Coinbase carries crime insurance that protects some of digital assets held across our storage systems against losses from theft, including cybersecurity breaches. However, our policy will not cover any losses resulting from unauthorized use of your personal Coinbase or Coinbase Pro account(s) due to a breach or lack of your credentials. It really is your responsibility to use a strong password and maintain control of all login credentials you make use of to access Coinbase and Coinbase Pro.
Cryptocurrency is not legal tender which is not backed by the government. Coinbase is not an FDIC-insured bank and cryptocurrency is not insured or guaranteed by or subject to the protections of the Federal Deposit Insurance Corporation (“FDIC”) or Securities Investor Protection Corporation (“SIPC”), and may lose value.
In case of a covered security event, we will try to allow you to whole. However, total losses may exceed insurance recoveries so your funds may never beforetheless be lost.
Coinbase Insurance – How is my cash insured?
Cash balances, such as U.S. dollars, British pounds, or euros, are held as equilibrium in your Coinbase or Coinbase Pro account(s). For U.S. customers, Coinbase combines balance with the balances of other customers and holds those funds in either:
- custodial accounts at U.S. banks and/or
- invests those funds in liquid U.S. Treasuries, or
- USD denominated money market funds in accordance with state money transmitter laws.
Funds could be held in virtually any one of these brilliant three manners so customers shouldn’t assume that funds are being held in one manner over the other. For non-U.S. customers, funds are held as profit dedicated custodial accounts. All custodial pooled amounts are performed separate from Coinbase funds, and Coinbase will neither use these funds for its operating expenses or any other corporate purposes.
To the extent U.S. customer funds are held as cash, they are really maintained in pooled custodial accounts at a number of banks insured by the FDIC. Our custodial accounts have been established in a manner to make pass-through FDIC insurance available up to the per-depositor coverage limit then set up (currently $250,000 per individual). FDIC pass-through insurance protects funds performed on behalf of a Coinbase customer against the risk of loss should any FDIC-insured bank(s) where we maintain custodial accounts fail. FDIC insurance plan is contingent after Coinbase maintaining accurate records and on determinations of the FDIC as receiver during a receivership of an bank holding a custodial account.
Below is a set of the insured depository institutions of which Coinbase may deposit customer funds:
- Signature Bank
- JPMorgan Chase
- Cross River Bank
- Silvergate Bank
- Pathward (previously known as MetaBank)
Main platform features: Simple to use for beginners and are able to use PayPal to withdraw or sell
Fees: 0% to 0.50% per trade, 2.49% for Coinbase card transactions, and the payment varies for banking
Number of cryptocurrencies supported: 107
Security features: Two-step verification, biometric fingerprint logins, insurance in the case Coinbase is breached, FDIC-insured USD balances, AES-256 encryption for digital wallets
Types of transactions supported: Buy, sell, send, receive, and exchange
Maximum trading amount: Limits vary based on your payment method and region