Coinbase Extension Exchange Digital Asset

Coinbase Wallet supports countless ERC-20 tokens. ERC-20 is a token standard for the Ethereum blockchain and compatible networks. Some of these tokens are the “wrapped” equivalent of popular coins – like wrapped Bitcoin (WBTC), which tracks the value of Bitcoin but can be used on the Ethereum blockchain.The Coinbase Wallet is a self-custody wallet that gives users full control over their tokens.

However, if you lose your wallet keys and recovery phrase, you won’t be able to recover your tokens.

Coinbase Wallet is a “hot wallet,” meaning it is connected to the internet and vulnerable to hacking attacks. Some people prefer “cold wallets” that are offline to reduce the risks of compromise.Coinbase Wallet is a hot wallet, meaning the wallet’s keys were generated and stored on a device connected to the internet. You can connect a Ledger hardware wallet (a cold wallet that generates a private key offline) to a Coinbase Wallet to further secure your assets. However, you need to do this with a new Coinbase Wallet using the Chrome extension.When you send crypto or connect to a decentralized application, your wallet asks permission to “sign” the transaction using your private key. In simple terms, your wallet works as an authenticator.