In this Coinbase Wallet Review 2023, we take a comprehensive look at the Coinbase Wallet’s features, security measures, pros, and cons, with an aim to help you make an informed decision about whether Coinbase Wallet is the right choice for you.
Coinbase Wallet is a popular crypto wallet that allows users to store and manage their cryptocurrencies securely. With its user-friendly interface and support for multiple cryptocurrencies, Coinbase Wallet has become a go-to choice for both experienced and new crypto users.
So, let’s dive into this Coinbase Wallet Review to help you determine whether Coinbase Wallet is the right crypto wallet for you.
Coinbase Wallet Review
What is Coinbase Wallet?
Coinbase Wallet is a digital, self-custody wallet by Coinbase.com for storing and managing cryptocurrencies. It provides a user-friendly interface and supports a multitude of tokens, DApps and NFTs making it a popular choice for both experienced and new cryptocurrency users.
With features such as an in-app exchange and robust security measures, Coinbase Wallet offers a convenient and secure way to manage your digital assets.
Who is Coinbase?
Coinbase is a cryptocurrency exchange and wallet platform founded in 2012. It is headquartered in San Francisco, California and operates in over 100 countries worldwide. Coinbase allows users to buy, sell, and store cryptocurrencies such as Bitcoin, Ethereum, and Litecoin.
It is one of the largest cryptocurrency exchanges in the world. Known for its user-friendly interface and strong security measures. In addition to its exchange services, Coinbase also offers a digital wallet solution, Coinbase Wallet, which allows users to store and manage their crypto assets.
What is the Difference between Coinbase.com & Coinbase Wallet?
Most people will have heard of Coinbase but may not have known they have their own Web3 crypto wallet. So, what is the difference between Coinbase.com and Coinbase Wallet?
Coinbase.com is a cryptocurrency brokerage platform where you can buy or sell cryptocurrencies and exchange them for cash. Once you purchase crypto on Coinbase.com, it will be stored on the exchange and out of your control, which we wouldn’t recommend doing long term.
On the other hand, Coinbase Wallet is a self-custody wallet that allows you to store your cryptocurrencies in a decentralized way. This means that the private keys representing ownership of your crypto assets are stored directly on your device and not on a centralized exchange.
In simpler terms, Coinbase.com is like a traditional brokerage that can hold your crypto for you, while Coinbase Wallet is like a digital wallet that gives you direct and complete control over your own crypto assets. If you want to download and use a Coinbase Wallet, you don’t need to have a Coinbase.com account.
Coinbase Wallet Pros & Cons
Coinbase Wallet Features
The Coinbase Wallet is packed with features that make it a top choice for cryptocurrency users. In this section of our Coinbase Wallet Review 2023, we take a closer look at some of the most notable features, including:
- User-Friendly Interface: The clean and intuitive design of Coinbase Wallet makes it easy for new and advanced users to manage their digital assets.
- Support for Multiple Cryptocurrencies: Besides popular crypto assets like Bitcoin and Ethereum, Coinbase Wallet supports a growing list of digital assets. Giving users more flexibility and choice.
- In-App Exchange: The built-in exchange feature lets users easily exchange their crypto directly within the wallet. Saving users time, fees for withdrawing and hassle.
- Security Features: Coinbase Wallet implements a range of security measures. This includes two-factor authentication, biometric security, and self-custody of private keys to help protect user funds.
- Store NFTs: Safely store and view your NFTs on the Ethereum and Polygon networks from your Coinbase wallet.
- Other Notable Features: Coinbase Wallet also includes additional features such as real-time price tracking and transaction history. Making it a comprehensive solution for managing digital currency.
Coinbase Wallet Browser Extension
Coinbase Wallet is available as a browser extension. Users can download the Coinbase browser extension into their Chrome browser and easily and securely connect to DeFi and decentralized apps (Dapp) via the desktop.
Previously, the only way to connect your Coinbase wallet to DApps such as UniSwap or Compound was by scanning a QR code using a mobile phone whenever you wanted to connect to a Dapp. However, with the launch of the Coinbase wallet extension, this now works as a bridge to instantly access crypto apps, similar to how the MetaMask browser extension works.
Coinbase Wallet Fees
There are a few fees to pay when using the Coinbase Wallet, these including network, conversion, and withdrawal fees.
Network fees (also known as gas fees) are charged for transactions on the blockchain. These fees are paid to the cryptocurrency miners to incentivise them to add transactions to the ledger. The actual network fee you will pay will be calculated at the time and will depend on the demand and congestion at the time.
Conversion fees are charged when converting between cryptocurrencies within the wallet. Again, the amount you will pay will be calculated during your swap. This fee is based on the amount you are converting and will differ depending on the exact crypto being swapped.
Finally, Coinbase withdrawal fees may also be charged when transferring funds from the Coinbase Wallet.
The networks or blockchains the Coinbase Wallet supports will depend on how you access it.
Both the Coinbase Wallet mobile app and browser extension support the Ethereum network and EVM-compatible networks such as; Arbitrum, Avalanche C-Chain, Binance Smart Chain, Optimism and Polygon. Users can also manually add networks that may not be available from the Coinbase Wallet.
Please just be aware that some blockchain networks may not be available, depending on the user’s region.
Coinbase Wallet Mobile App supports thousands of tokens, including popular cryptocurrencies such as; Bitcoin, Ripple and Dogecoin. As well as Ethereum ERC-20 tokens and chains such as Avalanche, Solana and Polygon. The Coinbase Wallet also supports NFTs on the Ethereum and Polygon blockchains.
In February 2023, Coinbase Wallet announced they would no longer support BCH, ETC, XLM and XRP due to low usage.
Coinbase Wallet Security
Coinbase has put several measures in place to help to protect its users’ crypto assets. Some of the key Coinbase Wallet security features include:
- Two-Factor Authentication: To add an extra layer of protection, users must set up two-factor authentication (2FA) to access their Coinbase wallet.
- Biometric Security: Coinbase Wallet supports biometric security options, including fingerprint and face recognition.
- Regular Security Audits: Coinbase undergoes regular security audits, which identify and address any vulnerabilities they may have.
- Encrypted Communications: All communication between the Coinbase wallet app and Coinbase servers is encrypted. This way, it aims to protect sensitive information from being intercepted by third parties.
Coinbase recently shared Coinbase Wallet’s new suite of safety features that allow users to explore web3 with confidence. The new suite of safety features for Coinbase Wallet includes;
- Transaction Previews: To give you more peace of mind as you conduct swaps, mint NFTs, and transact in web3, Coinbase Wallet now shows you an estimate of how your token balances will change before you confirm a transaction. This is done from an estimate based on a simulation of the blockchain.
- Token Approval Alerts: Coinbase Wallet clarifies when a Dapp requests approval to withdraw your crypto and NFTs. However, doing your own research is still important before granting a Dapp access to your assets.
- Dapp Blocklist: Coinbase security team uses public & private databases to protect users from known, malicious applications. If a user visits a flagged Dapp, Coinbase Wallet will warn you before you proceed.
- Expanded Ledger Support: Ledger hardware wallet users can connect up to 15 Ethereum addresses through the Coinbase Wallet browser extension.
By implementing these and other security measures, Coinbase Wallet provides a secure and reliable way for users to manage their digital assets.
Is Coinbase Wallet Safe?
Coinbase Wallet is considered a safe cryptocurrency wallet. Coinbase Wallet is a self-custody wallet so that you will have complete control over your crypto. This means that your private keys are not held or managed by Coinbase. Instead, you control your private keys, which are stored directly on your mobile device or web browser.
However, it is very important to keep your private keys somewhere safe and secure. This is because anyone with access to your private keys will have complete control over your crypto.
Coinbase Wallet also implements a range of security measures to help protect user assets. This includes two-factor authentication and biometric security. Regular security audits are also conducted to identify and address any vulnerabilities. These measures help to provide a secure environment for users to manage their digital assets.
Is Coinbase Wallet Safe from Bankruptcy?
If Coinbase were to go bankrupt, there is a chance that the money you have on the platform could be used to pay off their debts before you can get it back. Unfortunately, this could cause a delay in getting your money back from Coinbase. However, Coinbase has promised to keep 100% of users’ money available.
It’s important to remember not to keep any fiat or crypto on Coinbase or any other cryptocurrency exchange long term. You should look to store your cryptocurrency offline in a secure wallet such as a Ledger or Trezor.
Coinbase Wallet vs Coinbase
Coinbase.com and Coinbase Wallet are two distinct platforms serving different needs. Coinbase.com operates similarly to a bank, acting as a brokerage for buying and selling cryptocurrencies like Bitcoin or Ethereum. After purchase, these cryptocurrencies are held with Coinbase.com, which retains control over your crypto assets.
On the other hand, the Coinbase Wallet is a self-custody wallet where the user has complete control over the private keys, which are stored directly on their device. This gives users direct and autonomous control over their cryptocurrency assets, similar to a physical cash wallet.
The choice between these platforms depends on individual preference. Coinbase.com offers a more hands-off approach, handling technical aspects for the user. In contrast, Coinbase Wallet gives users full control, suited to those comfortable with managing their private keys.
Coinbase Wallet vs Metamask Wallet
Metamask Wallet and Coinbase are both popular options for storing and managing cryptocurrencies and have many similarities.
The Coinbase Wallet and Metamask Wallet are self-custody, meaning the user controls their private keys. Plus, they can be used to connect to DApps, exchange tokens and store tokens on multiple blockchains. So where are the differences?
Firstly, Metamask is open source, whilst Coinbase is closed source. Therefore, Metamask’s codes can be checked, and the community can propose changes. The Coinbase wallet mobile app also supports Bitcoin, Ripple and Dogecoin. Whereas Metamask cannot add the likes of the Bitcoin network because it is not a compatible blockchain.
Ultimately, the choice between Coinbase Wallet vs Metamask Wallet will depend on the users’ needs and preferences.
Coinbase Wallet is a versatile cryptocurrency wallet offering various features and security measures to help users manage their digital assets. With its user-friendly interface, support for multiple cryptocurrencies and NFTs, in-app exchange, and robust security measures, Coinbase Wallet is a top choice for cryptocurrency users looking for a convenient and secure way to manage their digital assets.
While there may be some limitations to using Coinbase Wallet, the crypto wallet has many advantages that make it a compelling option for those looking to store their cryptocurrency. Whether you are an experienced cryptocurrency user or just getting started, Coinbase Wallet is worth considering for your digital asset management needs.
What is the point of Coinbase Wallet?
The purpose of Coinbase Wallet is to give users full ownership and control of their crypto assets. The Coinbase Wallet is a self-custody crypto wallet that gives users complete control over their crypto by storing the private keys directly on their mobile device rather than with a centralized exchange like Coinbase.com.
How do I avoid high gas fees on Coinbase wallet?
To avoid high gas fees on Coinbase Wallet, monitor the Ethereum network for periods of low traffic, choose the “slow” or “standard” fee option, consider using alternative payment methods, and wait for a dip in the cryptocurrency market. It’s important to remember that gas fees are necessary for the Ethereum network and cannot be completely avoided.
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*After you make a crypto purchase, BTC will be added to your portfolio. Limited time offer. Offer available to new users only. Offer not available to new users who were referred to Coinbase through the Referral Program or who have previously opened an account using a different contact information. Coinbase may update the conditions for eligibility at any time.
“Cryptocurrency is not regulated by the UK Financial Conduct Authority and is not subject to protection under the UK Financial Services Compensation Scheme or within the scope of jurisdiction of the UK Financial Ombudsman Service. Investing in cryptocurrency comes with risk and cryptocurrency may gain in value, or lose some or all value. Capital gains tax may be applicable to profits from cryptocurrency sales.”