coinbase does not give users private keys.
just like all other exchanges
when you put funds in. they all belong to coinbase/other exchanges.
you are just given a mySQL database "balance" and that is it.
should they shutdown you lose.
should they get hacked. they will try to convince you that you lost funds (even though they lost funds)
its like a bank where you need to ask them when you want some funds and they can authorise a withdrawal to you, which is more of a moral contract.
this is why its best you store funds in a wallet that gives you private keys so that you are in sole control of the funds and not having to rely on third parties morals/ethics
just like all other exchanges
when you put funds in. they all belong to coinbase/other exchanges.
you are just given a mySQL database "balance" and that is it.
should they shutdown you lose.
should they get hacked. they will try to convince you that you lost funds (even though they lost funds)
its like a bank where you need to ask them when you want some funds and they can authorise a withdrawal to you, which is more of a moral contract.
this is why its best you store funds in a wallet that gives you private keys so that you are in sole control of the funds and not having to rely on third parties morals/ethics
That sounds really bad and Very much unsafe If I understand You correctly. So If Coinbase doesn't let users fully own their wallets , Is there any Web Wallet with such functionality?
I just enjoy using Web Wallets. I don't like waiting for the blockchain to download.
I appreciate You & dukeneptun's Response on this. Thank you for the heads up.
I might be wrong but I don't believe any Web wallets have this functionality.
That's the main difference between hardwallet and web wallets. Hard wallet (like Electrum) are software that you install on your computer and that give you complete control on your wallet, it's an interface but the creator of the software doesn't own anything.
While webwallet are in fact just a website. It is owned by the creator of the website and they provide you a service. It's exactly like a bank! You don't have the money, you give it to the bank (or webwallet) and it gives you a credit on the bank (or here web wallet).
