Greetings traders! I know trading is overwhelming for the newbies and
they have certain doubts regarding the trading for example how safe is it to
give your bank account details for trading, is Coinbase a safer platform for
trading, etc. In this blog, I will try to answer all your doubts regarding the
same, you do not have to worry about that as I will not spare any important
details. I am going to put previous users of Coinbase examples to ease your
worrying mind, so fasten your seatbelts for some serious Wallstreet type of
knowledge.
So, you have decided to trade bitcoins and other cryptocurrencies via
Coinbase platform and the platform is asking you for your bank credentials now
the suspicion arises, how secure is Coinbase with bank account? To
answer that let’s get into the details and case studies.
Security-
According to Coinbase, their top priority is
safety, so to provide with that, the platform invests heavily in cybersecurity
which would prevent hacks on their system. All your digital currency is insured
so there is no way of losing your money. The company uses third-party insurance
to give you an additional layer of security. As you can invest US dollars, and
not just the cryptocurrency, in that event you are fully insured with FDIC
(Federal Deposit Insurance Corporation) Insurance for USD deposits. They are
even screened as other US financial institutions. Other safety features for
Coinbase users are that you cannot use its services anonymously because of the
strict KYC (know your customer) policy, as it is screened the same as other
giant US financial institutions. To complete your KYC process you have to
submit your official ID proof issued by the government and sometimes you have
to submit your residential proof as well only then you can use the Coinbase
platform to buy and sell. So I hope with this, your worry about how secureis Coinbase with bank account is somewhat resolved.
Downside-
According to the old saying “Nothing is perfect, if there is light,
there is darkness”, so keeping that in mind the Coinbase has its own downsides.
Let’s discuss it as well. As the platform is monitored, chances are your
information will be shared with the tax authorities as it is tax compliant.
Plus there are very strict KYC policies which means that your transactions are
monitored which prevents anonymity. Coinbase is bound to report the governing
authorities about the users of their platform, which means all your crypto
assets will be officially in the records of the government agencies who
regulate it on top of that you have to pay taxes, there are no tax exemptions
whatsoever. Now if you look closely, the reason why cryptocurrencies are made
in the first place is now defeated. Any of the users who use the Coinbase
platform for illegal transactions like gambling, selling or purchasing of
illegal items like drugs, guns, etc. then his Coinbase account will be frozen
by the authorities as it is not anonymously held. If it was anonymous then
tracking out these kinds of transactions would be impossible as the government
wouldn’t have its control over it.
Wrapping Up-
Coinbase gives top priority to security no matter what. So you can relax
and start trading via Coinbase as your information will not be compromised.
Also, you do not have to worry about is Coinbase secure to link bank account
or not?
