Stealing your precious cryptocurrencies could be as easy as getting your phone number especially if you have not carefully secured important information about your account. Yes, just like bank robbery, cryptocurrency theft is real and rampant. While there are so many ways people steal bitcoins, it is very possible and quite easy via hacking user’s emails.
Signaling System no 7 (SS7), a flaw in telecommunication, gives hackers a chance to deflect your information at the point of confirming your email password, without your knowledge. In which case, the Bitcoin thief already has access to almost all the information he/she needs IF it is not encrypted that is.
Cryptocurrency exchange spaces hold large amounts of currencies and are the major targets of hackers. People have lost so much of their investments because they were negligent about the security of their cryptocurrencies. Crypto security has to do with installing measures used for securing encryption systems from decryption by unauthorized sources. Proper data and information encryption is key to crypto security in Bitcoin business, hence, it is imperative to ensure that no unauthorized source has access to your information.
A cryptocurrency walletis used to store public, and private keys(a pair of keys used for authentication and encryption) used to receive or spend a cryptocurrency. Crypto security depends on the secrecy of the private keys. A wallet can contain more than one public and private keys, and every piece of cryptocurrency has a private key which should be safely guarded by the account owner. The storage of cryptocurrencies most especially Bitcoinis not centralizedbut is made transparent through the available ledger online. Make use of reliable and familiar hardware wallets only. With Coinbase, you can install a hardware wallet on your phone and also have access to the wallet on their site.
However, in the event that your email is hacked by unauthorized sources, your message should be in an encrypted form so that no information can be derived from it.
Now, you might want to know where Coinbase comes in.
Exactly at the point of securing your cryptocurrencies, if I do say so myself.
Coinbase is a digital currency exchange company that deals in brokering exchanges of Bitcoin, Bitcoin cash, Ethereum, and other cryptocurrencies in 32 countries around the world. Coinbase has over 10 million users and a better reputation than other bigger exchange spaces. Coinbase gives an avenue for you to buy and sell digital currencies, but Coinbase serves as a wallet too, where your currencies can be stored.
What makes Coinbase safer than other crypto exchange companies?
Coinbase should be your go-to place for crypto security because it operates on strict security best practices and has a reputation for not being hacked since inception six years ago. The following are features that are peculiar to the mode of operations at Coinbase:
Data encryption is guaranteed
Unlike other Bitcoin exchange spaces that have witnessed interceptions, Coinbase has never been hacked. This is so because all traffic run over encrypted https wallets are stored safely away and can NOT be accessed by unauthorized sources.
2-step verification is required on all accounts
Before any account at Coinbase is logged on, 2-step verification is required.On whichever gadget is used, users are asked first to provide an OTP (One Time Password) which would be sent to their registered number or only sent when the correct QR code is used and which is valid only for 30 seconds. They are also asked to verify their email. This ensures that unauthorized sources will not have access to your online information, but be sure to remember your key codes and passwords as losing them may mean losing access to your cryptocurrencies.
Coinbase has the backing of world-class investors
Coinbase serves a customer base of 20 million investors and is currently the highest funded Bitcoin exchange company. Within six years of its inception, it has become the largest cryptocurrency exchange place. Coinbase has the backing of the blockchain Capital, Bank of Tokyo, the Digital currency group, and other world-class investors, therefore, it is seen as the most trusted crypto exchange in the world.
Bitcoin exchange is regulated
Coinbase is registered as a legitimate Money Service Business with Financial Crimes Enforcement Network (FinCEN). Exchange of Bitcoin in Coinbase operates under the United States Federal and State regulations. They comply with laws regulating money transmission, as well as the USA Patriot and Bank Secrecy Acts. This has instilled a level of responsibility and accountability in the company and customers are assured of the maximum security of their cryptocurrencies.
A majority of funds are stored offline.
Keeping all your currencies online is a big risk. Coinbase operates with hardware wallets that give you direct access to your coins and allows you to store them offline and protect your bitcoins by private keys which only you, know. Here, there is no possibility of being hacked online. You can also use a 2-step verification method for accessing your hardware wallet but make sure your passwords are backed up.
Diversified payment methods
Unlike other exchange platformsthat limitusers to trading in Bank transfers to Bitcoin or Bitcoins to Altcoins, Coinbase gives its users the leverage to buy and sell cryptocurrencies using diverse means. Some of which include wire transfers, debit cards, and bank transfers.
Coinbase is safe
The average investor is faced with a grossly high percentage risk of losing money in the world of digital currencies, especially if the exchange platform is not properly regulated. We have probably heard of the Mt. Gox story of security breach and theft that led to the loss of 850,000 bitcoins worth over $450 million at the time. Coinbase investors will hardly face the same fate which the Mt. Gox investors did, because of their compliance with Federal and state money transfer laws.
Although the security which Coinbase provides your currencies come at a cost, it is totally worth it. Coinbase serves as the intermediary between you, the trader and the digital exchange world. If you are going to trade in digital currencies, invest in Coinbase, it is still one of the safest and most secure exchanges in the world.