Monday, January 27, 2020

How Secure Is Coinbase With Bank Account- Detailed Analysis.


how secure is Coinbase with bank account 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?