Is it Safe to Link Bank Account to Coinbase?
Is it truly safe to link your bank account to Coinbase?
This is a subject that many traders, investors, and cryptomarket enthusiasts may have pondered at one time or another.
So, let's get to the bottom of this.
What should any cryptocurrency trader or investor do first, just like they would in the Forex market or even the stock market?
The solution is simple: conduct due diligence and determine whether or not the company is formally regulated.
If a company is regulated by an authority such as FINRA, NFA, SEC, FinCEN, FCA, then financial transactions are safe because these financial regulatory authorities monitor the various companies providing financial services such as Coinbase and can impose fines if rules or services provided are violated.
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Coinbase's safety concerns can be addressed because the company is licenced to conduct money transmission in most U.S. states.
Coinbase is also registered with FinCEN as a Money Services Business.
The Financial Crimes Enforcement Network (FinCEN) is a U.S. regulatory agency that focuses on financial transaction information in order to combat domestic and international money laundering, potential terrorist financing, and other sorts of financial crimes.
Furthermore, Coinbase is required to follow a number of financial services and consumer protection laws, including the Bank Secrecy Act and the USA Patriot Act. Finally, Coinbase is required to follow most states' money transmission rules and regulations.
On an international level, there is a contract with a firm called C.B. Payments Limited, which is based in the United Kingdom and is authorised by the Financial Conduct Authority for residents with nationalities other than the United States.
So, the answer to the issue of whether it is safe to link a bank account to Coinbase is yes; it has a high level of security.
Some Reddit user thoughts on Coinbase can provide a wealth of information concerning Coinbase's security.
With 1.2 million users, the Bitcoin community on Reddit is a valuable source of knowledge about Bitcoin and Coinbase.
Many users wonder if Coinbase is safe and trustworthy.
There are responses such as persons who have never experienced an issue.
Many individuals claim that Coinbase is the greatest, most dependable exchange available, with live customer service.
Many users, however, believe Coinbase is safe but advise taking additional precautions, such as buying bitcoin on Coinbase but moving it to a trusted wallet or cold storage wallet immediately; it is fine to buy bitcoin on Coinbase but look into trusted wallets or cold storage wallets; and it is fine to buy bitcoin on Coinbase but look into trusted wallets or cold storage wallets.
However, many people complain about charges and fees.
There are also concerns concerning the fact that large exchanges and mining pools have been hacked in the past, resulting in the loss of part of their funds.
Bitrue, GateHub, Binance, Bithump, and CoinBene were among the notable cryptocurrency exchange hacks of 2019.
Some exchanges, on the other hand, have shown to be resistant to hacking.
For example, HitBTC, which has one of the lowest fees, has never been hacked since its inception in 2013.
What about technical concerns like bank transfers, transfer times, and verification, for time?
Transfer money from Coinbase to your bank account
How long does it take to transfer money from Coinbase to a bank account?
It only takes a few minutes.
The bank request is sent immediately;
The bank will take roughly 3-5 days to process the request.
However, there are certain variances in terms of foreign withdrawals, and the time it takes to transfer money from Coinbase to your bank account can vary.
Withdrawals from European customers can take up to two business days.
The Coinbase transfer time for Canadian customers is the same as for European customers, i.e. one to two business days.
The time it takes to process withdrawals for Singapore customers is a little longer, two to three business days.
However, if a Singapore customer needs a considerably faster response time, a S$2.99 fee can be paid for same-day processing of the withdrawal request.
For European and Canadian customers, there are fees associated with Coinbase bank transfers.
A fee of €0,15 applies to European customers, whereas a fee of $1 applies to Canadian customers withdrawing Canadian dollars.
Bank account with Coinbase
What about the verification of your Coinbase bank account?
Coinbase takes the appropriate precautions to protect sensitive information, and one such piece of information is a user's or customer's personal bank account.
They use encrypted servers and SSL certificates, and all personnel are subjected to a thorough background check.
Customers in the United States can verify their bank accounts in just a few minutes.
Coinbase does not receive the real banking credentials.
Still, another third-party provider, Plaid Technologies, Inc., is employed to provide fast account verification.
After their accounts have been promptly validated, users can change their online banking password at any time.
By going to the payment methods page, you can add bank accounts.
The get started menu can be found in the upper right corner of a customer's primary account page.
Banks such as Bank of America, Chase, and Citibank are among the options.
Any U.S. customer will be asked for their online banking login and password as a one-time verification step.
Depending on the bank's security protocols, additional security questions may be asked.
Users or customers who do not want to provide their online banking login and password can choose the deposit verification process from the main menu, which takes about 2-3 business days.
The deposit verification procedure involves the user making two small test deposits to his or her account.
The user can verify the bank account after two or three business days by simply pressing the confirm button on the payments page.
The bank account is finally authenticated by inputting the right two deposit amounts and pressing the verify deposit amounts button.
For customers from other countries, such as Europeans, a complete SEPA deposit to their Coinbase EUR wallet is required.
The process are straightforward, and withdrawals take one to three business days to process.