Is CoinStats Safe? A 2025 Security Review

The question is CoinStats safe is critical for cryptocurrency investors seeking a reliable portfolio tracker to manage assets across exchanges and wallets. CoinStats, launched in 2017, is a popular platform supporting over 20,000 cryptocurrencies, 300 exchanges, and 100 blockchains, offering real-time tracking, DeFi integration, and a semi-custodial wallet. While it boasts military-grade encryption and read-only API access, a June 2024 security breach compromising 1,590 wallets raised concerns. This SEO-optimized article examines is CoinStats safe by analyzing its security measures, the 2024 incident, user experiences, and best practices for safe usage in 2025.

CoinStats Security Features

CoinStats emphasizes robust security to protect user data and funds:

• Military-Grade Encryption: The platform uses advanced encryption to secure user data, ensuring portfolio details and API keys remain confidential.
• Read-Only API Access: For portfolio tracking, CoinStats requests read-only access to connected exchanges (e.g., Binance, Coinbase) and wallets (e.g., MetaMask, Ledger), preventing unauthorized fund transfers.
• Two-Factor Authentication (2FA): Users can enable 2FA and biometric authentication for added account protection.
• Semi-Custodial Wallet: CoinStats’ wallet encrypts private keys, allowing access across devices, but users retain control, reducing risks compared to fully custodial solutions.
• Audited Infrastructure: Post-2024 breach, CoinStats rebuilt its systems with oversight from experts like ZachXBT and MetaMask’s security head, enhancing safeguards.

These features suggest CoinStats prioritizes security, but the 2024 incident highlights potential vulnerabilities.

The June 2024 Security Breach

On June 22, 2024, CoinStats suffered a significant security breach, attributed to North Korea’s Lazarus Group, affecting 1,590 semi-custodial wallets (1.3% of total wallets), with $2.2 million in crypto stolen. The attack exploited unauthorized intrusions across multiple services, accessing private keys of affected wallets. Key points:

• Scope: Only wallets created within CoinStats were impacted; externally connected wallets (e.g., MetaMask, Binance) remained safe due to read-only access.
• Response: CoinStats shut down its app within hours, rebuilt its infrastructure, enforced mandatory password updates, and recommended 2FA. They engaged law enforcement and security experts like Security Alliance.
• Scams Post-Breach: Scammers exploited the incident via fake refund programs and a phishing notification claiming a 14.2 ETH reward, directing users to a drainer website. CoinStats warned users to avoid suspicious links.
• Current Status: As of July 3, 2024, all functionalities were restored, with no evidence of stolen user data beyond the affected wallets. A form was provided for victims to report losses by August 15, 2024, for potential support.

While CoinStats acted swiftly, the breach exposed risks in its semi-custodial wallet, raising questions about is CoinStats safe for storing funds.

User Feedback on CoinStats Safety

User reviews on platforms like Trustpilot, Reddit, and Product Hunt offer mixed perspectives on is CoinStats safe:

• Positive Feedback: Many users praise CoinStats’ ease of use, integration with 300+ exchanges and wallets, and responsive support. Trustpilot rates it 4.3/5 from 8,888 reviews, with users highlighting accurate tracking and DeFi support.
• Negative Experiences: Some users reported losses from the 2024 breach, criticizing slow communication and lack of reimbursement updates. One Reddit user lost funds due to an “internal staff error” and received no response from [email protected]. Others noted syncing issues and incorrect portfolio stats.
• X Sentiment: Posts on X reflect cautious optimism, with users like @SecurityElena valuing CoinStats for tracking audited projects but warning against speculative assets. Others, like @Pete_Burgers, expressed distrust, claiming “100% of your crypto gets stolen,” though this lacks evidence.

The breach significantly impacted trust, but positive reviews suggest CoinStats remains reliable for portfolio tracking when used cautiously.

Is CoinStats Safe for Portfolio Tracking?

For portfolio tracking, CoinStats is generally safe due to its read-only API access, which prevents direct fund access. Connecting exchanges like Binance or wallets like MetaMask involves sharing public API keys, not private keys, minimizing risks. Industry-standard encryption and 2FA further enhance security. However, users must:

• Verify API permissions to ensure read-only access.
• Enable 2FA to prevent unauthorized account access.
• Avoid manual portfolio entries, which can be manipulated to show false balances.

The 2024 breach did not affect tracking functionalities, reinforcing that is CoinStats safe for monitoring assets when using external wallets.

Is CoinStats Safe for Its Wallet?

The semi-custodial wallet, where CoinStats stores encrypted private keys, poses higher risks, as evidenced by the 2024 breach. Unlike hardware wallets (e.g., Ledger, Trezor), which CoinStats supports, the semi-custodial wallet relies on CoinStats’ infrastructure, making it vulnerable to sophisticated attacks like the Lazarus Group’s. Users storing significant funds should:

• Transfer assets to hardware or non-custodial wallets (e.g., MetaMask, Trust Wallet).
• Export private keys and secure them offline, as CoinStats advised post-breach.

For small amounts or DeFi activities (e.g., staking with up to 20% APY), the wallet may suffice, but caution is warranted.

Regulatory and Trust Concerns

CoinStats is not authorized or registered by the UK’s Financial Conduct Authority (FCA), raising concerns for UK users about regulatory protections. The FCA warns of potential scams and lack of access to the Financial Ombudsman Service for complaints. Additionally, some users on Product Hunt and Reddit accused CoinStats of fraudulent practices, such as unauthorized charges or unrecoverable funds, though these claims are unverified and countered by CoinStats’ support responses. The 4.3/5 Trustpilot rating and positive reviews suggest legitimacy, but regulatory gaps and the breach warrant vigilance.

Best Practices for Using CoinStats Safely

To ensure is CoinStats safe for your needs:

• Use Read-Only APIs: Connect exchanges and wallets with read-only permissions to prevent fund access.
• Enable 2FA: Activate two-factor authentication and biometric login for account security.
• Avoid Semi-Custodial Wallet: Store significant funds in hardware or non-custodial wallets, not CoinStats’ wallet.
• Beware of Scams: Avoid clicking links in unsolicited emails or notifications, especially post-breach phishing attempts. Use tools like Bitdefender Scamio to verify suspicious messages.
• Monitor Updates: Check CoinStats’ blog and X posts for security updates and report issues to [email protected].
• Verify Support: Contact CoinStats only via official channels (e.g., in-app chat, verified social media) to avoid scams.

Alternatives to CoinStats

If concerns about is CoinStats safe persist, consider alternatives:

• CryptoView: Emphasizes high-level security for API keys and does not hold funds, offering a safer tracking option.
• Blockfolio (FTX): Supports more exchanges but lacks CoinStats’ DeFi focus.
• CoinGecko: Free, with robust tracking but fewer wallet integrations.
• Zerion: A mobile-first wallet with strong privacy features, ideal for DeFi users.

These platforms may offer different security profiles, so research their features and reviews.

Is CoinStats Safe Enough for Your Crypto Needs?

The question is CoinStats safe has a nuanced answer. CoinStats offers robust security for portfolio tracking with read-only APIs, military-grade encryption, and 2FA, making it reliable for monitoring assets across 300+ exchanges and wallets. However, the June 2024 breach, affecting 1,590 wallets and $2.2 million in losses, exposed vulnerabilities in its semi-custodial wallet, attributed to a sophisticated attack. While CoinStats swiftly mitigated the issue and restored functionality, user complaints about support and regulatory concerns highlight risks. For tracking, CoinStats is generally safe, but avoid its wallet for significant funds, opting for hardware solutions instead. How will you balance CoinStats’ features with its risks in managing your crypto portfolio in 2025?