Initially, digital wallets were introduced to store crypto coins for some people familiar with cryptocurrency. However, with the crypto industry taking hold in the financial industry, traders and investors especially started looking for these digital wallets. Among many options in the market, the Coinbase wallet emerged as one of the most reliable crypto wallets. The extensive utilization of Coinbase Consumer, a decentralized exchange, is the reason for the popularity of the Coinbase wallet.
In 2021, Coinbase attained a prominent position among the largest global exchanges. Nevertheless, a substantial portion of investors choose to acquire Bitcoin through the Coinbase exchange. Security, features, usability, and customer support of Coinbase Wallet will be the main aspects of this article. Let’s begin.
Coinbase Wallet At A Glance
|Type of Wallet||Software wallet|
|Cryptocurrencies||100+ (BTC, USDC, DOGE, ETH)|
|Price||Free to download|
|Supported Hardware Wallet||No|
|Size Of App||40MB|
|Customer Support||via Phone, Twitter, and Email|
What Is A Coinbase Wallet?
The initial launch of the Coinbase Wallet took place in 2018 as a mobile app for both iOS and Android platforms. It is a virtual and self-custody wallet by Coinbase.com for managing and storing cryptocurrencies. It is easy to utilize and supports many tokens, NFTs, and DApps. Coinbase wallet is topped as one of the most secure crypto wallets in the world. Due to its association with the Coinbase exchange platform, traders and investors feel safe storing their assets in this wallet.
Moreover, it is a hot wallet. It stores the majority of cryptocurrencies online. However, it does not adopt cold/offline storage services like encrypted data devices or hardware wallets. It is susceptible to hacking as it is a hot/online wallet.
What Is Coinbase?
Based in San Francisco, Coinbase crypto exchange was founded in 2012. Exchange works in over 100 countries globally. Coinbase allows investors to store, sell, and buy crypto assets. Recognized for its simplicity and robust security, it is one of the biggest trading platforms. Besides exchange services, Coinbase provides users with a digital wallet, Coinbase Wallet.
What Is The Difference Between Coinbase And Its Wallet?
Coinbase is a crypto brokerage platform. Here you can purchase or sell digital assets and exchange them for cash. After buying cryptocurrency on Coinbase, it will be kept on the exchange. However, you won’t have full control over assets. We do not recommend leaving assets there for too long.
While Coinbase Wallet is a self-custody digital wallet. It lets you keep crypto in a decentralized way. However, your device holds the private keys that show you own the crypto assets. These keys aren’t kept on a centralized exchange.
Coinbase Wallet Features
It is a good choice for investors as it has all the essential features a wallet should possess. Here are the main features that stand out in the wallet:
- User-friendly Interface: The Coinbase Wallet’s simple and easy-to-use design helps experienced and beginner users easily care for their digital assets.
- Supported Cryptocurrencies: Besides famous digital assets like ETH, LTC, and BTC, Wallet also supports a variety of other coins.
- Security: Coinbase Wallet uses various safety measures for protection. This includes biometric security, self-custody of private keys, and 2FA.
- Store NFTs: You can store and view your NFT on the Polygon and Ethereum networks using your Coinbase wallet.
- Other Prominent Features: Coinbase Wallet offers more than the above-mentioned services. Real-time price tracking and transaction history options are also available.
|Receiving or sending between Coinbase wallets||None|
|Receiving or sending from Coinbase Wallet to another wallet||Network fee (varies)|
|Trading fee||0.5% to 4.5%|
Both the Coinbase Wallet browser extension and mobile app support the ETH network and EVM-compatible networks such as:
- Avalanche C-Chain
- Binance Smart Chain
Additionally, customers have the option to manually add networks that might not be accessible through the Coinbase Wallet. Notably, some blockchain networks may be unavailable due to geographic restrictions.
Coinbase Wallet’s customer support provides customers access to a variety of resources. To get started, customers have access to knowledge-based FAQs. Moreover, the users can communicate with the Coinbase team via phone, email, or live chat.
Coinbase Wallet Alternatives
Let’s compare the Coinbase wallet with other famous wallets.
|Coinbase Wallet||Trust Wallet||MetaMask Wallet|
|Platform||iOS & Android mobile app, Chrome extension||iOS & Android mobile app, Chrome extension, macOS||iOS & Android mobile app, Chrome extension|
|Supported cryptocurrencies||ERC-20 tokens, Dogecoin, Litecoin, Ripple, Solana, Bitcoin, and more (mobile), ERC-20 tokens, and Solana (Chrome extension)||ERC-20 tokens, Tron, Solana, Bitcoin, Dogecoin, Stellar, and more||ERC-20 tokens|
|Crypto purchase fees||$0.99-$2.99||Up to 4.5%||$1.85-$3.50, depending on the payment processor|
|Bridge||Yes, ERC-20 tokens||No, external only||Yes, ERC-20 tokens|
|Swaps supported||Yes, ERC-20 tokens||Yes, ERC-20 tokens||Yes, ERC-20 tokens|
|Hardware wallet support||Ledger (browser extension only)||Ledger (browser extension only)||Trezor and Ledger and (Chrome extension)|
Getting Started With Coinbase Wallet
The user interface of this wallet is easy and simple. Basically, it is launched for newcomers in the world of cryptocurrency. However, beginners will have no issue using it.
To start your journey with this wallet, follow these three quick steps:
- Sign Up: Users need to give data like first and last names, phone numbers, and working email addresses. Moreover, they also make a strong password for their account at this point.
- Select Your Account Type: Users can also choose a business account or an individual account type. This is only to fulfill the customer’s desire. However, a business account is suitable for high-volume crypto storage. Otherwise, choosing an individual user account would be the best option.
- Verify Your Phone Number: Following the verification of the email address, the user has to verify the phone number using the 2FA process. Using your phone for authentication is the most secure way to access the wallet.
Coinbase Wallet Browser Extension
It is also available in the form of a browser extension. People can get the Coinbase browser add-on for their Chrome browser free of cost. However, this helps them easily and safely use DeFi and Dapps on their computer. In the past, connecting your Coinbase wallet to DApps like Compound or UniSwap required scanning a QR code using a mobile phone. However, since the launch of the wallet’s extension, there has been a significant change.
Is Coinbase Wallet Safe?
As we mentioned, it is a self-custody wallet. So you can completely handle your assets. However, coinbase doesn’t keep or take care of your private keys. You must control and store them in your mobile device or web browser. If these keys fall into the wrong hands, you can lose all your assets.
Other Safety Features
Coinbase Wallet now has new safety features to make web3 usage safer. Here’s what’s included:
- Transaction Previews: See how your token balances change before confirming swaps, NFT minting, or web3 transactions. It’s like a preview based on blockchain simulation.
- Token Approval Alerts: Know when a Dapp wants to access your crypto and NFTs. Remember to research before granting access.
- Dapp Blocklist: Coinbase’s security team watches for bad apps using databases. If you approach a flagged Dapp, Coinbase Wallet warns you.
- Ledger Support Grows: Ledger hardware wallet users can connect up to 15 Ethereum addresses using the Coinbase Wallet browser extension.
Pros And Cons
- Simple and intuitive interface
- In-app exchange
- Robust security measures
- Impressive customer support
- Support for multiple cryptocurrencies
- DeFi functionality integrated
- Limited availability in some countries
- Limited customization options
- No BTC support for the Chrome extension
- Internet-connected hot wallet
- Support isn’t always the most helpful
Coinbase Wallet is the best option compared to others as it offers a variety of tools and features for security. For easy handling of digital assets, it is considered a great option. It supports multiple NFTs, cryptocurrencies, and Coinbase.com. It has been thoroughly tested and caters to both beginners and experts.