When a trader deals with crypto, the key aspect he must take care of is the safe storage of his assets. Thus, he must obtain a wallet with advanced anti-hacking protection. If you search for such a service on some forums for traders or just on the Web, you will definitely get a prompt to check a Coinbase hot wallet.
That is a self-custody online wallet. What does that mean? There is no third-party surveilling or controlling your assets. Instead, you are the only one to bear responsibility for them. In other words, you obtain a private key, which works as a complex password to manage your coins. By no means, anyone can get access to them without this key. In addition to total control over your assets, you are supplied with extended functionality, for example, you may make use of such features as staking or borrowing.
Now, to give you a short Coinbase wallet review, let us mention its major strong points:
· depositing and withdrawing crypto assets, as well as using them for paying for diverse goods and services at stores;
· over 100 assets are supported: stablecoins, altcoins, NFTs;
· a decentralized exchange is available;
· compatibility with decentralized apps;
· a proprietary mobile app;
· simple to navigate;
· integration with the Coinbase exchange;
· compensating for lost/stolen assets;
· multi-layer protection: a private key, recovery phrase, 2FA, biometric identification, PIN code/password;
· in case a user loses his key, he can restore access via his device;
· cold storage is available via the Coinbase exchange;
· an intuitive design friendly to beginners.
No doubt, every service also has its own inconveniences. So, some users of this wallet report that the local technical support requires improvement. Besides, in terms of security, some traders are concerned about the fact that its code isn’t available on open access.
There is another aspect that must be discussed as a separate point — fees. First, this service does not charge any commission for storing your assets. But if you need to transfer some coins or perform an operation with a smart contract, be ready to pay a blockchain transaction commission. Meanwhile, this wallet offers you to reduce this payment in case you agree to postpone the execution of the operation. Another commission we must mention is a 1% for converting coins via the local decentralized exchange.
In sum, this hot wallet is a safe option for you if you plan to actively utilize your crypto assets for trading or offline payments, still, be sure to turn on all the security measures on offer.