> they have both insurance coverage and FDIC coverage on all accounts makes me much more likely to refer people interested in starting w Bitcoin there than anywhere else.
Very misleading statements.
The FDIC coverage does not include any bitcoin wallets.
The bitcoin insurance only covers their hot wallets (something like 2% of all the bitcoin they hold). Yes, cold storage is a bitcoin security best practice, but it obviously does not eliminate the chance that a breach could occur, and if it does, none of that 98% is covered.
With that said, to Coinbase's credit, they haven't been hacked yet, which is actually quite an achievement considering the landscape.
Very misleading statements.
The FDIC coverage does not include any bitcoin wallets. The bitcoin insurance only covers their hot wallets (something like 2% of all the bitcoin they hold). Yes, cold storage is a bitcoin security best practice, but it obviously does not eliminate the chance that a breach could occur, and if it does, none of that 98% is covered.
With that said, to Coinbase's credit, they haven't been hacked yet, which is actually quite an achievement considering the landscape.