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Cryptocurrency News

Is Coinbase a Trustworthy Exchange?

Overview

Coinbase was launched in 2012 in San Francisco, California, and is a leading digital currency exchange, where the user can buy, sell, and trade Bitcoin and various other cryptocurrencies. Coinbase is different from the traditional exchange because it allows the users to buy cryptocurrencies using fiat money. It has two main products – a professional trading platform called GDAX and a broker exchange. Here is what you need to know about Coinbase, whether it is legit and safe.

How Does Coinbase Work?

Coinbase is a fully regulated and secured cryptocurrency exchange. It enables users to buy, sell, earn, and store cryptocurrencies of their choice. The users can manage their accounts anytime and anywhere with their simple user interface. It helps beginners to buy Bitcoins using various payment options that are provided by the platform. Some of the most popular payment options offered by Coinbase are debit cards, credit cards, and bank transfers.

Is Coinbase Safe?

Coinbase is one of the top 4 exchanges to have a NY license under the pilot BitLicense program. It also adheres to KYC (know your customer) rules, and it complies with strict rules and regulations. Users should submit a government-issued ID card, and in a few cases, address verification is necessary if they want to buy and sell coins on the platform. Coinbase has more than 40 licenses to function in the US alone, and it is licensed to operate legally in 31 countries, which shows Coinbase is safe.

Is it Safe to Store Cryptos on Coinbase?

Even though it is not 100% safe to keep the money on any online cryptocurrency exchange, Coinbase web wallets are the safest to use. Coinbase supports 99% of its assets in offline cold storage that cannot be accessed. Further, when the funds are held in cold storage, it is challenging to hack. Coinbase has insured its user funds through the world’s largest insurance broker, Aon. 

Is Coinbase Legit?

Coinbase is considered a reliable cryptocurrency trading platform that has a good reputation for being trustworthy and secure for the long term. This cryptocurrency exchange complies with official regulations about cryptocurrency trading. Also, This platform operates in 30 states in the US and has over 40 different licenses, making sure they handle the user’s money with integrity, and their practices are legal.

FAQs

1. Can You Get Scammed on Coinbase?

Few scammers who pose to be Coinbase representatives may contact users to hand over their account information. Coinbase never contacts the users through the phone. If anybody contacts claiming that they are from Coinbase, the user should not reveal their data. The reps of Coinbase do not ask for two-factor authentication codes or passwords.

2. Can Coinbase Be Trusted?

Coinbase insures the digital currency secured in the online hot storage. It also has an insurance policy covering any losses through Coinbase hot storage, which results from a breach of security, employee theft, or cybersecurity.

3. Is it Safe to Leave Bitcoin or Any Cryptocurrencies on Coinbase?

One of the principal rules is the user should not leave their Bitcoins or other cryptocurrencies in an exchange. After purchasing the cryptocurrencies from Coinbase, they need to move them to a wallet that can be controlled by them and not by Coinbase as they are prone to hacking. Coinbase has never suffered hacking, that does not mean in the future, they never will; if they get hacked; it is not possible to get the coins back.

Final Thoughts

To conclude, it can be said that Coinbase is a highly acclaimed cryptocurrency exchange currently available on the internet which can be proved on the basis of review by CryptoNewsZ. This exchange is highly reliable, trusted, insured, and it is easy to learn and navigate for new investors who are new to cryptocurrency trading. Despite its downsides, it offers the most simplistic way to buy cryptocurrencies. Nevertheless, the user should not leave their cryptocurrencies on their website; instead, they should transfer them to a hardware wallet if they hold it for a long term. Even though Coinbase has not been hacked, it does not mean that it will not be vulnerable in the future.

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