How Safe Is Coinbase
A popular currency like Coinbase, is traded around the world but with popularity, people question remain “How Safe is Coinbase?” It was created back in June 2012. Since then Coinbase has reached to over 10 million users and has been traded over $50 billion.
It is located in San Francisco, California. It means Coinbase must follow the US regulations. As such, Coinbase provides some extra security measures and protections that other exchange platforms do not. Even so, you also need to do some research into “How Safe is Coinbase?” before using this platform.
Security Measures Coinbase Have in Place
In addition to other security measures, Coinbase keeps storage of almost 98% of customer funds offline to prevent loss or theft. Funds are not only offline, but Coinbase deals out its Bitcoin geographically in vaults and safe deposit boxes.
In terms of data security, Coinbase goes through multiple steps to provide protection. Instead of storing data on servers, platform disconnects that data from the internet. Further security is done by splitting the data with redundancy and encrypted it with AES 256 before copying onto paper backups and USB drive like FIPS 140. These paper backups and USB drives also distributed geographically in vaults and safe-deposit boxes.
In addition to it, Coinbase provides users accounts to have two-step verification. This requires users to obtain a code in user’s mobile phones to logins and other specific activities like using password and username.
As An Organization What Security Measures Are Provided
In addition to security measures provided for funds and platform, Coinbase provides additional precautions to its employees as an organization. All employees have to pass criminal background checks before hiring process. They need to encrypt hard drives, enabling a screen lock, and using passwords.
Coinbase also uses separate passwords with two-step verification for each and every service and device.
Security Steps Coinbase Provides In Its Application
As a preventive measure against CSRF attacks, SQL injection filters are used to verify POST, DELETE, and
PUT request's authenticity.
It also limits the rate of some actions on its websites like login attempts. Additional Authentication Security Measures Coinbase Use- In security terms with the authentication process, Coinbase keeps passwords in its database using 12-cost factor security.
When users create an account or reset a password. It stores application credentials in separation to the code base and database.
To build up security, Coinbase has started offering a custody service for institutions. This offering charges a setup fee of $100,000 and a minimum holding of $ 10 million. To this, you can see that it aimed at banks, hedge funds, and financial institutions which require such services.
Coinbase Bug Bounty Program
This program is another way the platform keeps customers safe. It benefits developers for finding bugs in software securities. This helps encourage developers to test software regularly to ensure that security is up to date without using valuable internal resources.
Insurance offered by Coinbase
Insurance covers digital currency Coinbase that stored online. In case an online breach happens, insurance covers lost customer funds. Added precaution is that only 2% of customer’s funds are online. Insurance provided covers cybersecurity, physical security, and employee theft, but not an individual account compromises.
Keep in mind, digital currency is not a legal tender, neither government-backed nor covered by protections provided by Securities Investor Protection Corporation or Federal Deposit Insurance Corporation.
Coinbase provides an option to store fiat currencies in either custodial bank accounts or US Treasuries in the United States. Outside the US, these currencies stored in segregated custodial bank accounts.
How Coinbase Regulation Improve Security
Coinbase best regulated and complies with the regulations and laws within its jurisdiction. It owns a license for money transmissions in a majority of US jurisdictions. In addition to it, it registered with FinCEN to do Money Services Business.
How Can Protection Be Done while Using Coinbase
Never share a password, login credentials, and two-factor authentication codes while using Coinbase. Coinbase staff and customer support will never ask for this information.
Make sure you contact the Coinbase customer support using a real number or other information on its website. Use a complex and unique password. Change this password every three months. Take advantage of Coinbase’s two-factor authentication.
So after reading the above article, you have found that “How Safe Is Coinbase?” Overall, it is easy to predict that Coinbase is a safe platform. Keep in mind that you do your best while storing cryptocurrency on Coinbase.
As a crypto investor, your best option is to bring your crypto on the platform like Coinbase to trade or sell in a safe hardware wallet. During trading activities, make sure Coinbase is one of the safest and secure exchanges at this moment.