does coinbase insure your crypto

Coinbase provides both FDIC (fiat currency) and specialized Coinbase insurance (cryptocurrency) coverage, protecting user balances up to $250,000 in case of incidents related to the exchange's operations.

Oct 26, 2024 at 11:41 am

Does Coinbase Insure Your Crypto?

Coinbase is a popular cryptocurrency exchange, and it offers a variety of services to its users, including cryptocurrency storage and insurance options. But does Coinbase actually insure your crypto?

The answer is yes. Coinbase offers two levels of insurance for its users:

1. FDIC insurance: This insurance protects your fiat currency balance (i.e., your U.S. dollars or other national currency) up to $250,000 in the event that Coinbase is hacked or goes bankrupt.
2. Coinbase insurance: This insurance protects your cryptocurrency balance, up to $250,000, against Coinbase's own operational errors (e.g., if your funds are accidentally sent to the wrong address).

It is important to note that Coinbase's insurance policies do not protect against the following:

• Cryptocurrency price fluctuations: Coinbase is not responsible for any losses you incur due to the volatility of the cryptocurrency market.
• Unauthorized access to your account: Coinbase will not be held liable for any losses you incur if someone else gains access to your account without your permission.
• User error: Coinbase will not be held liable for any losses you incur due to your own mistake, such as sending funds to the wrong address.

How to File a Claim

If you need to file a claim, you can contact Coinbase support through the "Help Center" on the Coinbase website or via the Coinbase app.

Conclusion

Coinbase offers two levels of insurance for its users: FDIC insurance, which protects your fiat currency balance, and Coinbase insurance, which protects your cryptocurrency balance. However, it is important to understand what is and is not covered by these insurance policies.