Hot wallet for Coinbase

Bitcoin Questions and AnswersCategory: QuestionsHot wallet for Coinbase

Michael asked 9 months ago

Can you suggest a hot wallet to transfer coins from coinbase and give direction as to how to do it? I want to go through the process with small amounts. Will I have control of the private key ? I intend to buy a hard wallet for larger sums. I realize a hot wallet is not the most secure but it is more secure than leaving coins on the exchange?

2 Answers
Steven Hay answered 9 months ago

Hi Michael,
 
Quite correct, a hot wallet on your personal computer or device is more secure than leaving coins on an exchange. The reason is that you are in control of your own private keys, which means you have full control over the coins. Provided that your computer security is tight so that the private keys can’t be easily accessed, this is a lot more secure than trusting the exchange with the control of your coins.
 
So, I don’t know which system you’re on but any of the desktop wallets recommended on Bitcoin.org should be fine. Personally, I like Electrum a lot. It’s simple enough to use but has a lot of more powerful features which are accessible. It is a light wallet, which means you don’t need to download or sync the blockchain to do transactions. Finally, it’s compatible with hardware wallets so once you get one, you’ll be able to create a new wallet in Electrum and use the hardware wallet with the familiar interface.

Steven Hay answered 9 months ago

Oh yes, I forgot to mention the withdrawal process from Coinbase. After you install the software wallet, go to the Receive tab and select one of the addresses there. Then paste that address into Coinbase’s withdraw page and send the desired amount of bitcoin. Once Coinbase sends the transaction, you should see a notification within your software wallet of an incoming / unconfirmed transaction. Once the miners process the transaction, it’ll confirm and become immutably associated with your software wallet’s private key – and therefore under your personal control.

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