Coinbase has reported bad earnings for the first quarter. But more interesting is they pointed out that "IF" they were to file for bankruptcy, then all of the funds in user accounts on the site would be included in the bankruptcy and their users would loose access to them.
With Coinbase, they hold your private keys which means they hold your crypto.
This is a good example of the value of purchasing a cold wallet to maintain your own private keys. Personally I own a Ledger Nano X. Trezor is another popular brand, and there are many others.
Setup is easy. With the Ledger, your provided with a list of 25 random words. It's extremely important you don't loose or share these words. These are the seed phrase which is used to create your private key. You also create a pin number used to access the key stored on the Ledger. If you were to loose or damage your wallet, you simply purchase another one and input the same 25 words.
Comment