When it comes to money, security has, and always will be, priority number one. That being said, 2018 has marked a milestone year for cryptocurrencies, as well as the security backing to maintain their credibility. For the majority of people that are relatively new to the market of cryptocurrencies, and looking for a way to get involved, Coinbase has become the easiest way to convert your aging paper money, into digital currencies. In operation since 2012 from their home base in San Francisco, CA, Coinbase is one of the world’s foremost digital asset brokers that allows clients to send, receive, and store many of the most popular and in demand cryptocurrencies in the world. This article will answer the question, is Coinbase a safe option?
For users in the United States and other western territories, Coinbase is the most accessible platform, and gives users the opportunity to purchase cryptocurrencies through either debit or credit card, as well as via your personal bank account. Coinbase stores some of the world’s largest cryptocurrencies, including:
- Bitcoin (BTC)
- Bitcoin Cash(BCH)
- Ethereum (ETH)
- ERC20 Tokens
- Litecoin (LTC)
Coinbase has recently announced that they will be supporting ERC20 Tokens through their ICO launch on Ethereum.
The Safety of Coinbase
There are three critical areas that play key roles in the safety and security features offered by Coinbase, put in place to protect your funds from being stolen, and reimburse you if the unthinkable does happen.
The Coinbase Security Team
Coinbase has made massive strides in the prevention of the most apparent cybersecurity threat there is, hacking. Coinbase’s Director of Security, Phillip Martin, comes highly decorated, and is a founding member of the Palantir security team. He also served as a counterintelligence agent for the US Army, and he currently oversees the team of cybersecurity experts that monitor and protect Coinbase users’ investments 24-7-365 days a year. The team is comprised of cybersecurity experts form Silicone Valley and across the world, keeping hundred of eyes on your money around the clock.
Digital Currency Insurance
Once you have made the decision to store your cryptocurrencies at Coinbase, you can rest assured that their third party insurance has got you covered against the possibility of theft and hacking. If hackers do happen to by-pass the professional cybersecurity team, their third party insurer will reimburse you for all your losses. This third party insurance is covered by a syndicate of Lloyd’s bank of London, and is separate insurance policy from the policies of the Federal Deposit Insurance Corporation (FDIC) offering additional protection for USD deposits.
FDIC Insurance for USD Deposits
With Coinbase it is possible to store more than just your digital currencies, they have also made it possible for you to store US dollars there too. As with the insurance stated above, your cash money will be fully insured, as it is with the storage of your digital currencies. Keep in mind that the FDIC is not a private insurance agency, and is backed by the US Government, virtually assuring you that you will get all you’re your money back. You will have the same protection on your Coinbase dollars as you do on your regular US savings account. Guaranteed.
Coinbase has been pitted as a being on the same level as some of the other giants in the US Financial Institutions field, putting them on par with the big banking institutions of the United States. It’s as safe a having your money deposited in a US banking institution savings account. It is a safe and effective way to both, store your money, and convert your cash in digital currencies, offering their users guaranteed insurance from private and government agencies alike. There cybersecurity and currency protection is of a world standard, and is a first .