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