Warning: Coinbase might be closing profitable trading accounts

[JoshA]

TL;DR: I believe that Coinbase terminated my account for being profitable using "buy low; sell high" technique.

I just started trading btc & eth on coinbase as of this year (January 2017). By watching the trends of mostly ethereum, I've been able to land on the winning side of the majority of my trades.

A few days ago, I get a letter from coinbase stating they are closing my account due to violation of the Terms of Service in accordance with FinCen.gov. Unfortunately, their customer service is non-existent and has not respond to me.

I don't know why I would have been targeted as I would not have been required to file these gains for another 8+ months.

This may be a coincidence, but this notice of account closure came two days after I broke 15k profit.

This is not a boo-hoo pity party for me, as there are plenty of other ways to buy/sell crypto with far better privacy. I will definitely spend more time in learning about these.
Anyhow, this is mostly a heads-up warning.

If you are doing what I was doing, might want to chill for a while until we know what FinCec is up to..

P.S.: Willing to try to answer questions to any questions about my limited foray into the world of crypto trading.

 

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[AFMKelvin]

Yup that's what it looks like. At least they are giving you a chance to withdraw your remaining balance.

Those are really good returns not bad. How much did you start it with. I have some coins laying around I might start doing this too.

 

[JoshA]

Yup that's what it looks like. At least they are giving you a chance to withdraw your remaining balance.

Those are really good returns not bad. How much did you start it with. I have some coins laying around I might start doing this too.

My initial investment was $300 on eth and $500 on btc. I did far better with eth. My biggest win was when I bought about $4000 USD when it was just unde $30 USD per 1 ETH early March and sold out at $310'ish per 1 ETH. If you are just getting in now, I'd recommend watching patterns of one currency for a few weeks before spending any serious amount of money. Eth is in a weird funk right now and it's not something I feel confident about guessing their fate.

 

[AFMKelvin]

My initial investment was $300 on eth and $500 on btc. I did far better with eth. My biggest win was when I bought about $4000 USD when it was just unde $30 USD per 1 ETH early March and sold out at $310'ish per 1 ETH. If you are just getting in now, I'd recommend watching patterns of one currency for a few weeks before spending any serious amount of money. Eth is in a weird funk right now and it's not something I feel confident about guessing their fate.

Do you know any cryoto currency platforms strictly for trading? Also is crypto currency trading regulated like the currencies in wall street by the feds.

 

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[JoshA]

Do you know any cryoto currency platforms strictly for trading? Also is crypto currency trading regulated like the currencies in wall street by the feds.

I'm fully aware and will be declaring my profits on my 2018 returns. I'm totally fine with that.

 

[AFMKelvin]

I'm fully aware and will be declaring my profits on my 2018 returns. I'm totally fine with that.

I was not trying to imply that you had to report your earnings. I only wanted to know if there were any regulations that you know of.

 

[JoshA]

I was not trying to imply that you had to report your earnings. I only wanted to know if there were any regulations that you know of.

Yes, you have to pay on any crytpo that you have sold and made profit on. That said, I believe you can hold your earnings in a temporary account that is not subject to capital gains.

 

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[JoshA]

I was not trying to imply that you had to report your earnings. I only wanted to know if there were any regulations that you know of.

Sorry, I misread it. I don't know a ton about it. I've heard that bigger exchanges are getting pressured to turn over records to the IRS and they have been fighting it in court. I'm sure it's just a matter of time before they lose (if they haven't already) and regulations will get much tighter.

Regarding trading systems, I have heard of a few, the one that I've heard about most is Features - Coinigy, Professional Bitcoin & Cryptocurrency Trading Platform but I have absolutely no experience with it nor heard enough about it to vouch for it. After losing my coinbase account, I will probably do some research and check out coinigy and see what else is out there. Someone also recommended Bisq - The P2P exchange network too but that looks like it might be more work, but you get more privacy. I'll report back once I've had time to play with them.

 

[workinprogress]

Any update for us OP? Did you ever find a better trading site?

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[juan917]

Any update for us OP? Did you ever find a better trading site?

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https://bittrex.com/ is a good one

 

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[workinprogress]

https://bittrex.com/ is a good one

Thank you. I'll check that out.

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[Chinobey]

Use bittrex it is without a doubt the number 1 place to trade cryptocurrency

 

[Chinobey]

And you talked about getting taxed on your earnings why would you want to sell bitcoin? Its brightest days are ahead in 2-10 years bitcoin will have been adopted by alot of stores so you can use your bitcoin to buy a lot of things

 

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[JoshA]

Any update for us OP? Did you ever find a better trading site?

Sent from my SM-N950U1 using Tapatalk

I have been told Gemini is good but they don't allow sign-ups from my state (Oregon). As other mentioned, bittrex looks good but I have only looked at it for a few mins. Right now I'm on Kraken and while I've only exchanged some eth for btc, it looks promising.

I'm all honestly, after coinbase shut me down, I kind lost interest. I took my profits from crypto and started an account for day trading and I've actually had some success in that and I have come to enjoy not having to worry about having my account shut down out of the blue.

I might come back to cryptos as I think there is good potentia, but I'm not sure when. Sorry to leave everyone hanging.