Protecting Your Bitcoin: Coinbase's Security Measures

Coinbase is one of the largest cryptocurrency exchanges, with about 98 million users. While it is a safe platform to trade cryptocurrencies, it is not without its risks. Coinbase has put significant resources into creating a secure platform that follows industry best practices. The company takes extensive security measures to ensure your account and cryptocurrency investment remains as safe as possible. Coinbase uses state-of-the-art encryption and security, and its security team is constantly working to protect you and your assets from emerging threats.

- Cold storage

- Mandatory two-factor authentication (2FA)

- Biometric authentication

- Compliance with regulatory standards such as KYC (Know Your Customer) and AML (Anti-Money Laundering) regulations

- Auto-enrolled 2FA (with security key support)

- Password protection

- Multi-approval withdrawals in Coinbase Vault

Use a strong, unique password

Passwords are the first line of defence when it comes to protecting your Bitcoin investment. It is important to use a strong, unique password for your Coinbase account. A strong password is long, random, and unique. It should be something that is hard to guess and not used anywhere else. Avoid using obvious passwords such as birthdays, pet names, or common keyboard patterns like "123456" or "qwerty". Make it harder to crack by combining uppercase and lowercase letters, numbers, special characters, and symbols.

It is also recommended to use a password manager like 1Password or Dashlane to easily generate and securely store unique passwords for all of your online accounts. A passphrase, which is a sentence or group of four or more words, can be used if you don't want to use a password manager. However, be careful not to choose a phrase from a book or movie as hackers have access to databases of such quotes.

Additionally, it is important to never disclose your password to anyone. Coinbase employees will never ask for your password, so be cautious of anyone requesting this information.

Enable two-factor authentication (2FA)

Two-factor authentication (2FA) is a security measure that requires two distinct forms of identification for account access. It is designed to prevent unauthorized users from accessing an account with just a password. The two factors are typically a knowledge factor, such as a password or PIN, and a possession factor, such as a smart card, security token, or mobile device.

Coinbase offers 2FA as an added security layer when signing in. This provides additional protection for your account by requiring a unique verification code, along with your username and password. You may be prompted for these codes when signing in from an unrecognized device or phone number, or when sending crypto from your Coinbase account.

Coinbase supports multiple 2-step verification methods, which can be set up and turned on simultaneously. This enhances security and can also be used as a backup if you lose access to one method. The methods supported by Coinbase, listed from most to least secure, are:

• Two security keys: One for primary use and one as a backup.
• Passkey and security key: The convenience of a passkey with a security key as a backup.
• Passkey and security prompt: The convenience of a passkey with a backup option that doesn't involve a security key.

Coinbase also supports Universal Second Factor (U2F) security keys from various vendors. A security key will disable any previously configured 2-step verification methods. To enable a security key, sign into your Coinbase account from a web browser and access the 2FA settings tab under the security settings page.

Another option is to use an authenticator app, such as Duo or Google Authenticator, which generates a unique time-sensitive security code (Time-based One-Time Password or TOTP). These apps don't require phone reception or internet access once set up. To set up an authenticator app, sign into your Coinbase account on your desktop browser, access the security settings page, and follow the prompts under the 2FA settings tab.

Coinbase also offers a security prompt verification method, which delivers push notifications to your active mobile app session to approve or deny login attempts from different devices. To set up this method, sign into your Coinbase account on your desktop browser, access the security settings page, and follow the prompts under the 2FA settings tab. Make sure you're signed in to your Coinbase mobile app to receive push notifications.

While 2FA is a recommended security measure, it is not infallible. Users should remain vigilant against potential security threats. For example, SMS-based 2FA is vulnerable to SIM-swap or phone port attacks, where an attacker transfers your number to their device. Coinbase encourages users to follow security best practices and apply them to all accounts they care about.

Monitor your Coinbase activity

Monitoring your Coinbase activity is crucial to ensure the security of your Bitcoin investment. Here are some detailed steps to help you monitor your Coinbase account effectively:

• Review your transaction history regularly: On the Security Settings page, you can review active sessions and recent activity and manage third-party applications with access to your account. It is recommended to review your Coinbase account transactions and activity at least once a week to look for anything suspicious.
• Verify transfer details: Some malware programs can intercept funds by editing the recipient's account information even after you enter the correct details. Therefore, always double-check the recipient's account information when sending money to other accounts.
• Enable push notifications: Stay informed by enabling push notifications on the Coinbase Wallet app, available on iPhone and Android. Go to Settings > Notifications, then tap on the first option to edit preferences. Select "Enable push notifications" and confirm your choice. On iOS, you will need to tap "Allow" to grant permission.
• Utilize the Security Settings page: This page is a valuable tool for monitoring your Coinbase activity. It allows you to review active sessions, recent activity, and manage third-party applications' access to your account.
• Be vigilant for early warning signs of a scam: Scammers are constantly devising new ways to target Coinbase users. Stay alert for any unusual activity or unauthorized transactions. If you notice anything suspicious, take immediate action, such as revoking access to unauthorized applications or changing your passwords if necessary.
• Consider using a Coinbase Vault: If you plan to hold your Bitcoin investment for an extended period, using a Coinbase Vault adds an extra layer of security. Withdrawals from the Vault require multi-email approval and have a 48-hour delay, during which you can cancel the withdrawal if needed.

Remember, while Coinbase has robust security measures, your account's security also depends on your personal security practices. Stay vigilant and proactive in monitoring your Coinbase activity to protect your Bitcoin investment effectively.

Use a vault for long-term holding

If you're not an active cryptocurrency trader and plan to store your investment in your Coinbase account long-term, it is strongly recommended to make use of a Vault.

Coinbase Vaults require multi-email approval to start the withdrawal process. This means that multiple people must give their approval before any withdrawals can be made. There is also a 48-hour delay, during which you can cancel the withdrawal at any time. This can help you stop any unauthorized attempts to withdraw from your account. Setting up a Vault is simple and easy.

In addition to using a Vault, it is important to keep in mind that the security of your Coinbase account largely depends on your personal security practices. Here are some additional steps you can take to protect your account:

• Use a strong, unique password and a password manager.
• Set up an authenticator app or security key for two-factor authentication (2FA).
• Secure your email account against hackers by enabling 2FA and being cautious of phishing emails.
• Monitor your Coinbase activity regularly and enable push notifications to stay updated.
• Use Coinbase's security features, such as Address Whitelisting and cold storage.

Protect your email account

Your email is one of the most important connections between you and your Coinbase account. It is used to confirm new devices, send important alerts, and communicate with you if support is needed. Here are some steps you can take to protect your email account:

• Use a strong password that is long, random, and unique to your email account. Avoid reusing passwords from other accounts, as this puts your email at risk. You can use a password manager like 1Password or Dashlane to easily generate and securely store unique passwords.
• Enable two-factor authentication (2FA). This adds an extra layer of protection to your account. When 2FA is turned on, you will need to enter a special security code sent to you via SMS or an authentication app when logging in from an unknown source.
• Make sure your computer and antivirus software are up-to-date. Out-of-date security suites may not have the necessary coding to deal with newer viruses or hacks.
• Be cautious when opening attachments and clicking links in emails. Attachments can install malware on your computer, making it easy for hackers to access your email and personal information. Scam emails may also include fake login links or buttons that redirect you to a different website to capture your password.
• Learn to identify phishing scams. Scammers may send emails requesting personal information such as your social security number or banking information. Never provide sensitive information over email unless you know who is requesting it.
• Do not share your password with anyone, including technical support representatives. Your password should always remain private.

Frequently asked questions