3 ms·

So how does Coinbase do it?

• lojack 10y ago
  Coinbase uses cold storage. They have some reserves in hot storage, but presumably less funds accessable makes them a smaller target. Correct me if I'm wrong, but I believe they are able to pull this off because they aren't technically an exchange. Coinbase Exchange may be all in hot storage, but they provide a seamless way to transmit your exchange reserves to a cold storage backed wallet.
  • teod 10y ago
    Couldn't find too much information on this, but I see that [https://support.gdax.com/customer/portal/articles/2436336 https://support.gdax.com/customer/portal/articles/2436336] under "Is GDAX's ether hot wallet insured?" states "The majority of ether and bitcoin deposited to GDAX is held in highly secure cold storage." (GDAX is Coinbase's exchange platform) See also [https://www.coinbase.com/security https://www.coinbase.com/security].