Silk Road forums
Discussion => Security => Topic started by: Hash on June 13, 2013, 03:56 pm
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Does anybody know how Coinbase works?
You link a bank account similar to how Paypal does (you verify 2 deposits).
You place an order for BTC.
They debit your Bank Account.
This does not take place right away.
They place a AHC hold on the funds in your account.
You will not receive BTC for 5 days.
What if BTC value goes from 110 to $75 during those 5 days?
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Then you lose $35. I have only used coinbase, and yes, this has been an issue for me. It does work great though...coins are deposited into your wallet when they say they will be. This really isn't that much of an issue, because it works the other way as well. If you pay $85 for 1 bitcoin, and they go up to $125 when you get them, then you will get the difference.
This has always been a better option (IMO) than going to Walmart and sending cash to somewhere random. At least this way, the bank has some record of where the money was sent (in case the bitcoins never come). After using Coinbase, I almost always tumble the coin before moving them to SR.