[SOLVED]Bitcoins are going no where I am frustrated with BTC

[pekv2]

Not if you have 2 Factor Authentication enabled!  

What's that have to do with the exchange pulling out money of my bank account without my permission?

[1715059565]

1715059565

[wachtwoord]

Bitcoins are going no where I am frustrated with BTC.

My Bitcoins are also going nowhere as they mostly remain in the addresses I left them in. I find this a desirable trait.

[ChuckBuck]

Not if you have 2 Factor Authentication enabled!  

What's that have to do with the exchange pulling out money of my bank account without my permission?

Coinbase isn't an exchange.  When you buy coins from them, it's from their own wallets.

If you need anymore proof of Coinbase's solvency, some words from the Godfather himself:

http://antonopoulos.com/2014/02/25/coinbase-review/

Code:

Coinbase Review

-----BEGIN PGP SIGNED MESSAGE-----
Hash: SHA1

On Monday February 24th, 2014 I was invited to the offices of Coinbase in San Francisco, as part of a voluntary cross-industry effort to provide independent review of the security of Coinbase customer funds. I am the Chief Security Officer at Blockchain, a bitcoin company that offers a web-wallet service that competes with some of Coinbase’s services. Prior to this day, I had not been to Coinbase’s offices, nor did I have any prior professional relationship with Coinbase. My visit was as an independent security expert with no financial control or interest in Coinbase. My goal during this visit was to validate the existence and security of customer funds.

During my visit, I met with the CEO and other executives and was presented with information on the mechanisms Coinbase uses to secure customer funds from theft, including their cold storage system and operating process.

I was shown an internal reporting tool used by Coinbase to verify total customer funds and the allocation of funds between the “hot wallet” and “cold storage” and funds in transit. Coinbase shared their process and technical details for cold storage, including their process to ensure funds cannot be retrieved from cold storage without the assembly of multiple keys controlled by different people.

While Coinbase publicly states that up to 97% of customer funds are in cold storage, at the time of my visit, their internal reporting tool showed that the cold storage system contained 98.8% of customer funds. To confirm for myself that these funds were in the cold storage system, I looked up the balance each of the cold storage addresses against the public blockchain, using an external site. The balance recorded on the public blockchain ledger for each of the addresses matched the balance recorded in Coinbase’s accounting system.

Although the accounting system and the blockchain balances appeared to match, I wanted to confirm that these addresses were actually controlled by Coinbase, thereby ensuring they controlled the funds. I randomly selected one of the cold storage addresses and requested that a transaction be signed to prove ownership of the address. This was not pre-arranged nor was there any warning that I would make such a request. Coinbase complied with my request and produced a transaction that proved they owned the cold storage address of my choosing.

Based on what I observed during my visit and my experience in security, it appears that the Coinbase system contains the expected funds and their cold storage system and process appear to be operating according to security best practices.

Andreas M. Antonopoulos
-----BEGIN PGP SIGNATURE-----
Version: GnuPG v1.4.13 (Darwin)
Comment: GPGTools - http://gpgtools.org
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=63WZ
-----END PGP SIGNATURE-----

[pekv2]

Can this still happen? "be able to pull money out of my account without my permission, and empty me out."

[ChuckBuck]

Can this still happen? "be able to pull money out of my account without my permission, and empty me out."

Not if you use Bitsimple or Coinbase.

[pekv2]

Can this still happen? "be able to pull money out of my account without my permission, and empty me out."

Not if you use Bitsimple or Coinbase.

Yea i'll pass on the bank thing, if one can do it, any others can.

And now btc is going no where.

[Justin00]

lol i think he is talking about a 'direct debit'
i.e they pull money out of your bank account.. after you verify/sign it in some way at the start.

but yeah you are right.. in theory they could rob you blind.
as could any company who does it.

i have direct debit with my car insurance, health insurance etc etc.. you kind of need to trust the company won't do that.

[Driv3n]

Like others have said Coinbase and Bitsimple are easy, safe, legal options.

[frankenmint]

lol i think he is talking about a 'direct debit'
i.e they pull money out of your bank account.. after you verify/sign it in some way at the start.

but yeah you are right.. in theory they could rob you blind.
as could any company who does it.

i have direct debit with my car insurance, health insurance etc etc.. you kind of need to trust the company won't do that.

DONT TRUST MERCURY INSURANCE they upped my rates with no notification and refuse to cancel direct payments without a faxed letter - who uses FAX machines anymore???  what is this, 1994?

[Bit_Happy]

....
And now btc is going no where.

You must be right, if you say that enough times...

[Justin00]

hmm are they even allowed to do that on a direct debit ?
though the initial authorization is for X-$ and Y-years/months

lol i think he is talking about a 'direct debit'
i.e they pull money out of your bank account.. after you verify/sign it in some way at the start.

but yeah you are right.. in theory they could rob you blind.
as could any company who does it.

i have direct debit with my car insurance, health insurance etc etc.. you kind of need to trust the company won't do that.

DONT TRUST MERCURY INSURANCE they upped my rates with no notification and refuse to cancel direct payments without a faxed letter - who uses FAX machines anymore???  what is this, 1994?

[bzminer]

Can this still happen? "be able to pull money out of my account without my permission, and empty me out."

Not if you use Bitsimple or Coinbase.

Yea i'll pass on the bank thing, if one can do it, any others can.

And now btc is going no where.

I tend to agree. There is still no easy way to do it at the moment.

[pekv2]

I had some good sleep, I am now unfrustrated and feel fresh.

hmm are they even allowed to do that on a direct debit ?
though the initial authorization is for X-$ and Y-years/months

Talked to a family member again just now about direct debit. Their opinion was, they don't think that's safe either. Think about it "direct debit" they have access to your debit info once you submit. Unless someone can clarify how it is safe and they cannot charge the card when ever they feel like it.

Can this still happen? "be able to pull money out of my account without my permission, and empty me out."

Not if you use Bitsimple or Coinbase.

Yea i'll pass on the bank thing, if one can do it, any others can.

And now btc is going no where.

I tend to agree. There is still no easy way to do it at the moment.

Yup it's true atm btc is very hard and to trust someone you don't know with bank accounts, it is very unsafe. It's different if you're walmart, unless they get a security breach like target.

[Justin00]

Whenever I've set one up on my bank account or my credit card I've had to sign a form, or agree to an online form saying I agree for them to take out what ever amount and what ever frequency; however I am 100% certain they *could* take out as much as they like, as you said - but its theft. They wouldn't be able to umm and errr about it, its theft. and not fairy world bitcoin theft, its actual theft theft where your bank would probably get invovled and help you.

Paypal uses direct debit to take money out of your bank account if you want it to..

its a bit of a tricky question.. on the one hand I wouldn't feel comfortable letting some of these bitcoin "companies" to direct debit my account but on the other hand if anything did go missing it would be alot easier to charge files against/dispute/get back $$ than bitcoin would be.

anyways if your gut instinct is to not use it, dont use it..

I had some good sleep, I am now unfrustrated and feel fresh.

hmm are they even allowed to do that on a direct debit ?
though the initial authorization is for X-$ and Y-years/months

Talked to a family member again just now about direct debit. Their opinion was, they don't think that's safe either. Think about it "direct debit" they have access to your debit info once you submit. Unless someone can clarify how it is safe and they cannot charge the card when ever they feel like it.

Can this still happen? "be able to pull money out of my account without my permission, and empty me out."

Not if you use Bitsimple or Coinbase.

Yea i'll pass on the bank thing, if one can do it, any others can.

And now btc is going no where.

I tend to agree. There is still no easy way to do it at the moment.

Yup it's true atm btc is very hard and to trust someone you don't know with bank accounts, it is very unsafe. It's different if you're walmart, unless they get a security breach like target.

[pekv2]

I came up with a thought. Make a secondary separate bank account? And have that strictly for BTC transfers "exchanges" and only keep limited amount of like say, 20 bucks in there. Only deposit in when you need to transfer.

^
Is this a great way to stay secure and not link them to your main bank account.

Edit:
This is probably the best solution I am guessing.

[MarketNeutral]

1) Register with bitsimple

2) send a wire transfer from your bank account to your bitsimple account per bitsimple's instructions
     -have bitsimple's official SC office address and phone number on hand, as some banks may ask for that information for the wire transfer
     -know the reason for the wire transfer, as some banks will ask you to inform them of the reason for the wire transfer, "Purchase order" or something similar should suffice

3) have real bitcoins in your wallet without ACH transfers or linking your bank account in a manner that would give bitsimple authority to withdraw funds


There are other options, as well, but assuming the OP isn't trolling, he needs to assume at least some risk. C'est la vie.

[pekv2]

1) Register with bitsimple

2) send a wire transfer from your bank account to your bitsimple account per bitsimple's instructions
     -have bitsimple's official SC office address and phone number on hand, as some banks may ask for that information for the wire transfer
     -know the reason for the wire transfer, as some banks will ask you to inform them of the reason for the wire transfer, "Purchase order" or something similar should suffice

3) have real bitcoins in your wallet without ACH transfers or linking your bank account in a manner that would give bitsimple authority to withdraw funds


There are other options, as well, but assuming the OP isn't trolling, he needs to assume at least some risk. C'est la vie.

Omg that seems simple and much more secure. Thank you! for the explanation of a safer way to deal with Banks > BTC.

That's awesome.

I will definitely use bitcoins once like newegg accepts them. That's simple as hell.

Edit:
And donations!

I'll try to get some to bitcointalk forums.

Edit2:

It was just the matter of me learning a little bit, and it's hard to learn on my own. Thank you all.

[pekv2]

Now just waiting for verifications bitsimple > paypal. Then I think I need to verify paypal to my bank account, correct? for Bitsimple to be verified to paypal?

[wachtwoord]

Now just waiting for verifications bitsimple > paypal. Then I think I need to verify paypal to my bank account, correct? for Bitsimple to be verified to paypal?

I'm glad you figured it out. Just for future reference, the only reason myself and others joked around a little was the over-the-top way you presented your statement (hidden question). If you had simply asked I can guarantee you would have been helped more directly

Good luck!

[pekv2]

Now just waiting for verifications bitsimple > paypal. Then I think I need to verify paypal to my bank account, correct? for Bitsimple to be verified to paypal?

I'm glad you figured it out. Just for future reference, the only reason myself and others joked around a little was the over-the-top way you presented your statement (hidden question). If you had simply asked I can guarantee you would have been helped more directly

Good luck!

Thanks man! I get out of hand and get so frustrated I know of no other way i guess. I'm weird.

But as the ? still remains does paypal have to be verified through bank account or any other means for bitsimple to be verified through paypal?