Is Coinbase Protected?
The answer to this very important question is yes. It is protected and is a safe way to buy cryptocurrency. Why? Let’s take some time to read this Coinbase review.
The Legitimacy of the Company
The company runs in the United States, thus, Coinbase must act in accordance with the rule and ordinance, both in the federal level and state level, of the said country. The Bank Secrecy Act,he USA Patriot Act, and the laws and regulations of money transmission are some rules and ordinances that they abide by. They are also indicated as a Money Services Business with FinCEN.
Following the rules and ordinances mentioned above is to theirs and their users’ advantage as, though it is not proven, an unidentified number of their competitors are missing a few requirements, or perhaps follow another procedure of the law.
Take note that Coinbase is affirmed by reliable investors. Bank of Tokyo, Digital Currency Group, and Blackchain Capital are just to name a few. One of the reasons that must have impressed the investors are excellent Coinbase reviews.
Preservation of Funds
Coinbase sets apart the funds of the customers and the operational funds of the company. The funds of the customers are being kept in safeguarded bank accounts. That is, the customer’s funds are not going to be used for the operation of their business. As they claim, if the company fails, the funds being held in the safeguarded banks will be returned to the users of Coinbase.
For customers, ninety-eight percent (98%) of their funds are placed in taut, disconnected cold cache. The cryptocurrencies are secured in many hardware wallets, as well as paper wallets. Meanwhile, the physical wallets of the cryptocurrency are sealed in away throughout the globe in vaults and safety boxes. These actions safeguard the funds of the customers from thieves and other unfortunate events.
The remaining two percent (2%) of the cryptocurrency kept online is completely covered by a crew of Lloyd’s of London.
Customers from the United States using Coinbase’s USD wallet are covered by the insurance of FDIC with a limit of $250,000.
However, it is critical to remember that, in spite of all the security measures in place, the users remain responsible if something were to happen in their own personal accounts. Thus, we suggest that the cryptocurrencies you will store are kept in a taut, disconnected cold cache wallet that is controllable by you.
Security of One’s Personal Account
Coinbase gives you a choice of diverse features which will enable you to be tight when it comes to your personal account. It is always best to create a password that is strong and unique.
To help secure the account, there are several 2-factor authentication (2FA) techniques that are accessible for customers’ use. The SMS text is by far the easiest, however, we propose that a 2FA app be set up. Google Authenticator and Authy are just two of the options.
Another plus point for Coinbase is that it is possible to track what is happening to your account. You will be notified in case a suspicious activity arises.
The customer support of Coinbase can be accessed both though e-mail and phone. The e-mail acknowledgement of the support team will normally arrive in a span of 24-72 hours. There is also a substantial FAQ segment on the main website for any general questions.
The following are the some of the countries that Coinbase serves:
Austria, Belgium, Canada, Denmark, Estonia, France, Greece, Hungary, Italy, Jersey, Luxembourg, Monaco, Netherlands, Poland, Portugal, Romania, Spain, United Kingdom, and the United States.
Limits of Buy and Sell
The limitations of buying and selling varies by the customer’s position, reimbursement procedure, and confirmation standing status. It is possible to view your limits by navigating to the account’s limits page.
Transacting with Your Coinbase Wallet: Sending/Dispatching
Coinbase’s wallet gives you the capability to supply, dispatch, and accept cryptocurrency. In just a few steps, it is possible to send BAT, Bitcoin, Bitcoin Cash, Ethereum, Ethereum Classic, Litecoin, Zcash, and ZRX from your wallet:
Remember: The list of coins will grow as Coinbase continues to support new cryptocurrency.
- In your account, hover over to the tab that says Send.
- Once you’ve chosen the wallet that you would like to use to send from, it means you have chosen they type of cryptocurrency.
- Input the amount you wish to send.
- Input the address that you would like to send to..
- Send the funds.
Transacting with Your Coinbase Wallet: Receiving/Accepting
Go to the Accounts tab. As soon as you locate the wallet you would like to place your funds, click on Receive.
The account’s wallet address will then be given. The same address will be used in the transaction’s send field to accept the cryptocurrency.
Coinbase Watches Where You Send Your Funds
Coinbase is infamous for tracking their customers and where they post their cryptocurrency and would prohibit their customers some transfers. Some examples of why Coinbase has closed their accounts is due to users posting in gambling sites, LocalBitcoins and/or for darknet purposes.
Generally, in cases wherein Coinbase has shut down accounts, customers are given their money back in their bank accounts.
Although we do not accept and allow the use of cryptocurrency for unlawful activities, we do not believe in businesses determining how your cryptocurrency should be spent. Again, the community advocates the use of wallets you can control for keeping your funds.
Coinbase Review Summary
Based on this Coinbase review, we can believe that Coinbase is friendly for novices to purchase cryptocurrency. It is also less complicated to use as compared to an exchange wherein you will have to use many payment methods. But to emphasize, we suggest that you store your cryptocurrency in a wallet that you can control.