Safer spot for small bags: Coinbase Wallet or fiat in ETF?

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I would recommend neither.

Coinbase has proven time and again to be unreliable (or nefarious, depending on your perspective) when demand is high, with users being unable to buy, sell, and/or access their BTC.

The ETF = you own zero BTC.

Instead: use a hot wallet for small amounts and a cold wallet for your main stack.

Buy on an exchange other than Coinbase: River or Strike are great options.

Hot wallet: Blockstream Green and Muun have been good. Mutiny Wallet is newer but it sounds like it’s being well-received.

Cold Wallet: Blockstream Jade, ColdCard and BitBox are open source options that work very well.