Coinbase at risk, transfer my crypto currencies elsewhere?

sebtomato

There are several news article this week about Coinbase possibly at risk of bankruptcy, given the sudden lack of interest for crypto currencies.

They currently hold my wallet. Should I create my own wallet elsewhere and transfer out what I have?

I was looking at Paypal (safe option) but they don't seem to allow transferring in crypto currencies yet.

Reaper

I would never hold crypto in an exchange wallet, not only is it at risk if the company liquidates but there have been a number of thefts from exchange wallets in the past.

I currently have no crypto but previously I used a wallet on my PC. There are various options, the one I chose was called Exodus. You can even go further and take it completely offline into a cold store for maximum safety if you want.

Type_45

Coinbase Wallet is a separate entity to the Coinbase exchange though, isn't it?

sebtomato

Type_45 said:

Coinbase Wallet is a separate entity to the Coinbase exchange though, isn't it?

It would seem that it's not the case. Basically, the wallet and currencies hosted by them may be at risk or locked for a long time in case of bankruptcy.

Ideally, the wallet should be a separate company, with enough funding to keep going for a while in case the trading company fails.

25_Years_On

As one defender said:

"Coinbase has 6 billion in cash + large crypto reserves. They will be fine! With that being said I just transferred everything off"

Zola.

If you are talking about the Coinbase Wallet (i.e. the hot wallet app for your phone), then that should be a non custodial wallet where you can send your stuff anywhere. Does seem like an unnecessary risk to buy from their exchange and hold it with their own app (even if they act like its independent). They are a horrible company also. 

If worried just set up Blue Wallet and send something to it, once happy send it all. 

If you are buying loads of alt coins (i.e not bitcoin), I wouldn't worry about your security because all the alts will go to zero in the end anyway... 

https://www.coinbase.com/learn/crypto-basics/what-is-the-difference-between-coinbase-and-coinbase-wallet

Whilst they say here they will never know your seed phrases etc, they don't say IF they can put the breaks on the app transferring out in a time of "emergency"

Type_45

Zola. said:

If you are talking about the Coinbase Wallet (i.e. the hot wallet app for your phone), then that should be a non custodial wallet where you can send your stuff anywhere. Does seem like an unnecessary risk to buy from their exchange and hold it with their own app (even if they act like its independent). They are a horrible company also. 

If worried just set up Blue Wallet and send something to it, once happy send it all. 

If you are buying loads of alt coins (i.e not bitcoin), I wouldn't worry about your security because all the alts will go to zero in the end anyway... 

https://www.coinbase.com/learn/crypto-basics/what-is-the-difference-between-coinbase-and-coinbase-wallet

Whilst they say here they will never know your seed phrases etc, they don't say IF they can put the breaks on the app transferring out in a time of "emergency"

Why Blue Wallet?  And, indeed, why Ledger/Trezor?  Any of them could go bust.


And "in the end" everything will go to zero.  Including Bitcoin and every stock on the global stock markets.  

"In the end" things which will still be here include land, gold and silver.

Zola.

Blue Wallet is open source free software, so it cant go bust. It is also one of the best free hot wallets going.

As for the rest of your post, I will leave it there...

Millyonare

Coinbase is losing big global market share, one report this week suggested 50% of stablecoins on Coinbase Pro left the exchange in a single day, and rumours of a liquidity crisis are flying around social media. The market is clearly very nervous, in this crypto-winter.

sebtomato

My current conclusion is that Coinbase is at risk, anything could happen (I have seen banks going under because of people panicking), so I have transferred my Bitcoin investment from Coinbase (exchange app with its built-in hosted wallet) to a wallet on my PC, using the Exodus software (seems pretty easy to use, and transfer happened quickly). No clue if it's the best software or not, but it works.

Yes, Coinbase also offers a proper wallet as a separate app, but the majority of Coinbase users will have their wallet hosted by Coinbase, and such wallet would be at risk in case of bankruptcy.

If/Once the market recovers, I can always transfer back to Coinbase for trading. I am clearly not going to do any trading in the short term, so may as well reduce the risk.

Type_45

"Buy when there is fear".

This is exactly when people should buy crypto. 


I won't be because I've put too much in already and it's all down!