Is Coinbase a safe and legit Bitcoin exchange?
Coinbase is the largest regulated crypto exchange in the US. In this article, we will go through the security and regulation standards.
Is Coinbase a safe Bitcoin exchange?
Yes, Coinbase can be considered to be a safe Bitcoin exchange.
However, nothing is ever 100% safe.
But, Coinbase has been around since 2012 and served billions of USD in transaction values and millions of users from all around the world.
Here are some practices that makes Coinbase a safe Bitcoin exchange
- 98% of customer funds are stored offline
- 2-Step Verification on All Accounts
- Coinbase website traffic runs entirely over encrypted SSL (https)
- Wallets (and private keys) are stored using AES-256 encryption
- Coinbase employees must pass a criminal background check as part of the hiring proces
Is Coinbase a legit Bitcoin exchange?
Coinbase is definitely a legit Bitcoin exchange.
Coinbase serves customers around the world. Approximately, Coinbase have 56 million verified users, 7,000 institutions, and 115,000 ecosystem partners in over 100 countries.
They all have signed and trust Coinbase to easily and securely invest, spend, save, earn, and use crypto.
How does Coinbase store users funds?
As the largest regulated Bitcoin exchange in US, Coinbase have high security standards. Coinbase uses a combination of online “hot storage” and offline “cold” storage.
Coinbase maintains 98% or more of customer digital currency in cold storage, with the remainder in secure hot servers as necessary to serve the liquidity to customers.
All digital currency that Coinbase holds in its online hot storage is insured. More about the insurance below.
Is Coinbase exchange insured?
If Coinbase were to suffer a breach of its online hot storage, the insurance policy would pay out to cover any customer funds lost as a result.
Coinbase have insurance on its hot storage.
However, make sure to understand that not all happenings are insured but only specific.
For example, Coinbase insurance policy does not cover any losses resulting from the compromise of your individual Coinbase account.
Coinbase insurance policy cover losses from the hot storage resulting from a breach of Coinbase’s physical security, cyber security, or by employee theft.
You are still responsible to use a strong password and maintain control of all login credentials you use to access Coinbase.
Coinbase operates in the United States, Coinbase and is required to comply with U.S. laws and regulations.
They need to do this at both a federal and state level.
Here are some of the laws, regulations, and regulatory bodies that Coinbase complies with: