Is Coinbase Safe to Use?
Cryptocurrencies are great. It’s about time we all come to face that. Even if it is just the concept of a decentralised virtual currency, it’s cool. Sadly, as popular as they are right now, they are still reasonably troublesome to get since they are not recognised as a legal payment method in many places. That leaves us with buying and selling them in exchanges as the best way to obtain them. One of the major exchanges today is the Coinbase exchange.
The Coinbase exchange initially started as both a cryptocurrency wallet (sort of) and exchange. But with time, it stopped prioritising the wallet (again, in a way) side of its functioning and chose to work mainly as a cryptocurrency exchange.
Today, Coinbase is primarily considered to be one of the best cryptocurrency brokers and exchanges. With a significant backing and insurance on their behalf, that gives them substantial credibility.
But, to help determine whether or not is Coinbase safe, we must look at it from an exchange perspective as well as from a money storage service.
That is because Coinbase varies a fair amount between its exchange presentation and its storage presentation.
So, while it might be a fantastic service on one side, on the other hand, it might be lacking or not present the features you could be looking for.
With this cleared up, let’s cover the two questions we get asked the most:
1. Is Coinbase Safe as an Exchange?
YES! The Coinbase exchange is one of the most respected exchanges today.
That is a title earned through history. Coinbase is one of the oldest cryptocurrency exchanges on the internet.
Overall, it’s deemed one of the safest and fastest exchanges available, as well as being one of the most user-friendly.
This is an excellent piece of information for any new Bitcoin enthusiast looking to enter and learn the market quickly since it offers a great and quick way to get used to the overall feel of the market and its environment.
Coinbase operates in several parts of the world through bank transfer, credit card, and debit cards. Additionally, credit card users can set instant buy orders which lets them simply choose the amount of BTC to buy (or fiat to spend) and instantly acquire new coins.
The two main issues we see with the Coinbase exchange are the limited payment options and some reports of it tracking how its users spend their Bitcoins.
2. Is Coinbase Safe as A Wallet?
The real issue when pondering the safety of Coinbase it’s not the Coinbase exchange but its storage.
First, Coinbase is NOT a wallet, this of it more like a bank account where you trust it with managing your coins.
Here is when doubts arise since the whole idea of Bitcoin is eliminating the need to trust third parties to take care of your money.
While Coinbase offers several storage types, it is always better to move your coins from the Coinbase exchange and account and into a software wallet like Electrum, Breadwallet, or a physical wallet like Ledger Nano S.
Why? because any hack suffered by the exchange will put your coins at risk of being stolen. Another disaster could be your account being suspended, which would then block you out of your money.
Lastly, with regulations becoming more and more popular, Coinbase could end up being limited or banned from your country.
So, is Coinbase Safe?
The Coinbase exchange is one of the safest out there. But we always recommend you store your coins somewhere else.
There are many types of wallets in which to store your bitcoin and other crypto currencies.
Simply visit the app store and search Electrum to download the wallet.
Futhermore if you’re serious about your bitcoin and crypto currency security and want the best solution out there. Then we would recommend investing in a hardware wallet.