Coinbase is a leading cryptocurrency broker founded in 2012, headquartered in San Francisco. It facilitates traders to buy cryptocurrencies with fiat currencies directly without any financial intermediaries’ help. The platform already has millions of registered users and over $150 billion worth of tradeable crypto assets to boast of.
Coinbase as an Investment Platform
According to widespread market research reports, Coinbase is one of the top cryptocurrency exchanges globally in terms of trading volumes, liquidity, and web traffic. It attracts traders with its easy-to-use features that traders can operate even without previous experience working on such crypto exchange platforms.
Before investing in Coinbase, the traders should be fully aware of the inherent risks associated with online cryptocurrency trading. Therefore they should only invest the amount that they can afford to lose.
Is it Safe to Invest in Coinbase?
Crypto investment on any exchange is secure only to how the account holder makes it fast. There are security measures like 2-factor authentication, biometric fingerprint logins, strong password, etc., that can help traders keep their crypto assets safe. Almost 98% of users’ credentials are stored in offline cold storage, thus adding to the safety and security of the traders’ crypto holdings.
Coinbase Can Get Hacked Like Any Platform
Though Coinbase has come up a long way to provide traders a safe platform to trade cryptocurrencies, the platform also has negative aspects. There are instances where traders have filed petitions to the SEC against the platform for stealing their money. Though the Coinbase team has not readily accepted this allegation, it has also not wholly denied hacking facts. According to the developers, online investment cannot be 100% secure; there are chances of loopholes existing in the security features of various networks that the hackers take advantage of.
To address such complaints from the users, the company has launched a separate blog where the company educates the audiences about online security and how to save one’s crypto assets from hacking.
How to Protect Your Bitcoin or Other Currencies on Coinbase?
The cryptocurrency market is volatile and investing in such a market always has some risks associated with it. But there are safety measures that aid traders in keeping their crypto holding safe from hackers.
- 2-Factor Authentication
The 2-factor authentication is an easy method that gives an additional security layer to the trader’s account. For enabling the 2-factor authentication on Coinbase, the users need to go to the Settings page on the platform and click on the Security tab. They can either set up a 2FA app via the Google Authenticator or use their phone to get security codes texted. It is always recommended to set the 2FA setting for any amount of cryptocurrency transactions.
- Remove Crypto Holdings from an Exchange and Store Them in a Wallet Instead
Before purchasing cryptocurrencies, users must create a cryptocurrency wallet to ensure safe storage. After buying the cryptocurrency on an exchange, storing them in a wallet is recommended. A cryptocurrency wallet is a safe place where individual holders get their private keys that keep the cryptos safe; crypto exchanges are more vulnerable to hacking. There are hot wallets and cold wallets that the traders can choose according to their conveniences and plans.
- Set a Powerful Password
Irrespective of where a trader stores his crypto holdings on an exchange like Coinbase or in a wallet, it is imperative to secure it with a strong password.
Using Coinbase Comes With Some Risk or Not
Every online crypto investment has some risks associated with it. The same is the case with Coinbase, even though it provides a solid amount of security compared to several other leading exchanges. The platform is more suitable for traders who want to trade cryptocurrencies for other cryptocurrencies.
Coinbase provides an easy entry to traders for cryptocurrency investing on the platform with its simple layout and user-friendly interface. Read Coinbase review to get all the information about the Coinbase platform. However, the fees on Coinbase are on the higher side unless traders use the more advanced version of Coinbase, called the Coinbase Pro.