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What happens if I don't pay back Coinbase?
Coinbase uses the term "collateral" to refer to a borrower's BTC funds, equal to the US dollar value of the loan at the time of loan origination, that Coinbase "locks up" in order to secure the loan. If a monthly payment is missed, Coinbase will sell off just enough of this BTC collateral to repay the missed payment.
Why does Coinbase say I owe money?
A negative balance occurs when you buy cryptocurrency or deposit money into your Coinbase account, but Coinbase has not received successful payment from either your bank or card issuer.
What happens if I go negative on Coinbase?
Now, to answer your question, if a Coinbase account goes negative, it means that the account holder has incurred a debt or owes money to Coinbase. This can happen if the account holder has made a trade that went against them, resulting in a loss that exceeds their account balance.
What happens if you go negative in crypto?
Can crypto coins go below zero? No, crypto coins cannot go below zero. If crypto goes negative, it will mean that the coin's value has dropped so low that it is no longer worth anything.
Does Coinbase affect credit score?
The money you keep in checking, savings or investment accounts doesn't impact your credit history or scores. Your income and overall net worth also doesn't factor into your credit. As a result, purchasing Bitcoin won't affect your credit.