Securities and Exchange Commission requires users to verify their identities when registering for digital wallets as part of its Anti- Money Laundering Policy. Coinbase offers a secure «multisig vault» to host user keys. We are committed to researching, testing, and recommending the best products. The biggest downsides of CoinExchange are a lack of mobile apps, lower trading volume than some other platforms and vague security policies. Bitcoin Definition Bitcoin is a digital or virtual currency created in that uses peer-to-peer technology to facilitate instant payments. Square is a huge financial technology company that includes many other services. Some users protect their private keys by encrypting a wallet with a strong password and, in some cases, by choosing the cold storage option; that is, storing the wallet offline.