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Not exactly. 'All digital currency that Coinbase holds online is fully insured. 'Coinbase holds less than 2% of customer funds online. The rest is held in off
by mjhoyer 9y ago
Not exactly.
'All digital currency that Coinbase holds online is fully insured.
'Coinbase holds less than 2% of customer funds online. The rest is held in offline storage.'
They only insure less than 2% of their coins. This does nothing to protect private keys that go missing or are destroyed in their offline wallets.
I would love to know that I'm wrong.
https://support.coinbase.com/customer/portal/articles/1662379-how-is-coinbase-insured- https://support.coinbase.com/customer/portal/articles/166237...
- billmalarky 9y agoI'm not associated with Coinbase so my knowledge extends to that same article you linked. You appear to be correct so far as the text of the article goes. In the future I imagine crypto wealth will be secured by breaking it into multiple wallets stored in vaults controlled by different organizations. That protects you from total asset loss due to institutional failure. And this type of failure isn't limited to crypto (see Bernie Madoff's hedgefund).