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this post was submitted on 01 Dec 2025
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Generally the guidance is not to keep funds in an exchange any longer than needed. That’s what you should think of Coinbase as, so no, you shouldn’t keep coins in Coinbase long term. I’m not as deep into BTC, I only hold a little ETH, so my setup might be a little different to yours.
I’d recommend Metamask for a wallet. I think they just added BTC support as well. You will get a recovery phrase when you set up any wallet, make sure you keep it in a safe place, this phrase IS your money. If someone gets it, they have your money. Guard it.
Lemme address your other questions point by point:
Nope. You don’t need Coinbase at all. Your wallet can send a receive directly. You need Coinbase to go back and forth between fiat currency (dollars or whatever).
Yes. All crypto transactions charge a fee. I don’t know if Coinbase charges on top of that, but probably a bit.
Eh, safe enough. They are publicly traded and US based so that should give you some comfort, but exchanges get hacked and fail, which is why even if they are the best company in the world, you shouldn’t let them hold on to your coins long term.
Hope this helps!
Thanks so much for your feedback. I'll look at setting up a separate wallet. The fact that I didn't have a passcode for my "wallet" in Coinbase is what made me start looking into what was going on, and whether it was a wallet or not. Thanks for the clarification.
I'll also test it out and see what I lose on the transaction.
The service I'm receiving from specifically asks for a Coinbase account, not a wallet. I'm not sure why - maybe it's a deal with Coinbase, or it might be a Canadian regulations thing. They give way more options for U.S. users.
Sometimes Coinbase is integrated into the checkout flow for “pay with crypto”, but it shouldn’t be needed for most crypto transactions.