Security of our services is one of our top priorities. Because cryptocurrency transfers are fast and irreversible, we want to offer our customers one more way to keep themselves safe.
Vault is a time-locked storage service for our customers, which increases the security of your account. Funds deposited in the vault are subject to a time lock, which can be set between 12 hours and 30 days. You set the duration of the time lock yourself. When you withdraw cryptocurrencies from the vault, the withdrawal will only take place after the time lock you have set for the vault. Each withdrawal will be confirmed by a code received via e-mail and, if you wish, you can also activate text message confirmations. This will give you time to react if an outsider would get possession of your account credentials.
It is not possible to override the time lock, so please only deposit funds in the vault that you do not need for immediate trading or transactions. The monthly fee for the vault is 1 € / month per cryptocurrency. This is deducted from the cryptocurrency funds deposited in the vault on a monthly basis. The first month’s fee will be automatically deducted as soon as you make a deposit into the vault.
Vault and taxation on cryptocurrencies
The vault also helps with tax planning. If you are interested in trading in cryptocurrencies or selling your holdings, cryptocurrencies are taxed on a FIFO basis. This “First In, First Out” principle practically means that from a tax point of view you are always considered to have sold the oldest cryptocurrency you own.
Here’s an example: by depositing all your current bitcoins into your vault account, you will be able to separate future purchases from your old retained funds. Once transferred to the vault, you will only have the new bitcoins purchased in the future, after your initial vault deposit. Therefore, when you only sell these new bitcoins you just purchased, you are not touching your oldest holdings.
Additional information security
We recommend enabling 2-step authentication to improve the security of your account. This means downloading a separate Google Authenticator app to your phone, which generates a new password every minute. Without this app you will not be able to log in to your user account. If you lose access to the authenticator app, we will be able to restore access to your account from Coinmotion Customer Service. For instructions on setting up 2-Step Authentication, visit our Help Center.