If you are a cryptocurrency user, then you must have heard about Coinbase. It is one of the most popular cryptocurrency exchanges in the world.
Recently, there have been reports of Coinbase wallet not working. This has caused a lot of inconvenience to users as they are not able to access their funds.
The main reason for this problem seems to be due to the fact that Coinbase uses an online hot wallet to store user’s funds. This hot wallet is connected to the internet and is therefore vulnerable to hacking attacks.
In the past, there have been several cases where exchanges have been hacked and user’s funds have been stolen.
Another reason for this problem could be due to the fact that Coinbase stores a large amount of user’s funds in a single wallet. This makes it a prime Target for hackers.
If they are able to hack into this wallet, then they can easily steal all the funds stored in it.
Coinbase has acknowledged this problem and has taken steps to solve it. They have now implemented a new security measure called “multi-signature”.
This will require users to verify their identity using multiple factors before they are able to access their funds.
Despite these measures, it is still advisable for users not to store all their funds on an exchange. They should always transfer their coins to a secure offline wallet such as a hardware wallet.
This will ensure that even if the exchange is hacked, their coins will still be safe.