Coinbase, headquartered in San Francisco, California, is a digital currency exchange platform. As part of Ycombinator, the company was created in 2012, making it one of the industry’s oldest.
Brian Armstrong and Fred Ehrsam, the company’s founders, established it as a Bitcoin brokerage firm, selling Bitcoins directly to customers. However, as the company’s user base increased, so did its capabilities.
In this article, we will give you a brief idea of whether Coinbase is secure or not.
What is Coinbase?
Coinbase is a bitcoin program that allows you to quickly start developing a cryptocurrency portfolio. The company was formed in 2012 with the goal of allowing everyone to send and receive Bitcoin. Since then, it’s grown into software that allows over 56 million verified users to invest, spend, save, earn, and use cryptocurrency.
This isn’t a robot-advisory service or a web-based brokerage. As a result, you won’t be able to trade stocks or mutual funds here, nor will you be able to open an individual retirement account. Because it isn’t a bank, there aren’t any checking or savings accounts. The Coinbase app, on the other hand, allows you to purchase and trade cryptocurrencies such as Bitcoin, Ethereum, and Litecoin from your desktop or mobile device.
The Coinbase app is for anyone who is interested in investing in cryptocurrencies and wants a simple way to exchange them.
If you’re not interested in crypto at all, a robot advisor or an online brokerage might be a better option. If you require banking services, you should search elsewhere. Coinbase, on the other hand, could be a fantastic choice if you’re ready to add crypto to your portfolio and want to do it through a trusted online cryptocurrency exchange.
Coinbase’s Best Features
The Coinbase cryptocurrency app has a number of features that appeal to both novice and experienced investors. Here are some of the most important points:
Easy to use
The Coinbase app is simple to use, and you can get started trading in minutes after creating an account. You can use the app to buy and sell cryptocurrencies, track their prices, and schedule automated cryptocurrency purchases based on your preferences.
Earn as you learn
Do you want to acquire free cryptocurrencies with no investment? Coinbase allows you to earn up to $32 in cryptocurrency just for taking basic online tutorials to learn more about it.
Coinbase helps you keep your money safe by letting you deposit it in a vault and withdraw it at a later time.
The wallet feature on Coinbase allows you to keep all of your cryptocurrencies and NFTs in one convenient location. You may also connect it to the desktop version of the program and trade more than 500 coins.
Coinbase is planning to put out a Visa debit card that will allow you to store and spend your cryptocurrency, albeit it has yet to be officially launched. You’ll also be able to earn crypto rewards on qualified purchases if you use the card.
Coinbase Pro is a better option if you require more functionality. You can follow the market, see open orders and trade history, and use an industry-leading API with Coinbase Pro.
Is It Safe To Use Coinbase?
Coinbase provides excellent security when it comes to crypto investing and trading.
Coinbase is one of four exchanges to receive a BitLicense license in New York as part of a trial program, and it carefully follows KYC (know your customer) rules and regulations.
Coinbase is licensed to operate in various countries, including the United States. Its assets are covered by insurance so that you won’t lose any of your hard-earned Coinbase cash to theft or hacking.
For account holders, Coinbase employs a range of safeguards. It’s critical to remember that any cryptocurrency held on an exchange account is only as safe as the account holder makes it. Strong passwords must be used, as well as security mechanisms such as two-step verification.
Coinbase offers biometric fingerprint logins, two-factor authentication, insurance in the event that Coinbase is hacked (this insurance does not apply if your account is hacked due to your own lack of security measures), and maintains 98 percent of users’ assets in offline cold storage.
Coinbase’s Hack History
Hackers exploited a weakness in Coinbase’s two-factor authentication system to steal bitcoin from at least 6,000 customers this spring, according to the cryptocurrency exchange.
Between March 2024 and May 20, 2024, account breaches were discovered. Hackers are suspected of using a large-scale email phishing effort to deceive customers into giving away their account information, including email addresses, passwords, and phone numbers. Furthermore, the unidentified perpetrators acquired access to victims’ email inboxes by using a rogue program that can read and write to the inbox if the user provides permission.
Even yet, breaking into a Coinbase account requires more than a password. By default, the firm protects an account with two-factor authentication, which means you’ll need a password as well as a one-time passcode created on your phone to log in.
The one-time passcode was stolen in some circumstances, though. This happened to users who used the two-factor authentication method, which uses SMS messages to send the code.
Following accusations that the business did nothing to help victims of the attacks, Coinbase has responded by saying it has started compensating victims for the stolen cryptocurrency.
Coinbase is the first introduction to financial sovereignty for millions of bitcoin users. It has been selling and buying bitcoins since late 2012. Coinbase is also regarded as being straightforward and easy to use.
Coinbase is one of the most popular cryptocurrency exchanges in the United States. The Coinbase basic service’s UI is speedy and easy to use, but charges can be tough to follow unless you upgrade to Coinbase Pro.
However, keep in mind that investing in cryptocurrencies such as Bitcoin is highly risky and notoriously volatile. A good rule of thumb is never to invest more than you can afford to lose.