As a self-custody wallet in a tough crypto market, Coinbase Wallet recently tweeted about its significance. The post began by stating that anytime the crypto sector experiences volatility, it is a good time for people to reevaluate the safety of their cryptocurrency holdings.
Coinbase argues that there is room for nuance in the self-custody vs. custodial discussion. Coinbase and the Coinbase Wallet are used by millions of individuals because they complement one another.
Users are in charge of their own finances and private keys using Coinbase Wallet. Coinbase claims that they cannot even access customer funds without the users’ recovery phrase.
When it comes to the assets of users, the Coinbase Wallet does not support the feature known as “Auto-Conversion.” If a user has USDC stored in their Coinbase Wallet, for example, that asset will continue to be listed as USDC. The same principle applies to each and every one of the more than one hundred thousand different tokens that may be stored in a Coinbase Wallet.
Users will be able to securely store prominent assets such as Bitcoin, Ethereum, Binance Coin, and Polygon thanks to the support for more than one hundred thousand different tokens. Users will also be able to store stablecoins such as USDC, USDT, and BUSD.
According to Coinbase Wallet, customers delegate the administration of their digital assets to a third party when they store their cryptocurrency on an exchange rather than in a self-custody wallet.
In their words:
“We want to reinforce that for assets custodied with Coinbase’s exchange, Coinbase holds all customer funds 1:1. We believe self-custody wallets need to be as simple and intuitive to use as any centralized exchange.”