Coinbase is often lauded as one of the most popular and well-known cryptocurrency exchanges. It has built up a large user base and has been growing steadily since its launch in 2012.
However, some users have raised concerns about the safety of using Coinbase. In this article, we will look at some of the security features of Coinbase and try to answer the question: is Coinbase com safe?.
Coinbase is a digital currency exchange that allows users to buy and sell cryptocurrencies. The company is headquartered in San Francisco, California and has been operating since 2012.
Coinbase allows users to buy and sell Bitcoin, Ethereum, Litecoin, and other cryptocurrencies. The company also offers a wallet service for storing cryptocurrencies.
Coinbase is one of the most popular cryptocurrency exchanges and has over 10 million users. The company has raised over $200 million from investors including Andreesen Horowitz, USV, and DFJ Growth.
Coinbase has been growing steadily and has been adding new features such as support for Ethereum and Litecoin.
Coinbase stores 98% of customer funds offline in cold storage. Cold storage is a method of storing cryptocurrencies offline in order to protect them from hacking attempts.
Only 2% of customer funds are stored online in hot wallets for trading purposes. Coinbase uses multiple layers of security including 2-factor authentication and encrypted private keys.
Coinbase has insurance for customer funds stored on the platform. The company also has a strict anti-money laundering (AML) policy in place.
Coinbase requires customers to verify their identity before they can buy or sell cryptocurrencies on the platform.
Coinbase has been involved in a few controversies but overall the company has been doing well. In 2016, Coinbase was accused of insider trading when it launched Bitcoin Cash on its platform. However, an investigation by the US Securities and Exchange Commission (SEC) found no evidence of wrongdoing by Coinbase.
In 2018, Coinbase was criticized for not supporting Bitcoin Cash after a hard fork resulted in two different versions of the cryptocurrency. However, Coinbase later announced that it would support both versions of Bitcoin Cash.
Overall, Coinbase is a safe and secure platform for buying and selling cryptocurrencies. The company has insurance for customer funds, multiple layers of security, and a strict AML policy.
Coinbase also requires customers to verify their identity before they can buy or sell cryptocurrencies on the platform.