- Easy to use for beginners
- Supports a large number of crypto assets
- Access to decentralized apps
- The company has a history of bad customer support
- Code is not open source
Most people who discovered cryptocurrencies were exposed to digital wallets, which are used to store cryptocurrency. Investors and traders began to investigate these cryptocurrency wallets in greater depth as the crypto business gained traction in the financial industry. Among these, the Coinbase Wallet has become one of the world’s most popular cryptocurrency wallets.
The widespread use of Coinbase Consumer, a decentralized cryptocurrency exchange, is one of the main reasons for the wallet’s success. Coinbase will be one of the world’s largest cryptocurrency exchanges by 2023.
Furthermore, the bulk of traders uses the Coinbase Consumer exchange to invest in Bitcoin. This online platform is more well-known than any other cryptocurrency exchange business.
- 1 What Is the Coinbase Wallet?
- 2 How to Use the Coinbase Wallet
- 3 Features of the Coinbase Wallet
- 4 Is Coinbase Wallet Safe?
- 5 Wallets on Coinbase Vs. Other Wallets – A Full Comparison
- 6 Coinbase Wallet Vs Trust Wallet
- 7 Coinbase Wallet Vs Exodus Wallet
- 8 The Verdict
- 9 FAQs
What Is the Coinbase Wallet?
To begin, one must first understand the difference between Coinbase and Coinbase Wallet. Coinbase Consumer, sometimes known as Coinbase, is a web-based cryptocurrency exchange marketplace. The Coinbase Wallet, on the other hand, is a cryptocurrency wallet. On this platform, users can buy, sell, and exchange cryptocurrencies. This wallet’s principal role is to safely store customers’ crypto assets.
The Coinbase Wallet is widely regarded as one of the safest cryptocurrency wallets available. Investors and crypto enthusiasts can feel safe keeping their digital assets in this wallet because it is integrated with the Coinbase exchange platform. A Coinbase Wallet is a digital wallet that stores cryptocurrency in hot storage.
Additionally, the Coinbase Wallet keeps most cryptocurrencies online, based on the features of hot wallets in the crypto industry. It does not make use of cold storage services like hardware wallets or a secure data storage device. Being a hot wallet, however, makes it vulnerable to cyber-attacks and online crypto hacking.
People connect with decentralized applications (dApps) on the Bitcoin and Ethereum ecosystems using this wallet. Users can create Coinbase accounts on all devices, including Android and iOS mobile platforms, thanks to the wallet’s easy integration into dApp browsers.
Coinbase was founded in 2012 with the goal of creating a crypto-friendly trading environment. With its exchange services and wallet features, the Coinbase platform now manages billions of dollars in cryptocurrency.
Furthermore, Coinbase is a dependable and well-funded cryptocurrency corporation thanks to its advanced developments. As a result, the Coinbase Wallet has become a popular choice among cryptocurrency users all over the world.
How to Use the Coinbase Wallet
This wallet’s user interface is simple and straightforward. Coinbase’s developers have made this wallet extremely user-friendly. It is intended for those who are new to the cryptocurrency industry. This wallet is simple to use even for first-timers.
Follow these three simple steps to get started with Coinbase Wallet:
1. Sign Up
Users are required to enter information such as their first and last names, active email addresses, and phone numbers. Create a secure password for your Coinbase Wallet account in this step.
2. Choose an Account Type
Customers can choose between a personal and a business account on Coinbase. These choices are designed to meet the demands of cryptocurrency users. A commercial account is best for high-volume crypto storage.
3. Verify Your Number
After validating their email address, customers must use the 2FA method to confirm their phone numbers. This phone-based authentication is the wallet’s most secured entry point.
Users of the Coinbase Wallet can set up a payment method after completing these steps. This aids them in selecting an appropriate crypto asset for storage, transmission, and receipt. Residents of the European Union and the United States can choose from a variety of payment options.
Coinbase users prefer to pay with their credit cards. Some people choose to add money to their wallets using bank transfers. Users can simply transfer fiat money into and out of their wallets by verifying these payment methods.
Features of the Coinbase Wallet
This wallet offers some advanced features that make it the ideal wallet for crypto, according to the Coinbase Wallet reviews. The wallet is well-protected and ensures that its status as a “hot wallet” does not lead to hacking incidents.
Essentially, the main advantage of the Coinbase Wallet is that it allows users to manage their private keys and save their cryptocurrency holdings directly onto their devices. It’s used as a hot wallet that works with hardware wallets like KeepKey, Ledger, and Trezor. The wallet does not serve as a centralized brokerage or exchange, but it does serve as a means of sending and receiving these transactions.
Coinbase Wallet is compatible with cryptocurrency-friendly bank accounts. The wallet also offers a number of tools that assist users in purchasing and selling cryptocurrencies at a profit. Major fiat currencies, like US Dollars, are also supported by the wallet (USD).
The wallet has a high level of compliance with specific KYC rules incorporated into the company’s policy. This wallet may not be suitable for those with a poor credit history. Regardless, the wallet’s interesting features and support services would appeal to everyone.
This wallet’s main feature is that it allows users to store digital collectibles. In the digital consumer market, non-fungible tokens (NFTs) are rapidly gaining popularity. Crypto Punks and Kitties are becoming valuables in the digital age. In the Coinbase Wallet, these NFTs can be safely held. Furthermore, the wallet facilitates the purchase and sale of these NFTs through the internet.
The wallet provides safe storage options. On the wallet, both private and public keys are well-protected. The Secure Enclave feature is likely Coinbase’s most robust security measure. In addition, biometric authentication is used to protect cryptocurrencies on the wallet. This restricts access to cryptocurrency and allows for user-only access. The wallet’s optional cloud backups come in handy for retrieving lost private keys and crypto assets.
Is Coinbase Wallet Safe?
Essentially, Secure Enclave is the biggest reason why people trust this hot wallet. Secure Enclave technology protects Coinbase from potential threats, hacks, and scammers.
This technology keeps the user’s private keys safe. To control access, it uses authentication methods such as two-factor authentication (2FA). Access to the Coinbase Wallet can be facilitated via SMS authentication using verified phone numbers.
In rare situations, the wallet will also use a Google Authenticator. There’s also a Coinbase Wallet app that requires a four-digit security PIN to access. This PIN can be used to unlock the wallet on the mobile app as well as assist it in transaction authorizations.
Coinbase’s hacking history has been interesting. Despite the wallet’s numerous security measures, hackers have not been able to steal a substantial amount of cryptocurrency from these wallets. They are safe and have never been hacked.
This should address the primary concern, “Is the Coinbase Wallet secure?” Yes, the wallet is secure and adheres to industry standards for protecting digital currency. Despite being a hot wallet, Coinbase is a pioneer in the crypto sector when it comes to safe payment services. It ensures that security features are implemented on a multi-level basis.
The wallet, for example, uses a web-based HTTP-encrypted multi-layered SSL to process all of its traffic. Users can safely store sensitive data and should not be concerned about redundancy splitting. The data is encrypted using AES-256 in the wallet. It also creates a backup on USB drives that are FIPS-140 compatible. Following that, the drives are safely housed in physical deposit boxes and safety vaults around the world.
Ease of Use
Coinbase Wallet addresses are available via both the web and mobile apps, making them easily accessible. Furthermore, the Coinbase platform supports a wide selection of cryptocurrencies, making it a good choice for both beginners and experienced traders.
Essentially, Coinbase is a simple platform to use and shouldn’t be confusing. The website is designed to make it easy for users to locate the service information they require, as well as a list of available cryptocurrencies. It includes enough helpful tips that users may easily follow to ensure that transactions, like trading and buying crypto, run smoothly.
The Coinbase website now includes a platform that makes it simple for users to develop decentralized apps or DApps. Users can trade with each other directly instead of going via an intermediary thanks to simple access to DApps, which is a simple way to move money.
Other platforms, such as Metamask, do not offer the same level of simplicity because their platform is limited to hardware wallets like the Ledger Nano.
While Coinbase has always prioritized user-friendliness in its products, customer support has been an issue in the past.
Cost and Fees
Coinbase Wallet is completely free and has no wallet fees. When sending payments or interacting with a smart contract, however, users must pay blockchain transaction costs. Smart contracts are self-executing programs that are based on what-if scenarios that run automatically when certain requirements are met. They allow developers to create decentralized blockchain apps.
Furthermore, transaction costs are customizable, allowing users to set their own budget for blockchain fees. The more users pay in fees, the faster the transaction will settle.
Depending on the user’s location, payment type, and order mode, the Coinbase network fee might range from 1.49 percent to 3.99 percent (standard or instant). These Coinbase Wallet fees include a 0.55 USD minimum fee and a 1.5 percent transaction fee to withdraw from Coinbase Wallet using an instant card withdrawal method.
Wallets on Coinbase Vs. Other Wallets – A Full Comparison
Coinbase Wallets are frequently compared to other popular cryptocurrency wallets such as Exodus and Trust. Since Coinbase has one of the largest user populations in the crypto realm, these comparisons are commonly encountered in online evaluations.
Coinbase Wallet Vs Trust Wallet
Trust Wallet is more business-friendly, whereas Coinbase Wallet is more user-friendly, according to reviewers. The quality of Trust’s recurring wallet services, on the other hand, is not on pace with Coinbase’s. Trust wallet’s support features are pretty adequate. In terms of wallet features and firmware updates, Coinbase comes out on top. It also includes simple roadmaps for various types of cryptocurrency consumers.
Coinbase Wallet Vs Exodus Wallet
When it comes to value for money, Coinbase’s wallet services are more cost-effective than Exodus’. It also stands out as the cryptocurrency wallet with the best quality-to-price ratio. The Coinbase brand provides additional value to wallet users. When it comes to major crypto wallets, Coinbase outperforms Exodus.
Coinbase Wallet is a popular cryptocurrency wallet that allows users to store a variety of digital assets (including NFTs) and use web3 applications on their mobile devices and through a browser extension. Additionally, Coinbase Wallet users have full control over their digital assets and how they choose to use them because it is a non-custodial wallet.
Existing Coinbase users will appreciate the seamless integration of Coinbase.com and Coinbase Wallet for crypto purchases, while all Coinbase users will benefit from the reduced fees of Coinbase Wallet.
Coinbase is a reputable Bitcoin wallet. It ensures consumers’ digital assets’ safety and virtual untouchability against intruders by insuring them against hacking, cyber theft, and other fraudulent actions.
Can I Buy the Supported Cryptocurrency Listed on Coinbase Wallet from My Coinbase Account?
It’s possible that the supported coin on Coinbase Wallet isn’t available for purchase or sale on Coinbase.com. Sign in to your Coinbase.com account and proceed to the Trade page to see all the supported cryptos.
Why Are the Costs for Coinbase Wallet Trading Different from Those for Coinbase.com?
All conversions in Coinbase Wallet are now subject to a fee. This fee, along with the miner fee(s) needed to pay the network fees connected with the conversion, is published on the transaction confirmation page. The fee that Coinbase Wallet charges is used to keep this service running and to develop future product features.
Will Coinbase Support the Coins Offered on Coinbase Wallet?
There’s no guarantee that coins offered on Coinbase Wallet will be listed on Coinbase.com in the future. Meanwhile, in accordance with the company’s listing framework, it is continuing to provide support for other cryptocurrencies on its platform.