Coinbase Stealing You're Bitcoin

[godislove]

I've been very happy with coinbase's system for the opposite reason.  They were (at least when I was trading) matching in near-real time bitstamp prices and bitstamp would have these large swings up or down, usually corresponding to low volume ... lower than what I would buy at coinbase.  Working between the two, I got 5% excess profit 2 times last year, and someone had to absorb that loss because the volume I got at a low (or high) price was more than the volume that transpired on bistamp.  So coinbase and/or bitstamp had to absorb that loss.  Conversely when you lose on trades, one or both of them accidentally gain.  I was looking for it because after reading about their agreement with bitstamp, I wondered how they were going to be fair to everyone and keep their profit always at 1%.  The answer is that they can't.  They have to gain and lose on trades accidentally (beyond what their programming and agreement is able to deal with).  It is not possible for them to give the exact price on bistamp because they are not directly on the exchange.  This is why coinbase has a limit on trades. You've got 50 coins per day to use, if you want to "work the system" at someone's loss, you've got to make the right guess or be the loser yourself.  You can't do a bot at coinbase, so the competition in that type of "trading" environment is diffrerent. There would have to be a serious merger of the trades to get exactly 1% profit on every trade.  I trust they are trying to be as fair to everyone as possible.  

[counter]

I don't know but If it isn't clearly stated they would do such things in the terms of service agreements or what have you then that is wrong.  Don't no why random amounts would be taking out without you knowledge, just seems odd.

Thing is I'd think that the OP would contact the staff there before starting a thread calling out as major scammers  but that is just me.

[Equate]

Not a new thing for such exchanges

[bitkanu]

security is good in coinbase like phone code security

[cosmofly]

Coinbase is run by criminals, just like the other exchanges and the foundation

[sana8410]

Claiming that "some hacker" took your funds, is a classic Bitcoin scam method.

[MOON_2000]

Well, what are the best coinbase alternatives then?

[theskillzdatklls]

The electricity cost to run your computer to post this thread cost more than the satoshis coinbase took from you.  You should sue bitcointalk instead.

[PilotofBTC]

I very much doubt Coinbase is stealing your bit coin.

Also, someone said "all exchanges steal money". Um... I hope that's not true. You don't know that all the exchanges have transaction fees.

That said, Coinbase is not really an exchange (Other than buying/selling from coinbase itself). It is a wallet, with a merchant API and also an easy way to buy/sell bitcoin for USD via ACH transactions to your bank account.

As someone said... here from the FAQ:

We only show two digits on your balance if it is greater than 5 BTC. This is just to clean up the interface and try to hide unnecessary detail. If you move your mouse over the balance on your Transactions page, the full amount out to 8 decimal places will be displayed.

Also, they even pay miner fees on external bitcoin transactions you perform:

Yes, Coinbase pays miner fees (typically 0.002 BTC) on external transactions greater than 0.001 BTC in order to ensure these transactions propagate throughout the bitcoin network quickly. For amounts less than 0.001 BTC, Coinbase does not pay the fee required by the network.

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Why would they pay miner fees if the are going to steal 100 satoshi?

I really suggest the OP contact coinbase and see what's going on.

[noviapriani]

Bitcoin sites get hacked constantly, and hackers steal more than just coins - they steal your identity as well, if your documents or personal information can be found on the server.

[Torque]

I've long suspected that the Exchanges sweeping the "dust" from all of the individual trading transactions is actually how their owners will get rich someday.

[cahirlet]

Bitcoin sites get hacked constantly, and hackers steal more than just coins - they steal your identity as well, if your documents or personal information can be found on the server.

It's basically the operator's fault since they have flaws in their system and did not patch it. I doubt thats the problem with coinbase though, they have pretty good security imo.

[koshgel]

Less than a penny that's most likely the result of rounding. Yea really shaving off those pennies

[BitcoinUK]

People think that it is no big deal, but when bitcoin has the next rise in price. A 10th of a penny becomes a penny, a penny becomes a £$. Then you will look back and realise how much wealth mining pools and exchanges have shaven off the edges. I think the 'work around' is for people to make only 5 decimal orders and keep the other 3 decimals away from the order queue and safely in their balance.

But I do like it when I see people FINALLY wake up to what mining pools (yes they take more then just 1% fee too) and exchanges are doing. It is almost like watching people wake up to what bankers have done, then fall asleep in bitcoinland again. I found it quite strange that sheeple trust bitcoin businesses to be more honourable then bankers. But atleast the sheeple are starting to wake up, well atleast some.

[godislove]

Coinbase works smoothly.  If you do not trust that they are giving a fair price as reflected on bitstamp, then transfer the coins to bitstamp and do it there manually.  From what I can tell, they are doing at least that well, matching what I see on bitstamp.  I posted earlier that it seemed I could "game" them a little, but now it seems to working more smoothly and quickly.  But they should state what price per coin you got after the transaction's done.  You have to manually do the calculation.