is coinbase non custodial

Coinbase, though a custodial exchange managing users' private keys, also provides Coinbase Wallet for non-custodial storage, granting users complete control over their cryptocurrency assets.

Nov 06, 2024 at 05:53 pm

Is Coinbase Non-Custodial?

Coinbase is a popular cryptocurrency exchange that allows users to buy, sell, and store cryptocurrencies. However, some users may be wondering if Coinbase is non-custodial.

What is a Custodial Exchange?

A custodial exchange is an exchange that holds the private keys to your cryptocurrency assets. This means that the exchange has control over your funds and can access them at any time.

Is Coinbase a Custodial Exchange?

Yes, Coinbase is a custodial exchange. This means that Coinbase holds the private keys to your cryptocurrency assets. However, Coinbase also offers a non-custodial wallet called Coinbase Wallet. Coinbase Wallet allows you to store your cryptocurrency assets yourself, giving you full control over your funds.

Why Use a Non-Custodial Exchange?

There are several advantages to using a non-custodial exchange, including:

• Increased security: Non-custodial exchanges are not able to access your private keys, so your funds are less likely to be hacked or stolen.
• Greater control: With a non-custodial exchange, you have full control over your cryptocurrency assets. This means that you can move your funds to another exchange or wallet at any time.
• Privacy: Non-custodial exchanges do not collect or store any personal information, so your privacy is protected.

Conclusion

Coinbase is a custodial exchange, meaning that it holds the private keys to your cryptocurrency assets. However, Coinbase also offers a non-custodial wallet called Coinbase Wallet. Coinbase Wallet allows you to store your cryptocurrency assets yourself, giving you full control over your funds. If you are looking for a non-custodial exchange, then Coinbase Wallet is a good option for you.