About Coinbase Wallet

Coinbase is a prominent player in the cryptocurrency industry, known primarily for its exchange services, but they also offer a web-based wallet.

Control and Custodianship

When using the Coinbase wallet service, you are effectively entrusting them to act as a custodian for your cryptocurrency. This means that Coinbase will store your private key, which may reduce your level of control over your assets. However, Coinbase also offers a vault service where you retain control of your private keys.

Wide Range of Supported Digital Assets

The Coinbase wallet service supports a diverse range of digital assets, including ERC-20 tokens commonly used in ICOs and ERC721 tokens typically used for digital collectibles in decentralized applications (DApps) such as CryptoKitties.

Simplified Transactions

One advantage of using Coinbase's web wallet is the elimination of the need to manage complex cryptocurrency addresses. You can easily send funds to friends who use the Coinbase wallet without the hassle of dealing with addresses. Additionally, transactions between Coinbase wallets can occur off the blockchain, offering both advantages and potential security trade-offs with increased throughput.

User-Friendly Experience

The Coinbase wallet is renowned for its user-friendliness, with Coinbase offering some of the most intuitive services in the cryptocurrency industry. The wallet also incorporates multi-signature functionality, enhancing security, and users have the option to enable two-factor authentication for added protection.