Coinbase Wallet Review

 

What is The Coinbase Wallet?

History of Coinbase Wallet

Pros & Cons

Advantages

Disadvantages

UX Overview

Installation Tutorial

Security

How Coinbase Compares To Other Wallets

FAQ

Can you use the Coinbase wallet on PC?

What currencies does Coinbase wallet Support?

Can users transfer funds from Coinbase wallet to Coinbase.com?

How useful is the Coinbase wallet?

Conclusion

 

What is The Coinbase Wallet?

 

When people think of Coinbase they usually associate the name with the exchange but as their services continue to expand, more user-friendly tools will become available. Such is the Coinbase wallet that allows users to store, send, receive and trade cryptocurrency with one simple app.

It is known for the simplistic design that is native to the Coinbase brand while offering various security features that benefit the convenience of its customers. You can protect your account with many different measures including 2FA. Alongside that, the recovery phrase can be stored on the cloud so if the user ends up losing it, a backup would be available to them.

 

History of Coinbase Wallet

 

As of 2018, Coinbase offered its services to 32 countries while their wallet was available in 190 countries at the same time. It was released as a part of the additional services that are provided by Coinbase and ever since it earned the reputation of “the safest cryptocurrency wallet”. Currently, the wallet supports  Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), Ether Classic (ETC), Litecoin (LTC), XRP (Ripple), Stellar Lumens (XLM), and Ethereum-based ERC20 tokens.

 

Pros & Cons

 

Pros

 

  • Easy to use

 

  • Free to download and use

 

  • Supports most popular cryptocurrencies

 

  • Reasonable fees

 

  • Many different security options

 

  • In-app trading

 

  • Can store ERC721 collectibles

 

Cons

 

  • A small number of altcoins available

 

  • Wallet hosted by Coinbase so it needs an internet connection to show accurate stats

 

Advantages

 

The main concern with every cryptocurrency wallet should be security and Coinbase is very competitive on that end. Their wallet has never been breached or hacked, making it one of the most trustworthy wallets in the industry. Looking at user reviews and the general sentiment regarding the Coinbase wallet one would come to a conclusion that most users find it helpful and secure.

The in-app trading feature is kind of unique as not many wallets offer that service. Being connected to a liquid exchange at all times certainly gives the Coinbase wallet an advantage over its competitors. Usually, those that do offer traders directly in the wallet need to utilize a third party service. With the Coinbase wallet, all you need is a Coinbase account, and the trading experience may be even better than on the actual exchange.

 

Disadvantages

 

The lack of “altcoins” that can be stored in this wallet may be a problem for some investors. Even though the Coinbase wallet supports a lot of ERC-20 tokens there are new projects emerging almost daily so if you are looking for a wallet that offers diversity, this one doesn’t fall into that category.

Ownership of the wallet may also pose a problem for some as it is “hosted” by Coinbase and as such depends on their uptime. To have full control over your funds you must assume that Coinbase won’t have any problems with providing this service. So far, they have lived up to their reputation but since many cryptocurrency enthusiasts prefer full control this one may be less appealing to them.

UX Overview

 

Coinbase offers only a mobile version of their wallet and it is fairly simple to use and navigate. The ability to store ERC-20 tokens allows users to even store their collectibles and NFTs inside the Coinbase wallet. Transaction history and total coin value are clearly displayed within the app making fund management seamless.

 

In general, those that are familiar with money management apps and mobile banking will find it easy to adapt to this alternative. All of this makes the Coinbase wallet a perfect fit for users that are new to cryptocurrency and this type of investing. It is worth mentioning that the Coinbase wallet makes it very easy to swap between currencies within your wallet.

There is no need to move them to an exchange, which gives this wallet a fair advantage over their competitors.

 

Installation Tutorial

 

The Coinbase wallet can only be installed on Android and iOS devices. The installation has no special requirements so it should be just as easy as with any other mobile app. The only difference is that users will need to save their recovery phrase for security reasons.

Security

 

So far there was no breach recorded regarding the Coinbase Wallet. Those wondering if it is safe can rest assured that Coinbase puts a big emphasis on user-protection. Those that chose this wallet will have three main ways to protect their funds and data:

  • 2FA

 

  • Multiple Signatures

  • Confirmation requests


There are a few other ways users can enhance their wallet security as well. This is a list of recommendations according to Coinbase:

  • Use a strong password

 

  • Utilize the Strongest Form of 2-Step Verification 

 

  • Secure Your Email

 

  • Lock Down Your Mobile Account

 

  • Keep Your Devices Clean and Updated

 

  • Protect Your Cloud Storage Accounts

 

  • Stay Alert for Phishing

 

  • Check Your Recent Activity

 

  • Utilize the Address Book and Whitelisting Feature

 

  • Utilize the Coinbase Vault

 

  • Practice Due Diligence

 

How Coinbase Compares To Other Wallets

 


When it comes to digital wallets Coinbase is probably one of the safest ones out there. Since it is directly linked to the exchange which keeps 99% of their funds in cold storage, your funds should be as safe as possible. But, it is worth noting that the Coinbase wallet is still digital, meaning that it can’t compete with hardware wallets and other forms of cold storage.

When your funds are held by an app that is by default almost always online, you can always expect a breach or security issue. While it is only theoretical with the Coinbase wallet, there is still a chance so if you want to store larger amounts of Bitcoin or Ethereum, it would be best to do so with cold storage.

Digital wallets were created to offer users an easier way to have full control over their money. Your investments, on the other hand, should be stored in cold storage for maximum security.

In Comparison

Looking at the interface and overall functionality, the Coinbase wallet may be the best choice for those that don’t have too much experience with cryptocurrency. Moving your funds and converting them into other currencies is very easy, meaning that even beginners will easily find their way around.

 

There are some fees that need to be mentioned though. Downloading the app and registering is completely free but usage comes at a cost. Swapping between currencies can cost anywhere between 1.49% and 3.99% depending on the currencies that are being exchanged. Coinbase also outlines that users need to have some Ethereum in their wallets in order to deposit and move ERC-20 tokens around.

If you are sending an ERC-20 token (eg. USDC, DAI, BAT, MKR etc.): You will need ETH in your Coinbase Wallet account in order to pay a miner’s fee when sending this cryptocurrency. This is because ERC-20 tokens are issued on the Ethereum blockchain and transactions on the Ethereum network, such as sending ERC 20 tokens, require Ether.

 

All in all, when compared to some competitors, Coinbase does have an edge because it can provide both custodial and exchange services. It also makes it easy to integrate a different wallet while using their software. A recovery phrase from Metamask will work just fine with the Coinbase wallet.

 

FAQ

 

Can you use the Coinbase wallet on PC?

All major websites that support Web 3.0 offer a way to connect your Coinbase wallet and use it. In order to do that, users only need to click on “connect with Coinbase wallet” and scan the QR code with the Coinbase wallet app.

 

What currencies does Coinbase wallet Support?

 

Coinbase wallet supports five major cryptocurrencies, BTC, ETH, LTC, XRP, ETC along with all ERC-20 tokens meaning that NFTs and collectibles of all sorts can be safely stored with this wallet.

What are the things to know about the Coinbase wallet?

It is important to acknowledge that the Coinbase wallet is user-controlled and a non-custodial product. Users will need to store their 12-word recovery phrase which is the only way to restore a wallet after it gets deleted, corrupted, or inaccessible in any other way.

Coinbase offers an encrypted iCloud and Google Drive recovery feature which should help even those that lost their recovery phrase. These cloud-based services are available for all Coinbase customers regardless of how much funds they are holding in the wallet.

Can users transfer funds from Coinbase wallet to Coinbase.com?

 

This feature is one of those that gives the Coinbase wallet advantage over its competitors. It is very easy to connect your Coinbase.com account with your wallet and move funds in and out with ease. There are a few problems that users may encounter since transactions are settled on-chain. Coinbase is known to have connectivity issues so when the exchange isn’t functional, this feature won’t work as intended.

Problems may occur if exchange wallets are under maintenance so if users can’t deposit funds on the exchange, they can’t withdraw them as well. This would result in a slow transaction process.

How useful is the Coinbase wallet?

 

There are quite a few advantages that come with the Coinbase wallet. While others mostly offer storage only, this wallet is multifunctional and interactive. As we slowly move toward Web 3.0 adoption, users will need wallets that can interact with the online environment. Coinbase is dedicated to providing the best services to their customers so future updates should always be expected. As the adoption of cryptocurrencies continues to spread, the Coinbase wallet will follow and adapt to that trend.



Conclusion

 

When all things are taken into consideration the Coinbase wallet can be considered as one of the best choices out there. Installing the wallet and using it is very easy for experts and beginners alike while the option to move funds between the wallet and the exchange directly is an added bonus.

Even though it can’t be comparable to cold storage wallets, the Coinbase wallet comes with a lot of security features that bring an extra layer of protection to your funds.

Most major cryptocurrencies are supported and DeFi users will find it easy to send and store ERC-20 tokens. This makes the Coinbase wallet very fitting for those that collect NTF tokens and want to store them in one place.

 

Lastly, we can’t end this review without mentioning the slick design that comes with all Coinbase products. It is always good to know the real-time value of your cryptocurrency holdings, have easy access to all of them, and the ability to interact with Web 3.0 applications. All of this and much more is available with the Coinbase wallet. 

 

 

 

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