As the world’s leading cryptocurrency exchange, Coinbase is often the first port of call for those looking to invest in Bitcoin, Ethereum and other digital assets. But is your crypto safe on Coinbase?
In this article, we’ll take a look at the security measures Coinbase has in place to protect your crypto, and how you can further secure your account.
Coinbase Security Measures
Coinbase employs a number of security measures to protect your crypto, including 2-factor authentication (2FA), a host of anti-fraud mechanisms and insurance coverage for certain digital assets.
2-factor authentication is an extra layer of security that requires you to enter a code from your mobile phone in addition to your password when logging into your Coinbase account. This makes it much harder for hackers to gain access to your account, even if they have your password.
Coinbase also uses a number of fraud detection mechanisms to prevent unauthorised activity on your account. For example, if you try to login from an IP address that’s not associated with your account, or if you make a large number of unsuccessful login attempts, Coinbase will block your account and require you to go through additional security steps to verify your identity.
Finally, Coinbase has insurance coverage for certain digital assets held in its online wallets. This means that if Coinbase were to be hacked and your crypto stolen, you would be compensated up to a limit (currently $250,000 per customer).
How to Secure Your Coinbase Account
In addition to the security measures Coinbase has in place, there are also a number of steps you can take to further secure your account.
Firstly, always use 2-factor authentication when logging into your Coinbase account. This may seem like an obvious step, but many people still don’t use 2FA, leaving their accounts vulnerable to attack.
Secondly, be sure to use a strong and unique password for your Coinbase account. Hackers are always trying new techniques to break into accounts, so using a strong password is essential to keeping your account safe.
A good password should be at least 8 characters long and include a mix of upper and lower case letters, numbers and symbols. Avoid using easily guessed words like “password” or easily accessible personal information like your birthdate.
Finally, don’t store all of your crypto on Coinbase. While Coinbase is a secure platform, it’s always best to diversify your holdings by storing some of your crypto offline in a hardware wallet or paper wallet.
This way even if Coinbase were to be hacked or experience technical problems, you would still have access to some of your crypto holdings.
In conclusion, while there is always some risk when storing any amount of crypto online, Coinbase is one of the most secure exchanges available and takes numerous steps to protect its users’ accounts. By using 2-factor authentication and strong passwords, as well as diversifying your holdings across different platforms and wallets, you can further minimize the risks associated with storing crypto online.