Coinbase is a popular crypto exchange in the market!
Anyone who is interested in cryptocurrency investment, must have done research on the best exchange to buy Bitcoin and some other crypto-coins (Altcoins) with credit or debit card.
Many individuals in the process of learning how to start investing in cryptocurrency, have also experienced fraud and hacking, with most people loosing money as a result.
These platforms does not only suffer defrauding from outsiders, but sometimes, their employees also partake in liquidating them as well.
Among these kinds of exchanges, the ability to increase their security also improves the number of customer base they get afterwards.
Today, there are top reliable exchanges that promises to provide investors with seamless user experience and also maximum security.
In this regard, Coinbase is one of the best in the blockchain industry, and many people have used their services to purchase and sell different types of crypto assets worldwide.
Coinbase has this feature; where you can link up your bank account the wallet for easily buying any cryptocurrency from the platform, but many individuals are questioning if it’s safe to link their bank accounts to Coinbase.
In this guide, am going to briefly explain few more details about this crypto exchange, and also, try to answer this popular demanded question.
Let’s get started.
What is Coinbase?
Coinbase is an American-based platform launched back in 2012. It’s the leading crypto brokerage around the globe that supports only the best cryptocurrencies on the market.
Depending on your place of residence, you can use different deposit methods such as bank transfer, wire transfer, credit or debit card, etc.
- Supports fiat to crypto exchanges
- Includes top-notch security methods
- Promises high liquidity
- It’s very beginner-friendly
- You can purchase cryptocurrencies with a credit or debit card.
- Payment methods may vary based on the traders’ location
- It doesn’t support a variety of cryptocurrencies
- Complies with KYC and AML policies which means you can’t transact anonymously.
Is Coinbase a secure exchange?
Yes! The company is insured by the Federal Deposit Insurance Corporation (FDIC) and covers losses up to $250,000 for US residents.
The website traffic even runs entirely over encrypted SSL (https) only.
To become a Coinbase employee you would have to pass a criminal background check, and would be asked to encrypt your hard drive later on.
Most importantly, the majority of data stored on Coinbase isn’t kept on online servers but in “air-gapped” vaults disconnected from the Internet and distributed in different corners of the world.
Around 98% of user funds are stored in this type of cold storage and kept separately from company funds.
Is it safe to link my bank?
The simple answer is YES of course!
Coinbase protects all private information shared by its clients in just the same way banks do. For example, the team performs a hash on all passwords stored in their database.
All stored wallets and their private keys are encrypted with AES-256. Coinbase isn’t allowed to pull out money from your bank account without your permission.
Moreover, any kind of request on the platform needs two-factor authentication. Though, Coinbase isn’t my recommended exchange to buy Bitcoin, it is still a highly reputable and trusted exchange.
Can you buy Bitcoin anonymously?
No… Not at all!
If you want to register an account on Coinbase, you must provide personal information and verify your identity using the KYC (Know Your Customer) feature.
This includes attaching a scanned copy of a government-issued ID. If not, your account application will be denied. These requirements are in line with the anti-money laundering policy.
However, there is a guide on how to buy Bitcoin cryptocurrency anonymously.
Is Coinbase wallet safe for storing coins?
The wallet provided by Coinbase is a web-based one and can also be accessed via mobile devices. It supports both Android and iOS.
My answer to the question is a NO!
Storing cryptocurrency investment on Coinbase wallet should as a temporary solution, otherwise, you are risking your money to both hackers and theft.
I advise you not to store your cryptocurrencies online during a longer period. You can choose between two options when setting up a Coinbase wallet:
You can create a Standard Wallet if you don’t want to keep your cryptocurrencies online for long but just need a place to store them before selling them or sending them to someone else.
This wallet allows immediate payments from Coinbase to your bank account.
If you plan on keeping them longer, the Vault is a better option.
It stores the funds offline and when you want to make a withdrawal request, Coinbase will send you an email to verify the request but they won’t start the transaction in the next 48 hours.
The fact that Coinbase is backed up by the biggest names in the financial industry speaks volumes about the company’s dedication and infallibility.
Although I still wouldn’t recommend keeping your funds online long-term, you can definitely use their wallet temporarily.
As for linking your bank account with Coinbase or not, we believe you have every right to trust the platform and share the information.
If you’re considering closing and deleting your Coinbase account for another exchange now, then you should read my guide on how to do it perfectly.