Is Coinbase Safe To Link Bank Account? – is the question that has been eating up a lot of time of the new investors as well as the old one. Connecting your bank account to the third party can be a difficult choice to make. As there is a chance of a security breach and losing the valuable money you have worked for your whole life.
Let us know more about the Coinbase and decide whether it is safe or not.
Is Coinbase Safe To Link Bank Account?
Coinbase is one of the most use exchanges in the world. This because of the following reasons:
The data of the bank account is very important for you. If it is breached then you can lose all the money you have worked for your whole life.
So when you send the information to Coinbase about your bank account. The account number and routing numbers are stored using a high level of encryption. They use the AES-256 encryption on coinbase servers that is bank level of security. This is the bank level of security they are providing.
In addition to that Coinbase use SSL technology which prevents others to eavesdrop on your connection.
This can give you a sense of relief that your data will not be stolen.
Employee Background Checks
Coinbase takes the security of the data very seriously. They do the background checks on their employees also. If anyone who is found to be convicted of any crime then they will not be able to work in the company.
The account details you send to the Coinbase are also restricted to the employees working there. So they will not be able to access your bank account details.
For US citizens who are storing their fiat currency in the Coinbase account, it is going in your custodial bank account or the U.S treasury. Whereas the Non-U.S citizens have the custodial bank account to store their fiat currencies.
There is also FDIC insurance for the Coinbase wallet with a limit of $250,000. But you have to understand that the insurance will not be helpful if the data leak is from your side.
Verify your account
If you ever used an application like PayPal then you may be familiar with the process. When you share your information it is not stored in the Coinbase but it is stored in the third party named Plaid Technology, Inc., to facilitate the service like instant verification.
This service helps you to store important information and saving from frauds.
After the verification, you can change your banking password. This can be done without losing your the access to Coinbase account.
In summary, it can be said that the Coinbase consider the security of the bank accounts information very seriously. This is why there is a huge following of the Coinbase exchange and is increasing rapidly.
So the query “Is Coinbase Safe To Link Bank Account?” can be answered as yes, it is safe to link Coinbase to your bank account.