Coinbase makes it easy to convert your local currency into and out of bitcoin.
- This 1st step is to sign up for a Coinbase account. This will feel you a more secure place to store your bitcoin, and simple payment methods to translet your local currency into or out of bitcoin.
- After sign up, inter your bank account. You’ll need to finish some verification steps before you can go to the account. Once the verification steps are finished , you can start a purchase.
- After starting your first purchase, complete your buy and deliver your bitcoin. The price of bitcoin maintain over time, so they’ll show you the current exchange rate before you buy.
Among other security measures, Coinbase stores 98 percent of customer funds offline, preventing loss or theft. Not only are the funds offline, but Coinbase distributes its Bitcoins geographically around the world in vaults and safe deposit boxes.
In terms of data security, Coinbase takes multiple steps to provide protection. Instead of storing sensitive data on servers, the platform has that data disconnected from the Internet so it is not as easy to hack. For further security, the data is split with redundancy and encrypted with AES-256 before being copied onto paper backups and FIPS-140 USB drives. Just like the funds, those paper backups and USB drives are also geographically distributed throughout vaults and safe deposit boxes spread around the world.
Additionally, Coinbase requires all user accounts to have two-step verification, something that most exchanges just highly encourage instead of requiring. This requires users to get a code from their mobile phones for logging in and other specific activities in addition to using their password and username. This extra requirement makes it significantly less likely that an account will experience hacking.
How Can You Protect Yourself When Using Coinbase?
To protect yourself when using Coinbase, make sure that you never share your password, login credentials, or two-factor authentication codes. Customer support or other Coinbase staff will never ask for this information. Additionally, make sure you contact Coinbase customer support via the real number or other contact information on its website. Fakes are increasing in number, so do not trust what you find on a search engine without further research.
In terms of your password, create a unique, complex password unlike those you use on other websites. You should also change the password every three months or so for added security. Don’t forget to take full advantage of Coinbase’s two-factor authentication, and consider adding it for sending money. Keep in mind that TOTP applications, such as Google Authenticator, are more secure than the SMS method for 2FA codes since a phone porting attack can compromise your phone number.
If you ever have doubts about your account security or potential hacks, view your IP activity in your security settings. This will show your verified devices and IP login activity.
For the ultimate protection of your cryptocurrencies, we recommend that you use a Hardware wallet such as a Ledger or a Trezor.