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this post was submitted on 01 Dec 2025
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cryptocurrency
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By default your btc is in a custodial wallet at coinbase where they control the passphase so you only have access through coinbase.
Coinbase has been around awhile and is pretty good at fraud protection so I wouldn’t be too worried, but I would personally transfer my balance to a non-custodial wallet occasionally for long term saving. If you want to be able to convert back to fiat currency quickly leaving it on coinbase might make sense.
If you transfer your btc to a noncustodial wallet (for ex. Coinbase Wallet or Blockchain.com wallet) it will prompt you to write down the address and passphrase. After that you can access your btc via ANY btc wallet by typing in the passphrase (you’re not tied to the wallet software you use to access it). This is why if someone gets your passphrase they have your btc too.
I see, cool. I think my goal right now is just to hold the crypto, but I like that clarity.
Oh that's interesting. It makes sense, but the concept never clicked like that for me. Thanks!