If you’re like most people, you’re probably wondering if it’s safe to link your bank account to Coinbase. After all, Coinbase is a digital currency exchange and not a traditional bank. So, what’s the verdict? Is it safe to link your bank account to Coinbase?
Is Coinbase Linking Safe?
The short answer is yes, it is safe to link your bank account to Coinbase. Coinbase takes security very seriously and employs state-of-the-art security measures to protect your money.
Keep in mind that Coinbase is not insured by the Federal Deposit Insurance Corporation (“FDIC”) or guaranteed by/subject to Securities Investor Protection Corporation (“SIPC”), so your deposits do not have the safety of the bank, but that’s a discussion for another day! We’ll just focus on the actual link between your bank account and Coinbase in this article.
However, even though it is safe to link your bank account to Coinbase, there are a few things you should keep in mind. First of all, when you link your bank account to Coinbase, you are giving Coinbase permission to withdraw money from your account as needed to facilitate transactions. This means that if you have insufficient funds in your account when a transaction is made, Coinbase will still attempt to withdraw the full amount of the transaction from your account. This could result in overdraft fees from your bank.
In addition, because Coinbase is not a traditional bank, they are not subject to the same regulations as banks. This means that they may not offer the same level of customer protection as banks do. For example, if Coinbase goes out of business or suffers a data breach, you may not be able to get your money back. Therefore, it’s important to only keep as much money in Coinbase as you need for current or upcoming transactions.
How To Link A Bank Account To Coinbase
Linking a bank account to CoinbaseCoinbase: https://help.coinbase.com/en/exchange/trading-and-funding/adding-a-payment-method is a simple and straightforward process. First, sign in to your Coinbase account and navigate to the “Settings” page. On this page, you’ll find the “Linked Accounts” section near the bottom. Here, you’ll see the various account types that you can link to Coinbase, including bank accounts. Click on the “Link a New Account” button and select “Bank Account” from the list of options.
You’ll then be prompted to enter your bank account information, including your account number and routing number. Once you’ve entered this information, Coinbase will verify your bank account and link it to your account. You can then use your linked bank account to buy and sell cryptocurrencies, as well as store them in your Coinbase wallet.
The transfers can happen via wire transfer or ACH, just as you’d do with any bank transfer. Both of these methods are extremely secure, so long as you safeguard your personal information and use strong passwords that are not used other places. Both wire and ACH see billions of dollars transferred through them every day, so you can feel good about using them.
So, is it safe to link your bank account to Coinbase? The short answer is yes. However, there are a few things you should keep in mind before you do so. Make sure you understand the risks involved and only keep as much money in Coinbase as you need for current or upcoming transactions.