As the world’s largest cryptocurrency exchange, Coinbase has been a trailblazer in the digital asset industry. The company has been at the forefront of innovation, helping to drive mainstream adoption of cryptocurrencies.
One of the latest products to come out of Coinbase is Coinbase Vault.
Coinbase Vault is a new storage option for cryptocurrencies that offers increased security features. In this article, we will take a look at Coinbase Vault and how it compares to the Coinbase Wallet.
We will also explore whether or not Coinbase Vault is safe to use.
What is Coinbase Vault?
Coinbase Vault is a new storage option for cryptocurrencies that offers increased security features. The main difference between Coinbase Vault and the Coinbase Wallet is that with Vault, funds are stored offline in what are known as “ cold storage ” wallets.
This means that the private keys for your coins are not stored on Coinbase’s servers. Instead, they are stored in a secure location that only you have access to.
In order to use Coinbase Vault, you will need to set up two-factor authentication (2FA). This can be done with an authenticator app or with a physical security key. Once 2FA is enabled, you will also need to set up a withdrawal delay period .
This is the amount of time that must pass before any withdrawals from your Vault can be processed. The withdrawal delay period can be anywhere from 1 hour to 7 days.
Coinbase says that one of the advantages of using Vault is that it makes it more difficult for hackers to steal your coins . If a hacker were to gain access to your account, they would still need to wait for the withdrawal delay period to expire before they could access your funds.
This gives you time to cancel any suspicious withdrawals and secure your account.
Another advantage of using Coinbase Vault is that it allows you to share access to your account with multiple people . This can be useful if you want others to help manage your account or if you simply want someone else to have access to your funds in case of an emergency.
Is Coinbase Vault Safe?
Coinbase says that their main priority is the safety and security of customer funds . To that end, they have implemented multiple layers of security, including 2FA and withdrawal delay periods .
They have also partnered with some of the world’s leading security firms, such as Google Cloud and BitGo, to further protect customer funds .
In addition, all customer fiat balances are insured by the Federal Deposit Insurance Corporation (FDIC) up to $250,000 . This means that if something were to happen to Coinbase, customers would still be able to recover their funds .
It is important to note that even though Coinbase takes security seriously, it is still possible for customers to lose their funds . For example, if you forget your 2FA code or lose your physical security key , you will not be able to access your account or recover your funds .
Therefore, it is important that you keep your 2FA code and physical security key safe and secure at all times.
Conclusion – Is Coinbase Vault Safe Than Wallet?
Overall, Coinbase Vault seems like a very safe and secure way to store cryptocurrencies . The main advantages are the increased security features and the fact that customer fiat balances are FDIC-insured .
However, it is important to remember that even though Coinbase takes security seriously , customers can still lose their funds if they do not take proper precautions .