Finding secure wallet solutions for cryptocurrencies that aren’t Bitcoin is pretty difficult these days. Coinbase launched a Vault service for Bitcoin quite some time ago and made a big name for itself in the process. The service is now available for both Litecoin and Ethereum as well. This constitutes a major development in the world of cryptocurrency that could have major consequences for similar services in the future.
Coinbase Vault Supports More Currencies
In a way, it is good to see Coinbase trying to make a better name for itself in the cryptocurrency industry. It is evident there is a growing need for more secure solutions for storing cryptocurrencies right now. This doesn’t apply to just Bitcoin anymore, which isn’t exactly surprising. A lot of altcoins have gained in value and popularity this year, which means more people are holding them as a part of their portfolio.
Although each individual cryptocurrency has its own desktop client and paper wallet generator these days, there is always a demand for new solutions, to say the least. Moreover, a lot of cryptocurrency users store their money on cryptocurrency exchanges for extended periods of time. Coinbase has become pretty popular for Ethereum and Litecoin users these days as well. It only makes sense for the company to expand its Vault service to encompass these different currencies as well.
Customers who hold both Ethereum and Litecoin on Coinbase will be able to reap the rewards of the Vault service almost immediately. Having additional layers of withdrawal security for stored cryptocurrencies is never a bad thing .After all, the last thing anyone wants is to see their Litecoin or Ethereum balance stolen by an unknown assailant due to their own security-based shortcomings. Some of the new features introduce a 48-hour withdrawal delay and required email approvals.
Over the past few years, Coinbase’s Vault service has become a lot more popular among Bitcoin enthusiasts as well. Although we still advise people to use their own cold storage solution or a hardware wallet, it is understandable why so many users rely on the Vault. It eliminates the idea of Bitcoin owners having to choose between convenience and security when it comes to dealing with cryptocurrency exchanges.
That doesn’t mean the Coinbase Vault system is a perfect solution by any means. Users are still not fully in control of their money when using this service, and it will always be inferior to hardware wallets. However, it is a much cheaper and more convenient solution for holders of Ethereum and Litecoin. It will be interesting to see how many people use this service in the future.
In the end, it is good to see companies such as Coinbase expand their offerings in the area of cryptocurrency support. Expanding the Vault service to encompass additional currencies will be a big change, to say the least. The company recently introduced phone support as well, all of which shows how far Coinbase aims to evolve. We can only hope the Vault service will be appreciated in the long run, as it is a pretty compelling service.