Why Are People Deleting Their Coinbase Accounts?
To understand why the #DeleteCoinbase movement has flourished and so many people want to delete Coinbase accounts in favor of better options for their Bitcoin purchases, let’s first establish three key facts:
- Bitcoin already has an insurmountable lead on all other cryptocurrencies in terms of market cap, liquidity, brand recognition, and total users. In the coming years and decades, Bitcoin will likely accrue 90 – 99% of all the future value in the space.
- Coinbase does not want you to simply accumulate and hold Bitcoin. Every aspect of Coinbase’s product and marketing is designed to encourage you to trade as many assets as possible, as often as possible. Coinbase makes money when you trade, like any other casino hoping to keep gamblers on the casino floor.
- 96% of traders fail. Unless you’re a career professional, the sophisticated algorithm-aided pros who dominate the space will eat your lunch. You wouldn’t sit down at a table with the best poker players in the world; trading is the same thing. You are best served by simply buying and holding Bitcoin.
Alternatives to Coinbase, How Can I Buy Bitcoin?
Lucky for you, over the past few years, several new businesses around the world have created better ways to buy Bitcoin. If you’re outside the United States, our article “Bitcoin Investment Sites for 2020: Top 6 Trusted Sites” will get you started picking the option that’s right for you. If you’re in the US, SwanBitcoin.com is an increasingly popular choice, as it has low fees for automatic recurring purchases to self-custody (recommended, but optional), and a strong commitment to serving and educating customers about their Bitcoin.
How to get money out of Coinbase & Delete Coinbase Account in 3 Easy Steps
You may have wondered “How do I get my money out of Coinbase?” Your instinct may be to convert your Bitcoin to dollars before withdrawing your money from Coinbase. But it’s worth considering the reasons why Bitcoin is the best money in human history. You may not want to part with such a precious asset lightly. The following guide is focused on how to transfer Bitcoin from Coinbase, and then delete your Coinbase account for good.
Step 1: Sell your altcoins for Bitcoin
Before closing your account, convert all your altcoins into Bitcoin. This is a deep topic to explore, but suffice to say that you are better served by simply holding Bitcoin than gambling on any altcoin.
To sell your altcoins for Bitcoin, click “Trade” at the top right of any Coinbase page.
Then select the “Convert” tab. For any currencies besides Bitcoin that have a non-zero balance, convert their full amount into Bitcoin.
Step 2: Set up a Bitcoin address of your own
In order to get your Bitcoin off Coinbase, you first need to have a Bitcoin address set up to receive those funds. If you’re not familiar with what this means, don’t worry! All it means is that you’ll create your own unhackable bank vault on the Bitcoin network with the click of a button — that’s really what a Bitcoin address is, a digital bank vault. As with any bank vault, what’s important is securely storing the key that goes with it.
That’s where you have a choice: do it yourself with self-custody and total control, or use an affordable collaborative custody provider to help you set up and secure your Bitcoin address. Whichever direction you choose, the number of fantastic companies serving Bitcoiners has exploded in recent years, making it easier than ever to take the next step toward self-sovereignty. To help you evaluate your options, we created this guide: Bitcoin Wallets: How, Why and When to Hold Your Own Private Keys
Once you have a Bitcoin address set up and have securely stored your private keys, you’re almost ready to withdraw your Bitcoin from Coinbase and send it to your new Bitcoin address. But not just yet!
If you withdraw your Bitcoin by clicking “Send” on your Bitcoin balance page and entering in your new Bitcoin address, that withdrawal will leave a tiny amount of Bitcoin behind, what’s known as “dust”. When you then try to close your account, Coinbase won’t let you because you have a non-zero balance AND won’t let you withdraw the dust because it’s too small to send.
To avoid this frustrating situation, you need to wait to do your Bitcoin withdrawal as part of the account closure process in Step 3.
Step 3: Withdraw from Coinbase and delete Coinbase account
It’s an easy process to cancel your Coinbase account and transfer your Bitcoin to your new Bitcoin address. Of course, Coinbase doesn’t readily tell you how to delete your Coinbase account. So here is the process laid out screen by screen.
1. Log into your Coinbase account on a desktop browser
2. Navigate to your user Settings, and into your Activity tab with three clicks
3. Scroll down to the bottom of the Activity tab, and click “Close Account”
4. Enter your account password in the pop-up box & click “Close Account”
5. You will be prompted to withdraw your Bitcoin balance from Coinbase as part of the account closure process (note: this is what we were waiting for when we held off from withdrawing Bitcoin earlier)
6. With everything zeroed out, click “Close Account”
Once you’ve closed your Coinbase account you’ll need a new service to help you accumulate Bitcoin. If you’re in the US, SwanBitcoin.com is an increasingly popular choice, as it has low fees for automatic recurring purchases to self-custody (recommended, but optional), and a strong commitment to serving and educating customers about their Bitcoin.
This blog offers thoughts and opinions on Bitcoin from the Swan Bitcoin team and friends. Swan Bitcoin is the easiest way to buy Bitcoin using your bank account automatically every week or month, starting with as little as $10. Sign up or learn more here.