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10 sats \ 1 reply \ @0xbitcoiner 13h \ on: I'm Dave Birnbaum, VP Product at Coinbits. AMA! AMA
Today I shared a link from river with 11 questions. I'd like you to answer them. Thanks!
To help you do your diligence on security and custody, we share 11 questions you should be asking your bitcoin exchange.
  1. How is my bitcoin secured?
  2. How do you help me protect my account?
  3. Do you use third parties for your custody?
  4. Do you lend out client deposits?
  5. Do you have Proof of Reserves?
  6. Has your data or custody ever been compromised?
  7. How do you protect my information?
  8. How are dollar deposits secured?
  9. What happens to my funds if you go bankrupt?
  10. Do you have insurance?
  11. Are you audited, licensed, and regulated?
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153 sats \ 0 replies \ @CoinbitsApp OP 13h
  1. It should be secured by YOU as soon as it settles. We offer hardware wallet integration and automatic withdrawals. We do not want to hold your bitcoin and do not benefit from doing so. Until you withdraw it, it's held with one of the major custodians, Fireblocks, Bitgo, or Coinbase, depending on circumstances.
  2. We require 2FA on all withdrawals.
  3. Yes, see above.
  4. No, in fact we do not hold or access your funds at all. Coinbits is software that allows you to automate fund flows and trades among your custodial accounts.
  5. No, see above; we do not touch the funds of our members.
  6. The short answer is no, though many of our members held accounts with Prime Trust, and that process is still playing out.
  7. User data is encrypted in transit.
  8. Coinbits members open a Cybrid account. Cybrid provides access to fiat rails and bitcoin liquidity. Ultimately any dollars you hold with them sit in a bank account with Cross River Bank.
  9. See above, we do not hold member funds.
  10. See above, deposits might be insured but not by us.
  11. We are strictly a software company that helps you move your money and convert between bitcoin and dollars using accounts at licensed and regulated institutions. Our partner, Cybrid, operates in all 50 U.S. states and is licensed and regulated.
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