Private keys and wallets for further security. And yet, the overwhelming majority of transactions happening on Coinbase occur without a hitch, thanks to robust security measures and stringent onboarding requirements for opening new accounts. Coinbase also sends a copy of this form to the IRS, to make sure users arent lying on their taxes. Cashing out a massive amount of Bitcoin comes with limited restrictions on daily withdrawals. for transactions more than 50 but less than or equal to 200, the fee is 2.99. For example, the team performs a hash on all passwords stored in their database using bcrypt. We may also collect your data to enable certain services, improve our products, and keep you notified of new developments (based on your preferences). One of the primary documents that are needed to open a Coinbase account is a verifiable, government-issued ID. During the account set-up stage, Coinbase requires new users to provide personal information that appears on their government-issued ID, such as their full name, date of birth, and address. You can do this when setting up an accountor when updating your account details. By clicking Sign up, you agree to receive marketing emails from Insider (Here Are the Facts). Make it long, use a combination of letters (upper- and lower-case), symbols, and numbers. Things happen all the time that could potentially compromise the safety and security of your Coinbase account, even though Coinbase invests heavily in cyber security upgrades. Send and receivecrypto to external wallets, Local laws and regulations for each jurisdiction (e.g., individual states or countries) in which Coinbase is licensed to do business, Users must be at least 18 years old to open a Coinbase account, A government-issued photo ID is required (more on this later), A computer or smartphone with internet connectivity is required, A phone number for your smartphone (to receive SMS text messages from Coinbase), Either the latest available web browser (Chrome is recommended) or the latest version of Coinbases mobile app, All accounts are subject to 2-step verification which requires the use of a username and password along with a security token that is issued by Coinbase via text message, All Coinbase website traffic runs on encrypted SSL, All Coinbase wallets and private keys are stored using AES-256 encryption, All new applicants information is stored separately from Coinbases main database, All Coinbase employees are put through rigid criminal background checks prior to hiring and all employee workstations have encrypted hard drives and screen locking, For US-based users, only a state-issued drivers license or identification card will be accepted, Outside the US, acceptable forms of ID include government-issued photo identification cards, national identity cards, and passports, Under no circumstances will Coinbase accept identification documents such as a US passport, a US permanent resident card (green card), a school ID, or a military ID, (It should be noted that IDs can only be uploaded through the Coinbase website or mobile app) for security reasons, emailed copies are not accepted, Under Coinbase policy, whenever a user attempts to make a large transaction on the platform, they will be required to provide their personal information to allow the trade to be completed, Your intended purpose for using the Coinbase platform, A large-scale phishing campaign was launched in early 2021 targeting a number of Coinbase account holders, Some of the malicious emails were opened by unsuspecting Coinbase users and vital account information like usernames and passwords were stolen, The hackers were then able to evade Coinbases two-factor identity verification system to receive the security token that would normally be sent to the users smartphone, With free access to the victims accounts, the hackers were able to make off with untold amounts of cryptocurrency holdings, 98% of account holders funds are held in offline cold storage that is inaccessible by hackers and cyber criminals, Additionally, these assets are distributed throughout a global network of safe deposit boxes and vaults as a supplemental layer of protection, Sensitive data is stored in a manner that is inaccessible via the internet, To prevent data loss and protect sensitive information, Coinbase utilizes a multi-layered system of redundancy, AES-256 encryption, copies stored on FIPS-140 USB drives, and even paper file backups, Backup drives and documents are geographically spread out in secure locations around the world.