As one of the most widely used crypto exchanges in the world, Coinbase has long been considered a relatively secure platform for buying, selling, and storing digital assets. However, a recent cyberattack has once again reminded users across the UK and globally that no centralised exchange is completely immune from threats.

If you're a UK-based crypto user or investor, it's time to reassess how you're keeping your digital assets safe. Keep reading to learn what went down, why it's a big deal, and how you can keep yourself safe with better wallet alternatives.

What Went Wrong at Coinbase?

Incidents are reported to confirm that hackers staged an advanced phishing and social engineering attack for compromising sensitive user information on the Coinbase platform. Coinbase asserts that customer funds were not lost, but experts caution that these attacks are increasing in number and sophistication.

In past breaches, cybercriminals have employed techniques like:

• Spoof login pages to capture credentials
• Phishing emails with ill-intentioned links
• SIM-swapping methods to evade two-factor authentication
• Taking advantage of poor security habits of wallet owners

This incident is a wake-up call for UK cryptocurrency holders: depending only on an exchange to hold your assets can be dangerous.

Why UK Users Need to Take Notice

With more than 5 million individuals in the UK holding crypto (according to FCA statistics), and numerous of them employing centralised exchanges such as Coinbase or Binance, the potential damage resulting from a security breach is enormous. Not everyone of these users are crypto-literate, and numerous of them leave sizeable sums of crypto in their exchange wallets without realising the danger.

If your account is compromised or an exchange is hacked, you risk losing access to your funds forever, with minimal or no solution.

Best Wallet Options to Secure Your Funds

To minimize your risk, use a non-custodial wallet — one you hold the keys to, not the exchange.

Here are the leading types of wallets recommended for UK users:

1. Hardware Wallets (Cold Wallets): Best for long-term storage and premium-level security.

• Ledger Nano X / Nano S Plus – Very popular in the UK, highly trusted.
• Trezor Model T – User and open-source friendly.

Advantages: Not on the internet, safe from internet attacks.

Disadvantages: Must be bought; basic setup is required.

2. Software Wallets (Hot Wallets): Best for regular trading but with greater control than exchange wallets.

• Exodus – Simple, supports large number of coins.
• Trust Wallet – Secure, mobile, supports staking and NFTs.
• MetaMask – Ideal for Ethereum and Web3 convenience.

Pros: Zero cost, rapid access.

Cons: More exposed than hardware wallets if not properly secured.

3. Multi-Sig Wallets: Need multiple keys to sign a transaction — ideal for business users or shared holdings.

How to Secure Your Crypto

1. Turn on 2FA (ideally via an app, not SMS)
2. Don't reuse passwords
3. Never click on links in dodgy emails
4. Transfer funds to a personal wallet once bought
5. Securely and offline back up your wallet seed phrase

Whatever the Coinbase attack may teach us, it is that you are your own bank in the world of cryptos. Centralised exchanges are convenient, but not bulletproof.

So if you're serious about your assets — be it Bitcoin, Ethereum, or NFTs — it's time to upgrade to a secure, self-controlled wallet. Don't wait for the next hack to do so.

Your money. Your control. Your peace of mind.