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Analyzing the Coinbase wallet Extension app
Many of us are unaware of the existence of cryptocurrency wallets. But if you have an interest in digital assets or are looking to invest in cryptocurrencies then you might have come across the name “Coinbase”.
Looking for information regarding the Coinbase wallet?
Your search ends here. Here, you will get to know the basics of this wallet. Let’s get started.
A look into wallet application by Coinbase
The Coinbase wallet Extension is a digital wallet app designed for storing digital funds. It is a hot crypto wallet which means that all the operations are performed online. It helps users in interacting with the decentralized apps. So, to create crypto-friendly trading activities Coinbase was introduced. With continuous innovations, Coinbase became a reliable company having strong financial stability in the cryptocurrency market.
Characteristics of Coinbase wallet
It is a “self-custodial” wallet, which means that only the user has the authority to access the app. The app manages the private keys and stores the cryptocurrency funds directly on the users’ devices.
The app is suitable for fiat currencies like the US dollar (USD) and can be linked to cryptocurrency-friendly bank accounts. This feature benefits the investors to undergo trading activities for obtaining good profit margins.
The security feature is an added feature. The private and public keys are kept highly protected in the wallet.
Positive Aspects of the wallet
The company has a strong financial base. It can cope with the losses of digital assets if they get lost or stolen.
Have an easy user interface.
Offers top-notch security to its users. It uses two-factor authentication for protecting the control of users.
Free to register but charges convenience fees at the time of making the transaction. The transaction fee gets varied depending upon the number of factors.
Negative Aspects of the wallet
As we know, everything comes up with both the aspects-positive and negative. Coinbase wallet is not an exception to it. It too has limitations. They are as follows:
Deals with a small number of cryptocurrencies and don’t support storing Bitcoin.
By storing the private keys somewhere else, it may also act as a “hosted wallet”.
Final verdict
The Coinbase Extension is considered good for both new as well as for experienced investors. You can use the wallet for free but it charges a very nominal transaction fee ranging between 1% - 4% depending upon the nature of the transaction and other factors taken into consideration. It is considered safe to use which makes it popular among cryptocurrency investors.
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