Coinbase had a first mover advantage meaning it was created near the beginning and they still haven't ran away with anyone's Bitcoin so the exchange has a good reputation and will continue to get bigger.
So if a new exchange comes out it has to build it's reputation before otherwise move away from Coinbase or new users start using other exchanges.
It's about trust and reputation. Coinbase has it.
Yeah, it’s been around a long time, true
I only recommend Coinbase and Shakpay for noobs because those 2 exchanges haven't stolen anyone's Bitcoin and it's important to recommend something easy and trustable so noobs can learn. Last thing you want is them getting their money stolen and they aren't smart enough to self custody although it is getting easier but you still need a way for them to easily convert their fiat to Bitcoin.
Self custody is the 2nd step…
There was like almost no exchanges when I first learned about Bitcoin so self custody was my first step, and using sketchy websites to buy Bitcoin is what I had to do, It wasn't easy. Much easier now.
Ok so does coinbase allow self custody at all? This makes it look like it doesn’t (from the App Store)
They don’t offer self custody. They keep the btc.
That’s scary 😱
Very.
cant you just send it to a different wallet?
Oof. Maybe the normie appeal is “someone else is taking care of it and I don’t need to learn wallets.”
Yes, you can send it out, but they don’t advertise that they say, “just keep it with us, it’s safer” and that’s BS.
If you do need to go through an exchange to buy BTC. At least use one that promotes getting it off the exchanges and one that doesn’t push Shitcoins on its customers.
I don't think they do. I haven't really searched for it.
My strategy is and what I tell noobs to do is buy a little bit on Coinbase or ShakePay every month, learn and understand how an exchange works. Once you have about 1000k USD worth of Bitcoin. I will teach them to download a self custody app and transfer their Bitcoin to the app.
The problem is if they buy like 20 USD of Bitcoin and transfer it right away to a self custody app they fees are ridiculous because you can't control the mining fee or other fees on Coinbase. Exchanges have the highest fees because they don't want customers waiting days for their Bitcoin or arrive.
Maybe there is exchanges now that you can self custody right away on their website? If you know any, tell us.
I don't even know many other exchanges because my Coinbase strategy is good enough for me and the Coinbase fees aren't that high comparing to new exchanges.
