is coinbase safe?

Is Coinbase safe for trading? What are coinbase security features?5 min read

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Most people who became familiar with cryptocurrency were introduced to crypto exchanges there are various exchanges available in the market. Coinbase is a web-based crypto exchange platform, users can buy, sell, and trade cryptocurrencies on this platform. Coinbase is among the 3 top crypto exchanges in the world. As the crypto industry became more popular in the financial world many entrepreneurs are developing their own exchanges many crypto exchanges are available in the market and also many people are using these exchanges to earn benefits from this profitable market.

Security is one of the most important factors in these exchanges, people are going to invest their hard-earned money in these exchanges so they don’t want their assets to be stolen. Any of these exchanges should have high-security services to ensure their users that their valuable assets will be safe in the exchange.

In this article, we will dive into the details about the cryptocurrency exchange coin base and we will describe whether coinbase is a safe crypto exchange or not.

We will read about the security measures that coin base has to detect hackers and make a secure platform for its users. Plus, you will learn about the company’s history of being hacked, credibility, and some safety tips on how to stay safe on Coinbase.

About Coinbase

Coinbase is a crypto broker and a trading platform where you can buy and trade Bitcoin and other cryptocurrencies. Since its launch in San Francisco, Coinbase has grown substantially to be considered one of the industry’s biggest crypto-broker exchanges.

After the incorporation, this exchange experienced growth, hired over 1,700 employees, activated in 100 countries, and earned over $1.8 billion in the first quarter of this year alone.

One of the biggest objections that customers have around coinbase is that it has an onboarding process that can be considered a positive feature for some users.

It is never completely safe to store your money in any online exchange, coinbase has one of the safest web wallets that users can use because it holds 98% of its assets in offline cold storage that cybercriminals cannot access.

Not only is the clients’ crypto stored offline in cold wallets but also the platform takes extra preventative measures to spread such wallets globally.

crypto Wallets

Some exchanges offer separate hot wallets in addition to letting you keep your crypto in the exchange. They are often connected with an exchange.

Cold wallets

The simplest description of a cold wallet is a wallet that is not connected to the internet. The cold wallet also known as a hardware wallet is a physical device that keeps the users’ cryptocurrency completely offline. Cold wallets are harder to be hacked and it provides more security but still, the chance of getting hacked is not zero and there may be a chance of hacking.

Hot wallets

A hot wallet (or software wallet) is connected to the internet and maybe vulnerable to online attacks that can end in some stolen funds.  But it is faster and easier to trade or spend crypto on it. But there are many risks in keeping the funds online.

Hack history

In 2019 coinbase rolled out Coinbase Custody, which holds cryptocurrency assets completely offline in cold storage wallets. Plus this Coinbase keeps its assets insured, so technically you cannot lose your money by being hacked or stealing your money.

Coinbase stated in a message to all of its clients that it immediately will fix the problem and anyone who has lost any assets because of this incident will be repaid.

As a case in point, Coinbase is able to pause $280,000 in Bitcoin transactions when hackers overtook several high-profile Twitter accounts and solicited funds from unsuspecting followers. Outside of these attempts, Coinbase has been a secure exchange.

Some hackers used the security holes available in 2-factor authentication, and they were able to steal crypto from about 6,000 coinbase users.

How to stay safe on coinbase?

  • Do not open fraudulent emails that reveal the user name and password
  • Enable the two-factor authentication
  • Use a strong password
  • Secure your email
  • Know the ways of phishing
  • Protect your cloud storage accounts
  • Keep your exchange app and your device updated
  • Use cold wallet storage
  • Notification messages when finds are withdrawn

Security features of Kucoin

Using KYC process

Following KYC rules, users must provide some personal information such as ID address verification in order to use the platform to buy or sell assets.  It helps to provide more security for honest users while preventing fraudulent users to be active in the exchange.

However, although the verification process is one of the features that make coinbase a safe exchange to use, lack of anonymity can be a problem for some users because coinbase must report the information of its users to the organization that regulates it.

Cold wallet storage

Coinbase has cold wallet storage, and all USD funds, customer information, customer wallets, website, mobile application, wallet addresses, and private keys are all encrypted. one of the coinbse security features is that this exchange provides cold wallet storage which is safer than hot wallet. Users can decide where they want to hold their assets.

Coinbase has various products available to offer, including; wallets, e-commerce solutions, custody, cryptocurrency staking, and vault if you are entrepreneurs want to develop an exchange like coinbase, make sure you read the coinbase clone script review to learn about coinbase and have a clear view of its features and functions.

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