Coinbase v Coinbase Wallet: What's The Difference? - YouTube

so coinbase kind of made a blunder in the  marketing department when they decided to  

name their product coinbase wallet you know  because you got you got your regular coinbase  

and then you got your coinbase pro and you got  your coinbase wallet what the heck is coinbase  

wallet we're gonna explain what coinbase wallet  is right now um thanks for watching the video

let's just do it all right okay so coinbase  has the coinbase that we all know and love  

the coinbase app right here two things they  have three products they have coinbase they  

have coinbase pro and they have coinbase wallet  we're talking about coinbase and coinbase wallets  

so this is coinbase your regular coinbase if you  go on the app store and look up coinbase then  

uh this will come up this is the exchange  then they also have this other product called  

coinbase wallet so what the heck is the  difference well we're gonna dive into it  

right now okay so i guess the easiest way for  me to explain is let's create an example okay  

so let's say you have the bank right you got  i don't know wells fargo right here because  

why not she's the the worst choose the worst bank  in history wells fargo okay you want to send your  

friend some money this is you and this is  your friend this broke bastard over here  

you want to go ahead and shoot your pal some  currency and however you do this whether it be  

cash app or zell or whatever or even  coinbase the exchange you have to go  

i don't know here's the here's the dollar whoops  you have to go through in order to get to your  

broke friend over here has to go through this  central authority wells fargo right here in order  

for your broke friend to receive said moolah  wells fargo needs to be there or in this case  

coinbase needs to be there okay so like so  in the coinbase exchange when you send money  

when you send funds to your broke friend  coinbase is the intermediary between your  

between your exchange coinbase is acting as the  third party but wait that doesn't make any sense  

i thought coinbase was a crypto exchange you know  no centralized party well you're right and you're  

wrong but wait doesn't that go against everything  crypto stands for isn't crypto supposed to be  

peer-to-peer transactions without a middleman  well yes that's where the coinbase wallet comes in  

you see the coinbase wallet is a little bit  different because the coinbase wallet is a real  

wallet you see the coinbase wallet is a wallet  that is that is directly tied to the blockchain  

so when you hold funds in your coinbase wallet  and you send the funds to your broke friend  

you see those funds are actually going straight  to your broke friend you see because you have a  

wallet that's reading the blockchain and they  have a wall that's reading the blockchain so  

the funds are just going wallet to wallet right no  intermediary that's the difference so what are the  

pros and cons of using coinbase the exchange and  coinbase the wallet and which one should you use  

and can they be used together we're gonna answer  all these questions in this video the first thing  

you need to know about the coinbase regular  coinbase app is it's pretty centralized right  

because it's an exchange so on the coinbase  exchange you can take money real usd money  

paper money give it to coinbase and in return  they will give you the coin of your choosing  

because they're in exchange you see and vice  versa when it's time to sell your precious coin  

after it appreciates a little bit hopefully you  say here coinbase take my token and they're like  

okay thanks for the token we're gonna give  you back i don't know i'll give you like  

double double the money back because your  crypto doubled in this time so you get this  

money back here so that's the reason you use  the exchange you use the exchange to use money  

to buy cryptocurrency and then they give you the  cryptocurrency and they hold it for you keyword  

there is for you now remember i said because it's  an exchange and it's like a bank that means that  

it's regulated like a bank that means the gov  has his eye has his eye on coinbase and you  

just making sure that your guys are both  following the rules because you know

because we don't want because you know we don't  want any we don't want anything a fraud gur

all right so yeah so yeah there's that and another  thing coinbase is kind of like yo dog we trust you  

and all you you can hold this crypto we're gonna  say it's yours and everything but it's really ours  

because we have what's called your private  key we have your secret code just embedded  

in your account and yeah you can have it psych  we're gonna keep it for you because we don't trust  

you you see if you lose your private key let's  see your private key just like disappears yeah  

that means you lose access to your coin too  yeah and we don't trust you so in order to keep  

your coin we're gonna we're gonna hold on to your  private key and we're gonna keep it nice and safe  

away from you so you can't mess it up so yeah  that's coinbase but coinbase wallet is the  

total opposite coinbase wallet is what crypto is  supposed to be coinbase wallet is over here like  

i totally trust you i think you're totally sick  you're totally cool i'mma let you hold your crypto  

bro cause i totally trust you and not only that  i'm also going to give you your private key too  

so yeah bro you just enjoy that but  also if you lose your private key

if you lose that private key you lose  access to all your crypto i can't help you  

there's no customer support you're on your  own it's like you're losing cash it's like  

cash flows out of your wallet who are you gonna  call but yeah go crazy so yeah coinbase wallet  

how crypto is supposed to be held you know  you have true ownership of your crypto because  

it's your wallet you have the private key and  it's truly decentralized because it's on the  

blockchain it's not being held in an exchange now  it's important note to note that not all coinbase  

exchange transactions are off chain some of them  or actually most of them are on the blockchain but  

for some things like swapping crypto within the  exchange it's off the blockchain so it's not on  

the public ledger so why would you choose one over  the other well on coinbase exchange not only can  

you buy and sell crypto if you're ever locked  out of your account or you lose your password  

or something else were to happen coinbase has a  large team of customer support that can probably  

solve your problem for you in a timely manner not  only that coinbase is fdic insured up to 250 000  

just like a bank so something were to happen i'm  not saying bitcoin were to get hacked or anything  

but like let's say coinbase were to get hacked  or there were to be a data breach or something  

your funds would be safe because they're insured  and that's why they don't give you your private  

key because they want to take all the heat if  something were to go wrong because they're that  

confident that nothing's going to go wrong so  that's what coinbase is in a nutshell more of a  

centralized exchange whereas coinbase wallet is  a decentralized exchange even though you can't  

trade fiat money for crypto on coinbase wallet you  can't swap cryptocurrency for other currency and  

you can also combine these two so you can buy  crypto with money off of coinbase's exchange  

and then send your tokens onto your wallet where  you'll have true ownership of it because you own  

your private keys so if the government were to say  yo crypto is banned everywhere because coinbase is  

a centralized exchange and they are regulated  they would have to comply under the law and ban  

any kind of trading a crypto that's kind of what  bitcoin was created to solve but if your phones  

are on a decentralized exchange or a wallet  like coinbase wallet the government cannot  

shut it down they would have to shut down every  computer running the bitcoin software or the  

blockchain for the token that you're using so  you get more freedom but you get less security  

now you may be wondering is that all the coinbase  wallet can do well not only can coinbase wallet  

connect to the blockchain and basically hold  all your cryptos but it can also hold nfts  

not only that there's a decentralized browser  so you can browse the centralized web this is  

basically your window into the blockchain and  like mentioned before you can swap cryptos with  

decentralized exchanges running on the ethereum  blockchain so it's easier than ever to swap your e  

through another erc20 token like if you wanted to  grab some sheep not financial advice i definitely  

don't have 100 eth and because it's decentralized  and you own the private keys it's truly your  

crypto now of course you can't connect this  to your bank at all because there's no account  

but if you want to sell you get easily connected  to coinbase exchange and sell there coinbase  

exchange is what's known as a custodial wallet and  coinbase wallet is what's known as a non-custodial  

wallet where you own the private keys now what  would i suggest you well if you're a beginner  

that just invests in crypto passively and also you  don't trust yourself with owning your private key  

then coinbase exchange is fine honestly it's not  even that bad it's pretty great but if you're like  

no i want my crypto to be my crypto i don't want  anyone to control it grab yourself some coinbase  

wallet make a private key and for god's sake  keep it private and keep it safe if you lose that  

you're done hopefully this cleared some confusion  for you as always this is not financial advice i'm  

not a financial advisor this is for entertainment  purposes only and by the way if you want to  

start trading crypto today there's a link in the  description to sign up for coinbase if you spend  

100 on any crypto you and i both get 10 in bitcoin  so yeah leave a like don't forget to subscribe  

we're at 25 subscribers now let's keep it going  and i'll see you in the next one peace out