Email of the day on bitcoin wallets
Comment of the Day

November 20 2020

Commentary by Eoin Treacy

Email of the day on bitcoin wallets

Many thanks for your ongoing informative and enlightening observations about the markets. One quick question please regarding holding Cryptocurrencies: do you value the 'vault' function within Coinbase? As I build my positions slowly, I am researching hardware wallets and some of them seem very restricted in terms of the number of coins they will hold. Just wondered your thoughts on the security of the accessible platform-based 'Vault'?

Eoin Treacy's view

Thanks for this question. Before I answer I want to be very clear in saying I do not believe I am expert in what is the best way to physically transact in cryptocurrencies. All of my activity has been over Coinbase and via spread-bets.

The vault function in Coinbase is an added layer of security in the event that your coinbase credentials are ever compromised. Therefore, it is a recommended additional function to take advantage of if you are not transacting in cryptocurrencies every day.

I’m a little confused about the hardware wallet size issue you describe. All you are storing is a key. It takes up almost no room on a hard drive. Mining bitcoins takes processing power but little space. It seems many wallet providers are trying to differentiate by setting size limits but I believe it is a red herring. If other subscribers have additional thoughts, I would be grateful to hear them.

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