Risks and Opportunities of Centralized Cryptocurrency Exchanges: Lessons from Coinbase Security Breakouts

Coinbase has an excellent security record, with no major security breaches occurring between 2020 and 2025, using technologies such as multi-party approval withdrawals, encryption and cold storage. Although Coinbase successfully blocked phishing attacks similar to 2018, operational risks such as withdrawal restrictions and user complaints about fees remain. The platform’s compliance and institutional-level security have put it in a favorable position amid the growing popularity of cryptocurrencies, but investors must balance these advantages with ongoing operational challenges.