is coinbase wallet a custodial wallet

The Coinbase Wallet: A Custodial Wallet or a Third-Party Wallet? The question of whether Coinbase's wallet is a custodial wallet or a third-party wallet has been debated for years. Coinbase has been pushing for its wallet to be considered a custodial wallet, but others have argued that it is a third-party wallet. In this article, we will delve into the pros and cons of both views and examine the key concepts and principles that support each view. Custodial Wallets: Custodial wallets are wallets that are designed to be used as a single point of access to a user's finances. This means that the user can only access their money from one location, and the wallet acts as a means of protecting their money from potential losses. Examples of custodial wallets include Apple Pay, Google Wallet, and Microsoft's Monero. In contrast, third-party wallets are wallets that allow users to access their finances from multiple locations. This means that the user can store their money in multiple wallets and access it from any device. Examples of third-party wallets include Square, PayPal, and Stripe. Coinbase Wallet: Coinbase's wallet is a third-party wallet that allows users to store their cryptocurrency in multiple locations. This means that the user can access their money from multiple devices and locations. The wallet acts as a means of protecting their money from potential losses and is designed to be used as a single point of access to a user's finances. In conclusion, the question of whether Coinbase's wallet is a custodial wallet or a third-party wallet remains open. While some argue that it is a third-party wallet, others maintain that it is a custodial wallet. In this article, we examined the key concepts and principles that support both views and examined the pros and cons of both wallet designs. Ultimately, the wallet's design depends on the user's specific needs and goals.