As the world’s largest cryptocurrency exchange, Coinbase has been a reliable and popular platform for buying and selling Bitcoin, Ethereum, and other major digital assets. However, with the recent launch of Coinbase Custody and the introduction of new features like staking and margin trading, some users may be wondering if it’s time to move their crypto off of Coinbase.
Here are a few things to consider when making the decision to move your crypto:
1. Custody fees: Custody fees are now applicable to all users with more than $10,000 in digital assets on Coinbase. These fees range from 0.1-0.
5% annually, depending on the size of your account and type of assets held. If you plan to hold your digital assets long-term, these fees can add up over time.
2. Staking rewards: With the launch of Coinbase Custody, staking is now available for select digital assets including Tezos, Algorand, and Cosmos.
This allows users to earn rewards for holding these assets in their account. While staking rewards can be a great way to earn additional income on your digital assets, they are subject to custody fees as well.
3. Margin trading: In addition to staking, Coinbase also offers margin trading for select digital assets including Bitcoin, Ethereum, Litecoin, and others.
Margin trading allows users to trade with leverage, which can result in higher profits – but also higher losses. Margin trading is only available to users with a Coinbase Pro account and is subject to additional fees.
4. Security: Coinbase is one of the most secure exchanges in operation today. However, no exchange is 100% secure and there have been a handful of high-profile hacks in recent years (e.g.
, MtGox, Bitfinex). If security is your top priority, you may want to consider moving your digital assets off of an exchange and into a more secure wallet solution like a hardware wallet or paper wallet.
5. Privacy: Coinbase is required by law to collect KYC (Know Your Customer) information from all users.
This means that you will need to provide your full name, date of birth, address, and other personal information when creating an account. If privacy is important to you, you may want to consider using a different exchange that does not require KYC information or moving your digital assets into a privacy-focused wallet solution like Monero or Zcash.
Should I move my crypto from Coinbase?
The answer to this question depends on your individual needs and priorities as a crypto investor or trader. If you value security and privacy above all else, you may want to consider moving your digital assets off of Coinbase and into a more secure wallet solution like a hardware wallet or paper wallet.
However, if you’re willing to trade off some security for convenience, then Coinbase remains a good option for buying/selling cryptocurrencies and earning staking rewards (if applicable).