Wallets are one area where these exchanges really differ. Coinify does not have a custody wallet, which means that it does not hold your assets on the exchange. To use Coinify, you will need a separate crypto wallet that you link to your account when making the purchase. Coinbase has a partnership with Ledger, one of the leading hardware wallet providers.
If you are new to using virtual currency, creating a separate wallet can be a bit daunting. It is very easy to do, but you will need to search a bit online to understand the steps involved. You can choose a hot wallet (one that is online) such as a Metamask wallet, a cold wallet or an offline hardware wallet.
You will need to ensure that your cryptocurrency wallet supports the cryptocurrency you are purchasing. Some wallets, for example, only support assets built on the Ethereum network. You will get an initial phrase that is usually a string of 12 words. Make sure to keep this in a safe place. If you lose it, you may lose access to your funds.
In contrast, Coinbase has a custodian wallet and an offshore wallet. People who do not want to worry about managing an offshore portfolio can leave their assets on the exchange. However, many crypto enthusiasts believe that you do not fully own the cryptocurrency if it is in a custodian wallet. If a cryptocurrency exchange is hacked, you could lose your money, and the exchange can also freeze access to your account.
Coinbase also has its own non-wallet hot wallet. Coinbase wallet is easy to use and connects to your Coinbase account. Coinbase works with other third-party wallets as well, but you may have to pay a withdrawal fee to transfer your cryptocurrency. Coinbase Wallet is a separate app that is also available to non-Coinbase customers.