Is CoinBase a Scam? 100% Honest Review

Born & raised in England, Dale is the founder of Living More Working Less & he has been making a living from his laptop ever since leaving his job as an electrician back in 2012. Now he shares what he's learned to help others do the same... [read more]

Whilst I haven’t yet invested in cryptocurrency it’s something I’ve been heavily considering, especially with the hype surrounding Bitcoin at the moment. However, at the moment I’m trying to determine the safest & easiest way to invest.

CoinBase HomepageWhich brings me onto today’s blog post – in which I’m going to be putting together a review of CoinBase, which is a company that lets you buy, sell & store various cryptocurrencies.

One thing I noticed was that there was a lot of CoinBase scam rumours circulating the web with people claiming all sorts of things like CoinBase not letting them withdraw, locking them out of their accounts & so on.

Therefore I’ve decided to take a closer look myself, since I have a personal interest in using CoinBase & in this review, I’m going to uncovering everything you need to know which means if you’ve also been considering using CoinBase like me then you can rest assured that you’ve landed in the right place to find out if it’s a wise move.

What Is CoinBase?   |   How Does CoinBase Work?   |   Before You Buy Cryptocurrency   |   Is CoinBase Safe?   |   Is CoinBase a Scam?

What Is CoinBase?

Whilst I don’t know the technical term for CoinBase (if there is one?) the best way I’d describe is as being a cryptocurrency marketplace. The site originally launched back in 2012 & the promising news is that they’re based in the USA.

At the present moment in time, they only work with 3 cryptocurrencies in particular which are Bitcoin, Etherium, and LiteCoin. You can buy/sell these through the site & you can also create a free wallet to store them in.

From what I’ve heard it can be risky storing coins in online wallets & therefore if you’re planning on doing that then I’d advise doing it with caution. A better solution is apparently to store them in an offline hardware wallet instead.

How Does CoinBase Work?

Unlike many of the other cryptocurrency marketplaces, CoinBase isn’t a peer to peer network which means you’re not buying the coins from somebody else, you’re buying them directly from CoinBase.

Just like a normal currency exchange CoinBase basically keeps track of the current market value of the coins & allow you to purchase (or sell) them for real-life money using a credit or debit card.

If you are frequently trading coins then rather than making individual purchases on your card each time you can actually create a US dollar wallet inside of CoinBase to store funds, but again I’d advise caution if you’re thinking about doing that because of potential security issues.

The good thing about CoinBase is that according to the majority of the users the currency you purchase is deposited into your wallet almost immediately. Some other sites from what I’ve heard have a rather long waiting period between you making the purchase & the currency actually getting deposited.

Once the currency is in your wallet you can then do whatever you like with it. The wallet you have at CoinBase has its own unique address which means you can send currency to it from elsewhere, or you can use CoinBase to send the currency from there to somewhere else.

Before You Can Begin Buying Cryptocurrency…

As I mentioned above CoinBase is located in the USA, which in my opinion is a good thing – this gives you some reassurance that the company must be operating legitimately as the USA has some very stringent laws when it comes to this sort of thing.

However one of those laws is that as a regulated financial service company CoinBase must ask all of its users for some sort of proof of identity before you can begin purchasing currency through their site.

This is quite normal when it comes to trading online but I just want to bring it to your attention as I know some people are still quite concerned about data protection & don’t like sending these types of things across the internet.

Once you’ve submitted the ID & it’s been verified by their team then you’ll be free to purchase currency as you please, though just so you know the first time you connect your debit/credit card CoinBase will make 2 small transactions to test its validity (which again is completely normal).

Is CoinBase Safe?

Well, when it comes to managing money online there is always going to be some degree of risk involved but it seems to me that CoinBase is actively doing their best to make sure that their website is as safe as possible.

CoinBase uses something called two-factor authentication which basically means that when you log in via the website you’ll be sent a code to your phone & you must enter the code to get access to your account.

This can seem like a bit of a pain but ultimately it’s there to protect your account as the idea is that in order for somebody else to get access to it they’d not only need your password, they’d need some way of accessing your phone too…

Which as you probably agree is quite unlikely… And you’d like to think that the people who could potentially get access to both would not be the type of people looking to scam you as chances are they’re your family/friends.

Despite the additional levels of security though there are reports of people losing money through CoinBase, just as there are reports of people losing money through online banking. This stuff happens & no amount of security will ever stop it entirely – so just be aware that yes, there will always be some degree of risk involved so it’s important to be careful.

Is CoinBase a Scam?

I’m going to say that no, I definitely don’t believe CoinBase to be a scam – in fact out of all of the websites out there at the moment that gives you the ability to buy, sell & manage cryptocurrencies I’d probably say that CoinBase is one of the most legitimate.

I mean sure, there are people out there claiming that they’ve lost money through CoinBase but personally I don’t believe that CoinBase has intentionally scammed them, I think there’s been some other issue at play.

For example, a lot of people claim that CoinBase has locked them out of their accounts, but this is just because they have such a strict security process. If CoinBase detects anything unusual with the account then yes they will indeed lock it, but if you contact them then based on the reviews I’ve read they will generally resolve it & it seems they usually do it rather quickly.

And when people claim to have had their accounts emptied I think this is potentially they have been careless with their account details. At the end of the day, there will be a lot of people trying to break into user accounts to take their money so just like you would with online banking you should be extremely careful with your details & the devices that you use to access these sites.

I’ve seen several flat-out cryptocurrency scams such as Dascoin, & Xtreme Coin but CoinBase is definitely not one of them. It’s a legitimate website through which you can transact various cryptocurrencies.

Therefore overall it’s a thumbs up for CoinBase from me & if you’re looking at buying or selling (or even storing) cryptocurrencies then I’d definitely recommend it as a website for you to check out.

About the Author:
Born & raised in England, Dale is the founder of Living More Working Less & he has been making a living from his laptop ever since leaving his job as an electrician back in 2012. Now he shares what he's learned to help others do the same... [read more]
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43 thoughts on “Is CoinBase a Scam? 100% Honest Review”

  1. Coin Base is a “FARCE” Last week (January 8, 2020I had an alarm on my Laptop blaring. Called their helpline. Next thing I know, “One of my laptops is ”TOTALLY LOCKED UP.” I can’t even assess Windows 10, a boot disc is no help. My other laptop is causing me grief too, thanks to the clowns at Coin-base. 3/4 of what I want to access is blocked thanks to them.
    Now get this, … Yesterday the 20th I found out that Coin-Base is an investment broker. they wanted $200.00 of my hard-earned money to “*swear word removed* up my computer, I was forced to cancel my credit cards.
    Someone called here this afternoon. I answered, said hello. No reply. I hung up, 2 minutes later, AGAIN… Again I hung up, 2 minutes later, same number again, No one there. “This time I pushed ‘Block caller’
    OH!! I canceled my email address.
    Please return my computer settings to what they were! I will get my computer tweeked locally.
    Thank you!
    Stuart MacNairn

    Reply
    • Hi Stuart, this isn’t CoinBase support so I can’t return your computer settings to what they were. I’m just a guy who wrote a third-party review of CoinBase.

      Reply
      • man he’s telling you coinbase IS IN FACT A SCAM. i would agree COINBASE is a scam. they wont let me into my accounts after i tried signing in via laptop and cell phone. after verifiying both email and phone number. when i tired to log into coinbase with my laptop it said it had a error bc the IP adresses didnt match up yet the laptop is sitting right next to me along with my phone. if you put large amounts of money into your account they will drain it over time. slowly but surely. they also have been locking a bunch of peoples accounts lately too.

        Reply
        • Having the laptop next to the phone doesn’t mean the IP address will be the same. A phone could have been connected to a 4G network whilst the laptop could be connected to WiFi. It appears to me that they’re just protecting your account.

          Reply
      • Hi, I have lost thousands with Coinbase, they said they are investigating the matter, but thats been almost a month ago. Stay far away from these bar stewards !!!!!

        Reply
  2. This guy can’t even gather a sentence together with proper grammar. I sure won’t listen to a guy that can not string together a grammatically correct sentence or paragraph. It was very tough to read without stopping and going back.

    Reply
    • The post has been reviewed & there were no grammatical mistakes found. Could you kindly highlight which bits you struggled with? Your feedback would be greatly appreciated as it’ll help me produce better content in the future.

      Reply
  3. I’m very upset with coinbase for allowing scammers that are skilled in social engineering, making false claims to deceive and manipulate their target Into providing personal information for fraudulent purposes. All they say is I’m sorry but because it is out of our network, we can’t help you!

    Reply
  4. I believe Coinbase is a legitimate scam. They claim outages and other excuses to lock people out of their accounts. Perhaps the outages are true or maybe a ruse. But then they make it so hard to take back your accounts. Do you really think this is an accident? I think it is being done on purpose so that they can kidnap your cryptos and resell or loan them out to other exchanges just like banks loan out your money. They do this until you are able to somehow get your account back and then use someone elses cryptos to replenish your account. Nothing has actually been stolen.

    Reply
    • A “legitimate scam”? Well, that’s the first time I’ve heard of one of those, lol. If what you say is true, then why would they need to “steal” your money? Why couldn’t they just loan it out on a ratio, exactly as the banks do? It wouldn’t make sense for them to “steal” it. The most likely answer is that they make it difficult to get back into your account because they want to make sure you are actually the owner of it (due to the extremely high numbers of crypto-theft). For example, if you forgot your bank login details – do you think your bank will make it easy to get back in? Of course not – and you shouldn’t want them to.

      Reply
      • Stay away from coinbase. Most of the people with legitimate losses have nothing to do with hacking, theft, lost passwords, or incompetence. When people claim that these things are the only problem, they are supporting a criminal industry. I have my property being held hostage by coinbase. I have been verified, I can log in, I even withdrawn and exchanged within the last few months, I can even send them more assets…but I can no longer access my property. They have emailed me that they will look into it in 2 months at the earliest (not releasing my property…but looking into it). It is not a matter of being overwhelmed as it would have taken less time for them to release my property than to email me. This is theft and I am not alone. The SEC has thousands of reports of this same nature. I can prove that I owned property and that this company has stolen it, that is grand theft and a felony in California, yet….I have to file a complaint with the SEC? I am just saying if you want to loose your hard earned assets it is a possibility and there is apparently not much you can do about it…stay away from coinbase.

        Reply
  5. I bought bitcoin through Coinbase and i cant get into my account and about 10 – 12 days ago i sent a message via a contact form and still no answer

    Reply
  6. my account has been suspended due id verification i have tried atleast 20 times but to no advail id photo no problem transfered money to coinbase and purchased bitcoin then wanted to sell it and they then wanted a selfie picture thats where the problem is seems like a scam havent got it resolved yet no access to my bitcoin and im pissed what can i do

    Reply
  7. Coinbase has no live customer phone service. You have to e-mail them and then they may or may not get back to you. They lock people out of their accounts and when they finally get back in the currency is often gone or reduced. They need a serious upgrade to customer service and need to switch to MFA asap

    Reply
    • Email is much easier than phones & many companies are making the switch to email-only so that’s not really something too uncommon. I’m shocked to hear about the currency being gone from accounts though, that is alarming indeed. Thanks for sharing.

      Reply
    • Yea listen to dale its alot easier to email. 10,000 of my money just left my account so the best thing to do is use email. i will track down the owner of this bull **** site and go to his house and drag him out on his front lawn. Believe me im getting that money back one way or another so i did the right thing and sent them a email and told asked what they think i should do to someone who stole 10k from me.

      Reply
  8. idk wtf coinbase is but anything that has to do with trading money that doesnt have a contact support to speak to a human is a joke. I transferred 13,000 into the account i created with them and used it to invest into few things then sold 9,0000 of my total portfolio they sent me a notice saying that they never recieved the 10,000 of the 13,000 and today i sign in and 10,0000 is gone and my bank account shows that the original transfers all went processed weeks ago. I am contacting my bank and my lawyer to see wtf joke of a site this is. They never mention when you sign up and transfer money into the account that there is no contact support just a search box wtf am i suppose to ask the search engine if he took my money. STAY AWAY FROM COINBASE

    Reply
  9. I am very disappointed with Coinbase.
    I bought cryptocurrency for more than $6000 from them but am unable to send anything out. They always tell me that I have 0.000000bitcoin and $0.00. I only see my portfolio draining day by day. I can’t withdraw or send my own money to any address.
    There’s no human being who answers their phone.
    I borrowed the money I invested and don’t know what to do now.
    I need help, please. Can someone tell me what to do ?
    Thanks !

    Reply
  10. I invested money in Coinbase, and after they locked it out, I finally got into my account, and discovered that all my money was gone. It is impossible to connect with them.. I don,t know how I’ll ever recover my money. Stay away from Coinbase.

    Reply
  11. Coinbase is a scam!
    They are making money out of you and they even don’t tell you. That is definition of scam.

    I was losing money even when I was selling high and buying low. So I was suspicious of coinbase. So I decided to test.

    I bought 10.000297 ADA (Cardano). They took 1.75 euro.
    Immediately my portfolio drop to 17.43. (Fine, market can be down, so let’s buy 1 more)
    And they charge me 1.76 euro for 1 cardano.

    Conclusion,
    If I want to buy, I have to pay 1.75
    If I want to sell, I will get 1.73

    It is a huge margin. Almost 20%

    They say that there is no fee, but the price you pay is hidden in their scam.

    Reply
    • Hello “Coinbase User”, have you read their fees page? They claim that “All fees we charge you will be disclosed at the time of your transaction”. They also list all of their fees on that page.

      Reply
  12. Coinbase is a scam!

    Only influencier who give you referal code so that they get 10 euro says it is legitimate.

    They are making money out of you and they even don’t tell you that. That is definition of scam.

    I was losing money even when I was selling high and buying low. So I was suspicious of coinbase. So I decided to test.

    I bought 100 Cardanos, I had to pay 177 euro.
    Then immediately my portfolio drop to 172 euro.
    Fine, market is be down, so let’s buy 100 more
    And they want to charge me 177 euro for 100 cardano.

    So they take 5 euro to just convert coins.
    It is a huge margin. And they say that there is no fee. No fee your a**!
    The price you pay is well hidden in their scam.

    Reply
  13. Coin base is corrupt and totally a fraudulent entity. You bit a crypto and then it immediately drops So you convert it to one that is moving higher quickly and as soon as you transfer your money it drops just like that. Every time.! On every crypto. They have stole 1000’s of dollars before I figured this not to be a coincidence.! Take your money out as soon as you can. It is designed to take all of your money eventually like a casino in Vegas. You might win once …but don’t be a fool and go back.

    Reply
  14. Coinbase is a rip-off designed to steal your money. Stay away. You can’t afford this . Not to mention Elon Musk and his comments that cost millions of people paychecks and 1000’s of Dollars for investors this crack pot BS of a company and rich assholes who don’t give a flying shit about you or your lives. Get ahead other ways !!

    Reply
  15. Wish I had read these comments before signing up with Coinbase.
    Similar problems seen with my account.
    Signed up, provided ID, etc…
    Linked bank
    Purchased BTC.
    Next day logged on to buy more, no issues.
    Next day a note from Coinbase says you have a large account balance and need to set up 2 factor.
    Did it, used Duo on mobile. All worked well
    Next day and all future days…can not log on as the 2 factor is not working. Perhaps I am to blame for not understanding the details of the process. Yet I am able to function in the rest of the tech world. This is fishy.

    Reply
  16. I can not believe this allowed to happen! Coinbase has my account locked and we have tried EVERYTHING for 2 weeks to get it unlocked but nothing a bunch of empty promises—STAY AWAY COINBASE IS A SCAM!!!! Don’t believe me put $5000 in it and try to get it back

    Reply
  17. Dale, It’s very dangerous for you to state that Coinbase is NOT a Scam. COINBASE is absolutely, positively a SCAM !!!!!!!!!!!!!!!!!

    Coinbase has ZERO customer service and they lied when they stated they would credit my funds back to my account when I sold my positions and closed my account. They HAVE REFUSED TO TRANSFER the money they owe me. I’m contacting a Lawyer to file a damaged lawsuit and the attorneys fees they will end up paying will be much, much more than the money they owe me.

    Because I made my investment via Coinbase partly because of your statement that they are NOT a Scam, I’m considering adding you as a Defendant in my Lawsuit.

    Reply
  18. I’m not sure what to say about CoinBase, a friend of mine clams he’s made over $800K from the trading company, I’ve never seen his wallet. I did invest about $800 dollars and yes the market is up/down like a a hooker on Friday nite… trade on the wiggle! However, on August 8th. 2021 is noticed a $500 withdrawl from my bank ACH Coinbase $500.00. I did not do, somehow either a dishonest employee of Coinbase or hacker was able to access my account and tried to withdrawl the funds! I notified my bank and they either stopped the fraud, etc.. reimbursed my Account while still investigating this matter. I notified Coinbase via their website, email about running a security scan on my devices, all my security is current on the Iphone, etc.. This morning I check my coinbase account and see $500 missing from crypto… then I get a email from Coinbase saying that my $500 transfer failed on Aug 4th. and they took the funds, never said what crypto currency I was trying to purchase on Aug. 4th. I never done any activity since June of 2021… Yes, there is no human voice customer service, just endless emails.

    Reply
    • Hmm, sounds like you may have a keylogger or similar on one of your devices. I’d definitely run a virus scan & change your passwords to be safe. Definitely sounds like a hacking attempt to me.

      Reply
  19. Coinbase may very well be a scam. I was simply trying to upgrade to Coinbase Pro and received notification my account was locked and had to go through a number of steps to gain access.
    During this process of a combination of chat area on the website and on the phone, all my funds approx $5k were depleted by conversion to ETH before my very eyes. The customer support person Ethan at 770-800-2634 assured me they would be reversing these transactions. Of course this number is no longer in service. When it hit me I contacted Coinbase through the websites and they are now taking me through the same exact steps. So the fake Coinbase are really good actors, or Coinbase is part of the whole scam and they took all my funds from me.
    All they keep telling me they are doing is getting me back to having access to my account. F that, I want my money back so I can then close this stupid account for good.

    Reply
  20. I agree with all of customers opinions. Because I am in same boat with them. Coinbase allow me to buy at the beginning then block my account totally due to security reason. I send copies of my Driver License and selfie more than 60-70 times but all was failed. Now I do not know what to do.
    Is there any person help me to solve my problems?.

    Reply
    • Hi Susan, sending your driving license 60-70 times may have caused your address to get blocked as spam. That’s a LOT of times. I would recommend you try emailing them or calling them up.

      Reply

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