Coinbase, Exchanges

Is Coinbase Wallet Custodial?

As the world’s largest cryptocurrency exchange, Coinbase has been a trusted and popular choice for buying and selling Bitcoin and other virtual currencies. Recently, the company has expanded its services to include a new wallet service called Coinbase Wallet. But is this new wallet service custodial?

To answer this question, we need to understand what custodial means in the context of cryptocurrency wallets. A custodial wallet is one where the private keys are stored by the service provider.

This means that the users do not have full control over their funds and the service provider can freeze or block access to funds at any time.

In contrast, a non-custodial wallet is one where the user controls their own private keys. This means that they have full control over their funds and can send and receive payments without needing approval from a third party.

NOTE: WARNING: Coinbase Wallet is custodial, meaning that Coinbase has access and control of your wallet and its contents. Coinbase also maintains control of your private keys, which are needed to access your wallet. Therefore, if you are considering using Coinbase Wallet, it is important to understand the risks associated with it.

So, is Coinbase Wallet custodial? The answer is yes. Coinbase stores the private keys for all wallets created on the platform.

This means that they have control over the funds in those wallets and can block or freeze access to them at any time.

While this may be seen as a downside by some, it also provides a level of security that non-custodial wallets cannot offer. If you are looking for a secure way to store your cryptocurrencies, Coinbase Wallet is a good choice.

However, if you value complete control over your funds, you may want to consider a different wallet option.

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