Mostly the question these days, is coinbase safe? They say that investing in cryptocurrency is risky and we cannot deny the biggest doubt. But we can eliminate one of the main risks that investors face: find an investment platform that really is a scam. Here, we analyze coinbase and we explain to you because, in our opinion, there is no need to fear any kind of fraud with them.
This platform allows you to buy bitcoin and ethereum with the guarantee of working with a company registered in the United Kingdom, although the general headquarters of the Coinbase is in the United States, where it is licensed as a money transfer company in more than 35 states.
Our experience With Coinbase
The investment in this website is a very good experience beyond the successes or mistakes that each individual investor may have. With them you can buy and sell three cryptocurrencies: bitcoins, ethereums and litecoins, and you can do it easily, quickly and without having to worry about a possible scam. Keep in mind that, unlike other websites, in this case the web does not allow you to operate with cryptocurrency pairs, but to buy these cryptocurrencies reliably.
Since cryptocurrencies are not highly regulated, we cannot show much evidence that they comply with strict security behaviors. However, practical experience shows us this, in addition to the fact of the licenses already mentioned in many US states as a money transmitter. We went into detail about the reliability of this platform below.
Is Coinbase A Scam?
Coinbase is not a scam and in fact, we dare to recommend it because in our opinion it is a secure website to buy and sell bitcoins. Apart from the licenses as a money transmitter, the company is registered with FinCEN.
So that you have no doubts about uses that constitute a fraud or scam, the company keeps the funds of clients from outside the United States in accounts independent of those in which it has its own funds. In this way, you can be sure that the company does not use your money for anything other than your investments, such as the payment of your own bills and expenses.
In fact, even in the event that the company falls into bankruptcy, your creditors may not be able to collect this money, because your money always remains yours while it is in the segregated accounts of this company.
In addition, you can create what they call a Vault in which you can save the money with additional security measures so that nobody can take out or invest that money without passing them. It is a way to have liquidity in the platform but having the money more protected.
To avoid a possible scam, you can also check the IPs from which you have entered your account on your website, so that if you see a strange activity, you can take action.
At the moment there is no promotion available or it seems that in the near future they will launch it. For our part, we will be attentive to inform you if it would be the case that this might change some day, and for that we keep this section of the review.
Operate With Cryptocurrencies In Coinbase
In Coinbase you cannot really operate, but simply buy cryptocurrency. At the moment, those that are available are bitcoin, ethereum and litecoin.
For this, all you have to do is register and create a digital wallet. Then you will be given the option to link a bank account or credit card to your account, so you can buy the cryptocurrency you want from those available.
If you wish, you can configure your account to make periodic purchases, a useful function if you believe that the value of one of these currencies will increase in the long term, because it allows you to save on them.
The commission for operations is 1.49% for buying currency. The fee for changing currency ranges from 25% to 100% basis points depending on the volume of the operation and other characteristics of that complete exchange.
In order for the transactions to be confirmed, they must obtain at least 6 confirmations from the network, something that usually happens in a few seconds, but since the company uses additional security systems, in some cases it could take up to an hour.
The most common reasons for not confirming the transaction is that it is of too small quantity, so that they do not cover the miners’ fees, that it is of a money that was already committed in another transaction and on very irregular occasions. If it is the case that in the market, there is such a high volume of transactions that there is no space in the blockchain.
You can deposit money securely by bank transfer. The transfer of income does not have a commission, but it varies while those of withdrawal have a commission of only 0.15 €.
Before depositing the money, the company can ask you to verify your identity by uploading some documents such as an identity card or passport, in what is a usual security practice, especially against money laundering. You should also verify your phone number. The maximum amount you can have on the platform is € 30,000 and any amount that exceeds that limit will be sent back to you.
As for the withdrawals, having your identity already verified the process is as simple as making a couple of clicks.
Security And Regulations
Although the address of the general headquarters of the company is in the USA, really the European users deal with a company belonging to the group that is based in the United Kingdom. Its address is 107 Cheapside, London EC2V, United Kingdom.
Apart from the vaults that we discussed in the section that was dedicated to explain why this company is not a scam, we must know that the web is encrypted with SSL technology and that if you wish, you can establish a two-way authentication system steps so that whoever wants to access your account, must have access to part of your password to the authentication tool.
As for the company’s servers, they have AES 256 encryption, which is one most often used by safer companies, such as banks. To increase security, and due to the attacks, that have been to this type of systems based on mobile phones, right now this company works with the Google Authenticator, Duo or Microsoft Authenticator or any other app that works with the One-Time system Password (OTP).
Among the laws applicable to the company include the Bank Secrecy Act that requires to verify customers and keep a record of activities, balances, etc. for 5 years and the USA Patriot Act that requires them to have an auditor to ensure that they comply with all US laws.
The customer service of Coinbase left us very satisfied both by the speed with which they answered to us and by the availability of means to send them messages: contact form, email, telephone, live chat and even Twitter. In the latter case they do not address issues that may compromise your security, but general questions.
With the boom in interest of bitcoin and the rest of cryptocurrency, it is not easy to find a support service that responds quickly, and they did it. Without a doubt, a good point in favor of Coinbase.
As usual, they have a help section with a lot of information in which you can find a solution to almost any doubt you may have regarding the operation of the website, so that customer service can be reserved for more complicated issues. In any case, if you prefer to wait until they answer you instead of looking for information in the help section, the support agents will be happy to solve even the simplest questions.
Needless to say, the support service will never ask you for passwords or authentication codes in two steps.
Functionality Of The Web
The website of Coinbase works perfectly and makes buying and selling bitcoins, ethereums or litecoins as simple as buying anything on any e-commerce website.
There is a section of graphics, but the truth is that these are very simple and do not allow you to draw lines of channel, support, etc. However, we do not have it as a negative point, because in this case the web is not oriented to trading, but to the simple change of currencies.
Mobile Application Of Coinbase
You can search for the Coinbase app in the App Store with the name Coinbase – Bitcoin Wallet. If you do, you will see that the download of the app is free and that it will allow you to do practically the same as the computer website.
For the Android version you should look for Bitcoin Wallet – Coinbase in the Google Play Store. This app also works very well and has good user ratings.
A well-known company to buy bitcoins and other cryptocurrencies that has also made an effort to respect as much as possible the laws of the places where it offers its services. We say as much as possible, because in many cases, simply, there are no laws. His proactive attitude in this regard, with the licenses in the US and the rest of the measures taken in security matters, make us trust in it and think that it is not a scam.
Besides not being a scam, Coinbase service is very good. Of course, it must be borne in mind that it is not a trading platform, but rather a website in which individual currencies are bought, that it’s not invested in currency pairs. And for this purpose, it’s perfect.