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Understanding Coinbase

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Re: Understanding Coinbase

#21

Post by [deleted] »

gruez wrote: post #13
gbasin wrote: post #7

Earlier quoted context omitted.

The fees. 0.2% is not low compared to any mature market for trading. As a point of reference, Robinhood is free. Interactive Brokers will charge you a fraction of a cent in commissions, so on a $30 stocks that's about 0.01%

Stock trading is cheap for a variety of factors that's not applicable to crypto (eg. payment for order flow, stock lending [1]). A stock brokerage can also skimp on security because the legacy financial system has an undo button for oopsies. Finally, a 0.2% fee is relatively competitive with a "reasonable" commission of $5-10/trade (the going rate before brokerages became commission-free) as long the trade is below a…

[deleted]

Re: Understanding Coinbase

#22

Post by mquander »

gruez wrote: post #13
gbasin wrote: post #7

Earlier quoted context omitted.

The fees. 0.2% is not low compared to any mature market for trading. As a point of reference, Robinhood is free. Interactive Brokers will charge you a fraction of a cent in commissions, so on a $30 stocks that's about 0.01%

Stock trading is cheap for a variety of factors that's not applicable to crypto (eg. payment for order flow, stock lending [1]). A stock brokerage can also skimp on security because the legacy financial system has an undo button for oopsies. Finally, a 0.2% fee is relatively competitive with a "reasonable" commission of $5-10/trade (the going rate before brokerages became commission-free) as long the trade is below a…

Why will those factors not be applicable to crypto? (People taking custody of their own cryptoassets may mean that the exchange can't lend them out, but as exchanges continue to pass the test of time more and more people may be willing to leave assets on exchanges.)

Re: Understanding Coinbase

#23

Post by dwighttk »

brianvli wrote: post #6
eruleman wrote: post #2

The biggest threat to Coinbase are decentralized exchanges like Uniswap & Sushiswap. During the peak of DeFi summer, Uniswap handled more trading volume than Coinbase. [0] Uniswap airdropped its token $UNI to all users on Sept 17, 2020. Uniswap is already at a $17 billion market cap. Coinbase is expected to IPO at ~$100 billion. [0] https://www.theblockcrypto.com/data/decentralized-finance/de...

Coinbase is more about turning non-crypto currencies into crypto currencies while UNI/SUSHI are more about turning crypto currencies into different crypto currencies. In my POV, there's only two ways to get into crypto: - Centralized exchanges with KYC - Mining Coinbase is a KYC centralized exchange and enables people to turn their bank account $$s into crypto. Uniswap and Sushiswap are only relevant once someone has…

Coinbase tells me there are no fees for crypto to crypto conversion, just when I initially buy crypto with cash. What does a decentralized exchange give me that beats that?

Re: Understanding Coinbase

#24

Post by gzer0 »

echelon wrote: post #19
brianvli wrote: post #6

Earlier quoted context omitted.

Coinbase is more about turning non-crypto currencies into crypto currencies while UNI/SUSHI are more about turning crypto currencies into different crypto currencies. In my POV, there's only two ways to get into crypto: - Centralized exchanges with KYC - Mining Coinbase is a KYC centralized exchange and enables people to turn their bank account $$s into crypto. Uniswap and Sushiswap are only relevant once someone has…

Yesterday someone asked for me to pay them in Bitcoin rather than PayPal/CashApp. I'm kind of at a loss for how to do this...

You can send, receive and even buy Bitcoin with fiat with CashApp after you go through their KYC procedures within the app. [1] https://cash.app/bitcoin

Re: Understanding Coinbase

#25

Post by fastball »

brianvli wrote: post #6
eruleman wrote: post #2

The biggest threat to Coinbase are decentralized exchanges like Uniswap & Sushiswap. During the peak of DeFi summer, Uniswap handled more trading volume than Coinbase. [0] Uniswap airdropped its token $UNI to all users on Sept 17, 2020. Uniswap is already at a $17 billion market cap. Coinbase is expected to IPO at ~$100 billion. [0] https://www.theblockcrypto.com/data/decentralized-finance/de...

Coinbase is more about turning non-crypto currencies into crypto currencies while UNI/SUSHI are more about turning crypto currencies into different crypto currencies. In my POV, there's only two ways to get into crypto: - Centralized exchanges with KYC - Mining Coinbase is a KYC centralized exchange and enables people to turn their bank account $$s into crypto. Uniswap and Sushiswap are only relevant once someone has…

As others mentioned you're forgetting an economy which just uses crypto as the means of exchange, which for many has always been the long term goal.

But you're also forgetting P2P crypto marketplaces like LocalCryptos[1], which (for Ethereum) allows you to have smart contract escrow and therefore the middle-man is only really required in the case of disputes. I personally have transacted > $100k with LocalEthereum, not once having an issue with a trade, and most settling in under 30min.

[1] https://localcryptos.com/

Re: Understanding Coinbase

#26

Post by gruez »

mquander wrote: post #22
gruez wrote: post #13

Earlier quoted context omitted.

Stock trading is cheap for a variety of factors that's not applicable to crypto (eg. payment for order flow, stock lending [1]). A stock brokerage can also skimp on security because the legacy financial system has an undo button for oopsies. Finally, a 0.2% fee is relatively competitive with a "reasonable" commission of $5-10/trade (the going rate before brokerages became commission-free) as long the trade is below a…

Why will those factors not be applicable to crypto? (People taking custody of their own cryptoassets may mean that the exchange can't lend them out, but as exchanges continue to pass the test of time more and more people may be willing to leave assets on exchanges.)

AFAIK the only reason why there's a market for lending stocks is because the SEC prohibits naked short-selling. If you want to short-sell, you need to locate a share somewhere and "borrow" it, which leads to brokerages offering to do that for a price. For crypto this isn't required because you can short using CME bitcoin futures, which is cash settled and therefore doesn't require you to locate/borrow anything.

Re: Understanding Coinbase

#27

Post by rawtxapp »

dwighttk wrote: post #23
brianvli wrote: post #6

Earlier quoted context omitted.

Coinbase is more about turning non-crypto currencies into crypto currencies while UNI/SUSHI are more about turning crypto currencies into different crypto currencies. In my POV, there's only two ways to get into crypto: - Centralized exchanges with KYC - Mining Coinbase is a KYC centralized exchange and enables people to turn their bank account $$s into crypto. Uniswap and Sushiswap are only relevant once someone has…

Coinbase tells me there are no fees for crypto to crypto conversion, just when I initially buy crypto with cash. What does a decentralized exchange give me that beats that?

There are fees for every exchange, not sure where you saw the no fees part.

Re: Understanding Coinbase

#28

Post by dwighttk »

rawtxapp wrote: post #27
dwighttk wrote: post #23

Earlier quoted context omitted.

Coinbase tells me there are no fees for crypto to crypto conversion, just when I initially buy crypto with cash. What does a decentralized exchange give me that beats that?

There are fees for every exchange, not sure where you saw the no fees part.

Do you mean they give me a slightly worse exchange rate than I could get somewhere else? The “fee” line when I do an exchange is $0.00

Re: Understanding Coinbase

#29

Post by jacques_chester »

fastball wrote: post #25
brianvli wrote: post #6

Earlier quoted context omitted.

Coinbase is more about turning non-crypto currencies into crypto currencies while UNI/SUSHI are more about turning crypto currencies into different crypto currencies. In my POV, there's only two ways to get into crypto: - Centralized exchanges with KYC - Mining Coinbase is a KYC centralized exchange and enables people to turn their bank account $$s into crypto. Uniswap and Sushiswap are only relevant once someone has…

As others mentioned you're forgetting an economy which just uses crypto as the means of exchange, which for many has always been the long term goal. But you're also forgetting P2P crypto marketplaces like LocalCryptos[1], which (for Ethereum) allows you to have smart contract escrow and therefore the middle-man is only really required in the case of disputes. I personally have transacted > $100k with LocalEthereum, n…

> As others mentioned you're forgetting an economy which just uses crypto as the means of exchange, which for many has always been the long term goal.

Taxes are owed in income or capital gains, whatever form that income or capital takes, but taxes can only paid in legal tender. Until the IRS et al hang out a wallet address for payments you will still need to touch the ordinary financial economy.

Re: Understanding Coinbase

#30

Post by hanniabu »

dwighttk wrote: post #23
brianvli wrote: post #6

Earlier quoted context omitted.

Coinbase is more about turning non-crypto currencies into crypto currencies while UNI/SUSHI are more about turning crypto currencies into different crypto currencies. In my POV, there's only two ways to get into crypto: - Centralized exchanges with KYC - Mining Coinbase is a KYC centralized exchange and enables people to turn their bank account $$s into crypto. Uniswap and Sushiswap are only relevant once someone has…

Coinbase tells me there are no fees for crypto to crypto conversion, just when I initially buy crypto with cash. What does a decentralized exchange give me that beats that?

> What does a decentralized exchange give me that beats that?

Owning the actual asset and not just an IOU

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