Bitcoin Forum

If I have my money on coinbase and they get hacked, does their insurance policy cover my loss?

source: https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured-

Dude, it`s like first link in Google. I really think you should do at least a minimal research before asking stuff here.

Regardless if they do or not. Crypto is you being your own bank. So if stuff like this ever happens, knock on wood, its your responsibility. Why do I say its your responsibility? Because you could have held the coins in a wallet that you really own. Having them on coinbase you don't REALLY own them. As everyone always says, if you don't have the private key(s) to your coins you don't own them. Thus meaning that for example having them on an exchange, you don't necessarily own them. If the exchange gets hacked, god forbid, there is a chance your coins might be lost in the hack or in the exit scam, whatever the case may be. Its always 100% more safe to withdraw to a wallet, being a paper wallet, desktop wallet, hardware wallet or what ever type of wallet, but you having full and complete control over your funds.

I'm kind of scared holding the coins myself, I'm not very good with computers and security.  I think a billion dollar company with expensive security will be a lot safer.

Well my friend, if you want to get into crypto you will have to learn. Maybe okay coinbase might be secure, but look at all the other exchanges. Most of them can run off and exit scam and there is nothing you can do about it. Read up on wallets, paper wallets, desktop wallets. Might take you 2-3 hours to fully understand, then make your first transaction and learn from there. Its better to you have full access to your own funds, rather than somebody that can one day, if they feel like it just block your funds because they essentially "own" them, since you don't have the private keys.

While bitcoins at Coinbase are fairly secure, there are still major risks:

1. A hacker could get your Coinbase password through a variety of methods and withdraw your bitcoins. Other than major exchange hacks, that is how most bitcoins are stolen.
2. Coinbase could freeze or confiscate your bitcoins. That happens more than you think.

If you feel unsure about holding your bitcoins in your own wallet, try holding just a portion for now. You can move the rest to your wallet later when you feel more confident.

Is it the best way for me to store my crypto into Hard Wallet everytime after my trading?

Maybe a hardware wallet or a desktop wallet. Start by getting familiar with applications like Jaxx maybe, then after you get the hang of it download core wallets, then hardware wallets :D

base on coinbase customer portal yes they will cover any loss of any breach of their security but if your account got hack because you were a victim of phishing or someone got access to your pc or laptop theres no way they will refund it.

No you can't comeback your money from coinbase if you are hacked but if you secure your account by your phone number and by 2FA authentificator you can't hacked

Coinbase maintains commercial criminal insurance in an aggregate amount that is greater than the value of digital currency we maintain in online storage. Our insurance policy is made available through a combination of third-party insurance underwriters and Coinbase, who is a co-insurer under the policy

Even though coinbase is a huge company with top notch security you are better off holding your own crypto.  You will likely not be targeted, hackers will target huge companies that hold millions of dollars worth of bitcoin.

Well that is not entirely true, it just takes way more effort than it is worth. Got to get access to the victim's phone.

Yes that place is much better than choosing coinbase or any exchange. Although they have an insurance policy but as said by odovlobo it's better to be think outside of the box and be secure with your funds.

What others don't like of transferring their funds from exchange to hardware wallets is they are avoiding too much fees but I'd love to pay those fees and become secured instead of feeling sorry for my funds when something wrong happens.

Coinbase's Insurance Policy does not specifically say that all losses will be covered by their insurance. From what I know just like banks they have some kind of insurance policy limit in case of bankruptcy happens in the bank, I won't be surprised if this were to happen in Coinbase's case in case of a big hack. Let us just say that hack wipes out 95% of the BTC being held in their wallet, I doubt that they or their insurance policy can pay all that 95% stolen back. But if I were you I won't be so paranoid about the idea of losing money in a well respected wallet.

One of major strong points in crypto-currencies that holder can keep it in a wallet that is safely stored on media, and that is not connected to any third party and not managed by third party.

Now, companies, just like always, they try to bind the user to their services, so they offer to them wallets, and services of management of wallets.

That is wrong. So don't.

There are here many people in knowledge, find somebody in your country and let him help you ensure the security of your wallet. In general, it requires you to know how to save public and private keys and where to store such keys.

I recommend always to encrypt the data that you are storing. You can store public and private keys even on smallest size USB flash disk, you can store it on hard disks, even in pictures.

In general, you can also print it on paper, and store it in a bank safe.

You can put it under the carpet.

But don't keep it with third parties.

Just ask yourself, who do you really know there?

Who can you catch on the collar if something happens?

Do your basics, and learn what is crypto-currency and never store bitcoin on remote wallets, unless that is amount that you can afford to loose without any consequences.

No, It's Not. Hacker was more interesting on billion dollar company than user dekstop wallets.
One they hack a company, they can take a billion dollar.
Except, you do personal mistake like enter your private key to phising web.


Yes, I think this is the best solution. I'll add link below to make you easier to do the solution :

Jaxx Website :https://jaxx.io/
Jaxx Tutorial : https://www.youtube.com/watch?v=c6cC7HHNMmM

Best Hardware Wallets
1. Legder Nano S ($60)
2. Trezor ($99)
3. Keep Key ($99)

Check review : https://coinsutra.com/best-hardware-wallet-bitcoin/

Be Carefull, Keep your money safe!

Yes BUT if your individual account gets hacked, you're on your own. So if you don't have 2fa then you are stupid. Sorry but better you hear it now than lose it all.

I am not sure but there is probably 100 or 250k insurance but that is probably paid when the problem is with coinbase (not sure)

coinbase is the most trusted exchange here in the U.S. so far theres no major issues that i have encountered and i have been using it for 2years.I couldnt imagine if coinbase will be compromised im sure the whole market and the u.s government will track those people who will try to.Insurance?nope theres no insured exchange as of the moment thats why you shouldnt put big amount of bitcoins on any exchange,keep it to your hardwallet just to be sure.

You can try use electrum wallet and put a strong password and always put updated antivirus like kaspersky my wallet never hack by putting a strongly encrypted password with strong antivirus for cryptocurrencies.

Its not recommended to use Coinbase wallet if you are planning to save and hold your bitcoin for a long time because there is no assurance or guarantee if you are safe holding your bitcoins for a long time.

LOL.
Thanks for let me hear that...
Maybe for beginner like me is important to do 2FA to make my meney safe.


Thanks Mr. CREAMPIE
But for now, I do not need hardwallet, cause I not have big amounts of btc.
My Ether Wallet for my Etherium (+Token) and Eletrum is enough.

But you have to learn more about Coinbase. Because, as far as I know, your compensation rate is almost none if you do not keep your account secure. Unless of Coinbase's fault

Currently, Coinbase is having an insurance policy for members who have KYC. If your account is hacked due to Coinbase error, the insurance number can be up to $ 250,000

When your account is hacked, it's more probably that it is your fault (weak password or something like that) and the insurance will not cover your loss. Like many others already said, you are responsbile for your coins, so use your own wallets.

hi dear , last february my friend was fraud through phishing ,
and the exchange said that ther is no insurance cover about it.
He was very sad.

I think with Coinbase is the same thing.

Never :D, dont believe in some miracolous force that will return your money.
You are responsible for keeping it safe, not coinbase.

Its like that in whole world, not only in this case.

There may be insurance for cash portion (i.e. uninvested fiat) like any bank would. But, non-cash portion is not insured. I cannot be. However, the will carry business liability insurance to cover legal liability, costs etc in case of litigation.

If Coinbase gets hacked, it doesn't matter whether they are insured or not, the dip will be so hard that there really is no difference since BTC and all Alts will suffer so hard that you'd been better off burning the money in the first place :D

Its easy to fake a fraudulent hack though, their insurance only covers losses if it is coinbase's fault.  Its best to never keep funds on an exchange but I do think coinbase is the safest choice if that is your only option.