[aryanet]

I think what he means is this:

If you buy something online for example and you don't get it, you can call them up bitch about it and they refund you, and in worse case if they are jerks and you used your credit card you can dispute.

With bitcoin, once transfer is done from one account to another account, the transaction is not reversible. Since bitcoin addresses are anonymous, you don't know who it went to so there is no way to track and reverse the transaction like we do with refunds and voids.

However, his explanation doesn't make sense anyway. The concerns he raises are about fake accounts and having them to pay exchange to purchase the coins before they actually withdraw money from your account, which is taking a risk on their part to be able to secure the coins at the price you purchased. However, this is not true either. I had my orders cancelled back to back even if the money was withdrawn from my bank account. What risk? I don't know. Perhaps they made money from not granting me the coins that were doubled in price since last week.

[shtylman]

The risk is not that your account will be debited, it is that you will go to your bank and claim the charge was not authorized by you after having moved the coins off their site. Now, maybe your bank account was compromised, and the attacker used your info to get coins. The bank will still refund you at the expense of coinbase. Remember, it isn't the "good" actors these actions are meant to protect against. A business like coinbase is a target 24/7 for many malicious individuals with access to lots and lots of compromised accounts.

[aryanet]

So this is good tip. I actually did transfer out my first bitcoing from Coinbase to Blockchain, so it makes sense if their algorithm doesn't like that. I just transferred that coin back in to see if it makes any difference. But frankly, it is impossible for new users to buy bitcoin on coinbase. I had used my daily limits just to find out about this problem.