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Coinbase is the only exchange I know off that still supports sending coins to a private wallet in WA and NY. Localbitcoins and Kraken stopped supporting that, and RobinHood never did. It's a shame.
Wait how does this work. If you can't withdraw then in what sense do you even own the coins? Does this mean that if you are, say, a New York based Robinhood customer, and you buy Bitcoin, then the only thing you can do with them is sell them later?
Earlier quoted context omitted.
If you believe in crypto, you can't go wrong with either one, one advantage of their stock is that you can invest through traditional means.
> If you believe in crypto If you believe in crypto, why would you invest in a centralized exchange? Seems antithetical to the principles of cryptocurrencies.
For me the most important aspect of decentralized assets is separation between money and state; challenging government monopoly power over money.
That said, there are conveniences and advantages to centralization. Centralized exchanges help supply and demand meet quickly and efficiently.
I think its possible for those systems to live together productively. There is freedom when I choose to trust and consent to other willing parties to take control of my assets. The problem arises when we are compelled to give up control by force of law.
Coinbase is the only exchange I know off that still supports sending coins to a private wallet in WA and NY. Localbitcoins and Kraken stopped supporting that, and RobinHood never did. It's a shame.
Wait how does this work. If you can't withdraw then in what sense do you even own the coins? Does this mean that if you are, say, a New York based Robinhood customer, and you buy Bitcoin, then the only thing you can do with them is sell them later?
You can't even sell your coins at another exchange if the price is better there.
With Robinhood and the like, you're only speculating on the value of the coin, which is very unhealthy for the market the as more of these 'exchanges' become common.
After not paying attention to cryptocurrency for a few years and then opening a Coinbase account earlier this year, I was SHOCKED how fast and easy everything was. From what I can discern as a user, they've made a great platform. My one worry-- it seems like they use a similar pattern to Robinhood where upon purchase they grant an asset immediately (synthetically?), and then settle up actual holdings after the fact.…
In the MTGox days, the discrepancy could be viewed in the delay to take out one's coins; as well as in their market, which was displaying a very different prices than on other exchanges. Scary stuff I'm sure some HNers here will remember.
Under what circumstances would it make sense to invest in Coinbase compared to Bitcoin/underlying? Doesn't really make sense if you're bullish on crypto. Even seed investors who invested in Coinbase when it was founded would've been financially better off just buying Bitcoin/underlying. The situation here is unique because all of the popular coins have fixed supplies so any increase of popularity will have the commen…
After not paying attention to cryptocurrency for a few years and then opening a Coinbase account earlier this year, I was SHOCKED how fast and easy everything was. From what I can discern as a user, they've made a great platform. My one worry-- it seems like they use a similar pattern to Robinhood where upon purchase they grant an asset immediately (synthetically?), and then settle up actual holdings after the fact.…
Under what circumstances would it make sense to invest in Coinbase compared to Bitcoin/underlying? Doesn't really make sense if you're bullish on crypto. Even seed investors who invested in Coinbase when it was founded would've been financially better off just buying Bitcoin/underlying. The situation here is unique because all of the popular coins have fixed supplies so any increase of popularity will have the commen…
What makes you think many of their seed investors also did not buy Bitcoin as well? They can do both.
After not paying attention to cryptocurrency for a few years and then opening a Coinbase account earlier this year, I was SHOCKED how fast and easy everything was. From what I can discern as a user, they've made a great platform. My one worry-- it seems like they use a similar pattern to Robinhood where upon purchase they grant an asset immediately (synthetically?), and then settle up actual holdings after the fact.…
To make up for this, the risk & fraud team at Coinbase does incredible work to have very low fraud rates compared to other tech companies and has specific product features to help mitigate this too.
For example, one of those is that when you buy with certain types of payment methods, you can't actually remove the asset from the platform until after some computed period of time. That value is based on a variety of factors powered by some fancy ML stuff and other things to help reduce the risk of loss. Actually recently an ex-Coinbase employee founded a new startup offering fraud-prevention as a service (https://www.sardine.ai/).
In short, Coinbase is very good at reducing fraud on the platform and invests a lot in improving that.
Under what circumstances would it make sense to invest in Coinbase compared to Bitcoin/underlying? Doesn't really make sense if you're bullish on crypto. Even seed investors who invested in Coinbase when it was founded would've been financially better off just buying Bitcoin/underlying. The situation here is unique because all of the popular coins have fixed supplies so any increase of popularity will have the commen…
1.14 billion revenue 2020, $322 million net income.
A thesis of the risk of their profit being tied to crypto prices is that big retail trading volume relies on rising prices or at least rising sentiment/popularity.
On the other hand, can argue probably not super important (unless they have huge settlement risk). Falling price = sell orders (and someone buying on the other side of transaction). Unless everything goes to zero, which seems like a low probability barring extreme world-wide government regs.
https://www.cnbc.com/2021/02/25/coinbase-files-for-direct-li...
After not paying attention to cryptocurrency for a few years and then opening a Coinbase account earlier this year, I was SHOCKED how fast and easy everything was. From what I can discern as a user, they've made a great platform. My one worry-- it seems like they use a similar pattern to Robinhood where upon purchase they grant an asset immediately (synthetically?), and then settle up actual holdings after the fact.…
Was looking for the same kind of information. Do they publish proof of ownership of underlying assets? Or are they going naked for some amounts? Do they consider themselves as a bank, and vie for a 8% non-naked rate? In the MTGox days, the discrepancy could be viewed in the delay to take out one's coins; as well as in their market, which was displaying a very different prices than on other exchanges. Scary stuff I'm…
A delay to take out coins != a fractional reserve. Exchanges operate with hot wallets that have limited throughput, there's a ton of reasons that particular withdrawals may be delayed that don't have anything do with having those assets.
One of the more common scenarios you would see is the hot wallet running low of funds, and there's a delay before more funds can be sent from cold storage to the hot wallet to service more transactions.
If more people are taking crypto off of Coinbase than sending it in, the hot wallet trends downwards. If whales make large withdrawals, it can take a huge leap downwards. Funny antecdote, whales see significantly more delays than your typical consumer but are used to it and have some lines of communication to get insight if they have concerns.
The process to move funds from cold to hot starts, but it's intentionally slow and takes time. So sometimes withdrawals can be delayed until that process completes.