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10 Reasons Why Coinbase is a Crypto Broker You Can Trust


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It's 2026, and the 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 are still important decision-making criteria when investors look for a home for their crypto trading.
Coinbase has compiled 10 reasons why it is the most trusted crypto app (surveys conducted by YouGov and Qualtrics in Q4'22 and Q1'23). In addition to the reasons below, Coinbase transparently work with the Web3 community, researchers, and developers to make on-chain solutions genuinely secure.
10 Reasons Why Coinbase is a Crypto Broker You Can Trust
1. 100% Custody of Customer Assets' Value
Coinbase holds the full reserve of customer deposits – all assets are fully backed and 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 Decentralised
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 in 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 organisations. 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. Regardle...
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