As a cryptocurrency enthusiast helping clients manage their digital assets, I often get questions about Coinbase. Founded in 2012, Coinbase is one of the most utilized centralized crypto exchanges, with over 89 million verified global users as of February 2022 [1].
With high trading volumes across their platform, many investors use Coinbase for buying, selling, and storing cryptocurrency. However, some eventually decide they want to delete their Coinbase account entirely.
Why Delete Your Coinbase Account?
There are a few common reasons why you may want to permanently delete your Coinbase account:
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Security concerns – With rising crypto crime, you may worry about hacks or compromises and want funds in cold storage. Over $190 million was stolen from Coinbase users between 2015-2018 [2].
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Consolidating assets – Combining holdings across exchanges or moving to a hardware wallet gives more control.
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Simplifying taxes – Deleting Coinbase could streamline calculation if using multiple platforms.
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Leaving crypto trading – Closing the account if no longer actively transacting.
| Reason | Percentage |
|---|---|
| Security Concerns | 43% |
| Consolidating Assets | 32% |
| Simplifying Taxes | 12% |
| Leaving Crypto Trading | 13% |
*Table showing common reasons for deleting Coinbase accounts based on survey of 256 former users (Followchain, 2022)
However, account deletion is permanent – so consider alternatives like disabling instead. Weigh the risks before closing it for good.
Step-by-Step Guide to Deleting Your Coinbase Account
Deleting your Coinbase account completely cuts ties with the platform. Once confirmed, there is no way to recover it. To avoid surprises, follow this detailed walkthrough:
Step 1 – Withdraw Funds
First, withdraw all funds held on Coinbase back to your connected bank or an external crypto wallet. You cannot delete an account with remaining balances.
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Review balances – Check your BTC, ETH and other crypto balances as well as any USD stablecoin amounts.
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Send assets to external wallets – Use wallet addresses to move funds out via crypto withdrawals.
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Transfer USD to bank account – Withdraw any USD stablecoins back to your linked bank account.
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Confirm $0 balances – Double check all wallet and account balances are zero before deleting.
Step 2 – Disable 2FA Security
If you have two-factor authentication enabled, temporarily switch this security feature off prior to deletion.
- Navigate to Settings > Security
- Turn off 2FA
- This avoids issues recovering backup codes if accidentally deleting account
Step 3 – Double Check Account Details
Confirm access to the email, phone number, and other account details needed for emergency recovery in case deletion goes awry.
- Ensure you have access to the registered email inbox
- Make sure you have access to the connected mobile number
- Know your password – this is needed to confirm deletion
Step 4 – Close Your Account
Finally, you are ready to permanently delete your Coinbase account:
- Go to Settings > Activity and click "Close Account”
- Enter password when prompted
- Select “Close Account” again to confirm
Once confirmed, your account is gone forever without possibility of retrieval. So double and triple check you have everything in order beforehand!
*Statistics on disabling vs. deletion based on Coinbase user data (Coinbase, 2022):
| Action | Number of Users |
|---|---|
| Disabled Account in 2021 | 1.7 million |
| Deleted Account in 2021 | 427,000 |
What to Do BEFORE You Delete
Aside from withdrawing assets, disabling 2FA, and confirming account details – here are a few other tips before deletion:
Review Transaction History
Download or screenshot your full transaction history detailing crypto purchases, sales, transfers, and transaction times. This preserves tax records and basis data for future years if needed.
Confirm Identity Verification
Check if ID verification will still be valid if reopening a new account. This avoids having to resubmit KYC details which further complicates taxes.
Remove Bank Accounts
Disconnect any linked bank accounts and debit cards to avoid issues after closure. Adding them again to a new account has tax implications in some countries.
Close Coinbase Pro Too
Keep in mind Coinbase and Coinbase Pro share an account system. Closing one closes the other so withdraw assets from both.
Security Best Practices When Deleting Accounts
As a cryptocurrency security consultant, I advise taking these steps when deleting financial accounts:
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Avoid public WiFi – Execute the deletion on a private, secured internet connection only to reduce hacking risks.
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Clear browser data – After successful deletion, clear all Coinbase-related cookies and browsing data for privacy.
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Monitor email activity – Watch for any unusual emails regarding your now deleted account and flag suspicious messages.
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Use antivirus protections – Scan all devices used to manage crypto accounts using trusted antivirus software to minimize vulnerabilities.
Following security best practices reduces odds your personal data is compromised during or after account deletion.
Risks and Downsides to Deleting Coinbase
While deleting Coinbase provides some benefits, be aware of a few notable downsides:
No recovery options – Unlike disabling which allows reactivation, deletion is irreversible. There is no way to retrieve the closed account.
Lose transaction history – All prior crypto purchase records, tax lots, and performance data is wiped out. This can complicate taxes.
Repurchasing costs more – Buying back cryptocurrencies means paying more in new transaction fees and slippage versus simply transferring.
For these reasons, disabling accounts is generally recommended over deletion except in specialized cases.
Review Other Crypto Exchange Deletion Processes
Every platform handles account terminations differently. Here is a brief comparison if deleting other accounts along with Coinbase:
| Exchange | Permanency | Recovery Options | Time to Complete |
|---|---|---|---|
| Coinbase | Permanent | None | Instant |
| Binance | Can Reactivate | 30 Day Wait Period | ~60 Days |
| Kraken | Permanent | None | 3-10 Days |
| KuCoin | Permanent | None | 24 Hours |
*Table outlining account deletion details for top crypto currency exchanges (Followchain, 2022)
As shown above, Coinbase stands out with no waiting period or option to recover after deletion. So unlike closing a Binance or Kraken account, it is truly permanent action.
The Bottom Line
Deleting your Coinbase account cuts ties permanently – there is no looking back after account confirmation. Before you delete, withdraw ALL funds, disable 2FA security, record your transaction history, and know recovery email/phone access by heart.
While deleting Coinbase heightens privacy, you permanently lose account access, trading data, and tax lot information. Weigh these outcomes carefully relative to your crypto needs before closing your Coinbase account for good.
