Where to hold Bitcoin? Exchange or Blockchain?

[Courtesywipe]

I'm trying to figure out safest place to hold onto funds and avoid being cut off. When I purchase Bitcoin from Coinbase, Circle or Airbitz.... Do I leave funds there or do I move to store in Blockchain?? This is assuming I am holding onto funds for an extended period of time.

Thanks for the advice.

[Memento]

I'm trying to figure out safest place to hold onto funds and avoid being cut off. When I purchase Bitcoin from Coinbase, Circle or Airbitz.... Do I leave funds there or do I move to store in Blockchain?? This is assuming I am holding onto funds for an extended period of time.

Thanks for the advice.

Depends on what you want to do with btc. In Circle, the money is kept in USD so that the value doesn't fluctuate, but when you move it to blockchain it will be in btc and the price will move up and down with the market until you convert it back to cash. Other than a btc specific book (i.e., nitrogen), the btc will be auto converted to USD when you transfer it to a book. So unless you are an investor in btc, not sure you would want to keep it anywhere that keeps it in btc. You can certainly keep USD in circle and use it to buy stuff in btc without any problems (the true purpose of circle, coinbase, etc.)

Also, I think some people get cut off because they are constantly moving money back and forth between circle/coinbase through blockchain wallet. If you are constantly going back and forth (regardless of a middle man), the exchange is going to think you either are involved in some sort of btc business (so they want proof) or involved in money laundering or gambling. They have their business on the line and they want to make sure you aren't using them for the last two for sure. Even if they do cut you off, they will allow you to cash out your balance back to your bank account. If money is always going out....they may just think you are buying stuff. It is when it is going on and coming back in all the time. If you send out money to your book...keep it there for several months and then send it back at some point, I am not sure it would ever get flagged. I wonder if anyone buys in circle, moves to book through blockchain and then back to coinbase. So it is always going out one exchange and in for another.

[Courtesywipe]

Depends on what you want to do with btc. In Circle, the money is kept in USD so that the value doesn't fluctuate, but when you move it to blockchain it will be in btc and the price will move up and down with the market until you convert it back to cash. Other than a btc specific book (i.e., nitrogen), the btc will be auto converted to USD when you transfer it to a book. So unless you are an investor in btc, not sure you would want to keep it anywhere that keeps it in btc. You can certainly keep USD in circle and use it to buy stuff in btc without any problems (the true purpose of circle, coinbase, etc.)

Also, I think some people get cut off because they are constantly moving money back and forth between circle/coinbase through blockchain wallet. If you are constantly going back and forth (regardless of a middle man), the exchange is going to think you either are involved in some sort of btc business (so they want proof) or involved in money laundering or gambling. They have their business on the line and they want to make sure you aren't using them for the last two for sure. Even if they do cut you off, they will allow you to cash out your balance back to your bank account. If money is always going out....they may just think you are buying stuff. It is when it is going on and coming back in all the time. If you send out money to your book...keep it there for several months and then send it back at some point, I am not sure it would ever get flagged. I wonder if anyone buys in circle, moves to book through blockchain and then back to coinbase. So it is always going out one exchange and in for another.

I appreciate the feedback. This was very helpful.

[ace7550]

If I know I'm going to redeposit my btc I leave it in blockchain. Typically sitting on btc pays off better than sitting on usd in coinbase or itbit.

[3runhomer]

If I know I'm going to redeposit my btc I leave it in blockchain. Typically sitting on btc pays off better than sitting on usd in coinbase or itbit.

Same here

[Memento]

Same here

Not looking good today...just too much volatility for my taste.

[Jetsfan]

Remember that Coinbase and Circle both hold your $, meaning if they go out of business, your funds are lost.

Blockchain.info does not hold your $, you have full control over your private keys in the event that their site is shutdown. You should backup your wallet regularly on your PC and keep a hard copy.

[Courtesywipe]

Remember that Coinbase and Circle both hold your $, meaning if they go out of business, your funds are lost.

Blockchain.info does not hold your $, you have full control over your private keys in the event that their site is shutdown. You should backup your wallet regularly on your PC and keep a hard copy.

Thanks. Also good info. I have already backed up Blockchain once. I guess I'll stay on top of it.

[Courtesywipe]

Alright fellas. After two successfull "buy" transaction on coinbase, my limits were cut to $50 for bank account buys and $10 debit card buys. I got on live chat and submitted a ticket for review of account. Unreal.

[ace7550]

Alright fellas. After two successfull "buy" transaction on coinbase, my limits were cut to $50 for bank account buys and $10 debit card buys. I got on live chat and submitted a ticket for review of account. Unreal.

That's insane. How much did you buy? Coinbase seems to be getting more and more negative reviews in terms of limiting their customers. Those limits are so low it makes coinbase almost useless.

[Courtesywipe]

That's insane. How much did you buy? Coinbase seems to be getting more and more negative reviews in terms of limiting their customers. Those limits are so low it makes coinbase almost useless.

I agree, "useless"! I am waiting for account review and nothing yet. I bought x 2 for $300 no problem. Used Blockchain in between Coinbase and Nitrogen. I verified everything. Even had the Coinbase account for one year and this was first week of using. Looks as if I may need to use local bitcoins.

[3runhomer]

Time to move past Coinbase...they will be left in the dust!