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Dave Miller – Tech Enthusiast & Security Expert – November 30th, 2021
Now that cryptocurrencies have grown more popular, there are various ways to acquire and trade them on your own. If you’re into trading cryptocurrencies, you’ve already probably heard of Coinbase, one of the leading cryptocurrency exchanges. The ease with which Coinbase makes it possible to buy Cryptocurrency has led to its exponential increase in popularity. It is also the sixth-largest cryptocurrency exchange based on 24h volume trade globally with over 5.48 Billion US dollars. It might be daunting if you’re new to Coinbase and possibly even cryptocurrencies in general. But opening a Coinbase account is simple, but what particular users found troubling is thinking about Is It Safe To Upload Drivers License To Coinbase?
I have all of the answers for you here; keep reading to learn more about your privacy and security issues you have on your mind.
With Approximately 73 million verified users already, opening an account on Coinbase is a straightforward process. After you’ve filled out the Sign-Up form on Coinbase.com with your first and last name, email address, and password, you’ll be ready to go through the protocols to verify your identity. It is the most crucial step since the more information you submit, the more Cryptocurrency you will be able to purchase each, and the safer your account will be.
Note: Because adopting an alias may lead your identification to be validated later, use your actual name as it appears on your passport or driver’s license. Make sure your email gets worded appropriately as well.
To comply with KYC standards, Coinbase utilizes Identity Verification. The process of identifying and validating that a customer is whom they claim to be is known as KYC. It’s a multi-step process that helps prevent the creation and usage of false accounts.
You’ll get asked to upload and authenticate your identity by submitting copies of a government-issued photo ID, such as a drivers license, once you’ve completed the address phase of the initial account setup. Depending on whatever country you are situated in, additional documentation will be required. Furthermore, confirming your identification aids Coinbase in preventing fraud on their platform, as well as their privacy promise of never selling or renting your personal information to other parties.
Some consumers may have fallen victim to a phishing attempt in the recent past, between March and May, and given over their credentials to cybercriminals. According to Coinbase, the phishing attempt resulted in the loss of assets from at least 6,000 clients.
Note: The exchange has completely repaid individuals whose money got stolen, but it is now advising all of its clients to increase their security precautions.
At this point, Users’ trust in services like Coinbase is shattered as a result of incidents like these, prompting the apparent inquiry, “Is It Safe To Upload Drivers License To Coinbase?”
Crypto exchanges are fast becoming essential in financial systems, and most individuals have been fascinated about and explored these marketplaces outside of economic systems. Cryptocurrencies aren’t going away anytime soon, and many countries have made efforts to make their usage legal and taxable. Unfortunately, criminals have taken advantage of the system’s flaws and surfaced on cryptocurrency exchanges.
In general, Coinbase is as secure as other well-known exchanges. However, like all other trading and investment platforms, it comes with its own set of hazards.
Coinbase is a FinCEN-registered Money Services Business that follows the Bank Secrecy Act, the USA Patriot Act, and state money transfer rules and regulations. Coinbase, as a firm based in San Francisco, is expected to follow all applicable federal and state laws and regulations.
Coinbase is held accountable by these regulations and laws, which may be absent in some rivals in nations with less stringent restrictions. It’s also worth mentioning that several reputable investors back Coinbase and many shares have recently been bought by notable firms
Alexis Ohanian (Co-Founder of Reddit), Blockchain Capital, and Bank of Tokyo are the platform’s early investors.
Is it safe to upload your DL (driver’s license) to Coinbase? In short, Yes, but you have to keep in mind that Cryptocurrency is risky, volatile, and unpredictable by design. When utilizing an online platform like Coinbase or another crypto exchange, there’s always the risk of your information being exposed to an unauthorized third party, whether through phishing scams or a cyber security incident. It is a danger that all popular crypto and stock exchanges face. Coinbase has already made measures to educate its consumers about phishing scams by providing them with helpful information.
New laws and regulations will get implemented over time, and depending on their shape and form, they might have significant ramifications for cryptocurrency investors.
Coinbase’s crypto portfolio has grown significantly, with roughly hundreds of coins now available. Although Cryptocurrency is covered if the website gets hacked: they will make every effort to make you whole in a covered security occurrence.
The only drawback is that, unlike other cryptocurrency brokerages, Coinbase is not protected by the FDIC or the SIPC: Losses occurring from unauthorized access to your Coinbase account as a consequence of a breach or loss of your credentials, with third-party are not covered by the government, but instead with Insurance coverage.
Coinbase is one of the largest and most well-known crypto-trading platforms available, with several security safeguards to protect your personal information.
Any desktops or mobile devices that run wallet software should employ two-factor authentication as a best practice. Fingerprint recognition or a PIN requirement can be an additional security measure if you use mobile devices. Digital currencies are likewise not subject to the same regulations as regular assets. To avoid being duped, overcharged, or denied access to your funds, properly research any crypto service or software you want to use.
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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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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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