Is Coinbase Safe for Cryptocurrency?

When it comes to your money, security is the number one priority. Keeping your money safe and secure, behind lock and key, is fast becoming a thing of the past. Cryptocurrency is fast becoming the new gold standard, and the cyber security around trading and safeguarding your investment is not something that is taken lightly. Insurance, personal account security, anti-theft, and hacking prevention are all measures than need to be in place to ensure your money is in the safest net on the web. In this review we are going to take a closer look at Coinbase, reviewing the safety and security measures that they offer their investors.

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Learn if Coinbase is safe and secure for your Bitcoin and other digital currency

Legitimacy of Coinbase

Coinbase is the largest Bitcoin exchange platform in the world today, and as of last year has been available in more than 30 countries across the globe. Backed by a host of wealth and trustworthy investors, including Reddit co-owner Alexiz Ohanian, the Bank of Tokyo, Digital Currency Group, and Blockchain Capital, Coinbase’s support is undeniable.

Operating within the United States, Coinbase is subject to adhere to certain rules and regulations, as well as regulatory bodies, to ensure the company:

  • Complies with the Bank Secrecy Act
  • Complies with the USA Patriot Act
  • Complies with the state money transmission laws and regulations
  • Is registered as a Money Services Business with FinCEN

Although these laws and regulations serve to supervise Coinbase while conducting business within the United States, none of the other countries where Coinbase operates requires these regulations.

Personal Account Security

Coinbase has a number of security check and options to safeguard their user’s personal account from unauthorized access or similar security breaches. A strong and unique password is highly recommended as well. Activity on a user’s account can also be tracked, and the user notified, whenever a new device or IP address attempts to gain access to the account.

Coinbase makes use of multiple 2-factor authentication methods to help make accounts more secure. The most basic being an SMS text option, creating the double layer security feature. Read more about Coinbase and security here.

Keeping Your Funds Safe

Keeping customer funds and company operational funds separate is the key here, and Coinbase does just that. Safeguarding their customer’s money in custodial bank accounts, ensuring their money is safe, even if Coinbase happens to become insolvent.

Coinbase claims that, “Even if Coinbase becomes insolvent, the funds held in custodial bank accounts could not be claimed by Coinbase or its creditors. The funds held in those accounts would be returnable to Coinbase’s customers.”

The vast majority (98%) of Coinbase customers’ cryptocurrency is stored in secure offline cold storage, stored on both paper and multiple hardware wallets. Physical cryptocurrency wallets are then moved and stored in safety deposit boxes and vaults around the world. This is a physical protection measure employed to prevent the funds being lost or stolen through hacking. The remaining 2% of the cryptocurrency is then stored online, and is fully insured by a syndicate of the banking giants Lloyd’s of London.

U.S. residents earn a little extra protection. Those making use of CoinBase’s USD wallet are covered for an additional maximum of $250,000, insured and covered by the FDIC.

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Be Careful Where You Send Funds

It is known that in the past Coinbase has applied certain restrictions on the allowed activity of users. Coinbase is known to track where their cryptocurrency is being sent and by which users, and has shut down accounts for certain purchases, including: sending cryptocurrency to gambling sites, send cryptocurrency to local bitcoins, and for making cryptocurrency purchases from the darknet.

From what you have read it should be quite clear that any cryptocurrency that you may have is going to be 100% safe and secure, and insured against any possible insolvency that Coinbase may face in the future. Their multiple 2-factor authentication methods add extra layers of personal protection, and offers great peace of mind when buying, storing, or exchanging cryptocurrency.

Cryptocurrency Dubai Investing

Cryptocurrency is one of the hottest things around. Everyone wants to get into the game but the majority of people have no idea how to enter. Even those who have had trading experience using the stock market or the futures market might not necessarily understand the proper ways to get into Cryptocurrency. One major problem that they often have is that they know very little about it. They have no idea about the underlying products, they don’t understand how the markets move but the only thing that he no is that a lot of people have made a lot of money and that it is very volatile.
Learn more about Cryptocurrency Dubai Investing and make money today.

Consider the Risks

Like any type of investment there is some type of risk involved, with Cryptocurrency is a very volatile market. For people who got interested based on the last few months they probably have seen a lot of things going on in the Cryptocurrency market. They saw everything reaching the ultimate high and then slowly selling off over the last few months only to regain partially in the last few weeks. For some people this might scare them away but for others they know that this is the type of market that they can make money either short-term or via long-term investment. Check out https://www.smartbitcoininvestments.com/buy-bitcoin-in-dubai. There is some great information about the current state of the markets and why you should invest.

Why Dubai?

No matter what your interest is and Cryptocurrency one of the best countries to look to is Dubai. Some of the biggest heavyweights in the investment arena call this country their home. They do this for many different reasons. They do this because is a great country to live in, there’s a lot of luxury amenities and is a great place to travel. Business people from all over the world come here so is a great place to network as well. For people who are living in this country who want to get involved and Cryptocurrency, they really need to understand the laws of their particular country to make sure that they are within the guidelines of the finding that information is not that difficult with the Internet and typically it’s just a click away understanding the rules and regulations of your particular country and  if this is something that you will be able to do. So the very first step for many people is to look into the laws of their land to make sure that they understand all the legalities of trading and investing in Cryptocurrency. There have been countries around the world who have made it illegal but for the majority of countries in the world it is perfectly legal to do.

So spend time learning more about the Cryptocurrency market, understanding how it trades, understanding your role within it, understanding the fundamentals of it and why it is so important and concurrently learning the laws of your particular country to figure out if it is something that you can legally do. Putting all of this together and if it is legal to do in your particular country you be well suited to make money in the future and the present as the prices of Cryptocurrency goes up and down allowing many different opportunities.