Is Coinbase safe and secure?
Any discussion about Coinbase and safety should remember these very important points. Coinbase has never been successfully hacked and has insurance.
(i) They employ many very clever people to ensure that the currency they are entrusted with is secure, as possible.
(ii)Digital Currency Insurance: All digital currency stored in wallets at their site is ensured. If, in the extremely unlikely event that a hacker got into their site and stole or destroyed cryptocurrency there, then that cryptocurrency is insured. This insurance does not extend to cryptocurrency lost due to owner mistakes.
(iii) FDIC( Federal Deposit Insurance Corporation ) insurance: Any US dollars stored on the Coinbase site have the same insurance as if they were stored in a bank.
Yes! Coinbase is very secure but any cryptocurrency stored there is still in an online wallet. You are safer in putting your coin on in a wallet on your own device, such as a Jaxx wallet, or using a hardware wallet, such as the Ledger Nano’s wallet.
Privacy is a different matter. Governments have legitimate reasons for wanting to know the purposes to which money is being put. The use of Bitcoin and other cryptocurrencies allows much more privacy than fiat currency. There are cryptocurrencies that have far greater privacy and anonymity than Bitcoin, Ethereum or Litecoin, such as Monero and Bytecoin, and if privacy is an important consideration then those coins should be used. If that is the case then CoinBase is an unsuitable exchange, as it only deals in Bitcoin, Ethereum, and Litecoin.
Another consideration is whether Coinbase always acts in a manner, which is above board and ethical. Some observers have noted that Coinbase is such a large exchange that any outage of the Coinbase site results in a fall in the dollar value of cryptocurrency. They wonder whether Coinbase engineers these outages in order to benefit them. As the major cryptocurrency become ever more mainstream, it is doubtful, whether such behavior could avoid official scrutiny.
This article has covered Coinbase quite thoroughly. It has emphasized the safety aspects and despite some weaknesses, any person considering investing in cryptocurrency would be well advised to seriously consider Coinbase, as their exchange.
Review of Coinbase safety – is Coinbase legit?
According to Wikipedia, ” Cryptocurrency exchanges or digital currency exchanges are businesses that allow customers to trade cryptocurrencies or digital currencies for other assets, such as conventional fiat money, or different digital currencies.”
Cryptocurrencies have greatly increased in dollar value recently and as a consequence, there are now many exchanges all over the world. There is great variation between exchanges, some are better than others and some are particularly good in some areas of cryptocurrency exchange, such as ease of use, varieties of coin available, security, privacy, margin trading etc. A Google search, “What are the best cryptocurrency exchanges?” will give a plethora of different answers.
Some exchanges names are very well known and if you repeatedly research cryptocurrency exchanges you are bound to come across Coinbase, Bittrex, Etoro, 24Option, Kraken, Binance, CEX, Poloniex and many others. This article will focus on Coinbase, particularly with regard to safety.
The Coinbase exchange
Coinbase has the following history according to Wikipedia, ” Coinbase was founded in July 2011 by Brian Armstrong and Fred Ehrsam. It enrolled in the Summer 2012 Y Combinator startup incubator program. … Later in January, the company launched a U.S.-based bitcoin exchange for professional traders called Coinbase Exchange. ”
Facts about Coinbase
Coinbase is headquartered in San Francisco and has over 10 million customers who have used it. Coinbase has dealt with more than US $50 billion in the digital currency. Coinbase only supports 32 countries in exchanging cryptocurrency; it does not support every country in the world. Coinbase has the highest volume of any exchange of Bitcoin.
Which currencies does Coinbase support?
The table below, from the Coinbase website, shows the coins supported.
Ethereum Classic has never been supported. This is emphasized in the table.
If you desire to purchase or trade other cryptocurrencies then you need to use some other exchange.
GDAX (Global Digital Asset Exchange) is an exchange operated by Coinbase for experienced professionals in cryptocurrency. The GDAX webpage may be accessed from the bottom of the Coinbase home page. Coinbase, itself, is an exchange operated with the less sophisticated consumer in mind. From its inception, Coinbase has been designed specifically for the beginner and consumer in cryptocurrency.
How to create an account on Coinbase
The first step is to go to the Coinbase website and click on Sign Up.
Doing this produces the following window.
Fill this in then click create account
Once you do this, you are sent a verification email.
Just follow the steps and you are able to join up.
Coinbase fees are much better than any bank.
They are based on one of two methods that are disclosed to you when you perform a transaction. The following diagram is an extract from this link and illustrates the very comprehensive information given.
Which payment methods are accepted?
Coinbase is very flexible in its Coinbase fees. In the USA, the payment options are, directly with a bank account, with a credit or debit card, wire transfer, PayPal, and cryptocurrency. The cryptocurrencies, which are currently accepted on Coinbase are Bitcoin, Ethereum, and Litecoin.
How quickly will my funds be available?
On the Coinbase website, there is good information on this on this. From this page,” Coinbase generally makes your funds available in your account as soon as we receive payment. Since Coinbase partners with various payment service providers in different geographic regions, the timing will vary according to your location and payment method used.”
What are the transfer limits?
As with other basic information, Coinbase provides a webpage that gives excellent information about this. Here is what they say, in explaining the limits,” For security, regulatory compliance, and fraud prevention, there are limits to how much digital currency can be bought and sold with your Coinbase account. These limits vary based on the payment method used, your account age, purchase history, and other factors.”
Which countries does it support?
Coinbase supports 32 countries. These are listed on the homepage If you are inquiring from a country that does not have Coinbase support, you will be informed when you go to the link and invited to provide your email for updates.
Frequently Asked Questions
Like all services, Coinbase will prove trying for some users. Coinbase offers an FAQ (Frequently Asked Questions) section. Unfortunately this is on the GDAX page, which may be a bit confusing to some users.
What about Coinbase Customer Support?
Coinbase has a very user-friendly and effective customer support team. Customer support is provided via email, twitter, Phone and SMS. They have a very strong warning, ‘ Coinbase Support will NEVER ask you to share your password or 2-factor authentication codes, or request that you install remote login software on your computer. If anyone claiming to be associated with Coinbase Support requests this information, immediately contact us.’ on the customer support page. As this article is particularly concerned with safety, readers and users of Coinbase are urged to read it.
Coinbase compared to a few other popular exchanges
There are many resources and articles on the Internet, which compare various cryptocurrency exchanges. Earlier it was pointed out that Coinbase is the world’s largest exchange in Bitcoins. Unfortunately, Bitcoin, Bitcoin Cash, Ethereum and Litecoin are the only cryptocurrencies offered by Coinbase. An article, which is a very good comparison of cryptocurrency exchanges was produced by 99Bitcoin. It only deals with Bitcoin, but as Coinbase only has a limited stable of currencies and Bitcoin is the most important, the article is well worth reading. There are many others, including direct comparisons between Coinbase and other exchanges.
How to buy and sell on Coinbase
Before attempting to buy or sell, ensure you have joined Coinbase. Your first transactions should be with small amounts so that you know what to do. To start, I recommend using the wallets that Coinbase provides onsite. There are numerous references on the Internet, with videos. I like this video. Coinbase provide a very full set of instructions called, ‘ BUYS & SELLS.’
Coinbase app Review
Coinbase, unlike some other exchanges such as Poloniex, has both iOS and Android apps for smartphones and tablets. Full instructions as to how these apps may be obtained is given in the article, ‘ Coinbase Mobile App.’
Transferring from Coinbase to a wallet
Here is an example using Coinbase and a hardware wallet called KeepKey:
- Plugin the KeepKey USB cable.
- Open the KeepKey Client (on Google Chrome, it is under Apps).
- Find the wallet address on the KeepKey Client User Interface and copy it.
- Go to the Coinbase ‘Send/Request’ tab and paste your KeepKey wallet address.
- Follow instructions then click ‘Send Funds’.