Coinbase Wallet is a digital wallet that allows you to store a variety of cryptocurrencies. It also has a browser that lets you access decentralized apps. You can link your Coinbase account directly to this wallet. This makes it a great way to store crypto. To learn more, read our complete review.
What is Coinbase Wallet?
This wallet is designed to be easy for beginners and follows Coinbase’s user-friendly approach. It also include advanced features such as access to decentralized tokens (DEXs), NFTs, and a variety of DeFi protocols.
How does Coinbase Wallet work?
Coinbase Wallet employs well-tested technology by using BIP39 compatible seed phrases to protect the wallet. A seed phrase (also known as a mnemonic phrase) is a 12- to 24-word group that is easy-to-remember and acts as your private key to your wallet.
BIP39 is a Bitcoin Improvement Proposal 39 that allows cross-wallet compatibility to several popular crypto wallets. To restore a wallet from Coinbase Wallet or Trust Wallet, Coinomi or Exodus, you can use your seed phrase.
The wallet is available as a mobile application on iOS and Android, as well as a web extension for Google chrome and chromium browsers such as Brave or Microsoft Edge. The mobile app provides more functionality than most apps, including the ability to browse the available dApps.
- Ethereum wallet: The heart of Coinbase Wallet’s cryptocurrency wallet is an Ethereum wallet that supports ERC-20 tokens on the Ethereum blockchain and EVM-compatible Blockchains.
- Bitcoin wallet: This crypto wallet is different from other Ethereum-focused wallets such as MetaMask by offering native support for Bitcoin.
- Support for Litecoin, other cryptos: You can use your Coinbase Wallet, to store LTC and BCH, DOGE and XLM. The browser extension supports SOL and SPL tokens.
- Swap crypto on 16 trading platforms: Swap Ethereum-based tokens on Uniswap and other decentralized exchanges.
- Connect to the most popular DeFi protocols: Earn or borrow with a wide variety of DeFi platforms including AAVE, Compound, and many more.
Coinbase Wallet places a strong emphasis upon security.
The wallet is non-custodial or decentralized, meaning that only the user can access their private keys. Even if Coinbase’s servers were compromised, attackers wouldn’t be able access Coinbase Wallet user’s funds.
The wallet allows users to set a password or PIN depending on whether it’s the mobile or browser extension version. It also provides biometric verification for users of mobile apps.
Coinbase.com users may have been victims to hacking and fraud, but Coinbase Wallet’s code is not believed to be compromised or to pose security risks. Coinbase.com, Coinbase’s centralized digital assets management and exchange platform, operates independently from Coinbase Wallet.
Coinbase Wallet Fees
This crypto wallet is completely free and doesn’t charge wallet fees. Users are responsible for paying blockchain transaction fees when sending funds or interacting with smart contracts. Smart contracts are programs that are autonomous and run automatically when certain conditions are met. These enable developers to create decentralized blockchain applications.
Transaction fees can be set up to allow users to decide how much they wish for their fees. Transactions will settle faster if users pay more fees.
Wide Integration with dApps
A wallet that can speak the same language is required to use cryptocurrency marketplaces and applications. You will find support for the MetaMask wallet on most apps and marketplaces, but there is also support for Coinbase Wallet. With options to connect your wallet in just a few mouse clicks, you can easily use these wallets.
Coinbase Multicoin Support
Many wallets can support Bitcoin, Ethereum and Litecoin. A wallet that supports all cryptocurrencies simultaneously is rare, however. This one does.
Coinbase offers off-exchange storage to:
- Tokens based on Ethereum (ERC-20).
- Bitcoin Cash
- Stellar Lumens
Integration with Coinbase
Coinbase Wallet is available as a standalone application, or you can import other wallets. However, it integrates with Coinbase’s exchange. You can buy on Coinbase, and you also have access to other trading platforms like Uniswap through your wallet. You’ll have access to countless tokens and coins, many of which you won’t find on Coinbase.
Pros and Cons
|User friendly||No cold storage|
|No cost||Browser compatibility limited|
|Connects to Coinbase|
|Supports NFT and crypto storage|
Coinbase Wallet, easy to use for beginners, offers a wide range of features to make it easier for you to get started. Some advanced wallets may not offer the same features as this one, which can be frustrating for power users. However, this wallet is a great option for beginners and offers additional cryptocurrencies like Bitcoin, Litecoin, or XRP.
For extra security, consider adding a hardware wallet to your Coinbase Wallet, or any other hot wallet that is connected to the internet.