Coinbase offers a centralized wallet and you only have your public address. If you are holding long term, it is preferable if you are using a cold storage or at least a desktop wallet like electrum or exodus that gives you access to your private keys. You can just leave few of the coins you may want to transact with in your coinbase wallet but not all you have.
Oh yes, so in that sense storing coins on coinbase is no different than storing it on exchanges. I have little knowledge on desktop wallets but as far as I know if I have the private key of my wallet stored somewhere safe and if someday my hard disk blows up, I can still get my wallet and full balance back with the private key, is that correct? Also can I password protect the electrum software?