I remember getting on steemit for the first time and watching a video about how you should never store your crypto on an exchange, always use an external wallet. I was 100% on board with that. I can say i was until now maybe. I just ran across this on coinbase and am trying to figure out if it is new or if i just overlooked it a long time ago when i signed up over there.
It sounds like a good deal as long as the hack isn't through you loosing your password to someone. Are exchanges like coinbase now becoming more like banks? They are still not covered like traditional banks but it seems as though they are taking measures to ensure your money is safer than it use to be. What are your thoughts?
I was always told not to store funds on an exchange, but coinbase is both wallet and exchange. So not sure on that one. That being said, I am guilty of leaving small funds in coinbase. I never had to verify with them until I tried logging on last week. All of a sudden, they want ALL my personal information. And the only way I could even get onto my account to see what small change I left in there was to give it to them. Ugh..for that I won't leave any funds with them.
I believe that is because they have to report earnings to the IRS this year for anything over like $400. They have to be all legal begal now . I don't mind them, I am not trying to hide to much from the government :)
It all comes down to trust. If you don't own the private keys attached to your coins, you don't actually own the coins. I use Coinbase for buying and selling, but store them on my machine at home with my backed up offsite or in cold storage.
Yes and that is the traditional way of doing it. I just found that hi-lighted part weird. It says it is from December but I was not sure if that was new or Just an update on that day.