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Is it Safe to Give Coinbase to My SSN?

Dave Miller with Online Cloud Security

Dave Miller – Tech Enthusiast & Security Expert – November 29th, 2021

Is it Safe to Give Coinbase to My SSN

With its initial market value of $99.6 billion on a fully diluted basis, Coinbase was the first big crypto corporation to go publicly traded in the United States.

Coinbase may be new to you if you’re getting started in the crypto space. As a matter of fact, you may not know what it is. Here’s a quick rundown of Coinbase:

To purchase and trade cryptocurrencies like Bitcoin, Ethereum, Litecoin and more than 50 others, you can use the Coinbase app. It’s possible to send and receive cryptocurrencies by using Coinbase, as well as exchange one coin for another. Apps like Coinbase’s stock trading app offer you current prices and trends for cryptocurrencies, as well as your portfolio of assets and news headlines about the industry.

Table of Contents

What is Coinbase?

More than 30 digital currencies can be purchased, sold, and stored on Coinbase’s trading platform. Coinbase is oriented toward beginners, whereas Coinbase Pro, the premium service, caters to experienced traders who need additional trading options and volume.

Coinbase has reaped the rewards of the cryptocurrency boom. In the third quarter of 2021, the company’s sale is expected to reach $1.31 billion. Coinbase is currently available in more than 100 countries around the world.

It’s a simple platform to use. It’s a common feature in many trading apps, and it allows users to keep an eye on the price of various cryptocurrencies. Check out which cryptocurrencies are making the most noise. Coinbase Card, a Visa debit card, is also being introduced by the business, allowing users to receive rewards when they spend the assets in their portfolio.

Bitcoin or another cryptocurrency can now be placed straight into a user’s Coinbase account via direct deposit. This option was revealed in September by Coinbase.

Coinbase's Sign-Up Process

The process of opening a Coinbase account is rather simple. An official photo ID is required, as well as personal details like your cell phone number and the last four numbers of your SSN. Make sure you’re prepared to answer inquiries about what you want to use the platform for in the future. The best way to stop hackers obtaining hold of your account is to employ appropriate security measures such as using a unique password that hasn’t been used elsewhere and multi-factor authentication.

Before you can start trading, you’ll need to link your Coinbase account to a payment method. Bank account, debit card, wire transfer or a PayPal account can be used in the United States (you can’t sell digital currency using PayPal, but you can make withdrawals).

To begin trading, all you need is a digital wallet. All coins can be traded on Coinbase, however not all of them are available for trading.

is your SSN safe on Coinbase

Is it Safe to Give Coinbase my SSN?

Your social security number is safe with Coinbase. You must keep in mind that starting an account at Coinbase is just like opening a bank account in many ways. For reporting purposes, they must have your tax ID number. For myself, I’ve been using Coinbase since they began, and I’ve never had a problem with their operations or account security. Regardless of where you trade, make sure you have two-factor authentication (2FA) set up (two-factor authorization).

You’ll need a digital wallet to store your cryptocurrency in between transactions if you want to buy and sell it. If you’re using a digital wallet, you’ll have to worry about whether or not it’s secure.

Other Things that Coinbase Keeps Safe

Several alternatives are available, each of which has its own security measures. Using a “hosted wallet” means that you don’t have to worry about keeping your cryptocurrency separate from the Coinbase app. You don’t have to worry about losing all of your Bitcoin or crypto if you forget your password for this wallet, which is stored for you by a third party (in this case, Coinbase). Cryptocurrency investors who forget how to access their wallets risk losing a significant amount of money.

The Federal Deposit Insurance Corporation (FDIC) and the Securities Investor Protection Corporation (SIPC) do not protect cryptocurrency like your bank account or investment portfolio. To be clear, Coinbase claims to cover any digital currency against theft due to security breaches or hacks as well as employee theft and fraudulent transfers. Customers’ digital currency is also said to be kept offline by the Coinbase. Both Coinbase and Coinbase Pro are FDIC-insured for monetary balances of up to $250,000 each.

Non-custodial wallets provide you complete control over your Bitcoin without the need for a third party. In order to avoid losing your cryptocurrency if your password is compromised, you must keep it in your mind at all times. Because of this, advanced activities like yield farming, which allows cryptocurrency owners to lease out their assets to produce larger profits, can be pursued. A non-custodial wallet, the Coinbase Wallet, is available to Coinbase customers who do not want to use the Coinbase app.

A cold wallet, also known as a hardware wallet, is a physical device like a USB that isn’t linked to the internet and provides additional protection. 

Is Coinbase Free?

In order to trade crypto on Coinbase, you must pay a transaction fee. There are costs for trading on Coinbase and Coinbase Pro that are greater and more sophisticated than those on Coinbase. On Coinbase, you pay a spread of roughly 0.50 percent when you buy or sell crypto currencies, plus a Coinbase Fee, which depends on factors such as where you live and the type of payment method used to complete the transaction.

This flat cost is determined by the value of the transaction and is detailed on Coinbase’s Fees page. Customers who want to buy $100 worth of Bitcoin with an American bank account or digital wallet will be charged $2.99 as a flat cost plus $1.49 in variable fees. This means that the consumer will pay a $2.99 fee. As for debit card payments, the variable cost would rise to $3.99 and that’s what the customer would be charged (in addition to the spread).

For larger transactions, Coinbase Pro offers a lower fee structure with a tiered fee structure that ranges from 0% to 0.50% of the trade value. As an example, a transaction of $10,000 or less incurs a 0.50 percent cost, while a transaction of $10,000 to $50,000 incurs a 0.35 percent fee.

In order to transfer cryptocurrency from one Coinbase wallet to another, such as from Coinbase to Coinbase Pro, Coinbase does not charge users. If you don’t use Coinbase Pro, you’ll have to pay Coinbase’s charge, which will eat away at your profits.

How to Get Started with Coinbase

In order to open a Coinbase account, you’ll need to provide your legal name and home address, as well as birth date and last four Social Security numbers, as well as details on how you intend to use your Coinbase account. That’s because federal regulations require it. You can start here.

  1. Download the Coinbase app for iPhone or Android.
  2. After logging into Coinbase, select “Get Started.”
  3. Tap “Start” to create an account with your email address.
  4. A link has been emailed to you to verify your email address.
  5. In order to authenticate your phone number, you must input a code that was sent to your phone.
  6. To begin, enter your name and date of birth, and the last four digits of your Social Security number. Please note that you must be at least 18 years old in order to use this.
  7. Enter your location.
  8. Decide how you will use Coinbase, whether it will be to invest in other exchanges, make online payments, or acquire goods and services.
  9. Determine your financial status. Tap “Let’s Go!”
  10. You’ll now begin linking your bank account. Look for your bank.
  11. Use the username and password you normally use for banking to access your bank account.
  12. Tap “Continue” after selecting the bank account from which you’d like to buy cryptocurrency.

That’s all there is to it. On the Coinbase homepage, you can begin purchasing cryptocurrency.

Does now Appear to be a Good Time to Invest in Crypto?

After a handful of cryptocurrencies recently achieved record highs in price, they’ve been making headlines.

The price of Bitcoin surpassed $68,000 in early November; more than double what it was in July. It was also in November that Ethereum, the second-largest cryptocurrency in terms of market value after Bitcoin, reached a new all-time high. Additionally, there is a growing interest in altcoins (cryptocurrencies other than Bitcoin).

In the first several months of 2021, Dogecoin rose by 8,000% and is presently trading for $0.27 (as opposed to $0.01 at the beginning of the year). Shiba Inu coin, a popular meme coin, soared 700% in October alone.

Of course, as an investor, you should be concerned about this information. You should aim to purchase low and sell high at all times in order to maximize your profits. Although the future of cryptocurrency pricing is unknown, recent record highs make it more difficult for investors who buy in now to reap future rewards.

**Onlinecloudsecurity.com is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a way for websites to earn advertising revenues by advertising and linking to Amazon.com and affiliated sites. As an Amazon Associate we earn affiliate commissions from qualifying purchases.**

Dave Miller with Online Cloud Security

Dave Miller

IT Consultant at Online Cloud Security

Dave Miller is an IT Consultant for Online Cloud Security and has over 7 years of experience in the Information Technology space. He also specializes in repairing laptops & computers. In his spare time, he loves to talk about new technologies and hosts monthly IT and Cyber Security meetings in the Houston area.

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About Online Cloud Security:

Online Cloud Security is here to recommend you the most secure devices, from laptops to smartphones, we only want to provide you with products that we have tested and used ourselves for online security. Every product that we recommend is heavily inspected and tested for security against hackers, viruses, malware, and any other intruders that may want to steal your information. 

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Online Cloud Security Logo (500x500px)

About Online Cloud Security

Online Cloud Security is here to recommend you the most secure devices, from laptops to smartphones, we only want to provide you with products that we have tested and used ourselves for online security. Every product that we recommend is heavily inspected and tested for security against hackers, viruses, malware, and any other intruders that may want to steal your information. 

Recent Posts: