It is not the first time that we heard about exchanges being hacked and funds of those customers of exchanges were stolen.
Many exchanges are using Google Authenticator that generates a code before the real account holder can access the account but we heard about how hackers are trying to duplicate such code to hack the accounts recently too.
We were advised by many seasoned traders not to store our cryptocurrencies on exchanges and it is good to get a hard wallet like ledger to keep our funds offline.
I read about the breach of ledger this year too so hard wallet may not be totally secured too.
I have an account at Coinbase for a couple of years and I have only recently noticed that it has an insurance policy for the funds that its customers stored with Coinbase.
More than 98% of its customers’ funds were stored in cold storage while the funds in its online hot storage are insured.
A breach at Coinbase would activate its insurance policy to cover its customer funds lost.
Nevertheless, this insurance policy would not cover individual Coinbase account if there is a compromise.
As a customer, it does give me extra confidence when I know that there is an insurance policy for my funds at Coinbase even though it only protects when it is a breach due to its own security issues.
Find out more about how funds are insured at Coinbase in the post below.