What is the difference between my Web3 wallet, my account on Coinbase.com and my Coinbase Wallet?
Coinbase offers 3 different types of wallet accounts for users to interact with crypto products:
Coinbase primary balance
With the primary balance, your cryptocurrencies are stored on Coinbase.com and can be traded within your Coinbase account at fast speeds and for lower network fees. Coinbase also safeguards your wallets private keys.
The Coinbase primary balance cannot be used to access dapps.
The Web3 wallet is a crypto wallet where Coinbase holds half of your private key and the device that your web3 wallet is on stores the other half. This solution:
Provides you with the convenience to easily access your wallet for interacting with dapps
Provides an added layer of security by not having your full private key stored in one location
Shares the responsibility of knowing and storing your security key for your wallet between you and Coinbase, making wallet recovery more simple.
Coinbase will provide you with your own web3 wallet as a way for you to interact with various decentralized applications on the dapp browser.
Please note that Coinbase is not affiliated with, and does not endorse these dapps. Coinbase is not responsible for any lost funds when interacting with dapps.
The Coinbase Wallet is a Self-Custodied wallet, meaning you have sole control over your private keys and seed phrase, which in turn gives you access to your assets and is used to authorize transactions from your wallet.