Coinbase is a crypto trading platform that allows users to trade digital currencies like Bitcoin. The platform first surfaced in 2012 and eventually became one of the most popular crypto trading sites for users around the world.
Even today, it is one the biggest crypto brokerage services and users from around the world deal in digital currencies on it. The platform now has over 1,700 employees, operating all over the world, and generating billions of dollars every year. Let us talk about Coinbase and what it offers for its users.
Is Coinbase Safe?
Yes, Coinbase is safe to use. Coinbase is a publicly-traded company on the NYSE and listing on this exchange requires a number of regulatory approvals.
What Coinbase Offers?
Coinbase offers three primary services for its customers. It includes crypto brokerage services for its retail customers. It also has a Coinbase Pro professional trading platform and Coinbase Prime for its institutions.
The main reason for Coinbase’s success is its easy-to-use platform and GUI. It allows users to sell and buy digital currency on the brokerage platform.
The Coinbase Pro has tools for specific traders only. These include charting software with indicators; a real-time updated order book, as well as a margin trading with 3x leverage.
Moreover, Coinbase understands the needs of its customers, which is why it introduced a beta version that accommodates the growing need of users. It comes with asset managers, hedge funds, fund managers, sovereign wealth funds, and several other aspects that come with liquidity pools.
Trustability with Coinbase
Numerous platforms allow crop trading and exchange brokerage for customers. However, Coinbase has a better reputation than most of these platforms. It is a high-profile provider, the trusted platform on the market, and accounts for interesting factors like an affordable fee structure, security, and accessibility.
Coinbase is most famous in the U.S. but is also growing increasingly popular for users the site holds around 40 licenses for operating in the U.S. alone. It is also working in 31 additional countries to operate legally.
Interestingly, Coinbase is a trustable source, which provides insured transactions across the platform. It is one of the only four licenses for exchange in New York. Therefore, the site follows strict Know your Customer (KYC) rules.
It also updates its policies according to the latest regulations in the regions it operates in. This makes Coinbase completely legal and an ideal addition for users around the world.
Key Security Features on Coinbase
Coinbase takes its security seriously, which is why it offers several key security features on the site. These features allow users to make secure transactions, without fearing unnecessary complications, or unauthorized transactions. Following are the rime security features and protocols that protect your accounts on Coinbase
ID Verification
Coinbase follows strict ID verification protocols due to its KYC approach. Users need to confirm their IDs but provide authenticated information such as their address, government-issued ids, and other important documents to show their validity.
Additionally, Coinbase does not let anonymous users use the platform. This makes the site legitamite for real users who want to make valid transactions on-site.
Cold Storage for Security Enhancement
It is not safe to keep your money on online exchange sites for long periods. However, Coinbase has one of the most secure systems for users who wish to keep their money on the site. This is because the company holds 98% of assets in cold storage, where hackers cannot access them.
In addition to storing the assets in cold storage, the site also spreads the e-wallets throughout the globe for additional security. This makes only 2% of the site’s total assets available online, which reduces the risks involved to a great extent.
Additionally, Coinbase provides coverage to its customers for values as much as $250,000 per account. This occurs through the FDIC insurance and adds to the reliability of Coinbase.
Wallet Security
Coinbase follows a specific policy for Personally Identifiable Information (PII) and all other information in offline modes. In addition, it keeps all the information with multiple copies held in USB drives, and paper backups to avoid any kinds of redundancy. Then, these stores are spread through several locations to ensure more security.
Moreover, the site uses Delaware, which provides additional encryption for on-site processes. This also applies to mobile applications from Coinbase and hash account passwords.
Bottom Line
Coinbase is a secure platform for users around the world considering it follows FDIC insurance standards and has protection policies for users globally. It also has offline storage for PIIs, which all contribute to its security. However, users must still follow a careful approach for their transactions to keep their assets secure.
Sources
https://www.businessinsider.com/is-Coinbase-safe?international=true&r=US&IR=T