Coinbase Down Due to High Traffic
ExchangesBit News Today2 min read
On Tuesday, several major crypto exchanges, including Coinbase, experienced a sharp drop in service due to high trading volume in the lead-up to the end of the tax year.
It was not the first time this has happened to the exchange in a short period of time - Coinbase also faced a major outage earlier in the month.
A similar problem occurred on Coinbase's GDAX platform, a more advanced trading site from the same company, which also experienced connectivity issues around the same time.
As users expressed frustration on social media, both exchanges gradually restored their services, taking several hours.
GDAX said the issue had been caused by "a single database leading to degradation in service." Coinbase released a similar message, writing that the outage was "due to a sharp increase in web traffic."
Both companies stressed that their services were back up and running after the service disruption that lasted most of the day.
While GDAX resumed services in the evening, Coinbase was still down for all of its users as of late Tuesday. The lack of service on a major exchange on a Tuesday caused nervousness among cryptocurrency investors, as the Bitcoin and Ethereum prices saw a slight spike before leveling out.
"We know this is not good enough and we are determined to support the crypto community, clients, and internal stakeholders through this time," a statement from Coinbase said.
"We have experienced a sharp increase in web traffic as a result of recent volatility and we're working to stabilize." ## High Trafficking on Websites
Coinbase is not the only major exchange that has faced technical problems recently. Bitstamp also faced an issue with its service, though it did not last as long as Coinbase's.
The run of bad news comes as cryptocurrency has made headlines in recent weeks, with its meteoric rise and its impact on Wall Street sparking debate.
While many have called crypto the future of finance, others have sounded the alarm over its volatility and lack of regulation. ## What Should Investors Do?
For now, it seems like the best course of action is to just wait it out - the exchange says it has resolved the issue and is implementing "back pressure" to prevent a repeat.
For those who need to make a trade, there are still alternatives, as many other exchanges have not been affected.
With the holiday season in full swing, however, many people have less time to rely on a single exchange and might find themselves at a loose end when the New Year approaches.
As always, it is important to be prepared for these sorts of events. One good way to do so is to keep the majority of your cryptocurrency in a secure offline wallet and only transfer a limited amount to your exchange wallet.
