Is Coinbase Safe to Use?

Safe to use

UK-licensed crypto sportsbooks , Coinbase is one of the most regulated crypto exchanges. It is registered in the US as a money services business with FinCEN, which requires it to follow strict anti-money laundering (AML) and know-your-customer (KYC) regulations. In the UK, Coinbase is a full-fledged cryptocurrency service provider and is subject to the FCA’s rigorous rules as well.

Coinbase’s security measures are also very strong, with a secure website and a mobile app that encrypts all data on its servers. Only authorized employees have access to customer data, and that access is limited by job function. Additionally, Coinbase only holds your password in memory for as long as is necessary to complete a transaction or change an account setting. Your account balance, bank information and other private details are never stored on Coinbase’s servers.

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However, even the most robust exchanges are not immune to hacks and other attacks. In 2021, hackers exploited a vulnerability in Coinbase’s SMS-based two-factor authentication (2FA) recovery process to gain access to user accounts. While Coinbase reimbursed affected users, this was a serious breach and the company has since tightened up security significantly.

You can further protect your Coinbase account with advanced features like multi-factor authentication (2FA) and password management. You can also add trusted contacts who must approve your account recovery requests. You can even limit access to your Coinbase account to specific devices or apps with an allowlist, reducing the likelihood of unauthorized activity. For more control, consider a self-custodial wallet like Coinbase Wallet or a Ledger hardware wallet.