Hi folks,

I just created an Coinbase account to receive (small amounts of) Bitcoin from another service. I would have looked into it more before doing so, but it was actually the only option, so I just dove in. However, from what I can tell, I don’t necessarily need to keep anything in my Coinbase account, and if I ever plan on doing anything else (buying, selling, making payments) with crypto, I’m curious if Coinbase is the right place to do it.

I’ve only done the most basic of research. I know more about blockchain and ledgers than I do about wallets and exchanges, and that still isn’t a lot.

So:

  • I need a Coinbase account to receive BTC, but I don’t need to keep it there
  • I don’t need to do anything with that BTC immediately - let’s call it small amounts of play money, for now
  • Since BTC is down right now (in my view) I might consider buying a bit, or potentially other cryptocurrency(ies)
  • I like the diversification of holding a bit of crypto even though I don’t totally trust the whole system nor its value
  • I travel and I can foresee potentially using crypto to make payments or withdraw cash as that pops up sometimes

Does it cost anything to move my BTC out of Coinbase? Are there better places to keep it that would make it worth it? Is Coinbase safe? Is it a terrible company? Would other places be safer, easier, harder? What am I not thinking of?

  • reallykindasorta@slrpnk.net
    2·
    18 days ago

    By default your btc is in a custodial wallet at coinbase where they control the passphase so you only have access through coinbase.

    Coinbase has been around awhile and is pretty good at fraud protection so I wouldn’t be too worried, but I would personally transfer my balance to a non-custodial wallet occasionally for long term saving. If you want to be able to convert back to fiat currency quickly leaving it on coinbase might make sense.

    If you transfer your btc to a noncustodial wallet (for ex. Coinbase Wallet or Blockchain.com wallet) it will prompt you to write down the address and passphrase. After that you can access your btc via ANY btc wallet by typing in the passphrase (you’re not tied to the wallet software you use to access it). This is why if someone gets your passphrase they have your btc too.

    • JohnnyCanuck@lemmy.caOP
      2·
      18 days ago

      If you want to be able to convert back to fiat currency quickly leaving it on coinbase might make sense.

      I see, cool. I think my goal right now is just to hold the crypto, but I like that clarity.

      After that you can access your btc via ANY btc wallet by typing in the passphrase (you’re not tied to the wallet software you use to access it).

      Oh that’s interesting. It makes sense, but the concept never clicked like that for me. Thanks!