Why Use Coinbase Vault If You’re Not Quite Ready for Bitkey?

00:02 hey everyone i did a post uh yesterday I
00:04 think it was and I said “Hey look if
00:06 you’re not quite ready for Bit Key which
00:08 is the best way to secure your Bitcoin
00:11 at least enable the vault feature of
00:13 Coinbase if you have a lot of Bitcoin on
00:14 there.” And someone asked me a great
00:16 question which they were like “Hey help
00:18 me understand why would we use the vault
00:21 feature of bit of uh Coinbase?” Okay so
00:24 uh I’m pleased to report that at least
00:26 to my knowledge not a single person that
00:29 has onboarded to Bitcoin through me or
00:32 because of my videos or any of my
00:33 content to my knowledge zero people have
00:36 been hacked or scammed or invested in
00:39 some stupid cryptocurrency that wasn’t
00:41 Bitcoin or sort of majorly goofed in
00:44 some way so I think just like uh
00:46 companies have those big signs that says
00:48 you know how many days it’s been since
00:50 an accident I think we have a perfect
00:52 record i think that number is unlimited
00:53 we haven’t we haven’t had a glitch we
00:55 haven’t had an accident of course
00:57 there’s people that have not bought as
00:58 much Bitcoin as they wish they had but
01:00 that’s completely normal that’s not like
01:02 somebody getting scammed or hacked okay
01:04 so what is Coinbase Vault well when you
01:07 are securing your Bitcoin the goal
01:09 there’s different tools you can use to
01:11 secure your Bitcoin one of them is to
01:14 have a physical device the Bitkey device
01:17 which you can’t move large amounts of
01:19 Bitcoin without having physical
01:21 possession of that device and of course
01:22 there’s uh there’s backup mechanisms
01:24 which are super elegant if you somehow
01:26 lose it or you know it gets destroyed
01:29 somehow so they’ve thought of everything
01:30 but the short take is all of those
01:32 involve a 7-day waiting period which of
01:34 course is not something a scammer or a
01:36 hacker is going to want to wait for and
01:39 they all involve having possession of
01:41 either your phone or your contacts or
01:44 you know something so anyway so the best
01:47 way to secure your Bitcoin is with the
01:48 Bit Key device because it has the dual
01:51 benefit of not only keeping you safe and
01:54 secure from hackers and scammers but
01:56 also keeping you from being from your
01:58 Bitcoin being in control of Coinbase or
02:01 anywhere else it is it puts the Bitcoin
02:03 completely in your control now I know
02:05 some people just are not ready for a
02:07 physical device uh they’re concerned
02:09 it’s complicated it’s got a little
02:11 fingerprint reader on it they think it’s
02:13 going to be hard to set up the truth is
02:14 it’s like super simple you’re completely
02:16 configured and set up in less than 5
02:18 minutes it’s super straightforward so uh
02:20 but I understand some people are like
02:21 “Look I want I want my Bitcoin to be a
02:24 little more secure than just sitting on
02:25 Coinbase but I don’t I’m not ready to
02:28 buy a Bitkey.” Uh first I would say go
02:30 ahead and buy yourself a Bitkey it’s
02:31 like super simple if you can’t get there
02:33 so what is Coinbase Vault coinbase Vault
02:36 is a feature and to enable it you have
02:38 to log in from a web interface on a
02:40 computer or something like that you
02:42 can’t use the mobile app uh I guess you
02:44 can enable it like logging in from the
02:45 web interface on your phone but
02:47 regardless you have to be on a web
02:49 browser you can’t be in the mobile app
02:51 to enable it but basically you go in and
02:53 it says you know here’s your Bitcoin and
02:56 here’s how much of it is you know
02:57 sitting there and then there’s a a vault
02:59 feature and you can put a certain
03:01 percentage of your Bitcoin or a certain
03:04 amount or a certain dollar value of your
03:05 Bitcoin into the Coinbase vault so what
03:08 does that do it does a couple things one
03:10 it means if you want to move it out of
03:12 the vault there’s a 48 hour waiting
03:14 period so you got to wait 2 days if you
03:16 want to move the Bitcoin back to your
03:18 standard balance now when you log into
03:20 the app or the website you’re going to
03:21 see your whole balance you’re not going
03:23 to see how much of it’s in the vault um
03:25 versus how much of it’s just sitting
03:26 there but um but uh so any amount that
03:29 you want to use with the Coinbase debit
03:31 card has to be sitting in the main
03:32 balance just like a you know spending
03:35 account but any amount you don’t need
03:37 for the long haul you can put in
03:39 Coinbase Vault so anything in Coinbase
03:41 Vault requires two things to move it
03:43 back into your primary balance one it
03:46 requires authentication from at least
03:48 two email addresses and second it
03:50 requires um a 48 hour waiting period so
03:55 let me play out a scenario of what I’m
03:57 worried is going to one day happen to
03:58 somebody so they get a call out of the
04:00 blue at 9:30 at night scammers like to
04:03 try to catch people when they’re sort of
04:05 you know out of sorts or you know it
04:07 just catches them off guard anyway
04:09 somebody’s going to get that phone call
04:10 the person on the other end of the call
04:12 is going to claim that they are a
04:14 technical support representative from
04:15 Coinbase and that they are concerned
04:19 that the person’s Coinbase account has
04:21 been compromised and that they are from
04:23 the technical support department and
04:25 that they are there to help that person
04:28 move their entire Bitcoin balance over a
04:30 to a new secure account that this person
04:33 has set up just for them to keep their
04:36 Bitcoin super secure and I’ll walk
04:38 through at the end of this video exactly
04:39 how they do that but anyway the thing
04:41 the whole thing is a scam of course uh
04:43 the person is not from Coinbase even
04:46 though they tell you here’s my badge
04:47 number like seriously a badge number
04:49 they just like make up a badge number
04:50 and claim it’s their like security ID
04:53 badge number anyway um so I I am
04:56 concerned at some point somebody’s going
04:58 to fall for it and they are going to
04:60 move their Bitcoin balance over to uh
05:03 you know a scammer’s account which of
05:05 course means the scammer will
05:06 immediately disappear and run away with
05:08 it which we want to avoid so Coinbase
05:11 Vault is a good way for to keep that
05:13 from happening because it introduces a
05:15 48 hour waiting period and it also means
05:17 if somehow you uh someone compromises
05:20 your account or you give them the
05:22 password to your account that that is
05:24 not enough to move Bitcoin it has to be
05:26 authenticated by two email addresses
05:28 those can be two email addresses that
05:29 you control yourself or it can be your
05:32 email address and uh you know the email
05:34 address of your spouse or a loved one or
05:35 something like that so in that situation
05:38 you know a person if a scammer calls or
05:41 a you know the account gets hacked
05:42 somehow they’re going to log in and the
05:44 first thing they’re going to say is
05:45 “Dang it we can only get access to the
05:48 Bitcoin that’s not in the vault because
05:50 the vault requires us to get access to
05:52 two two different email addresses.” And
05:54 that’s obviously super difficult and
05:56 probably outside of their uh realm of
05:58 possibility for them to do and the other
06:00 thing which is if they need your help to
06:03 help them scam you or hack you which is
06:06 typically what it requires there’s a 48
06:08 hour waiting period and the way scammers
06:10 and hackers uh work is any sort of delay
06:14 that involves the person getting off the
06:15 phone allows that person to think
06:18 clearly and they do not want that person
06:20 thinking clearly because as soon as that
06:21 person starts thinking clearly they’re
06:23 going to think “Wait a second this
06:25 doesn’t feel right something’s weird
06:27 here this is you know this is not
06:29 right.” and then the scam is up and the
06:31 person is you know the scammer is not
06:32 going to get the money which of course
06:33 they want your money um so anyway so
06:35 Coinbase Vault is a great sort of in
06:37 between step to move some of your
06:39 Bitcoin again I always recommend between
06:42 70% and 90% of your Bitcoin be in
06:45 somewhere that is more secure than just
06:47 somewhere that you can move it like in
06:49 an instant with your phone um this also
06:53 even though the probability of this is
06:54 essentially zero and it’s not something
06:56 I really worry about for anybody that
06:57 watches my videos but it also means in
06:60 the extremely rare scenario that you get
07:02 held up in a gas station parking lot and
07:04 they say say “Give me your wallet give
07:06 me your purse and unlock your phone and
07:09 transfer any digital assets you have.”
07:11 Well you want to be in a position where
07:13 you’re like “Um I can but I can’t access
07:16 my vault it takes 48 hours.” And that
07:18 way they won’t get that Bitcoin because
07:20 nobody’s going to wait 48 hours uh scan
07:23 you know people that that would hold you
07:24 up in a gas station parking lot are not
07:27 going to wait around they want whatever
07:28 they can get fast and that’s it and
07:30 they’re gone so uh all that to say um
07:33 it’s we can avoid that with the Coinbase
07:35 vault as a sort of an in between step a
07:38 really good in-between step and Bit Key
07:40 is even better because you’re like I
07:42 don’t have my Bit Key it’s not on me
07:44 it’s in a secure location and it’s in a
07:46 safe deposit box at a bank or you know
07:48 at a friend’s house with a gun safe or
07:50 whatever it might be that is uh whatever
07:53 you consider the safest place to keep
07:55 you know your safest stuff so just think
07:58 about if you had a bag of diamonds or
08:01 something like that that was equivalent
08:02 in value to the Bitcoin you own well
08:05 where would you keep that that is
08:07 wherever your Bitkey device ought to be
08:08 so if you’ve got you know $10,000 of
08:11 Bitcoin just think well if I had $10,000
08:14 bills you know $100 bills sitting in a
08:16 stack where would I put that well the
08:17 answer is probably not in your car
08:19 probably not in your pocket you’d put it
08:21 somewhere more secure so wherever is the
08:23 most secure place you have to keep
08:24 things where you can still get them if
08:26 you need to but you know might take a
08:28 little while or it might be you know
08:29 more complicated require you to move
08:31 somewhere uh great well that’s where you
08:33 ought to keep your BitKey device but
08:35 again the the Coinbase uh Coinbase vault
08:38 feature does not require you to uh to
08:41 have anything extra there’s no extra
08:42 technical complexity you just can move
08:44 your money back and forth between your
08:46 primary balance and your vault and any
08:48 any uh Bitcoin in the vault takes 48
08:50 hours to move which makes sure it’s 48
08:53 hours out of reach of scammers and
08:55 hackers and everything okay so um that
08:59 is why I recommend Coinbase Vault i will
09:01 do a separate video uh immediately
09:04 following this one i will start
09:05 recording momentarily as soon as I can
09:07 make up a title for it explaining how
09:09 hackers operate and hopefully that will
09:12 help deter anybody from getting scammed
09:15 or hacked have a great night everyone