Coinbase, Exchanges

Why Does Coinbase Hold Funds for 7 Days?

When you make a purchase with Coinbase, the cryptocurrency is first transferred to a secure digital wallet on the Coinbase platform. The digital currency is then held in escrow until the transaction is completed.

Once the transaction is completed, the funds are released from escrow and are transferred to your wallet.

NOTE: This is a warning note to remind users of Coinbase that the platform holds funds for 7 days after they have been purchased. This means that users cannot access their funds or use them to purchase other cryptocurrencies during this 7-day period. This policy is in place in order to protect users from fraud and other security risks. It is important to remember this when deciding whether or not to use Coinbase as a cryptocurrency exchange platform.

The reason Coinbase holds funds for 7 days is to protect buyers and sellers from fraud. If a buyer were to file a chargeback with their credit card company, for example, Coinbase would have the funds available to refund the seller.

Similarly, if a seller were to attempt to scam a buyer, Coinbase would have the funds available to refund the buyer.

7-day hold periods are standard practice for most cryptocurrency exchanges. So, if you’re looking to buy or sell digital currency, it’s important to be aware that your funds will likely be held in escrow for at least a week.

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