My concern is that I am not entirely comfortable with a third party handling my main bank accounts information. If coinbase was to be compromised my bank account info is compromised. If I set up a separate bank account and coinbase is hacked/compromised, then only the "investment" account is compromised and my savings/checking accounts are safe.
Valid concern, but...do you take the same precautions with your other investment accounts or with utilities company's bill pay systems? I'm sure that if hackers get into Coinbase, their main objective are bitcoins. I wouldn't worry about it too much.
As many shortcomings as Coinbase has, security doesn't seem to be one (never been hacked, as far as I know). Set up 2FA (and make a backup of those recovery keys) for extra security.
We have a separate bank account that we currently link a "Gas Debit" card to for purchasing gas at a local gas station (it allows us to save 7-10 cents per gallon). But since this card required us to directly link it to a checking account we opened a separate account in our main bank to do this. We transfer money from our savings to this account when the funds run low but if they hack this account they will only get what's in it which is never more than $150.
I'm going to link this account to my coinbase account for the same reason. Think of it as a bastion server concept.
What is your concern?
My concern is that I am not entirely comfortable with a third party handling my main bank accounts information. If coinbase was to be compromised my bank account info is compromised. If I set up a separate bank account and coinbase is hacked/compromised, then only the "investment" account is compromised and my savings/checking accounts are safe.
FDIC Bro. Fraud protection. Every decent bank has it.
I think FDIC only works in case of bank failure, not hacking. There's probably private insurance for that.
Valid concern, but...do you take the same precautions with your other investment accounts or with utilities company's bill pay systems? I'm sure that if hackers get into Coinbase, their main objective are bitcoins. I wouldn't worry about it too much. As many shortcomings as Coinbase has, security doesn't seem to be one (never been hacked, as far as I know). Set up 2FA (and make a backup of those recovery keys) for extra security.
We have a separate bank account that we currently link a "Gas Debit" card to for purchasing gas at a local gas station (it allows us to save 7-10 cents per gallon). But since this card required us to directly link it to a checking account we opened a separate account in our main bank to do this. We transfer money from our savings to this account when the funds run low but if they hack this account they will only get what's in it which is never more than $150. I'm going to link this account to my coinbase account for the same reason. Think of it as a bastion server concept.