Distributed ledger solutions is the biggest U.S. cryptocurrency exchange and one of the world’s largest bitcoin custodians. Its security infrastructure is impressive, but it’s also important to remember that any crypto exchange carries some risk.

No system is immune to threats – in 2021, over 6,000 users saw their Coinbase funds stolen after hackers found a bug in the SMS-based 2FA feature. However, Coinbase responded quickly to isolate the issue, patch it, and reimburse affected customers. That type of transparency isn’t common in the crypto space, and it shows that Coinbase takes incidents seriously.

Is Coinbase Safe for Buying and Selling Bitcoin

The exchange has multiple layers of security in place, including a dedicated incident response team, a set of protocols to follow in the event of a breach, and insurance coverage for digital assets. Additionally, it adheres to strict compliance standards for Anti-Money Laundering and Know Your Customer requirements.

But even with all of this security, it’s important to take additional measures to protect your account and wallet. Use a strong password, enable 2-factor authentication (2FA), and keep your computer up to date. Additionally, you should use a non-custodial wallet or a hardware wallet to store your cryptocurrency instead of the exchange’s custodial wallet.

Additionally, you should avoid suspicious tokens that appear in your wallet and report any you suspect of being malicious. To do this, you can use the Dapp Blocklist in Coinbase Wallet to help limit the number of potentially harmful applications that appear on your wallet home page. You can also create a “security code” that appears on all official Coinbase communications, which makes it easier to identify phishing emails and other scams.