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Coinbase Custody Explained 2023

Salwa P

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As the crypto industry grows, so do concerns along with it. As projects continue to get bigger and larger players to pile in, a new problem is presented. How to manage the wealth of crypto assets effectively? As new services roll out and mature, infrastructure takes center stage.

Coinbase has been developing cryptocurrency custodian solutions for quite some time. Coinbase has recently released a FAQ page regarding the costs of custody services, which is an excellent step toward explaining the security of its system. And why we should trust it with our coins. We’ll look at the wallet service, how to use it, and more.

What is Coinbase Custody?

Coinbase custody is a new product that makes it easy to invest in cryptocurrencies.

Coinbase custody is a suite of institutional products and services that helps financial institutions and hedge funds safeguard crypto assets. They aim to be the most trusted and easiest-to-use crypto custody solution for people and institutions worldwide. They’re building Coinbase custody as the most secure, compliant, and reliable way to store digital assets.

Coinbase Custody builds on Coinbase’s existing Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures, which helps their team identify the right customers for this new service. Additionally, they have an extensive process to onboard new customers, including face-to-face meetings with their compliance team and identity verification documents.

Coinbase Custody Assets: What assets are listed on Coinbase Custody?

Coinbase is a cryptocurrency trading platform that allows you to buy, sell, and store cryptocurrencies. It currently offers support for the following cryptocurrencies:

Bitcoin

Bitcoin is a cryptocurrency and worldwide payment system. It is the first decentralized digital currency, as the system works without a central bank or single administrator. Since the network is peer-to-peer, basically there’s no need for a middleman to facilitate transactions between the users. These transactions are verified by network nodes through cryptography and recorded in a publicly distributed blockchain.

Ethereum 2. ETH2

Ethereum is a blockchain-based distributed computing platform that is open-source and accessible to the general public. It supports smart contracts (coding). The Ethereum Virtual Computer (EVM), which it offers, is a decentralized Turing-complete virtual machine that can run programs via a global network of public nodes. ETH2 is the native token of the Ethereum platform that enables Smart contracts and Distributed Applications (DApps) to be built and run without downtime, fraud, control, or interference from a third party.

Tether

Tether is a cryptocurrency that is pegged to the US Dollar. It is designed to be a stable alternative to other cryptocurrencies, which can fluctuate greatly in value.

Tether is a cryptocurrency backed by actual fiat currencies such as USD, EUR, GBP, and more. It is mainly used to trade against other cryptocurrencies.

The token can buy other cryptocurrencies and fiat currencies like the US dollar or Euro from Coinbase Pro. However, it cannot be transferred between wallets or exchanges without converting it into another cryptocurrency via the “Send” feature on your account settings page.

USD Coin

USD Coin (USDC) is another stable coin that has been listed on Coinbase. It allows for low-cost transactions across exchanges and services built on top of the open financial system of the internet.

BNB

BNB stands for Binance Coin. It’s a currency issued by Binance, a cryptocurrency exchange based in Malta, which also operates in other countries worldwide. Binance is one of the largest crypto exchanges in the world, handling billions of dollars worth of transactions daily.

What are the Coinbase custody services?

Cryptocurrency custody services are a new type of service that’s being offered by some cryptocurrency exchanges and financial institutions. The purpose of these services is to protect your cryptocurrency holdings from theft, hacks, and other types of damage.

Custody services are very similar to traditional investment management services. They allow you to hand over control of your cryptocurrency holdings to a third party who will manage them on your behalf. You’ll pay a fee in exchange for this service, but it may be worth it if you want peace of mind knowing that your investments are safe.

Cryptocurrency custody services take care of all aspects related to storing your cryptocurrency. This includes:

  • Creating a wallet only you can access using multiple security layers like 2FA and encryption keys.
  • Securing the wallet using maximum security measures like multi-signature wallets or cold storage where private keys are stored offline.
  • Monitoring for suspicious activity and reporting any unusual activity immediately so the company’s security team can investigate it.

How does Third-party custody work?

Third-party custody is a type of storage where you transfer your digital assets from a wallet or exchange account into the custody of a third party. This can be done via an API call or manually sending funds over by signing off on the transaction. The third party then stores their assets in their secure storage system, which may include hardware wallets like paper wallets. Once the assets are stored safely at the custodian, you can use them as normal.

What Does Partial Custody involve?

Partial custody involves a custodian holding some of your cryptocurrency and allowing you to maintain possession of the rest. Partial custody is most often used by institutional investors who want to invest in crypto but don’t want to manage it themselves.

How Self-custody works

Self-custody is a storage method for cryptocurrencies that does not rely on a third party, such as a bank or exchange. Self-custody refers to storing private keys and fund recovery phrases on your devices.

Some of the significant self-custody benefits include the following:

  • Security: You are the only person with access to your funds, which means nobody else can take them away from you. Additionally, you are responsible for keeping your devices secure, so if they get hacked or stolen, you will lose out in this case.
  • Control: You have full control over your private keys to decide how much money to send and receive. You also have complete control over when you want to sell or buy cryptocurrencies, as there is no need to wait for approval from anybody else.
  • Privacy: Self-custody allows you to keep your funds private because nobody else can access these keys or recovery phrases used by different wallets and exchanges. This makes it impossible for someone else to see how much money is stored in these accounts or whether they even exist!

Does Coinbase hold your coins in their wallets?

Coinbase stores your coins in their wallets, which means your private key is never shared with them, and they are securely stored or ‘custodied’ in the Coinbase vault.

To access your private key, you will be asked for it when you withdraw from Coinbase. You can also import your private key into a wallet that supports this feature, such as Electrum or Mycelium.

How is Coinbase insured?

The FDIC insures Coinbase through its parent company, Paxos.

The FDIC protects consumers by insuring deposits at banks, savings associations, and credit unions.

The FDIC requires all banks to become members of the Federal Deposit Insurance Corporation (FDIC) and to deposit a certain percentage of their deposits with it as a cushion against losses. The amount of each bank’s deposit insurance depends on its size and how much capital it has relative to its deposits.

Conclusion

The new service is a win for users because they don’t have to worry about dealing with the security of funds or the added cost of engaging a third-party service provider. It will be interesting to see if this model will become more widespread in the crypto world and, if so, what impact that might have on crypto service providers.

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Web3

How to Invest in Web3 in the upcoming year 2024

Salwa P

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How to Invest in Web3

Prior to making any big decision in 2024, it’s always recommended to learn more and more about Web3, its upcoming projects, and the companies involved. Even knowing a bit more about the development process and networking will increase the chances of success.

This content is only for educational purpose. Do your own research by visiting Web3 experts in the Consensus-like events, prior to investing.

The digital scene is developing at a fast speed, and Web3 is at the very front of this change. As customary businesses converge with blockchain technology and decentralized applications, there’s a developing revenue in how to invest in Web3. In this article, we’ll investigate the vital stages and methodologies to explore this astonishing and possibly rewarding space.

Understanding Web3

Web3, short for Web 3.0, addresses the following advancement of the web. It is a decentralized and client-driven environment that intends to give people more command over their digital lives. In Web3, blockchain technology assumes a focal part, empowering trustless exchanges and shrewd agreements. To invest, you should initially understand the essential ideas driving Web3, for example, blockchain, cryptocurrencies, and decentralized applications (dApps).

Choose Your Investment Vehicle

With regards to investing in Web3, there are different roads to investigate. The most widely recognized choices include:

Cryptocurrencies

Investing in cryptocurrencies like Bitcoin, Ethereum, and other altcoins is an immediate method for taking part in the Web3 space. You can buy these digital resources on cryptocurrency trades.

Tokenized Resources

Tokenization includes addressing genuine resources (like land or workmanship) as digital tokens on a blockchain. This empowers fragmentary possession and liquidity. Stages like NFT commercial centers and security token trades offer open doors for such investments.

Investing in Web3 Projects

Numerous new businesses are creating imaginative Web3 arrangements. By investing in these beginning phase organizations through funding or token deals, you can be essential for the following enormous thing in Web3.

Research and Due Diligence

Prior to investing in Web3, directing exhaustive research is essential. Investigate the technology, group, use case, and local area behind an undertaking or cryptocurrency. Comprehend the dangers and potential prizes related to your picked investment vehicle. Remain refreshed with the most recent news and patterns in the Web3 space to settle on informed choices.

Security Matters

Security is fundamental while investing in Web3. With the decentralized idea of blockchain, you become your own bank, and that implies you’re liable for defending your resources. Use equipment wallets, empower two-factor verification, and be wary of phishing tricks. Also, consider utilizing legitimate cryptocurrency trades and decentralized trades (DEXs) for exchange.

Diversification and Risk Management

Differentiating your Web3 investments is a shrewd procedure to spread risk. Try not to place every one of your assets into a solitary resource or undertaking. Assign your investments across various cryptocurrencies, tokenized resources, and new businesses to adjust possible increases and misfortunes. It’s likewise savvy to lay out a reasonable leave methodology and set stop-misfortune orders to restrict expected misfortunes.

Where’s the best place to learn, communicate, and invest in Web3?

If you’re unaware, the Consensus 2024 event for Web3, Cryptocurrency, Developers Meet-Up, and Networking. The event is organized by Coindesk. It generally runs every year. Know more about Consensus 2024 to be held in Texas, United States.

Conclusion on

Web3 is reshaping the digital world, and investing in it tends to be both energizing and fulfilling. In any case, it’s not without gambles. To succeed, you should grasp the rudiments of Web3, pick your investment vehicles astutely, lead exhaustive examination, focus on security, and utilize broadening and hazard the board techniques.

As you leave on your Web3 investment venture, remain informed, adjust to changes, and embrace the future of the decentralized web. By observing these rules, you can situate yourself to profit from the open doors that Web3 brings to the table while limiting possible entanglements. Keep in mind, that Web3 is a dynamic and developing environment, so ceaseless learning and flexibility are critical to the long-haul outcomes here.

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Web3

Upcoming Consensus 2024 is going to shape the future of Cryptocurrency & Web3

Salwa P

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Consensus 2024

Consensus 2024 is emerging as a pivotal event of the year encapsulating the hopes, visions, and innovations driving the industry forward. Along with the evolution of Cryptocurrency, the intersection of blockchain technology, financial revolution, and global collaboration. This year’s Consensus is promising and happening to be a game-changer.

Let’s jump into the key highlights, themes, and potential impact of Consensus 2024.

Impressive Growth of Consensus

Consensus has consistently proven to be a catalyst for change within the cryptocurrency realm. Since its inception, it has evolved into the foremost global event, bringing together experts, enthusiasts, and thought leaders. Its influence extends far beyond its annual occurrence. Shaping the industry’s trajectory for the years to come.

Exposure to Groundbreaking Projects

At Consensus 2024, attendees can expect to witness the unveiling of groundbreaking projects that are set to redefine the cryptocurrency landscape. From decentralized finance (DeFi) platforms to non-fungible tokens (NFTs). This year’s event will showcase a plethora of innovations poised to disrupt traditional financial systems.

Regulatory Insights

One of the most anticipated aspects of Consensus 2024 is the discussion surrounding cryptocurrency regulations. As governments and regulatory bodies grapple with the integration of cryptocurrencies into existing financial frameworks. This event will provide valuable insights into the direction of regulatory changes.

The Future of Blockchain Technology

Consensus 2024 is expected to shed light on the future of blockchain technology. With presentations from industry giants and experts, attendees will gain invaluable insights into the potential applications of blockchain beyond cryptocurrency. This event will explore blockchain’s role in supply chain management, healthcare, and more.

Embracing Web3: A Paradigm Shift

In the midst of the cryptocurrency revolution, the emergence of Web3 is a central theme at Consensus 2024. Web3 represents a paradigm shift in how we interact with the internet, emphasizing decentralization, user ownership, and trustless interactions. This transformative concept is poised to reshape the digital landscape. Consensus 2024 will undoubtedly serve as a platform for in-depth discussions on its implications.

Networking Opportunities

Networking has always been a cornerstone of Consensus events. The 2024 edition will facilitate connections between startups, investors, and established industry players. This collaborative environment fosters innovation and may lead to the birth of the next big cryptocurrency project.

Dates & Venue

May 29 – 31, 2024; Austin, Texas, United States

Concluding

Consensus 2024 promises to be an event of monumental significance for the cryptocurrency and blockchain industry. With its focus on innovation, regulation, and networking, attendees can expect to be part of a transformative experience. As the cryptocurrency world continues to expand, Consensus remains at the forefront, driving progress and shaping the future of this revolutionary technology.

To stay updated and be a part of this momentous event, make sure to mark your calendar for Consensus 2024. The future of cryptocurrency and blockchain awaits, and you won’t want to miss it. Allow notification (using the bell icon on the bottom-left), so we can update you on the event and relevant matters!

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