We often get confused relating to the several concepts associated with the crypto realm. Digital assets have brought a revolution in the trade and investment journey. A lot of people are engaged in activities relating to crypto assets.
There are several crypto exchanges and wallets that add convenience to the working of crypto investors. But, we as a human often take some terms as synonyms or one and the same. Isn’t it?
Not sure. Let’s take an instance of the Coinbase and Coinbase wallet. I have noticed that many of the investors think that both are the same. But is it really so?
The answer to it is “NO”. Both are different from one another, but why do we get confused then, especially novice investors is a major question.
The most possible reason for it may be that they are closely related to one another. So, to give you a crystal clear idea of it, we have prepared this read.
Let’s step ahead to learn about the same.
Crypto assets are digital funds, which means that they do not have any physical existence. In other words, we can say that they are intangible.
If they don’t have any physical existence then how can one trade into these assets?
For this purpose, crypto exchanges were introduced and Coinbase is one such crypto exchange. The cornerstone function of the exchanges is to bring digital assets and potential crypto investors to one place so that they can easily carry out the trade and investment activities of digital funds.With this, you might have got a rough idea of Coinbase.
Now, with the crypto exchanges, you might have embarked on your trade and investment activities. By doing so, you might be yielding handsome profits. Another question that comes here is how you are going to manage your earned digital funds.
Looking at this necessity of the investors crypto wallets came into existence. Just like physical wallets, crypto wallets are also used to store, organize, and better manage the valuable funds earned through the trade of digital assets. The same is the function of the Coinbase wallet. The wallet is password protected which denotes that only the real owner of the wallet can get into the account and access his funds.
The crypto wallet also opens up a vast universe of crypto applications. You can even send, and receive digital funds from the other party. The wallet is compatible with both mobile devices and computers/laptops. To operate it on a mobile device you can get an app. But to use it on a computer, users have to get a Chrome extension first.
Having a crypto wallet comes with several responsibilities and one such responsibility that every one of us should give heed to is the wallet's security. Whether you are using a hot wallet or a cold wallet, it contains a lot of crucial information about our crypto funds such as private keys, the token's contract address, etc. Not just that, it is very important to understand what would happen if we ever lose complete access to this wallet.
You will eventually lose access to all the funds that you have stored in your wallet and this could prove to be a bad deal for you. So, if you wish to avoid becoming a victim of any such event, you should immediately take action to improve your wallet's security.
Specifically talking about Coinbase wallet, we are going to list some helpful tips that would eventually help you make your wallet way more secure.
Actionable steps you should take
Although Coinbase at its end takes extensive security measures to safeguard your Coinbase wallet in any condition, it is also the duty of an individual to safeguard his funds. So, here are the easy steps that you can take if you wish to make sure that your funds are enjoying a good time while their stay in your wallet:
To sum up this read, we can say that it is pretty important that we take some simple yet effective measures to ensure that are crypto funds are safe from any hacking incident. To help you understand all of this in a better way, I have tried my best to include all the tips that you can follow without any hassle.
