I’ve been a pretty active user of coinbase for a few years now and I’ve been consistently surprised at how good it is. I know that it doesn’t do everything my favorite cryptocurrency, Bitcoin, does. But it does have a very effective cold storage and trading solution. It’s fast, free, and very easy to use.
With all the talk of Bitcoin and other cryptocurrencies lately, I was wondering just how safe Coinbase is. The answer is that Coinbase is safe because its a great partner that does a lot of things: cold storage, trading, and more. I have to admit I was a little shocked to read about the recent hack where hackers stole over $100 million from the site, but I think its a pretty safe bet.
I can almost never tell if someone is a con artist or a scammer. Some scams are so obvious that its easy to spot. For example, a lot of people will tell you that they can make a $50 deposit into a savings account with a $100,000 balance within minutes. That’s a scam. But there are a lot of people that will make a $5 or $10 deposit into a bank account with a $100,000 balance.
The most common scam we see involves the classic “you can only make a 1% interest rate with a $5,000 deposit.” The truth is that you can’t get an interest rate of 1% with a $5,000 deposit. But how much does $5,000 really have to do with the interest rate you get? A better question would be why you would want to work for $5,000.
If you’ve ever lost money on a check or a savings account, you know that 5,000 can really sting when you’re forced to pay in full. People will usually ask you to set up a second account with a lower interest rate to pay back the 5,000, but that’s going to give you a very bad feeling because they could have just charged you the same interest rate that they would have charged the 2nd account.
The reason is that the rates are different for each, but when this happens the reason for the difference is usually obvious and the only people who might not have the same understanding of the difference between the two rates are your customers.
This is why the second account has lower rates than the first. When we set up our 2nd account we selected a zero-percent-down-payment (0% DD) rate. This is the same rate we will be paying in 6 to 12 months when we get our check (the amount of interest that we will be paying in 6 to 12 months). So this is why we see this weird difference between the 2nd account and the first.
And of course, the first account wasn’t paying anything so even if you paid the full 0-percent-down-payment 0 DD rate, it wouldn’t help until a few months after the transaction was processed and we got our check. The second account is paying us a 0-percent-down-payment 0 DD rate. We are paying for the service that we have already paid for.
It’s not the coinbase, it’s a bitcoin exchange. The difference between the bitcoin exchange you use and the bitcoin exchange we use is that we have a direct relationship with coinbase and the bank, and they do not. They do not have the same relationship with us. The bitcoin exchange we use has a bank account and a relationship with us. And you can see the difference in the amount we are paying for the service.
I’m glad that we can have that direct relationship with another company. Because we pay for the service bitcoin exchange, we are paying for the service bitcoin exchange, and we are not the company. And no one else is the bank.