Coinbase is stored in a digital wallet, which can be online, on your computer, or on an external hard drive. But if something unexpected happens — your online exchange platform goes out of business, you send Coinbase to the wrong person, you lose the password to your digital wallet, or your digital wallet is stolen or compromised — you’re likely to find that no one can step in to help you recover your funds. And, because you typically transfer Coinbase directly without an intermediary like a bank, there is often no one to turn to if you encounter a problem.