Coinbase at risk, transfer my crypto currencies elsewhere?

Zola.

sebtomato said:

Futuristic said:

sebtomato said:

Futuristic said:

What BS have you been reading? They have several $bn in cash and do not hold substational crypto unlike other exchanges 

You could say all exchanges are at risk so trade on one of them and withdraw whatever your holding so to hardware/cold wallet

Will having several $bn in cash prevent them from going bankrupt?

If they go bankrupt, will the wallet they are holding on behalf of their customers be part of their assets and frozen?

What BS have YOU been reading? I am not talking about the exchange and trading, I am talking about my cryptocurrencies stored on Coinbase wallet...

If you have Coinbase wallet and asking why one should use X wallet instead of Y where you are the custodial then you need to go back to the drawing board and figure out what you're even doing in crypto.

All the custodial apps have a seed phrase which you can take with you anywhere, the apps (ledger, trezor, cb wallet) are mere front ends. 

You did note it down right when it probably warned on the UI a gazillion times at creation? And no storing it online or your PC is not backing it up. Paper written down or  something like cryptosteel

Thanks for the patronising reply.

I meant the wallet which is part of the Coinbase trading app... which is going to be the wallet most people would use.

Storing the seed phrase encrypted online is the best backup possible, BTW, as opposed to a piece of paper. What could go wrong with that...

That's not a wallet though. That is simply leaving any purchase on the exchange and under Coinbase's custody. Unless you are specifically sending it to an actual wallet  after purchasing, then you are trusting Coinbase (who are bad actors). Think of it like depositing money in a bank with zero protection. 

When exchanges get hacked, go out of business etc, anything you have left in their custody is legally theirs, you agree to this in their T&C's (which nobody ever reads). 

Hence the old saying - Not your keys, Not your coins. 

Type_45

Zola. said:

sebtomato said:

Futuristic said:

sebtomato said:

Futuristic said:

What BS have you been reading? They have several $bn in cash and do not hold substational crypto unlike other exchanges 

You could say all exchanges are at risk so trade on one of them and withdraw whatever your holding so to hardware/cold wallet

Will having several $bn in cash prevent them from going bankrupt?

If they go bankrupt, will the wallet they are holding on behalf of their customers be part of their assets and frozen?

What BS have YOU been reading? I am not talking about the exchange and trading, I am talking about my cryptocurrencies stored on Coinbase wallet...

If you have Coinbase wallet and asking why one should use X wallet instead of Y where you are the custodial then you need to go back to the drawing board and figure out what you're even doing in crypto.

All the custodial apps have a seed phrase which you can take with you anywhere, the apps (ledger, trezor, cb wallet) are mere front ends. 

You did note it down right when it probably warned on the UI a gazillion times at creation? And no storing it online or your PC is not backing it up. Paper written down or  something like cryptosteel

Thanks for the patronising reply.

I meant the wallet which is part of the Coinbase trading app... which is going to be the wallet most people would use.

Storing the seed phrase encrypted online is the best backup possible, BTW, as opposed to a piece of paper. What could go wrong with that...

That's not a wallet though. That is simply leaving any purchase on the exchange and under Coinbase's custody. Unless you are specifically sending it to an actual wallet  after purchasing, then you are trusting Coinbase (who are bad actors). Think of it like depositing money in a bank with zero protection. 

When exchanges get hacked, go out of business etc, anything you have left in their custody is legally theirs, you agree to this in their T&C's (which nobody ever reads). 

Hence the old saying - Not your keys, Not your coins. 

Coinbase Wallet does have keys though. You get a 12 word phrase.

Zola.

Yes the dedicated mobile wallet app does... 

The "Coinbase" trading app or the "Coinbase Pro" app however are purely links to exchanges and are not wallets.  

Type_45

That being said, I've moved my crypto to Ledger.  

I hope/expect for a crypto pump when the Fed starts printing money again this year. 

But if the crypto winter turns out to be years long (as it was last time) then I'd sooner have it all on Ledger where there is less of a concern.

Zola.

Agreed - what do you own @Type_45? Mainly Bitcoin?

Type_45

Zola. said:

Agreed - what do you own @Type_45? Mainly Bitcoin?

I have XRP and XLM only.

Zola.

Oh dear...

Zola.

Just a shame they are one of the most immoral.. 

Futuristic

Such a risk that BlackRock have partnered with it:
https://www.ft.com/content/57435d7a-c384-4fe5-b2b6-747b44363c5b