Is Coinbase Safe?

Is Coinbase Safe?

What is Coinbase?

Coinbase is the world’s most popular digital currency exchange. Over $6 Billion worth of digital currencies has been exchanged on the platform. That includes Bitcoin, Ethereum and Litecoin. It’s widely regarded as the first broker that people use while being introduced to cryptocurrencies.

The platform is quite intuitive and easy to use. Beginners who are adventuring into the world of Bitcoin will find it’s very informative and reassuring. The website has a chatbot, for helping people with any issue, and it works pretty well surprisingly.

It can understand you even if you make a few spelling mistakes, so it’s quite useful for beginners. The exchange offers a free online wallet for your bitcoins on the creation of a free account as well.
Coinbase also has a digital assets exchange, called GDAX, a regulated platform that allows institutions, professionals and the average joe to trade bitcoins.

For example, if you have Bitcoins and you want to swap them for Litecoin, you can look for users willing to complete the exchange. Then the exchange is carried out at the market price, provided that both the parties are in accord over the prices. This is useful for users who want to create short term profit by trading currencies.

The website has been having issues with withdrawals of people’s accounts; people claim that when there is an all-time high (ATH) and all-time low (ATL), the website bugs and doesn’t function anymore.

This is indicative of an issue with Coinbase, which isn’t able to sell the user’s cryptocurrency when there are high prices or low prices in the market. So, people looking to make short term profits by buying Bitcoin when it’s low and selling when high, won’t really work. The website just bugs and cannot function.

It’s one of the major reasons why people have been discontent with the platform and are now looking for different exchanges that provide better services.

However, you can be sure that Coinbase is safe, as we’re gonna explain in this next part!

Why is Coinbase safe?

Coinbase is one of the oldest Bitcoin brokers in the business. Unfortunately, there are doubts about how safe Coinbase is now. Today, we’re gonna answer, “is Coinbase safe?”. Coinbase is regulated in the US and is backed by several big media such as The Wallstreet Journal, Bloomberg and New York Times. So, you can be sure that it’s a trustworthy website. 

Coinbase has many security measures in place in order to secure your bank credentials and your online wallet. Firstly, all deposits are insured. That makes you 100% safe even in an event of hacking. Your stolen Bitcoin or currency would be returned to you safely.

Secondly, the website keeps 98% of all customer funds offline. Therefore nobody has access to the funds directly. The platform cuts the sensitive data off the network. It encrypts your personal information and stores it on USB drives. The platform saves these USBs in deposit boxes around the world. 

All accounts require 2-factor authentication. Therefore you need to connect your mobile phone while creating your account. 2-factor authentication is essentially a text that you would receive on your phone. The text will include a code. You can use this code to verify transactions online. That makes sure that a hacker cannot enter your online wallet and send your money to different accounts.

These security concerns and measures make sure that Coinbase is safe to use for the average Bitcoin enthusiast. Hopefully, this article has answered your question of “is Coinbase safe?”. You can read our full review of Coinbase here.

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About Article Author

Michael Serrano
Michael Serrano

Michael is an engineer and a bitcoin evangelist. He has been involved in cryptocurrencies since 2013. His biggest wish? 1 billion users of bitcoin, ether and litecoin by 2020. In the last 10 years he has worked for various early-stage start-up as a back-end developer.

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