unnecessary transactions probably isn't a great idea. Might as well just wait for your Ledger to arrive and then transfer from all the separate wallets to the Ledger.

I guess what I really want to ask is, will I be able to transfer money directly from all 4 seperate accounts directly onto my hard wallet (Coinbase Pro, Coinbase, Coinbase Wallet and Electrum)

Yes, absolutely.

It's been a long day and I'm quibbling over pennies here but I want to try to understand the transactions that I'm making and the fees that I'm paying and you've managed to clear a lot up for me in one concise post. Thank you!

I've just ordered the wallet with next day delivery so no doubt I'll be back asking more stupid questions about the same time tomorrow but tonight I shall sleep a bit easier

[o_e_l_e_o]

No problem, happy to help.

Ledger have pretty comprehensive set up instructions and user guides on their website, which is a great place to start when your device arrives. Link: https://support.ledger.com/hc/en-us/articles/360000380313. Start there and simply work down the pages in the menu bar to the left. It will talk you through initializing the wallet, updating the firmware, creating a back up, and setting up your accounts and addresses. (That link is for the Nano S, but you can select the Nano X instructions from the sidebar if that is the device you bought).

This forum also has a dedicated Hardware Wallet board here: https://bitcointalk.org/index.php?board=261.0. You might find answers to any questions there, and it's probably the best place to ask any questions you can't find answers for.

Most important thing is just to take your time tomorrow, and if you are ever unsure, make a small test transaction first before moving the bulk of your coins.

[Bergkampsballs]

No problem, happy to help.

Ledger have pretty comprehensive set up instructions and user guides on their website, which is a great place to start when your device arrives. Link: https://support.ledger.com/hc/en-us/articles/360000380313. Start there and simply work down the pages in the menu bar to the left. It will talk you through initializing the wallet, updating the firmware, creating a back up, and setting up your accounts and addresses. (That link is for the Nano S, but you can select the Nano X instructions from the sidebar if that is the device you bought).

This forum also has a dedicated Hardware Wallet board here: https://bitcointalk.org/index.php?board=261.0. You might find answers to any questions there, and it's probably the best place to ask any questions you can't find answers for.

Most important thing is just to take your time tomorrow, and if you are ever unsure, make a small test transaction first before moving the bulk of your coins.

Perfect! I'll try to follow the instructions tomorrow and will be starting with a smaller transaction or 2 for sure. Thanks again for all your help.

[mk4]

It's been a long day and I'm quibbling over pennies here but I want to try to understand the transactions that I'm making and the fees that I'm paying and you've managed to clear a lot up for me in one concise post. Thank you!

I've just ordered the wallet with next day delivery so no doubt I'll be back asking more stupid questions about the same time tomorrow but tonight I shall sleep a bit easier

Yo, just a heads up that please don't rush things and just take your time into learning into these stuff. We wouldn't want expensive mistakes in this case, as one huge fuck-up could possibly cause you to lose your funds.

Definitely don't hesitate to consult Google, or probably ask here, if there are some stuff you're unsure of. Best of luck!

[DrG]

Why do you want to make things more complicated and not pay for ledger nano s directly by card ?
As you are buying simplest version of hardware wallet, I presume that money matters. So why you an intermediary like Coinbase to make a purchase? Coinbase will charge you 4$ for a transaction, and this is half of ledger shipment fee

Apologies, I wasn't very clear there. I want to order the Ledger Nano S from my Amazon prime account using cash moneys straight from my debit card

I had a bit of a long day at work then came home to try to figure this all out. In hindsight I started with one question then kind of moved on and started asking other questions without really being sure what I wanted to ask.

I guess what I really want to ask is, will I be able to transfer money directly from all 4 seperate accounts directly onto my hard wallet (Coinbase Pro, Coinbase, Coinbase Wallet and Electrum) or will I need to transfer any of the Bitcoin from any of the other accounts into my main Coinbase account in order to then transfer onto the hard drive when it arrives?

Before you do any transferring of funds to your Ledger I would read up on how to make sure your ledger is secure. Amazon used to be pretty good about selling authentic stuff when you buy directly from them but they have been co-mingling their inventory with other people at a higher and hgher rate. What this means is Amazon might very well ship you a brand new Ledger that somebody else was selling if it happens to be in a closer warehouse. The danger in that is some people have been tampering with all the hardware wallets to learn the mnemonic seed before shipping it out. I have a Ledger device that I purchased direct from Ledger.

Please read up on how to make sure the seed is newly generated before transferring funds to the wallet. Going through all the step only to send money to a crook's account would definitely sour anybody's day.

[o_e_l_e_o]

The set up guide I linked to above includes the steps required to verify the device is genuine, verify it hasn't been tampered with, and how to initialize it and set up your seed phrase. This page in particular (https://support.ledger.com/hc/en-us/articles/360000613793-Set-up-as-new-device) tells users that the device is not safe to use if it immediately asks for a PIN, and never to use a device which is provided with an already set up seed phrase.

As long as OP follows the set up guide closely and doesn't skip any steps, they will be fine.

[Bergkampsballs]

Thank you all for the heads up. I now have my Bitcoin safely secured on my hard wallet.

I tried transferring the funds from my Coinbase wallet into my hard wallet but I have only $6.52 in bitcoin in there and the miners fee is $5.52 to transfer $1, if I try to transfer $2 the miners fee is $4.52, $2.10 the miners fee is $4.42 and if I try to transfer $2.20 the miners fee is too large to transfer. If I try to transfer anything from my Electrum wallet which has $4 in it the miners fee is too high.

Considering that it cost me less than $2 to transfer ~0.2 Bitcoin into my hard wallet from my main Coinbase account it seems a bit of a strange way to calculate the fees but I'm guessing this is something to do with Coinbase covering the miners fees from my main Coinbase account but not from my Coinbase Wallet or Electrum accounts.

Again, quibbling over pennies here but I guess I'll just leave these small amounts in my Coinbase and Electrum wallets and take these fees as a lesson that I should avoid transferring small amounts of Bitcoin into different wallets in future.

[Beparanf]

Thank you all for the heads up. I now have my Bitcoin safely secured on my hard wallet.

I tried transferring the funds from my Coinbase wallet into my hard wallet but I have only $6.52 in bitcoin in there and the miners fee is $5.52 to transfer $1, if I try to transfer $2 the miners fee is $4.52, $2.10 the miners fee is $4.42 and if I try to transfer $2.20 the miners fee is too large to transfer. If I try to transfer anything from my Electrum wallet which has $4 in it the miners fee is too high.

Considering that it cost me less than $2 to transfer ~0.2 Bitcoin into my hard wallet from my main Coinbase account it seems a bit of a strange way to calculate the fees but I'm guessing this is something to do with Coinbase covering the miners fees from my main Coinbase account but not from my Coinbase Wallet or Electrum accounts.

Again, quibbling over pennies here but I guess I'll just leave these small amounts in my Coinbase and Electrum wallets and take these fees as a lesson that I should avoid transferring small amounts of Bitcoin into different wallets in future.

Actually, The amount that you want to transfer is not that big factor on calculating the transaction fee. The reason why transaction fee varies is because there's a lot of pending transaction on bitcoin mem pool. The current transaction fee is not the usual rate so always take note to consider the status of pending transaction in the mem pool before you send any transaction if you want to save fees.

You can check mem pool status here: https://mempool.space/

PS: The current fee is super expensive.

[Bergkampsballs]

Actually, The amount that you want to transfer is not that big factor on calculating the transaction fee. The reason why transaction fee varies is because there's a lot of pending transaction on bitcoin mem pool. The current transaction fee is not the usual rate so always take note to consider the status of pending transaction in the mem pool before you send any transaction if you want to save fees.

You can check mem pool status here: https://mempool.space/

PS: The current fee is super expensive.

OK, I guess the only question I have left is why the larger transfers I made from Coinbase to my hard wallet were below $2 at the same time as the fees to transfer small amounts from my Coinbase Wallet to my hard wallet were over $4. Is this just due to Coinbase covering the miners fees from my main Coinbase account?

Either way, I'll try to keep the transfers to a minimum and just transfer larger amounts where possible going forward.

[o_e_l_e_o]

So the amount of bitcoin which you spend in a transaction is largely irrelevant to the fee. What determines the fee is how much space the transaction takes up in terms of bytes. The space a transaction takes up is largely dependent on the number of different inputs and outputs in that transaction.

For example, let's say you have the following bills in your wallet: $20, $10, $5. If you want to give me $20, then you only need one input ($20) and one output ($20 to me). If you then want to give someone else $13, then you need two inputs ($10 and $5) and you need two outputs ($13 to them, and $2 back to yourself as change). The second transaction, although for less money, will be larger than the first in terms of bytes, and therefore require a larger fee.

Here's a good resource for more information: https://learnmeabitcoin.com/beginners/outputs

[Bergkampsballs]

So the amount of bitcoin which you spend in a transaction is largely irrelevant to the fee. What determines the fee is how much space the transaction takes up in terms of bytes. The space a transaction takes up is largely dependent on the number of different inputs and outputs in that transaction.

For example, let's say you have the following bills in your wallet: $20, $10, $5. If you want to give me $20, then you only need one input ($20) and one output ($20 to me). If you then want to give someone else $13, then you need two inputs ($10 and $5) and you need two outputs ($13 to them, and $2 back to yourself as change). The second transaction, although for less money, will be larger than the first in terms of bytes, and therefore require a larger fee.

Here's a good resource for more information: https://learnmeabitcoin.com/beginners/outputs

OK great, I think I'm getting my head around the gist of it now that I've read that link 3 times and searched about a bit. I've managed to put together a spreadsheet formula that calculates the balance in my hard wallet as well as my overall profit and loss just by looking at my Coinbase pro balance which is quite handy but fully understanding the intricacies of bitcoin fees may take some time.