The cryptocurrency market is constantly gaining popularity and value in recent years because of its digital nature and the amazing returns it offers to its investors. The market only had a total value of a few dollars at the start but fast forward to several years later and it has a total market value of trillions of dollars making it one of the most valued markets right now.
The investors who had faith in the cryptocurrency market’s success invested early in it and are bitcoin billionaires now. Their success has inspired thousands of investors around the world to invest in cryptocurrency and if you too want to be one of them, then we strongly recommend that you visit this site to do so.
Many of these new investors need to choose a crypto exchange platform for themselves to invest in the cryptocurrencies they want. While there are several crypto exchange platforms out there, one name that particularly stands out as the best exchange platform for beginners is Coinbase.
According to ausys.se/bitcoin-prime-recension-2021-ar-bitcoin-prime-en-bluff-eller-inte, it is necessary that you choose the best exchange platform for your crypto investments as it has a significant impact on your trading ability and the security of your funds. While Coinbase is often considered to be the best choice for this, many people still doubt if it is as secure as people make it out to be.
In this article, we will help you realize exactly that and let you know if keeping your crypto on Coinbase is safe or not. Read the article till the end so that you don’t miss out on crucial details.
What exactly is Coinbase?
Before you decide whether it is safe for your investments or not, it is crucial you realize what Coinbase actually is and how it works.
Coinbase is a cryptocurrency exchange platform that was launched in 2012 for traders to buy and sell popular cryptocurrencies. This makes it one of the oldest exchange platforms on the market and thus, also the most reliable and trustworthy one.The platform has handled billions of dollars worth of crypto transactions with the help of their various facilities.
The best thing about Coinbase is that it allows you to purchase crypto using fiat currencies such as dollars or euros, unlike other major exchange platforms which require you to have crypto to trade and invest in beforehand. Being such a reputed exchange platform, Coinbase features its own crypto wallet that you can use for storing your cryptocurrencies.
The exchange itself has more than 40 unique licenses for it to be legally operable in over 30 states of the USA. While it doesn’t have the same support for other countries around the world, the countries in which it does, it delivers the maximum security out of all other crypto exchanges on the planet.
The wallet offered by Coinbase is extremely secure and has tons of security features that we will presently discuss. You can be assured that Coinbase has left no stone unturned when it comes to the security of their users’ wallets.
What security features does Coinbase offer?
An important factor to note about cryptocurrency investments is that they are not regulated or centralized by any government or authority around the world. What that means is that whatever cryptocurrency you invest in an exchange cannot be protected by law in case it gets lost or stolen from you.
To prevent that from happening, Coinbase employs several key security features with the primary one being cold storage for 98% of their users’ crypto assets with the remaining 2% used for trading regularly. What’s more is that the exchange also has an insurance policy for users that comes into action for protecting cryptocurrency holdings.
However, this insurance policy does not cover what would happen if there was an extremely large breach of security at the exchange that cost the platform losses that cannot be feasibly covered by insurance. In such cases, your cryptocurrency can be fully lost and never recovered again.
That being said, the chances of such an event actually happening is extremely low considering the amount of security features the platform incorporates. It’s also important to know that the platform holds no responsibility if someone steals your wallet’s keys and uses it to access your online wallet and steal all your cryptocurrency.
There are tons of other security measures as well that can immensely bolster your wallet’s security levels such as 2FA (2-Factor-Authorization) and biometric logins that verify your face or fingerprints. If utilized properly, Coinbase can serve to be an excellent and secure way of storing all your cryptocurrencies.
Is it truly safe to keep your crypto on Coinbase?
Coinbase is one of the only few cryptocurrency exchanges in the world that has actual licenses for whichever country it gives access to users to. The exchange’s license directly implies that the exchange has particularly strict guidelines about KYC and other relevant regulations.
It also provides insurance which can really come handy if a minor security breach occurs and makes you lose all your crypto assets or money. Users can’t use the platform entirely anonymously because the exchange necessarily requires user accounts to identify themselves and provide all relevant information.
This ensures that user scams stay at a minimum and you get a decent idea of who you are trading with in each transaction. It is one of the best ways to keep scammy users and traders far away from you while allowing actual legitimate users to trade in the exchange. Coinbase is as secure as an exchange can get.
That being said, we strongly recommend that you transfer your crypto assets from your online wallet to a cold wallet either way as it can immensely increase your security. Online hot wallets, those found in most online exchanges, are not as secure as you’d think and the only way of safeguarding large amounts of your cryptocurrency wealth is by keeping it locked in a hardware wallet of your choice where hackers can’t access it.
Coinbase is one of the best online exchanges on the market for keeping your cryptocurrency safe and we hope this article helps you realize if it is safe enough for your crypto wealth or not. We hope this article was insightful for you and if it was, please consider following our website for regular updates as it will help us out immensely.