Coinbase is now everywhere in the cryptocurrency world. They are most well known for their exchange services but they also offer a web-based wallet. By using the Coinbase wallet service, you are effectively letting them act as a custodian with your cryptocurrency. This means that Coinbase will be storing your private key removing a level of control from you. Coinbase also offers a vault service where you are in control of your private keys.
The wallet service offer to hold a wide range of digital assets which include ERC-20 tokens and ERC721 tokens. ERC-20 tokens are typically used in ICO's while ERC721 is typically used for digital collectables in decentralized applications (DApps) such as CryptoKitties. One of the advantages of using Coinbase's web wallet is that you don't have to deal with the tricky cryptocurrency addresses. You can send funds to friends who are using the Coinbase wallet also without having to worry about the addresses. Transactions can also be completed off the blockchain between Coinbase wallets. This has some good points and some bad points with decreased security being a potential issue but increased throughput being an advantage
The wallet is known to be easy to use with Coinbase offering some of the most user-friendly services in the cryptocurrency business. The wallet is multi-sig and users can install 2-factor authentication. These add some security benefits to users
- Coinbase is a huge name in the cryptocurrency industry which comes with a professional reputation to uphold in their services
- Wallets can hold a wide variety of digital assets.
- Users do not have to worry about tricky cryptocurrency addresses
- Transactions can be completed off the blockchain which can lead to increased throughput
- Wallets are multi-sig
- Users can enable two-factor authentication
- Private keys are being trusted to a third party
- Transactions can be completed off the blockchain which may lead to decreased security