It’s 2025 and crypto space makes the headlines with assets from exchanges being phished or neo brokers suddenly freezing their crypto offering amidst regulatory challenges. Security and trust is still an important decision making criteria when investors look for a home for their crypto trading.
We have compiled reasons why Coinbase is the most trusted crypto app (surveys conducted by YouGov and Qualtrics in Q4’22 and Q1’23). One reason is that we transparently work with the Web3 community, researchers, and developers to make on-chain solutions genuinely secure.
1. 100% Custody of Customer Assets’ Value
Coinbase holds the full reserve of customer deposits – all assets are fully backedand not reused. Coinbase does not use any customer funds without permission. This practice is confirmed by regular audits from independent auditors.
2. Crypto Stored Offline and Decentralized
Coinbase stores up to 97% of cryptocurrencies in cold wallets (Coinbase, “A behind the scenes look”, 2018), which are offline and geographically distributed. These wallets use Multi-Party Computation (MPC, Coinbase: The Standard in Crypto Custody, 2025) and Hardware Security Modules (HSM, Coinbase, “A behind the scenes look”, 2018)). MPC refers to a cryptographic technique where crypto keys are split among multiple parties, reducing the risk of a single point of failure as no single actor has access to all the required information to access an account. HSM is a hardware component designed specifically for the secure storage of cryptographic keys and the execution of cryptographic operations.
3. Custodian of Bitcoin and Ethereum ETFs*
Financial giants use Coinbase (BusinessWire, 2024) as the custodian for their Bitcoin and Ethereum ETFs.
- Coinbase is trusted with the secure custody of crypto assets
- Provides a robust and reliable trading infrastructure
- Maintains high trading volumes, ensuring sufficient liquidity for the ETF product
- Coinbase values compliance with regulatory requirements
Crypto ETFs, incidentally, are among the fastest-growing financial products ever. The Blackrock ETF alone has grown to a net asset value of over $85 billion since January 2024 (as of October 2025) according to Bitbo. GLD, the biggest gold ETF, in comparison has $140 billion assets under management as stated in the official factsheet.
4. World Class IT and Data Security
Personal data is protected at rest with 256 bits of encryption using standard algorithms also used by governments, financial institutions, and military organizations. To transmit data between customers and the platform, Coinbase uses state-of-the-art SSL/TLS standards (Secure Sockets Layer / Transport Layer Security). In particular, TLS 1.2 and TLS 1.3 encryption and authentication offer protection against the most common types of cyberattacks and more advanced types, such as man-in-the-middle attacks.
5. Phishing Protection I: Advanced 2FA Methods
Two-factor authentication (2FA) to protect your account from phishing attacks is standard, and Coinbase offers a variety of the most advanced 2FA methods, including apps, SMS, or tokens for identification, as well as U2F security keys (such as Yubikey).
6. Phishing Protection II: Coinbase Vault
Another unique feature is the free Coinbase Vault: users can specify if additional persons must confirm transactions. There is a 48-hour waiting period for each transaction. Additionally, Coinbase sends email confirmations for all activities and changes to your account, allowing you to detect suspicious activity immediately. In an emergency, the account can be locked 24/7 via a free hotline.
7. Integrated Wallet for Self-Custody of Crypto Keys
Coinbase offers a free software wallet* that can be connected to the Coinbase account with just a few clicks. With the Base app, customers can manage the addresses and keys for thousands of cryptos on EVM-compatible chains themselves. Regardless of what the future holds, customers have full, sole control over their crypto assets. Those who use the proprietary Layer 2 solution Base for wallet transfers of cryptocurrencies pay no—or only minimal—network fees (so-called gas fees).
8. Licensed in Luxembourg – available across Europe
Coinbase became the first company to receive BaFin’s crypto custody licence in June 2021, a milestone that established an early, audited compliance footing in Germany’s regulated market. Coinbase also obtained separate local registrations in Ireland, France, the Netherlands, Italy, and Spain. Now Coinbase’s Luxembourg entity is authorised under the EU’s MiCA Regulation (Markets in Crypto Assets Regulation) to offer crypto services across the EEA.
9. Included in the S&P 500
With the stock market listing comes transparency requirements, such as quarterly reports containing audited figures on liquidity and current business development being publicly accessible. Although some crypto brokers have announced their stock market launches, Coinbase Global, Inc. remains the first pure crypto exchange listed on a US stock exchange – now being included in the S&P 500. Which gives its customers additional reassurance that the company’s claims are genuine, the financials are healthy, and that it adheres to regulatory standards.
10. Mature, well‑funded bug bounty programs to improve reliability and security
Coinbase runs a long‑standing bug bounty with documented large payouts (including a $250,000 award) and launched a dedicated on-chain bug bounty with rewards up to $5 million—engaging hundreds of independent researchers to continuously harden defenses.
*This service is provided to customers outside the EU and is powered by Coinbase Custody Trust Company, LLC (part of Coinbase Institutional).
Disclaimer:
Trading in crypto is highly risky and may not be suitable for all as the entire amount invested
could be lost. Information is provided for educational purposes only and is not investment
advice. This is not a recommendation to buy or sell a particular digital asset. Coinbase makes
no representation on the accuracy, suitability, or validity of any information provided or for a
particular asset.
This is an article written by Coinbase, Fintechnews does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. Readers should do their own research before taking any actions related to the company. Fintechnews is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.
Please note this is no investment advice.
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