Coinbase is the largest cryptocurrency exchange and custodian in the U.S. The company offers services tailored for retail investors, institutional clients, businesses, and software developers. The platform provides security features like SSL encryption and offline storage for most user funds to reduce the risk of hacking. It also offers tools like 2FA, account activity monitoring, and withdrawal whitelists to limit fund transfers to trusted addresses. Additionally, Coinbase holds a commercial crime insurance policy with one of the industry’s largest coverage amounts to protect users from theft and other incidents.URL : https://b3i.tech/

Is Coinbase Safe for Beginners and Long-Term Investors

However, like other crypto exchanges, Coinbase has been vulnerable to hackers. For example, in 2021 over 6,000 users saw their funds stolen by attackers who exploited a flaw in SMS-based two-factor authentication (2FA) to intercept codes. Coinbase quickly patched the issue and reimbursed affected customers, but it’s a reminder that no system is perfect, even those run by major exchanges with millions of customers.

Other concerns with Coinbase include shady practices and ineffective customer support. For example, many users have reported having their accounts frozen or restricted without explanation and claim they’ve been unable to get assistance from Coinbase. The company also seems to change its fees and policies frequently, which can confuse users. It’s no surprise that Coinbase is regularly named in complaints on consumer review websites like Trustpilot and Reddit. Despite these issues, the overall reputation of Coinbase is positive, but it’s important to take additional measures to keep your investment secure.