Since its launch in 2012, Coinbase has become one of the most popular cryptocurrency exchanges. In addition to being a digital asset exchange, Coinbase is also a digital currency wallet provider. As a result, many people are wondering – does Coinbase use cold storage?
The answer is yes. Coinbase uses cold storage for the majority of its digital currency holdings.
Cold storage refers to the practice of storing cryptocurrency offline in order to protect it from hacking attempts. This is in contrast to hot storage, which refers to keeping digital currency online and connected to the internet.
There are several advantages to using cold storage for cryptocurrency. One of the most important is that it makes it much more difficult for hackers to steal your coins.
Even if a hacker were able to gain access to Coinbase’s online wallets, they would only find a small fraction of the total number of coins that Coinbase holds.
Another advantage of cold storage is that it allows you to hold your coins for long-term investment without having to worry about them being stolen. With hot storage, you always run the risk of your coins being hacked if you don’t keep them in a secure location.
Cold storage gives you peace of mind knowing that your coins are safe and sound.
If you’re looking for a safe and secure way to store your cryptocurrencies, Coinbase’s cold storage solution is a great option.