Is Coinbase Safe & Trustworthy in 2024? (Read This First)

Just because it’s the biggest U.S. exchange doesn’t mean Coinbase is safe to use!

In this article, we look at major safety concern with Coinbase you should be aware about. Not a big reader? Use the jump links below to move directly to the section you’re most interested in:

Use the jump links below to move directly to the section you’re most interested in:

• Top 6 Coinbase Scams to Watch Out For

• 5 Coinbase Security Tips to Implement Right Now

• Coinbase SEC Lawsuit and Wells Notice

• Coinbase Users Reporting Problems with Resetting 2FA Authentication

• Coinbase No Longer Providing Multi-Sig Protection

• Coinbase Recent Outages and Technical Issues

1. Account Security: Customers are concerned about the safety of their accounts and the potential for unauthorized access. While customers appreciate two-factor authentication (2FA), they are still concerned because of reported compromised accounts and security breaches.

2. Data Privacy: Privacy is a big concern for many customers leaving a poor review of Coinbase because of the previous breach; customers are concerned about mishandling and unauthorized sharing of their personal information.

3. Concerns Over Private Keys: Since Coinbase is a custodial exchange, it holds customers' private keys on their behalf. Many customers are concerned about the risks associated with trusting a third party to keep their private keys and assets safe (primarily since customer support is so poor).

4. Account Freezes & Compliance Concerns: Several customers have reported their account was frozen, and restrictions were imposed due to compliance measures.

Customers are often unsure why their accounts are frozen, or restrictions are imposed.

5. Phishing Scams: Customers mentioned that there are a lot of phishing scams and attempts to impersonate Coinbase with fake emails designed to trick users into providing them sensitive information. It’s becoming harder and harder to detect for most customers. 

Users Are Most Happy About

• Safety and Security

• Poor Customer Service

• High Fees

• Account Freezes 

Here are six common Coinbase scams many Coinbase customers experience and what you should watch out for:

1. Phishing Scams: fraudulent emails, websites, or messages that imitate Coinbase’s official communication to trick users into revealing their login credentials or other sensitive information. 

2. Impersonation Scams: Scammers typically create fake social media profiles or websites that closely resemble Coinbase’s official channels, such as “CoinbaseUS.” They then use these platforms to impersonate Coinbase support and trick users into providing account details or making fraudulent transactions.

3. Fake Coinbase Apps: Some scams involve the creation of fake mobile apps that mimic the Coinbase app. Users might unknowingly download these apps, providing scammers access to their account credentials and sensitive information.

4. Investment Scams: Scammers might promote fake investment opportunities or schemes, claiming to be affiliated with Coinbase. 

5. Tech Support Scams: In this scam, scammers will contact users posing as Coinbase support agents and claim an issue with the user’s account. They may request remote access to the user’s computer or ask for payment to resolve the issue.

6. Giveaway Scams: Fake giveaways or promotions that claim to be sponsored by Coinbase are common scams. Scammers may ask users to send cryptocurrency to a specified address in exchange for larger returns, which never materialize.

While Coinbase has a generally positive reputation, it has not been without controversies or customer complaints. 

Coinbase has a set of customer support protocols. However, Coinbase has a notorious reputation for its poor customer service.

• Many users have reported issues with frozen or suspended accounts without explanation and no ability to receive personalized responses

• Customers regularly complain about this on Twitter, Trustpilot, and forums like Reddit

• The platform offers no reliable live chat feature other than a bot with limited capabilities 

• 1.5 / 5 stars out of over 9.5k reviews Trustpilot rating

• 78% of these reviews received a 1-star rating

• Swan boasts a nearly opposite Trustpilot rating of 4.5

• 78% of customers rating their experience as 5-star

Coinbase has had a fair share of slow loading times, long outage periods, transaction delays, and server errors, especially during periods of high volatility, making taking advantage of market volatility a massive pain point for investors. 

In 2021, hackers stole crypto assets and user information from at least 6,000 Coinbase customers. 

If sophisticated hackers obtain your personal information, such as your address, passwords, and phone number, they could potentially gain access to your account, even without compromising Coinbase’s systems..

If you care about customer service, education, integrity and want a committed team of experts in your corner, available to help you whenever you need it, Swan is the best option to buy and hold Bitcoin. 

So, if you are a current Coinbase customer unhappy with the platform, check out our Swan as an Alternative to Coinbase article.

Once you are ready to transition away from the exchange altogether, we’ll walk you through how to complete this process, remove your digital assets in three simple steps and start securing your Bitcoin future today.