Coinbase Vault Ensures High Security for Large Amounts of Bitcoin

Jul 03, 2014
Coinbase Vault

Coinbase Vault

Bitcoin casino enthusiasts eager to keep portions of all their winnings safe for investment purposes can do so now through Coinbase’s new service called The Vault.

The new account type announced yesterday offers users to store large amount of bitcoins in a storage designed to keep the bitcoins safe via the layers of security features commonly used by banks.

Coinbase CEO Brian Armstrong has been quoted saying, “A lot of people in the industry were interested in storing large amounts of bitcoin, more like an investment.”

He also said high net-worth individuals have been showing interests about storing their funds in a more secure storage that is not prone to threats of any kind.

The Vault, which promises to serve as more like a Bitcoin savings account, is protected in three ways. One is the 48-hour withdrawal delay, during which Coinbase will verify the request by contacting the user through different channels. Another is the multiple approval system, which enables the user to assign three or five Coinbase users to sign and allow the processing of the withdrawal request.

Moreover, this account type uses the cold storage approach that is practiced in its regular wallets, and guarantees that 97 percent of the funds are kept offline in various parts around the globe.

With the Coinbase Vault equipped to store million-dollar worth of bitcoins, Bitcoin users, including online bettors, can now keep their funds away from the potential risks of attacks and just set a portion of their bitcoins in their wallets for daily use.

“We recommend you store smaller amounts of bitcoin in your wallet for convenient spending, while using vaults for larger amounts of bitcoin and investment purposes,” read the post on the official Coinbase blog.

Through this, online players who wish to wager on Bitcoin casino games without fearing of exposing their bitcoins to possible threats can conveniently benefit from the latest innovation Coinbase rolled out. Likewise, big winners in poker tournaments or Bitcoin casino jackpots can transfer certain bitcoins to the vault and be at ease every time they use their wallet for other Bitcoin payments.

Initially available to only 5 percent of Coinbase users, the Vault service will be released to the public on July 16, and will be free to use, except for the one percent fee for the purchasing and selling of bitcoins.

On another note, Coinbase also announced its future addition of the multi-signature technology to its latest Bitcoin storage service to strengthen its security features.