A long time ago, I had made an account on Coinbase exchange and my account was already verified. Today the price of Bitcoin fell down to €8,376 on Coinbase and I thought of this a good opportunity to buy Bitcoin. Transferring funds via bank takes a long time, so I decide to use my credit card to buy BTC for €1000. The Coinbase website mentions the credit card fees as 3.99% So 4% of €1000 is €40 and I expected to pay the same amount.
At the time of making the transaction, the price for Bitcoin was €8,413. When I clicked preview it showed the right amount of BTC and I executed the transaction. Instantly, I get an email that my transaction has been executed at the “Exchange rate @ €8,568.02 / BTC” WHAT?!!! This exchange rate is more than €155 more than the current rate!
This means that Coinbase lied to me and charged me almost €20 more, which makes the total profit for Coinbase at 6%. If you include the fees and the amount of BTC I got in return, they sold the BTC at a rate of €8910, which is around €500 more than the current rate. So much for making profits, these guys are making the real profits.
To my dismay, it didn’t end there! Now, I thought, never ever will I buy again from Coinbase with a credit card, let me just transfer my Bitcoin to my hardware wallet. I try to transfer and suddenly get an email saying “Unfortunately, your withdrawal of 0.11220372 BTC on August 29, 2019 at 11:21am CEST has been delayed.” WTF! My account is already verified and now I can’t even take out my lost money? Who are they trying to fool? They’re just sitting on your money even after making huge profits. No wonder their sleazy business practices have made them in to a $8 Billion company. This reddit user put it correctly:
They say on their site that I can accelerate the transfer, but I don’t have time for their stupid games. The internet is full of examples how they treat their customers. I will just wait for a couple days to receive my funds and never ever use Coinbase again. I suggest, you do the same as I won’t trust them again with my money. Neither should you!