Coinbase Extension

Coinbase Extension: Elevate your crypto experience. Seamlessly manage and transact with confidence using our secure extension. The Coinbase Extension simplifies the proccess.

Coinbase Extension

What is Coinbase, and how does it work?

Coinbase is one of the biggest cryptocurrency trading platforms in the world. Based in the US, it runs in more than 100 countries worldwide and trades over 240 decentralized cryptocurrencies, including Bitcoin, Ethereum, and Solana. Coinbase works on a centralized infrastructure, meaning it’s a peer-to-peer network operating without the interference of intermediaries.

One of the platform’s biggest advantages is that it made cryptocurrency exchange accessible to both crypto trade beginners and professionals. It’s praised for its easy-to-use interface and diversified services corresponding to the user’s experience level and amount of crypto assets. Coinbase also offers educational materials differentiated according to the user’s level of knowledge.

Coinbase platform works similarly to any other trading app or site for buying, selling, and trading cryptocurrencies. Once the user signs up, they can link their bank accounts or cards to exchange traditional currencies into cryptocurrencies. They can sell or buy digital currencies and later convert them to physical currency. Coinbase users can hold their crypto funds in specialized secure digital wallets.

However, since Coinbase’s establishment in 2012, some concerns have been raised regarding its safety.

Is Coinbase trustworthy?

Coinbase has built its reputation as a trustworthy, reliable, and secure crypto exchange platform. It uses robust security measures to protect its users from losing their funds or data to hackers. To name a few, Coinbase stores more than 90% of its customers’ funds in what’s called cold storage.

In this context, “cold” indicates offline storage that is less susceptible to hackers’ attacks and online theft. Coinbase users have to pass two-factor authentication (2FA) before they can access their accounts, lowering the chances of unauthorized access and compromising the accounts. The platform also offers insurance against theft and cybersecurity breaches.

According to Coinbase, the company complies with multiple regulatory standards, including verification-related Know your Customer (KYC) guidelines, Anti-Money Laundering (AML) policies, and Securities and Exchange Commission (SEC) regulations, the latter regarding the issuing and trading of securities.

Coinbase pros and cons

As with any other online platform, Coinbase offers benefits to its users but also comes with some drawbacks. Let’s look into its features, both lauded and causing user dissatisfaction.

Pros:

• Easy to use for beginners. Both Coinbase’s website and app are intuitive and user friendly, leading customers through the process of buying, selling, or exchanging their crypto money.

• Offers a selection of cryptocurrencies. Users can exchange over 240 different cryptocurrencies on the Coinbase platform.

• Ability to earn. Coinbase provides passive earning opportunities by offering its customers to enroll in Coinbase Learning Reward courses or earn interest on their balances.

Cons:

• High fees. The fees for transactions on Coinbase are higher compared to other trading platforms.

• Low-quality customer service. Coinbase has gained a bad reputation for its poor customer service, which lacks urgency when solving issues related to security or complaints.

Past security incidents and breaches

Over 11 years of operation, Coinbase has experienced two major data breaches. In 2021, cybercriminals detected a flaw in Coinbase’s account recovery process through SMS. Exploiting the vulnerability, they were able to gain access to at least 6,000 Coinbase accounts and transfer funds associated with them to external crypto wallets. Coinbase was quick to fix the security flaw and reimburse its customers.

The latest security breach was carried out in February of 2023 by a hacker group called 0ctopus. Cybercriminals sent SMS messages to Coinbase employees urging them to click a link and log in to their accounts to receive an important message. One employee believed this to be a legitimate request and gave their credentials.

However, hackers soon found out all employee accounts were secured with 2FA. Committed to carrying out the fraud, the hackers used voice phishing and convinced the employee to show them the dashboard with the company’s communication tools and employee contact information. However, the hackers were stopped by Coinbase’s security team before they were able to access customer data.