Hey there! Ryan here again with Crypto Security and in this video we're gonna
talk about should you use Coinbase or not and if not what are better
alternatives if you've never heard of Coinbase
I will explain that too but before we dive into it make sure you subscribe to
the channel like the video share it with your friends. Now let's dive into it
okay for 98% that's just an estimate of new cryptocurrency investors they get
started with a website slash application for your smartphone called coinbase
coinbase is sort of the e-trade of cryptocurrency
investing they've done a great job of making it very very easy for new
investors to get started in cryptocurrency. However there are a few
pitfalls with coin base and things you need to be aware of before you start
using them I'm not saying to use them I'm just saying most people get started
with this but I will consider a coin base I do consider coin base to be a a
tool to get started with, but not something you're necessarily going to
want to stick with for a couple of reasons. First of all Coinbase the
reasons you should use it is because they have made it really easy to get
invested in cryptocurrency by using their app on your smart phone it goes on
Android or an iPhone you can use a credit card or debit card to get started
with investing which makes it really easy really convenient to get started
but that convenience comes at a price they charge really high fees I don't
know what they are off top my head one two percent it depends on whether you
link to a bank account or use your debit card it's cheaper if you link to a bank
account the credit card certainly because you're actually investing
through the traditional credit card system you're gonna pay fees okay so
they make it really easy and that's why most people do it but the mistake people
make which I mentioned in my previous video is they sort of just assume that
because coinbase is big it's safe and secure if everyone's use it it must be
secure right no not true at all coin base has not been hacked that we know of
however I look at it and you should look at it as it's only a matter
time coinbase has millions of customers in fact coinbase right now is the most
popular app more popular even than YouTube in the Apple store it's being
downloaded a hundred thousand times a day which means about a hundred thousand
accounts are being created daily that points that a couple of good things one
there is a huge influx of people coming into the crypto space and they're all
buying cryptocurrency which means prices are going to go up which is a fantastic
profit opportunity for everyone so I love the fact that people are getting
involved in coinbase however that means it is a super rich
target for hackers who want to get into the online wallets of coinbase and steal
coins out of their and if coin base is keeping the accounts of you know
millions of investors if they're aggregating those in any way and wallets
and wallets are just like a physical wallet but in this case they're digital
in their online they hold your cold bills in a physical wallet right well
online with coinbase you're holding your digital cryptocurrency coins in a
digital wallet well if that wallet is holding the funds of many people if
anyone happened that's typically how it works with online exchanges any hack or
breach means that thousands of people could lose their money simultaneously
and you could be one of those so don't assume that just because coinbase hasn't
been hacked yet that it's not gonna happen it I look at it is it's just a
matter of time so that's one thing to keep in mind the high fees are another
thing to keep in mind there are ways to get it cheaper there is a sister site
coinbase called GD x GD ax that your same identity that you use on coin base
can be used on GD x and if you trade on GD x the fees are significantly lower
like 10% of what they would be on coin base and over time fees can add up fees
are a lot lower than in the stock market to the point of almost being negligible
except when you do things like use a credit card on coin base then the fees
are actually pretty substantial can really take a chunk out of your
portfolio so to avoid fees use GD x but the more people use coin base / g tax
the again the better of a target the more
attractive of a target that is for hackers makes sense right so go into
using coinbase if you want to get started quickly and
painlessly and say I'm a cryptocurrency investor within one hour coinbase is a
great way to do it but as I mentioned in my previous video you've got to take
responsibility for your security as a cryptocurrency investor which means
learn about the pros and cons of coinbase and figure out how to not use
it as quickly as possible and by that I mean graduate become a smarter investor
and learn about other platforms other methodologies other types of wallets you
can use to minimize your risk in general you want to not use one exchange coin
basis in exchange just like Charles Schwab or etrade is to stop purchasing
coin based is to cryptocurrency investing all right but there are dozens
of them out there and security is sort of all over the board
many have been hacked many have not but assume all of them will and eventually
and with that in mind you've got to think oh oh it's a ticking time bomb my
account is going to get hacked eventually so what do I need to learn
very quickly to avoid that whole getting hacked thing ok so we covered how easy
it is fees can be high it's secure for now but that may change but overall if
you take the approach of taking responsibility for your coin security
figure out how to get off coin base as quickly as possible and figure out once
you have made an investment how do i download my coins to a secure wallet
that I control that is absolutely unhackable and I'll give you a hint the
only unhackable wallet type out there is a cold storage wallet meaning your coins
get downloaded to a physical device and that device remains offline except when
you need to download coins to it or upload coins from it say if you're
cashing in and converting back to fiat currency like u.s. dollars all right so
you've you're going to be migrating hopefully soon from an online wallet to
a cold storage Lyonne wallet do not ever here's a
golden rule do not ever keep coins a significant amount and significant means
significant to you not what the world thinks is significant okay so with
twenty dollars to you is significant and it would be painful to lose twenty
dollars worth of coins then do not keep your coins in an online wallet for more
than a few days because again in those few days you could get hacked and lose
them so if you care about your coins if you care about building wealth plan to
stop using any online wallet as soon as possible including coinbase but what
that said i think it's okay to get started with coin base that's how I got
started with coin base if you're feeling that FOMO FOMO is an acronym for fear of
missing out so if you think you know the cryptocurrency world is on fire and and
profits are going through you know the roof which they pretty much are and you
don't want to miss out on that I get it I understand that we're all emotional
creatures but just commit to getting in but then securing and locking down your
investment alright so that's pretty much it for this video I probably got
derailed a little bit and got off track but as soon as I kill this video and
edit it and collect my thoughts I'm sure I'll discover some things that I wanted
to touch on but forgot to and no problem I'll just create another video and put
it in the same playlist alright hey it's Ryan again I just thought of one of the
things that I had forgot to say before in the video about coinbase and it's
this coin base is not licensed to operate in some US states including well
the one I know it for sure is Hawaii and so what happened to me is I created my
coin base account I invested I bought some Bitcoin aetherium
and litecoin because at the time those were the only three Bitcoin was at about
fifty seven hundred dollars at the time and going up very fast so I'm glad I got
in then but once I bought those coins then coin base came back and asked me to
verify my identity so I uploaded my Hawaii driver's license even though I
live in Texas I I own a Hawaii driver's license and as
soon as I did that and as soon as they went through the verification process
they said oh you live in Hawaii man and they shut off my account they
disabled it and I still cannot get back in two months later to my coinbase
account and that brings me well to conclude my other point research what
states you cannot live in and use coinbase and make sure you don't try to
use it if you live in one of those states or even if you don't live in one
of those states but your identity your driver's license your ID card is in from
one of those states they will cut you off so don't even bother to get started
and don't try because as I mentioned about 100,000 people per day right now
at the start of 2018 are creating accounts on coinbase and so their
customer support is completely and utterly overwhelmed support is horrible
it sucks if you have any issue maybe they're trying hard I don't know I'll
give them some credit for probably trying but your support issue is not
gonna get solved for weeks and that is a real risk if you have any problem with
your wallet or your account or your identity verification or your you know
try to transfer some funds somewhere your your coins to another exchange and
they vanish you're not gonna get help so that is a real risk with coinbase
so I wanted to mention you know it's okay to use them if everything goes
right but not everything may go right so just yeah that's a reason to be cautious
and if you're worried about that then just don't use coinbase let's talk about
using in another video we'll talk about using another exchange such as bit
tracks by Nance Gemini is the one I use primarily to get my funds up into the
system okay so Gemini is a good one so I'll put some links to those under the
video so just something to keep in mind about two more risks associated with
coinbase alright thanks so much see you next
video bye bye
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