As of July 2016, Coinbase is the largest bitcoin broker in the world, with 11.65 million customers. Based in San Francisco, Coinbase allows users to buy, sell, and store bitcoins and ethers.
The company has been praised for its security measures, particularly its use of the two-factor authentication process. However, some have raised concerns about the safety of Coinbase’s platform, especially in light of recent hacks at other exchanges.
One worry is that Coinbase is not insured by the Federal Deposit Insurance Corporation (FDIC), which means that customers’ money is not protected in the event of a hack or bankruptcy. However, Coinbase has implemented other security measures, such as storing 98% of customer funds offline in “cold storage” and using 2-factor authentication for all withdrawals and transfers.
In conclusion, while Coinbase is not insured by FDIC, it has taken other steps to secure customer funds.