Silk Road forums

Discussion => Newbie discussion => Topic started by: oliveoil7 on September 22, 2013, 06:04 am

Title: A negative experience with Coinbase
Post by: oliveoil7 on September 22, 2013, 06:04 am
I purchased my first bitcoins through coinbase. I've kept using this method to get coins despite the 4-5 day wait to receive your coins because it was simple and I was too lazy to find a better method. However, my last transaction will keep me from EVER using this method again! So here's what happened:

I purchased 2 bitcoins and waited 4 days for them. During those 4 days, bitcoins jumped in price by over $30, and I would have made $60 in profit from the price fluctuation! Minutes before my transaction was due, they cancelled my order claiming that it was a security precaution they take. Here is the answer they gave me for my complaint,

"Because of the inherent risks that accompany selling bitcoin (an irreversible payment system) with traditional payment methods (which are reversible), we use machine learning algorithms to determine the probability of a purchase being fraudulent. We do this for the protection of consumers and Coinbase alike. "

I smell bull on that. So I am just giving an FYI and a warning to my fellow noobs who are thinking of using coinbase. I now use localbitcoins. Although the selling prices of coins are higher, localbitcoins provides an instantaneous transaction, and it is more anonymous than coinbase.
Title: Re: A negative experience with Coinbase
Post by: darkercore on September 22, 2013, 06:09 am
Interesting experience. Bummer you couldn't get those extra coins.

Thanks for sharing.