how secure is coinbase

Coinbase is considered one of the safest cryptocurrency exchanges due to strong technical and regulatory protections. It uses AES-256 encryption, two- factor authentication (2FA), biometric login options, and stores about 98% of customer cryptocurrency funds in offline cold wallets, which are less vulnerable to hacking. The platform also holds a crime insurance policy covering certain custodial assets against losses from data breaches or theft, though this does not cover unauthorized account access through phishing or stolen credentials. Coinbase is a US-based, publicly traded company, complying with financial regulations including anti-money laundering (AML) and customer verification (KYC). Customer funds are segregated and stored in insured bank accounts for cash balances, but cryptocurrency holdings are not covered by traditional deposit insurance. Additionally, Coinbase offers robust user protections such as account monitoring for suspicious activity, proactive security notifications, and the option to lock accounts in case of detection of threats. Their self-custody Coinbase Wallet provides additional security by giving users control of their private keys, complemented by biometric and password protection options. However, Coinbase's security also relies heavily on users following best practices like using strong, unique passwords and enabling 2FA to mitigate risks such as phishing and SIM swapping, which are outside Coinbase's control. Overall, Coinbase combines advanced security measures with regulatory oversight, making it highly secure, but user vigilance remains crucial for safety.