Coinbase Safety Review is one of the most trusted crypto exchanges and does a great job with security. But even though the platform uses best practices like 2FA, encryption, and cold storage, using any online service always comes with risks. You can minimize those by following the best practices, and keeping your wallet secure.

A good password is the first line of defense for your Coinbase account. Use a long, complex password that is unique to your Coinbase account and don’t reuse it anywhere else. Also, enable 2FA if you haven’t already. It’s recommended that you use hardware security keys, mobile authenticator apps, or the Coinbase security prompt to enable 2FA. You can also lock your account by going to Profile – Security – Lock Account. This locks access across all devices and requires email, 2FA, or a security key to unlock.

Coinbase Safety Review – How Secure Is Your Crypto on This Platform

Scams and phishing are common threats to Coinbase users. Attackers can spoof the Coinbase logo and contact customers posing as support staff to steal money or personal information. They can also promote fraudulent investment opportunities or schemes and claim to be from Coinbase to trick victims into giving them their account details.

Another drawback to Coinbase is that it’s a publicly traded company, meaning that it has to report user information to governing bodies. This can be a disadvantage for some who view cryptocurrency as an anonymous way to transact wealth. In addition, since Coinbase holds customer assets, they’re prone to losing them in case of a security breach or hack. The company’s digital asset insurance and FDIC pass-through insurance for US dollar balances mitigate some of these risks, however.