Coinbase, we hardly knew you
Coinbase is a centralized cryptocurrency exchange that allows users to buy and trade Bitcoin, as well as other cryptocurrencies. There are three main Coinbase products:
- Coinbase Exchange
- Coinbase Pro
- Coinbase Wallet
Coinbase is an excellent place for new investors to start their cryptocurrency journey. It’s the perfect choice for those who want an easy and secure way to buy Bitcoin.
In addition, the Coinbase Earn feature lets customers learn about crypto tokens (also platforms and protocols) while earning some for themselves.
Nevertheless, Coinbase is increasingly becoming the target of customer complaints. Customers are reporting money disappearing from their accounts, and when they contact Coinbase support, they aren’t receiving good service in return.
Also, the possibility that your account could get hacked can raise some concerns, particularly if you are crypto-rich.
For new users, the similarity between Coinbase and a wallet might be confusing. Although Coinbase has its own integrated wallet, it’s essentially an exchange.
You do not have access to your private keys with Coinbase. As a result, you do not have complete control over your money. It is also highly discouraged to keep money on Coinbase.
Furthermore, Coinbase does not want you just to hoard and keep Bitcoin. You don’t just sit on your Bitcoin; you trade it and store it in Coinbase.
One goal of Coinbase’s product and marketing is to get you to exchange as many assets as feasible, as frequently as possible.
When you trade on Coinbase, the company makes money like any casino seeking to retain customers on the premises.
Closing your Coinbase Account
If you’re ready to delete your Coinbase account, a step-by-step guide on closing your Coinbase account is below. Some of your personal information will be kept after you close your account with Coinbase.
To prevent fraud and address possible conflicts, among other reasons, they keep this data for at least 5 years or as long as necessary if there are legal obligations in place that would require this lengthier retention period.
This is done so that fraud can be prevented and disputes dealt with accordingly within their platform or elsewhere on the web where applicable.
1. Sell your Cryptocurrencies or Withdraw from Coinbase
Are you interested in closing your account? Before you start to delete your Coinbase account, be sure any funds currently in their wallet have been withdrawn or transferred.
You may either sell and withdraw them or simply send them to another external wallet.
You may choose to sell all your altcoins for Bitcoin. Why is this a good idea? It’s better to hold onto Bitcoin than gamble on any other cryptocurrency, so let’s look at how you can do that!
To convert your altcoins into Bitcoin, click “Trade” at the left sidebar of any Coinbase page.
Then select the “Convert” tab. If you have any other currencies that aren’t Bitcoin and are in your wallet, exchange them all for Bitcoins.
2. Set up a Bitcoin address of your own
To get your Bitcoin off Coinbase, you first need a wallet that will allow you to receive those funds. If you’re not sure what this means, have no fear!
To withdraw your Bitcoin from Coinbase, you must first create a Bitcoin address where those funds will be sent. Don’t worry if this sounds complicated; all it means is that with the click of a button, you’ll set up your own secure digital bank vault on the Bitcoin network.
What’s crucial is to keep the key that goes with it safe. If your key is lost, so are the funds you want to transfer.
That’s where you have two options: either self-custody and full control or rely on an affordable collaborative custody provider to assist you to set up and secure your Bitcoin address.
Regardless of the direction you go in, the number of excellent businesses offering services for Bitcoin users has risen dramatically in recent years, making it easier than ever to take that next step.
Once you’ve created a Bitcoin address and stored your private keys safely, you’re almost done withdrawing Bitcoin from Coinbase and sending it to your new Bitcoin address. Not yet, though!
If you withdraw your Bitcoin by clicking “Send” on your Bitcoin balance page and inputting in a new Bitcoin address, there will be a tiny amount of Bitcoin left over, known as “dust.” However, when you attempt to close your account later, Coinbase will not allow it because you have a non-zero balance and won’t let you withdraw the dust since it’s too small to send.
To avoid this inconvenient situation, wait until Step 3 to execute your Bitcoin withdrawal as part of the account closure procedure.
3. Cancel your Coinbase account
It’s simple to delete your Coinbase account and send your Bitcoin to the new Bitcoin address you specified. So naturally, Coinbase does not provide you with step-by-step instructions on how to close your account.
The following step is to cancel your Coinbase account. To do so, go to your account/profile in the upper right corner and choose “Settings.”
Proceed by clicking on “Activity” at the top of the screen and scroll down to the bottom of the screen. You will see the “Close Account” button to delete your account.
You’ll be given the option of entering your account password in a pop-up box. After you’ve correctly entered your Coinbase account password, click “Close Account.”
During the account closure procedure, you will be asked to withdraw your Bitcoin balance from Coinbase. This is what we had been waiting for when we delayed withdrawing Bitcoin earlier.
You’re all set! After you’ve completed these steps, choose “Close My Account.” You’ll be logged out of your account and receive an email notification that the account has been closed.
After closing your Coinbase account, you’ll need to get a new service to help you amass Bitcoin. If you’re seeking alternatives to Coinbase, you’ve come to the perfect place. You can trade and swap tokens on a variety of centralized and decentralized exchanges to gain access to new cryptocurrency assets.
Coinbase is not a bank. It’s more like the casino in Vegas where you can come, gamble, and then leave with memories of how much fun you had. Not only are the experiences fun, but they also remind you how reliable and easy Coinbase is to use.
Also, the company does not want customers just to hoard their Bitcoin; rather, they encourage users to trade as many assets on the platform as possible by making it easy for them to buy or sell anything from anywhere in the world at any time.
When people exchange assets on Coinbase, the company makes money off of every transaction. Nonetheless, Coinbase is considered to be one of the safest exchanges in the world. In fact, Coinbase has never been hacked – think about that when deciding whether you want to close your Coinbase account!
If trading isn’t really your thing, we recommend storing some crypto offline instead. Hardware wallets like Trezor, Ledger, KeepKey, and Keystone Pro can safeguard your private keys.
The most comparable alternatives to Coinbase are centralized exchanges such as Binance and Kraken. These platforms enable you to exchange a variety of cryptocurrency assets. However, they will need KYC information and charge trading fees that range from 0.1%.
More recently, decentralized alternatives like UniSwap have grown in popularity. This is due to their peer-to-peer trading model, anonymity, and the fact that you are not sending money to an exchange; it is seen as a safer way to trade.