Is Coinbase Exchange Safe to Keep Crypto?

Whether you wish to invest $100 or $5000 in a new cryptocurrency coin, you should always pick a secure and trusted crypto exchange that millions of others are using. Securing online financial assets is a top priority, especially with the crazy rise of cryptocurrency platforms like Coinbase. 

If you’re wondering whether Coinbase is a safe place to trade cryptocurrency, buy, sell, or store digital assets, this blog will guide you through the platform’s features, security measures, and potential risks. Let’s explore everything you need to know to protect your investments.

What is Coinbase, and How Does it Work?

Coinbase is one of the most popular cryptocurrency exchanges in the world. It provides a user-friendly platform for buying, selling, storing, and trading various cryptocurrencies. Here’s a breakdown of how it works:

Create a New Account

You’ll need to create a Coinbase account by providing personal information and verifying your identity.

Fund Your Account

You can fund your account using various methods, including bank transfers, debit/credit cards, and cryptocurrency transfers.

Buy Cryptocurrency

Once your account is funded, you can use the platform’s intuitive interface to purchase cryptocurrencies like Bitcoin, Ethereum, and more.

Sell Cryptocurrency

When you’re ready to sell your crypto, you can initiate a sell order on Coinbase and receive funds back to your linked bank account or cryptocurrency wallet.

Store Cryptocurrency

Coinbase offers secure digital wallets to store your purchased cryptocurrencies. You can choose between a Coinbase Wallet or a Coinbase Pro Wallet, depending on your needs.

Is Coinbase Trustworthy?

Coinbase is generally considered a trustworthy platform, but like any online service, it has its pros and cons.

What are the Security Measures and Features?

Offline storage 

Two-factor authentication 

Security key support 

Insurance coverage 

Regular security audits 

Trustpilot and G2 Reviews:

Coinbase’s reviews on Trustpilot and G2 are mixed. While many users praise the platform’s ease of use and customer support, others complain about fees, account restrictions, and customer service issues.

Overall Coinbase is a reputable platform with strong security measures in place. However, it’s essential to conduct thorough research and consider your specific needs before using any cryptocurrency exchange.

What are the Pros and Cons?

Here are the pros and cons of Coinbase in simpler terms:

Pros:

Simple and easy-to-use interface 

Variety of cryptocurrency coins available

Massive user base that eases daily trades 

Offline storage with a secure two-factor authentication 

Cons:

Higher fees compared to other exchanges

Not suitable for expert traders as it lacks functionalities 

Not available in multiple countries 

Potential delays in customer resolving issues 

Does Coinbase Pose Any Security Risks?

Yes, Coinbase has faced security risks in the past, despite its strong focus on security. Below are some notable incidents:

2021 SMS-Based Account Recovery Breach 

In 2021, Coinbase experienced a significant data breach where hackers exploited a vulnerability in the SMS-based account recovery process. This allowed attackers to bypass 2FA and gain access to some customer’s accounts, leading to unauthorized withdrawals. Coinbase later refunded affected users.

Phishing Attacks

Coinbase has been the target of phishing campaigns where users were tricked into entering their login credentials on fake websites designed to mimic the platform. These attacks have led to unauthorized access to accounts and loss of funds.

Coinbase has improved security with advanced authentication and audits, but you should stay vigilant against phishing and cautious when accessing accounts.

Is Coinbase Wallet Safe?

Coinbase Wallet is considered safe as it’s non-custodial, meaning you control your private keys. This gives you more security since only you can access your funds. It also offers two-factor authentication (2FA) for added protection.

However, as with any digital wallet, it’s important to keep your private keys and recovery phrases safe. If you lose them, you lose access to your crypto. So, always be cautious and use strong security practices.

What are the Common Scams and Cyber Threats Targeting Coinbase Accounts?

Coinbase, like any other online platform, is susceptible to various scams and cyber threats. Here are some of the most common ones:

Phishing Attacks

Scammers impersonate Coinbase in fraudulent emails to steal sensitive information, such as login credentials and recovery phrases.

Scammers send fake text messages mimicking trusted sources with urgent requests or false security warnings.

Malicious websites that look like Coinbase’s real site trick users into entering their login details to steal them.

Malware and Viruses

Malicious software that records keystrokes, capturing sensitive information like passwords and recovery phrases.

Malicious programs disguised as legitimate software are often downloaded from untrusted sources.

Malware that secretly uses your device to mine cryptocurrency, can make your system slower.

Social Engineering Attacks

Scammers posing as Coinbase support or other trusted entities to gain personal information or access to accounts.

Tricking users into clicking on malicious links or downloading files by offering enticing rewards or information.

SIM Swapping Attacks

Scammers trick mobile carriers into transferring a user’s phone number to a new SIM card, gaining access to two-factor authentication codes and other sensitive information.

Dusting Attacks

Small amounts of cryptocurrency are sent to a user’s wallet to trigger a transaction or reveal their wallet address, which can be used for further attacks.

Airdrop Scams

Fraudulent offers of free cryptocurrency, often requiring users to share personal information or transfer funds.

Cryptocurrency Exchange Hacks

While less common, large-scale hacks of cryptocurrency exchanges can lead to significant losses for users.

How to Secure Your Coinbase Account

Here’s how you can secure your Coinbase account:

-Create a strong, unique password for your Coinbase account.

-Use a reliable 2FA method, such as an authenticator app.

-Protect your email account with strong security measures, as it’s often used for account recovery.

-Avoid clicking on suspicious links or downloading attachments from unknown sources.

-Ensure your device is protected with antivirus software and regular updates.

-Regularly review your account activity for any unusual transactions or unauthorized access.

-Be cautious of unsolicited requests for personal information or login credentials.

-Avoid using public Wi-Fi networks to access your Coinbase account.

What to Do If Your Coinbase Account is Hacked

Follow these simple steps to protect your Coinbase account and reduce the risk of it being compromised:

-Create a strong, unique password.

-Set up 2FA to add an extra layer of security.

-Report the incident to Coinbase’s customer support team.

-Keep an eye on your bank accounts and other financial accounts for any unauthorized activity.

-Consider filing a police report, especially if you’ve suffered significant financial losses.

-Reassess your security practices to prevent future incidents.

By following these guidelines, you can significantly reduce the risk of your Coinbase account being compromised.

How to Access Coinbase with PureVPN

Follow this step to access coinbase with PureVPN.

1- Subscribe to PureVPN 

2- Log in and connect to a server of your choice.

3- Conduct crypto transactions privately and securely on Coinbase!

Frequently Asked Questions 

Wrapping Up

Coinbase has established itself as a reputable cryptocurrency exchange, backed by strong security measures and user-friendly features. Although no platform is entirely risk-free, following safety best practices can help you maximize your protection when trading on Coinbase.