Once you go all in, it’s hard to not think about how your investments might be doing.
Ask yourself, how self-disciplined are you to hold on and stick by your cryptocurrency investments if you see that it rises highly for one week, and the next week it just plummets down even lower than before?
It’s tough, yes, to think about all the money you worked so hard to get just burn one by one. Heck, the term HODL was even coined (pun intended) by the cryptocurrency community to motivate users like both you and I do not lose our hope and never give away to our urges to panic sell or make impulsive buys.
One of the best ways to help you from obsessively thinking about your crypto investments all the time is by creating a vault. Coinbase gives you the option to create a vault which works kind of like a real, physical vault where it helps you protect your investments against thieves and also it just locks it away, so you don’t obsess overselling it.
You can store your Bitcoin (BTC), Litecoin (LTC), Bitcoin Cash (BCH) and Ethereum (ETH) in vaults, and these vaults work like your normal wallet does (the one you where you store your cryptocurrency on Coinbase) except that these specialised wallets require various degrees of authorisation to withdraw from, along with a set amount of time until your funds are released which is to prevent immediate withdrawals.
This is a great way you can keep your cryptocurrency investments safe and keep yourself focused on the more important things in life. In this guide, I’ll show you how to create your very own vault to store your Bitcoins (BTC), Ethers (ETH), Litecoins (LTC), or Bitcoin Cash (BCH) and also even how to transfer into a vault on Coinbase. 🙂
You need to jump into Coinbase on your PC or Mac to create your vault because the option to create it on the mobile app is not available. Though, once you’ve created your vault, you can then use it in your Coinbase app on your Android or iOS.
How to Transfer into Vault on Coinbase: 7 Steps
Step 1: Jump into Coinbase and then sign in. Once you’re in, tap on Accounts on the very top of the page.
Step 2: Now on this page where all your wallets are, scroll down on the tab containing your wallets (left-hand side), and then click on Vault. Then on the right side, you should see the option to create a vault. Tap on Create Vault.
To proceed with creating your vault, you must enable two-factor authentication. If you haven’t yet then, you’ll see on the right side once you’ve tapped on Vault that the two-factor authentication is important for the vault that you create for safety reasons. So tap on Enable 2FA and continue to set up your two-factor authentication. Then continue with Step 2 above.
Step 3: Next, you need to choose a cryptocurrency that you want to create a vault for. You can choose Bitcoin Cash (BCH), Litecoin (LTC), Ethereum (ETH), or Bitcoin (BTC). So tap on any one of them you like.
Step 4: Now, once you’ve picked your cryptocurrency that you want to create a vault for, Coinbase will ask you to give it a Vault Name. So give any name you like (and make sure it’s something easy to remember). Once you’ve given it a name, then click on the Next button.
Step 5: You’re almost done! After you’ve named your vault, you need to now choose how you can withdraw funds. There are two options you can choose from: Individual where the vault that you just created to store requires only your authorization to withdraw the funds in the vault. Group where the vault that you just created requires the permission of the group members that you choose as co-signers to allow the withdrawal to go through successfully. (Think of it like having a vote, and the majority that votes to withdraw, you then get to withdraw). So choose which of the two options you want and then hit Next.
Step 6: If you’ve chosen Individual, then Coinbase will only need your permission to withdraw the funds in the vault. You do need to provide a secondary email address as a security measure to notify you if you decide to withdraw the funds out of your vault. So enter your secondary email here on this page and then hit the Next.
Step 7: Finally, you’ll receive a confirmation email to the secondary email address that you entered just now, so just open that email account, find the email and confirm by clicking on Use this email to approve withdrawals down near the bottom of the message.
Step 8: You’re Done! Now you can open your Coinbase app on your Android or iPhone, and you can see the new vault that you have created in your Accounts page.
If you chose Group Vault instead of Individual Vault.
Now it might seem a little confusing to you, but it’s alright! It’s pretty simple.
Coinbase will require the group members that you chose earlier to verify your withdrawal via email confirmations before it releases the funds in the vault to you. So since you are the account holder, only you can request a withdrawal, but you will need to get a majority vote from your group members.
Say, for instance, either 2 out of 3 or 3 out of 5 of your group members need to confirm your withdrawal only then can you withdraw. So it’s extremely important that you choose people that you trust as co-signers.
Sweet. Let’s dive right into the steps of setting up your Group Vault:
Step 1: So if you chose Group, you now need to select the number of co-signers you want: 3 Co-Signers of 5 Co-Signers.
Step 2: Next, you need to enter their email addresses on this page. Once done hit Next.
Step 3: Now is the waiting part which is where you wait for your group members to accept your invitation to be a co-signer of your vault. So sit back, relax and just leave the browser page alone while you wait for their replies.
Your co-signers will need to have an account with Coinbase themselves. So if they haven’t, then just hold on until they register with Coinbase. You can share with them this guide so that they know what you’re trying to do and what needs to be done. It makes it much easier. 🙂
Step 4: Finally, once all your co-signers have confirmed (the page will update automatically) your vault will be created. You can now jump into your Coinbase app on your Android or iPhone to have a look at the new vault you have under Accounts.
Transferring Funds into Your New Vault.
Awesome. Now it’s pretty simple to transfer funds into your new vault that you’ve just created.
All you have to do is simply just jump into the Accounts page and choose the wallet where your funds that you want to send are (your Bitcoin wallet or your Ethereum wallet, etc.) and then tap Send beneath it.
Now, enter your vault’s address here under Recipient (you can tap on your new vault to find it) and then enter the Amount you want to send.
Finally, hit Continue and make sure to check all the details of the transaction and then complete the send. You’re done.
Withdrawing from your Vault.
It’s exactly the same way as to how you did to transfer it to your vault.
All you have to do is simply just jump into the Accounts page and choose your vault where your funds that you want to withdraw are and then just tap on the Withdraw button in the top right.
Then just enter the Amount that you want you to withdraw and then finally enter your two-factor verification code. To finish it off, tap on Withdraw.
Coinbase has a 48-hour delay for any withdrawals out of your vault. So if you initiated a withdrawal at 12:00PM on a Monday then your funds won’t be available until 12:00PM on Wednesday (of course if there are no delays or congestion on Coinbase’s part).
Share this guide with anyone who wants to create a vault to store their Coinbase funds safely. 🙂