Coinbase app and private key

Bitcoin Questions and AnswersCategory: QuestionsCoinbase app and private key

Lisa Paisley-Cleveland asked 11 months ago

Thanks so much for your terrific series.
I secured the Coinbase app on my iPhone and set up an account (exchange and wallets). Was I suppose to receive a wallet address and private key? I only got instructions to set a password. A little confused.

1 Answers
Steven Hay answered 11 months ago

Hi Lisa,
 
The Coinbase app interfaces directly with Coinbase, who store your private key. I believe if you set up your password, then the app will allow you to purchase Bitcoin and withdraw it from your Coinbase account once purchased. Coinbase tries to keep things simple so they don’t give you control over your own private key. This is good for ease of use but bad for security, as it means you must trust coinbase to control your bitcoins. I’d say it’s ok as an introduction and for small amounts however. If you start to accumulate much value in Bitcoin, you’d be better off storing the coins under your own control, ideally in a hardware wallet which is a great security solution which is also convenient and relatively easy.

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