Coinbase Crypto Wallet Review 2024
Coinbase Wallet is what’s called a “self-custody” wallet that aims to give investors complete control of their cryptocurrency. A self-custody wallet is a place where you can securely store your crypto assets.
When it comes to online cryptocurrency wallets, Coinbase Wallet is one of the most reliable ones available. Offering integrations with Coinbase.com, it’s quite a popular self-custody wallet that many crypto investors are using to store their funds.
In this Coinbase Wallet review, we’ll go over everything you need to know about the wallet, from its fees, down to its security features. Keep reading to learn how Coinbase Wallet can keep your crypto safe.
Coinbase Crypto Wallet Profile
| Name | Coinbase Wallet |
|---|---|
Website |
Coinbase Wallet mobile app and Chrome extension |
Supported Crypto Assets |
Bitcoin |
Web 3 Support (dApps, NFTs) |
dApps |
Ethereum token support |
Yes |
Web Wallet |
Yes |
Mobile App |
Yes |
Cold Storage |
No |
Private Key Storage |
Non-custodial wallet where private key security is user’s responsibility |
Linked Exchanges |
Coinbase.com |
Fees |
Blockchain and conversion fees |
Customer Support Channels |
Email |
What is Coinbase Wallet?
Once named Toshi, Coinbase Wallet was rebranded by the Coinbase team in 2018. It became the first wallet to launch crypto collectibles. The Coinbase team’s goal was to simplify managing crypto and accessing the decentralized web.
Coinbase Wallet is what’s called a “self-custody” wallet that aims to give investors complete control of their cryptocurrency. A self-custody wallet is a place where you can securely store your crypto assets.
Self-custody means that the wallet doesn’t rely on a third party or “custodian” to keep your crypto safe. So, it’s not hosted on a platform that keeps your crypto for you, similar to how a bank keeps your money in a checking or savings account.
With a self-custody wallet like what Coinbase offers, you’ll receive a private key that only you should know. If someone else gets your private key, they’ll get full access to your assets. Unlike hosted wallets, a Coinbase self-custody wallet allows you to access more advanced crypto activities like staking, lending, borrowing, and more.
Basic Functionality
The main goal of Coinbase Wallet is to allow users to store all of their crypto in one place without having to worry about security. Users can manage their own private keys and store their crypto assets directly on their devices.
This is different from a hosted wallet or a hardware wallet that stores a user’s private keys on a portable device that you connect to a computer. Instead, Coinbase Wallet stores your private keys on your own device.
And just in case you lose or forget your private key, the app will generate a 12-word recovery phrase, which means you don’t have to worry about losing access to your funds.
The wallet allows for various functionalities, giving its users the ability to send, receive, and spend digital money. They can also browse and use decentralized finance (DeFi) applications, and more.
Coinbase Wallet customers can also use their wallet to purchase items at stores that accept crypto. Customers can use a QR code at checkout, which represents a cryptocurrency address and payment amount. QR codes make it easy to pay from a wallet app on a mobile device, including the Coinbase Wallet app for Android or iOS.
Supported Coins
Coinbase Wallet supports a wide range of cryptocurrencies and assets, including:
Pros and Cons
👍 Pros
• Easy to use
• Supports a large number (100+) of crypto assets
• Access to decentralized applications (dApps) across multiple blockchains
• Top-notch security
• Well-funded to recoup lost or stolen assets
• Advanced capabilities for providing access to digital financial instruments such as NFTs, altcoins, and stablecoins
• Easy to swap assets between Coinbase wallet and Coinbase exchange
👎 Cons
• Doesn’t have the best customer support
• Code isn’t open-source
Coinbase Wallet Fees: Is it Free?
Coinbase Wallet is free, and doesn’t charge any wallet fees. But if you’re sending funds or interacting with a smart contract, you’ll have to pay blockchain transaction fees. A smart contract is an agreement written in code that resides on the blockchain.
The contract automatically executes if predetermined conditions take place. Smart contracts allow transactions and business functions to take place on a digital marketplace without an intermediary.
The great thing about Coinbase Wallet blockchain fees is that they’re customizable. So, you can choose how much you want to spend on blockchain fees. The more you pay in fees, the faster the transaction will settle.
Coinbase Wallet also charges conversion fees when you trade crypto assets on a decentralized exchange. The conversion fee is a flat fee of 1% on all conversions.
Is Coinbase Wallet Safe?
Because Coinbase Wallet requires the internet to function (unlike hardware wallets like Ledger and Trezor), there’s always the concern that a user’s funds will end up in the hands of a hacker. However, thanks to the wallet’s exceptional security features, users can feel more confident storing their crypto assets.
Since the wallet is a non-custodial, or decentralized wallet, only you have access to the wallet’s private keys. This means that not even Coinbase has your keys. Therefore, if for some reason, Coinbase’s servers ever become compromised, attackers won’t be able to access your funds.
Private Key Storage
With secure enclave technology, Coinbase Wallet safely stores your private keys. You can set up a PIN or password, depending on if you’re using the mobile or browser extension version. You can also enable biometric verification when using the mobile app. This includes fingerprint technology or Apple’s Face ID. So, no one but you can access your Coinbase Wallet account.
Coinbase Wallet also uses two-factor authentication (2FA) to add an extra layer of security, in addition to your private key and recovery passphrase.
Does Coinbase Support Cold Storage?
Coinbase Wallet itself isn’t cold storage. It’s what’s called a “hot wallet”, which is a wallet that’s always connected to the internet, and allows you to store, send, and receive tokens. Cold storage, on the other hand, holds cryptocurrency tokens offline. However, it’s compatible with a hardware wallet, such as KeepKey, Trezor, and Ledger.
It’s also important to note that Coinbase.com, a crypto and digital asset exchange that’s separate from Coinbase Wallet, does include cold storage in its offering, rather than just support it. The platform stores 98% of deposits offline in secure cold storage facilities, which are guarded and monitored 24/7.
When opening a wallet account on Coinbase.com—which again, is separate from Coinbase Wallet—the exchange gives you the option to “vault” the wallet. Coinbase will keep your keys somewhere offline using its own chosen method.
Has Coinbase Had Any Security Compromises?
No, Coinbase Wallet users haven’t fallen victim to fraud or attacks. However, Coinbase.com, has experienced security compromises that have put users' private information and crypto assets at risk.
Coinbase Wallet Features Review
High Compliance
Coinbase Wallet boasts many features that make it a go-to option for users who want to go the extra mile in keeping their digital assets safe. For example, the app is highly compliant and implements certain Know Your Customer (KYC) rules.
Digital Assets
One of the most exciting features of Coinbase is that it allows users to store digital collectibles, such as non-fungible tokens (NFTs). NFTs enable artists, creators, and brands to sell digital art, collectibles, music, and other digital assets that are unique. The underlying technology of NFTs, called the blockchain, makes them NFTs unique, giving users the ability to own something that can’t be replicated.
Since Coinbase Wallet supports Ethereum (ETH), customers can buy NFTs. So, Coinbase Wallet doesn’t just support the safe storage of crypto coins, but it also allows you to store digital collectibles like NFTs.
Compatible with Coinbase.com
Coinbase Wallet is also a highly useful tool because it works with Coinbase.com. So, if you’re already a Coinbase customer, you can link your Coinbase account to your wallet to easily access your crypto.
Decentralized Exchange Support
When you sign up for Coinbase Wallet, you’ll also have access to its decentralized exchange (DEX) integration. This will allow you to easily trade the tokens on decentralized exchanges in your wallet. You can trade assets hosted on the BNB Chain, Ethereum blockchain, and Polygon network.
Easy-to-Use, Clean Interface Design
In addition to these features, Coinbase Wallet is also simple to use, which means it’s very suitable for beginners. It boasts a clean, streamlined interface, allowing the ability to send and receive crypto to a simple username.
How to Download and Set Up Coinbase Wallet
You can download and set up Coinbase Wallet in just a few simple steps.
Here’s how to get started on the mobile app:
-
Step 1: Go to the Google Play Store (Android) or App Store (iOS), and search for “Coinbase Wallet”
-
Step 2: Download the app. Once downloaded, create a new account. Or if you’re already using Coinbase.com, you can just log in to your existing account. To create a new account, tap on the “Create New Account” button on the screen. Then, choose a unique username. Next, set your privacy preferences to public or private. Having a public account allows other Wallet users to search for your username and send you crypto. But they won’t be able to if your account is private. Once you’ve chosen an available username and have set your privacy preferences, tap on the “Create a New Wallet” button.
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Step 3: The next screen will ask you to accept the Terms of Service. Check the required boxes, and enter your username so that other Coinbase Wallet users can find you and send you payments.
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Step 4: The next step will require you to choose a method for protecting your account every time you open the app. Depending on your device, you can either choose between two biometric identification methods: Touch ID or Face ID (iOS users). You can also create a six-digit Passcode.
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Step 5: The app will then give you a secret recovery passphrase. This will come in handy if your mobile device is lost or stolen. Be sure to write this phrase down.
To get started with the Coinbase Wallet browser extension, follow these steps:
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Step 1: Go to Chrome Web Store, and search “Coinbase Wallet”. Then, download it as a browser extension.
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Step 2: Next, click “Create a New Wallet” and choose a unique username. This allows other Coinbase Wallet users to find you and send you crypto
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Step 3: Accept the Terms of Service.
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Step 4: You’ll receive a 12-word recovery phrase. Be sure to store your recovery phrase in a secure location.
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Step 5: Verify that you’ve saved your recovery phrase.
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Step 6: Create a password to access your Wallet.
Coinbase Wallet at Chrome web store
How To Use Coinbase Wallet
Sending and receiving tokens is pretty simple, which makes Coinbase Wallet great for beginners. However, if this is your first time using the app, it helps to have step-by-step instructions available to show you how to use it.
How Do I Send Crypto Out of Coinbase?
To send crypto with Coinbase Wallet, simply:
-
Open the Coinbase Wallet app on your mobile device. Login in and authenticate yourself using Touch ID, Face ID, or a Passcode.
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Tap the “Send” tab at the top of the screen. And choose whether you want to send tokens from your Coinbase account or from another wallet. If you’re sending crypto from your Coinbase account, you’ll need to connect your Coinbase account to your Coinbase Wallet.
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Once you’ve chosen which wallet your crypto will come from, you’ll then be able to choose the type of token and the amount of tokens you’d like to send.
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Then, enter the receiving address of the wallet you’re sending tokens to. You can also scan the QR code. Click “Continue”.
The process for receiving tokens with Coinbase Wallet is very similar to the steps you take when sending them. The only difference is, that you tap “Receive”, instead of “Send” within the Coinbase Wallet app. Then, send your wallet address or QR code to the user who’s sending you crypto
How Do I Exchange Crypto in Coinbase Wallet?
Exchanging, or converting crypto in Coinbase Wallet involves using a decentralized exchange. These exchanges run on the Ethereum blockchain that enables you to easily convert your tokens. This allows you to send your funds directly from your self-custody wallet to a decentralized exchange service.
To exchange crypto in Coinbase Wallet app, follow these steps:
Sign in to your Coinbase Wallet.
Tap the settings icon to choose the network you’d like to trade your asset.
Tap the back button. Then, tap “Trade”
Choose the crypto you want to convert, the crypto you want to convert it to, and the amount.
Verify your biometric (Face ID/Touch ID) or PIN, and tap “Confirm”.
Not using Coinbase Wallet on your mobile device? Here’s how to exchange crypto in the Coinbase Wallet browser extension:
On the Wallet extension homepage, click “Convert”.
Select the “From” dropdown menu, and choose the crypto you want to convert. Under the “To” dropdown menu, choose the crypto you’d like to trade. Then, select the amount you want to convert.
Click “Confirm”.
How to Buy and Sell Crypto in Coinbase Wallet
In order to buy and sell crypto in Coinbase Wallet, you must link your Coinbase account to your Coinbase Wallet. If you don’t already have a Coinbase account, here’s how to create one:
Open and sign in to your Coinbase Wallet.
Tap the settings icon at the bottom-right corner of the screen. Under “Connected Apps”, tap “Connect to Coinbase”.
Tap “Sign up for Coinbase”, and follow the remaining steps.
To finish creating your account, you’ll need to verify your email, identity, and new payment method. You also must add a 2FA verification method to secure your new account.
After connecting your Coinbase account to your Wallet, you can start buying crypto.
Here’s how to do that:
Within the Coinbase Wallet app, tap the Settings icon.
Under “Connected Apps”, tap “Buy or transfer”.
Choose the coin you’d like to purchase. Then, enter the amount you want to buy.
Tap “Continue”, and choose your payment method.
Tap “Confirm”.
To sell crypto using Coinbase Wallet, you’ll first need to transfer the crypto to Coinbase. Here’s how:
Open Coinbase Wallet on your mobile device.
Tap “Send”.
Enter the amount you’d like to transfer.
Select the coin you’d like to transfer, and tap “Next”.
You’ll then be prompted to choose the address you’d like to send to. Tap “Coinbase”.
Follow the remaining steps to complete your transfer.
After the transfer has processed, the coin will be available under your Assets in Coinbase. To sell, select your chosen asset, and choose the amount you want to sell. Coinbase will then convert your asset into cash, which will be available in your cash wallet in Coinbase.
Coinbase Wallet Platforms
Coinbase Wallet is available on multiple platforms.
Web
Coinbase Wallet is available as a standalone browser extension. By downloading Coinbase Wallet on the Chrome Web Store, customers can access thousands of cryptocurrencies, trade on decentralized exchanges, earn interest, and collect NFTs, with just a few clicks.
Mobile
Coinbase Wallet has a mobile app that’s available on iOS and Android operating systems.
Features of The Coinbase Wallet App
The Coinbase Wallet app is defined by a collection of robust features designed to provide a comprehensive cryptocurrency management experience. These features create an ecosystem that empowers users with secure, efficient, and intuitive ways of interacting with their digital assets and the broader blockchain landscape.
Secure Storage
One of the key features of the Coinbase Wallet app is its commitment to secure storage. The app uses several security measures, including biometric authentication and secure enclave technology, to protect your digital assets from unauthorized access.
Multi-Currency Support
The Coinbase Wallet app supports a multitude of cryptocurrencies, not just Bitcoin and Ethereum. This wide-ranging support allows you to store, manage, and transact with various digital assets all from one platform.
Simple Transaction Management
With the Coinbase Wallet app, conducting transactions is straightforward. Whether it's sending or receiving cryptocurrency, the app provides a simple and intuitive way to manage these transactions, making it user-friendly even for beginners.
Decentralized Application (dApp) Browser
The integrated dApp browser opens up a world of possibilities for Coinbase Wallet users. It allows you to interact with decentralized applications directly from the app, making it easier to engage with the broader blockchain ecosystem.
Integration with Coinbase Exchange
The Coinbase Wallet app integrates seamlessly with Coinbase's primary exchange platform. This allows you to move their digital assets between the wallet and the Coinbase exchange smoothly, providing you with a cohesive user experience.
Web3 Wallet
The Coinbase Wallet app functions as a Web3 wallet, which means it allows you to interact directly with decentralized web platforms and protocols. This is a critical feature for anyone wanting to engage with decentralized finance (DeFi) applications.
User-Friendly Interface
Despite its advanced features, the Coinbase Wallet app has a user-friendly interface that's easy to navigate. Even for those new to crypto wallets, the design and layout of the app make it straightforward to use, ensuring a smooth user experience.
Is the Coinbase Wallet Suitable for Beginners?
For beginners in cryptocurrency, finding a wallet that is secure and easy to use is essential. The Coinbase Wallet, with its robust features and user-friendly interface, is an excellent option for those just starting out. Let's discuss why that is.
User-Friendly Interface
Coinbase Wallet offers an intuitive and easy-to-use interface. You don't need to be tech-savvy to navigate through the wallet's features. Everything is laid out in a straightforward manner to ensure that you can manage your cryptocurrencies with ease.
Integration with Coinbase Exchange
With the Coinbase Wallet, you benefit from seamless integration with the Coinbase exchange. This allows you to buy and sell cryptocurrencies directly from your wallet, which simplifies the whole process of managing your digital assets.
Dedicated App Support
Coinbase offers robust app support for both iOS and Android devices. You can manage your crypto assets on the go, anywhere, anytime. The app is designed to be easy to use, with a simple layout and clear instructions.
Security Measures
As a beginner, you may be worried about the security of your cryptocurrencies. Coinbase Wallet offers robust security features, including Secure Enclave and biometric authentication methods, to ensure your assets are safe.
Educational Resources
Coinbase provides a wealth of resources to educate beginners about cryptocurrencies. From their blog to their FAQs, they offer comprehensive guides that can help you understand the ins and outs of the crypto world.
Price Alerts
Coinbase Wallet offers price alerts for a range of cryptocurrencies. This feature can be incredibly useful for beginners to monitor market trends and make informed decisions. Alerts help users stay informed without constant manual monitoring.
Non-Custodial Wallet
One of the features that makes Coinbase Wallet stand out is that it is non-custodial. This means you are in full control of your private keys and, therefore, your crypto assets. For a beginner, this might seem daunting, but it's an important aspect of truly owning your digital assets and is an excellent way to learn about the fundamental principles of cryptocurrency.
FAQs
What’s the difference between Coinbase and Coinbase Wallet?
Coinbase is an online cryptocurrency exchange that allows customers to buy and sell crypto. In addition to Coinbase.com, the exchange also offers a mobile app that’s available on iOS and Android.
When using Coinbase, customers can securely store their cryptocurrencies without having to worry about managing their own private keys.
Coinbase Wallet is a separate standalone app that puts customers in charge of storing their own crypto directly on their devices, and not with a centralized exchange. Unlike Coinbase.com, Coinbase Wallet requires users to manage their own private keys.
You also don’t need a Coinbase account to use the Coinbase Wallet app. However, you can’t connect Coinbase Wallet to your bank account to buy and sell crypto with fiat currencies like USD.
Is Coinbase Wallet expensive?
No. Coinbase Wallet is free to download and use. Fees only apply when you interact with a smart contract (blockchain fees) or trade crypto on decentralized exchanges (conversion fees).
What’s a self-custody wallet?
A self-custody wallet is a wallet that allows you to store your private keys locally on your own device—instead of a third-party platform—giving you full control over your funds. You don’t need an email address or bank account to sign up for a self-custody wallet.
Is Coinbase Wallet trustworthy?
Yes, Coinbase Wallet is considered to be one of the safest cryptocurrency self-custody wallets in the industry. With various security features like biometric login support, 2FA, and private and public keys stored on a device instead of a server, costumes can keep their funds sae with Coinbase Wallet. Plus, the app has never experienced a cyber attack that put user accounts and funds at risk.
Team that worked on the article
Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data. He is also an educator in the field of finance and technology.
As an author for Traders Union, he contributes his deep analytical insights on various topics, taking into account various aspects.
Dr. BJ Johnson is a PhD in English Language and an editor with over 15 years of experience. He earned his degree in English Language in the U.S and the UK. In 2020, Dr. Johnson joined the Traders Union team. Since then, he has created over 100 exclusive articles and edited over 300 articles of other authors.
The topics he covers include trading signals, cryptocurrencies, Forex brokers, stock brokers, expert advisors, binary options. He has also worked on the ratings of brokers and many other materials.
Dr. BJ Johnson’s motto: It always seems impossible until it’s done. You can do it.
Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets. Her specialties are daily market news, price predictions, and Initial Coin Offerings (ICO). Mirjan is a cryptocurrency and stock trader. This deep understanding of the finance sector allows her to create informative and engaging content that helps readers easily navigate the complexities of the crypto world.