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 us 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