if you have crypto on coinbase, do you actually own it?

Do you own crypto on coinbase?

It depends. Coinbase currently has two products.

Coinbase Wallet App and Coinbase.com exchange – only one of them allows you to fully own your crypto.

Owning the crypto is often defined as owning the keys. If you have the keys no third party can deny you access to your coins. Many people prioritize to own their crypto assets on a hardware wallet as decentralization, full control and sometimes even anonymity, are seen as paramount elements. 

Owning crypto is often defined as owning the crypto keys.

Who holds the crypto keys on coinbase.com?

The online exchange works as any other trading platform e.g. Crypto.com, Kraken, Binance. What you have is a custodial crypto wallet. By creating an account and buying or holding coins like Bitcoin or Ethereum on those crypto exchanges, you do not have the keys. The exchange manages the keys. In all truth you cannot even be certain that the exchange holds the crypto currency for you. They might just purchase it or borrow from other users, once you decide to withdraw the funds from your accounts. The alternative is to own all the keys yourself and for this you will need to take a look at Coinbase Wallet.

The Coinbase Wallet works as any other software wallet. It is an application that you run with your computer or phone. You own the keys to your cryptocurrency assets and have complete control over your funds. Coinbase cannot help you recover your funds if you lose your private keys and recovery phrases to your digital wallet, so store them safely and prioritize security when storing and handling your cryptocurrencies.

So in conclusion you must decide whether you want to actively trade your digital currencies on a regular basis on your Coinbase account – or one of the other cryptocurrency exchanges – or if you are looking for a way to store your coins and make sure you hold all the keys to your crypto kingdom yourself.

if you have crypto on coinbase, do you actually own it?

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