Can Coinbase be trusted? Is it a scam? These questions are asked all the time by so many users–both new and experienced in the cryptocurrency trading world. With all of the coin-based scams that are out there today, it is very understandable and valid to question some of the top players in the industry. Let’s walk through some of the basics around Coinbase and either side of this question: Can Coinbase be trusted, or is it a scam?

What is Coinbase?

Coinbase is a cryptocurrency exchange platform built for buying, selling, and trading cryptocurrencies. Coinbase is known for its user-friendly consumer platform, enabling new investors to easily buy, sell, and learn about crypto. In 2012, Coinbase was launched in San Francisco, California. Since then, they have grown substantially to the point where they are considered one of the industry’s biggest crypto-broker exchanges. They’ve grown tremendously over the last ten years, employing thousands of workers, providing services in over 100 countries, and hitting record revenues every year–with a $1.3 billion record in 2020.

Coinbase is a platform you may have heard of if you’re new to the crypto world. It’s one of the most popular and safe platforms and is known to be great for beginners. Coinbase is exceptional for those looking to start somewhere; it provides an exclusive feature full of educational materials called “Earn,” where users can learn about different cryptocurrencies, cryptocurrency exchange rates, and the overall industry, getting rewarded with actual free crypto as they learn. The exchange encourages using this space to get new investors ready for trading.

Can Coinbase be trusted? Or is it a scam? We will take you through both sides of the argument so you can make your own decisions regarding the company.

Opinion #1: COINBASE IS A SCAM.

Coin based scam is a very real threat to those investing in cryptocurrency. Everywhere you turn, there can be a way for a coin-based scam to occur–both from the exchange you’re trading on or outside factors like individual people and hackers. When it comes to Coinbase as a platform, it makes sense that many questions its authenticity of it.

There are thousands of current and previous users of Coinbase who have written one-star reviews about the platform and how much of a scam it is. As you begin to read through each individual negative experience and review on any reviewing site, you see that there are some common themes that come through each story. We have broken these reviews down into five main reasons people out there claim Coinbase is a scam.

Customer service is “nonexistent.”

The overarching theme of most reviews came down to customer service being completely unavailable. Hundreds of reviews claim they tried to reach out to customer services several times and were always automatically sent to “help” articles they have already read, or the customer service platform contacted them saying the problem was fixed when it hadn’t been. If we had a dollar for every customer review, we read claims they were ghosted by Coinbase, and we’d hire a customer service team ourselves.

The Coinbase fees are ridiculous, and they keep increasing as you use the platform more.

Another common complaint by current and previous users of Coinbase is their fees. While it’s pretty widely known that the fees on Coinbase are pretty high from the get-go, apparently, many are charged more and more hidden fees as they continue to trade on the platform. Some claim they

People get locked out of their accounts & Coinbase doesn’t help them.

There is an alarming amount of reviews saying that Coinbase users were suddenly locked out of their accounts due to a glitch in the site, and Coinbase does not help them. Other reviews say Coinbase decided to put their account under review, but several weeks (or sometimes months) later, they still weren’t able to access their account and manage the funds that they already invested in there.

When people have their life savings stored in a platform, the platform locks them out, and then the platform proceeds not to give them options or help them get in in a timely manner; that’s a pretty big red flag, especially when it comes to something so time-sensitive like managing cryptocurrencies.

Transfers take way longer than they should.

One of the common accusations users have of Coinbase as a program is a fact that Coinbase checks transactions before allowing them to move or transfer. There are usually delays when users attempt to move their coins from Coinbase to their wallets. Funds are often stopped for examination, paused for “issues on the account” or other miscellaneous things. To many users, this can be frustrating and seems scammy. In their opinions, transferring your own funds shouldn’t be a process that needs to be evaluated, delayed, or paused by the program unless there is something else going on behind the curtain.

Hundreds–if not thousands–of reviews complain about the lack of privacy on the site.

Along similar lines as the delays in transfers, many claim there is coin based scam going on with Coinbase when it comes to privacy on the site. They do not feel comfortable with the privacy levels and accounts that are taken. While Coinbase is known to have basic security measures like two-factor authentication, for example, the exchange has a negative reputation among some because of its tracking process. They track users’ coins for several steps along the transactional process, causing distrust for those involved in the transactions. From Coinbase’s perspective, they track transactions for customer security, but from those who claim this is coin based scam, it’s not something they are happy about.

Opinion #2: COINBASE CAN BE TRUSTED.

As with most things in life, there is an opposite perspective on whether Coinbase is a scam or not. Many believe Coinbase is absolutely a program they can trust for many reasons. Coinbase has taken many transparent steps to prove its trustworthiness and respect for privacy, like its obtaining of BitLicense–a step that is mandatory in order to operate as a cryptocurrency

exchange in the state of New York. This license is known to assert a high level of strictness and, therefore, a license only truly respectful exchanges can attain.

Some experts in the field of digital risk protection argue that Coinbase is just as secure as any other cryptocurrency exchange. They follow all the same protocols and security measures, they report their users’ necessary financial data to the IRS, and they are transparent with their users when it comes to fee structures. The risky side of investing in Coinbase is the same risk you would take investing in anything else in the world; it is always a risk to put your money in the stock market or into a long-term investment where you need to put money upfront to make it up in the long run.

Others on this side of the argument say that even though they may not have the best customer service department, that doesn’t mean there is anything else happening behind the curtain.

Another factor of Coinbase that defends against accusations of coin-based scams is the fact that they require similar information as they would opening any bank account to get started. To some, knowing that they are providing consistent legal information will validate the program’s professionalism and serve as a level of comfort.

In the past, there have been scenarios at Coinbase where thousands of users had their assets stolen through the platform by hackers. Hackers were able to utilize phishing to get into users’ accounts, which was an external scam that Coinbase as a platform had nothing to do with. This type of scam can happen at any cryptocurrency exchange–and a common, simple scam that happens across the board regularly. Since this hacking occurrence, Coinbase has been very open about making sure their users report any “fishy” information to the company.

Overall, there is always going to be a risk when it comes to choosing the right cryptocurrency platform for you. Can Coinbase be trusted? At this point, that question will only come from using your best judgment. There is not enough concrete evidence against the company to be able to state certainly in either direction. There are plenty of perspectives and reviews you can find for both sides. After all, Coinbase is one of the largest cryptocurrency exchanges in the world.

If you are trying to decide whether you should go the Coinbase route or not, take some time to do your research on the matter and decide which side you feel safer leaning towards. Remember that regardless of which platform you choose, it’s important always to take the extra step to protect your account and your funds. Set complex passwords, change them often, and don’t go advertising to everyone which platform your life savings are sitting on. Investing in crypto is always a risk, but there is a lot you can do to keep yourself at as little risk as possible.