If you know a thing or two about cryptocurrency, you have probably come across Coinbase. It is one of the popular digital currency exchanges that was launched in 2012 in San Francisco, United States. Currently, Coinbase operates in 32 countries and has managed to serve over 12 million people to make total exchanges of more than $40 billion. The exchange allows users to trade various cryptocurrencies including Bitcoin, Ethereum, and Litecoin (for “fiat” currency i.e., normal currency such as euros, dollars, and pounds).
As of 2017, Coinbase was the world’s biggest Bitcoin broker. What sets Coinbase apart from other exchanges is that users don’t have to trade on a market but rather on a set price determined by their market value. This allows users to conduct faster transactions than other digital currency exchanges.
There are plenty of reasons to choose Coinbase. Check them out.
• High limits and liquidity: Coinbase’s limits are quite high compared to other exchanges. The exact limit offered to you varies depending on the level of your account but if you are a verified U.S. customer, you can purchase up to a maximum of $50,000 worth of bitcoins every day.
• Ease of Transactions: Both sending and receiving of crypto is quite easy on the Coinbase exchange. Provided you have the necessary details, you can carry out a transaction without a hassle.
• Extensive Deposit Options: Coinbase has partnered with many financial institutions and payment services. You can make deposits to your account via ACH/SWIFT/ SEPA transfer, EFT payments, PayPal, and credit cards.
• Has an intuitive and friendly user interface
• Allows for instant crypto transfers between two Coinbase users
Even though Coinbase advantages are quite many, the exchange comes with some pros too.
• Limited payment methods: Coinbase only accepts wire transfers (including SEPA in the EU and ACH in the US), debit cards, and credit cards.
• Doesn’t allow margin trading
• Is only limited to a few countries
• Some of the countries supported don’t have all the available trading pairs
Reasons to close a Coinbase account
Recently, Coinbase joined hands with Neutrino (a startup that deals with the tracking of crypto transactions). The news wasn’t well received by many of Coinbase users. Reason? Some of the key members of Neutrino are known for being a part of a state-funded and highly controversial Hacking team. Understandably so, these users suddenly became unsure of their privacy on the platform.
Expectedly, Coinbase accounts were being deleted left, right, and center, a move which forced the exchange to stop deleting user accounts for some time. However, all that has been since resolved and users can proceed with their account deletions provided they have zero dust on them. If the news of the partnership doesn’t sit well with you, you can go ahead and delete your account. Otherwise, more reasons to delete your Coinbase account include the following:
• Poor customer support
• Extremely late payments
• Exorbitant fees
• Travel to unsupported geographical locations
How to Delete Coinbase account
If you are certain of your decision to close your Coinbase account, ensure you have a dust balance of zero. This is one of the most important steps that will guarantee a roadblock if not adhered to. Sometimes, you might have infinite crypto fractions which are essentially leftovers from past transactions. These too will have to go. In the past, users have dealt with this scenario by sending the balances to other Coinbase users right before closing their accounts.
Here’s a step-by-step procedure on how to close your Coinbase account.
1. Open your Coinbase account
2. Go to the “settings” tab right on top of the page
3. Move to the “Security” tab
4. Move your mouse or cursor to the bottom of the site and click the “Close Account” tab. Confirm your decision only after you are sure your balance is zero. Else, you will lose these funds.
5. Go over all the promptings on the screen. Coinbase does a few basic checks to make sure you haven’t forgotten anything.
6. Done! Just like that, you’ve deleted your Coinbase account permanently.
How to withdraw your cryptocurrency from Coinbase
Although making deposits to Coinbase is straightforward, the withdrawal process is quite the opposite. That said, it is possible. Essentially, Coinbase only allows its users to sell their dust directly to their Coinbase fiat wallets. With this method, you don’t have a limit on how much you can send to your wallet. Once you sell to your wallet, you can proceed with the withdrawal process to your local US bank account, debit or credit card. If you hail from Europe, you’ll need to put your digital currency via a Single Euro Payments Area (SEPA) transfer. You can make this transfer using a local UK account although you might need to check with your bank if there are any fees charged. Once you have initiated this process, sit tight and wait for your account to be verified. This takes a few business days (around 5 days).
The next step is to sell your cryptocurrency within the site or app, in other words, convert it into Euros. The last thing to do is to do the withdrawal of the funds. Select the “withdraw” tab at the top-right of your account. This is what will initiate a SEPA transfer to the account verified above. If using a US bank account, simply withdraw the funds from your wallet or sell your digital currency back to Coinbase and wait for them to deposit the dollars in your verified account. This shouldn’t take more than three business days.
Best places to store cryptocurrency outside of Coinbase
Now that you’ve closed your Coinbase account, you might benefit from knowing where else to store your crypto. Here’s some hard truth: hardware or cold storage is safer than online wallets. The reason is that online wallets keep your private key on their servers. This is a major security concerns. Your account is susceptible to hackers. In addition, steer clear from any hot wallets i.e., any computer or phone app that works via an internet connection. You may use these to make small payments here and there but don’t store your digital currency in them.
The best recommendation would be hardware exchanges which essentially store your crypto offline. The methods vary including paper wallets, use of USB drives, and various storage media, hardware wallets, and physical bitcoins. That said, here are some of our best recommendations.
1. Ledger Nano S
This is one of the most popular and safe methods of storing digital currency. It’s somewhat a USB drive connected to a specific USB port. It doesn’t need a battery and is initiated when it is plugged into a mobile device or a computer. The ledger comes with two side buttons on its OLED screen used to confirm transactions. The device supports a wide selection of leading cryptocurrencies including Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic. Dash, Dogecoin, just to mention a few.
Trezor is the first Bitcoin hardware wallet to be introduced to the world. It is essentially a petit device consisting of an OLED screen and a USB port that connects to your PC or mobile phone. It stores your private keys away from the online world and enables you to sign transactions. Like Ledger, Trezor supports many digital currencies (600 in number).
Coinbase Support Review
Coinbase has tried their best to offer knowledge about their services on their website. However, if users feel the need to make requests or ask questions, they can submit a support ticket via email. The response often comes within a 48-72hour period. The exchange also has an operating phone support line for any urgent queries.
However, based on past customer reviews, Coinbase support can do with some improvement. The quality seems to be wanting. Users have claimed that the support team isn’t too committed to solving issues with many cases of “canned responses” being witnessed. Further, Coinbase isn’t too known for actually responding to these requests in the first place. If you want to join the Coinbase bandwagon, this is something you might want to keep in mind.
Arnold Webb received a Masters Degree in Computer Science from Harvard University. Arnold currently is a full-time researcher and trader in the cryptocurrency industry. Arnold contributes content to CryptoCelebrities.co, The Bitcoin Magazine and several other publications.