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this post was submitted on 01 Dec 2025
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cryptocurrency
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Companies like Coinbase are more than just an exchange, they are your on-ramp and off-ramp for getting dollars (or whatever you use) into and out of the crypto space.
The reason why people don't recommend leaving crypto in an exchange account is that you are basically trusting that exchange with custody of your crypto assets. If they go under, then you have to get in line with a long list of creditors, and you will probably never see that money again. And yes exchanges do go under from time to time.
But Coinbase has been around for quite a while, and is strong. I think I have had an account there for over 10 years. And yes, in spite of all the warnings (and knowing how to store my own crypto) I still have a small stash of BTC there, just because I couldn't be bothered to move it, and BTC has gone up since I moved it there. (I also have a stash of ADA, but that has not fared as well.).
So if you decide to let Coinbase keep your crypto, and it fails, know that I am suffering right there along with you.
And storing your own crypto has its own issues, also. Best to learn how to keep it in a wallet that is totally offline, and learn how to keep it that way. If you lose your wallet (and any backup phrases you might have made), then your coins may be just as irretrievable as if the exchange went down -- but you will have only yourself to blame.
I've seen some horror stories!