Coinbase is a very renowned cryptocurrency exchange to trades various cryptocurrencies. Recently, Coinbase introduced their digital wallet named Coinbase wallet to store crypto coins. Over the years, the crypto industry has gained more authority and investors and traders now want to store their cryptocurrencies. Therefore, Coinbase brings their own wallet and it has become one of the most popular cryptocurrency wallets in the world. So, is it safe to use Coinbase wallet?
Coinbase Wallet is a very popular and easy-to-use digital wallet to save cryptocurrencies. This digital wallet is protected by Secure Enclave technology. This technology safely stores the private keys of the user. In fact, Secure Enclave technology works the same as the 2FA to control the access. If you have a Coinbase wallet then you can only access the wallet using SMS authentication via verified phone numbers. Moreover, the Coinbase wallet also uses Google Authenticator for maximum security.
Jump To A Section
- 1 What Is A Coinbase Wallet?
- 2 Overview Of Coinbase Wallet
- 3 Features Of Coinbase Wallet
- 4 Pros And Cons Of Coinbase Wallet
- 5 Pricing And Fees Of Coinbase Wallet
- 6 List Of Coins Supported By Coinbase Wallet
- 7 How To Setup Coinbase Wallet
- 8 FAQs About Coinbase Wallet Review 2021: Is Coinbase Wallet Safe?
What Is A Coinbase Wallet?
Coinbase wallet is a cryptocurrency wallet and DApp browser that can only be controlled by the owner of the wallet. The best advantage of the Coinbase wallet is, the private keys for your wallet are stored directly on your mobile device. Moreover, you don’t need a Coinbase.com account to use Coinbase Wallet. The Coinbase Wallet supports Bitcoin, Bitcoin Cash, Litecoin, Ethereum, Ethereum Classic, XRP, Stellar Lumens, Dogecoin, and all ERC20 tokens (including USDC and DAI). With this wallet, you won’t be able to buy, sell, and trade cryptocurrencies. You can only be able to store all your crypto wealth securely in this wallet. Currently, this wallet is considered one of the safest cryptocurrency wallets in the world. This wallet incorporates the Coinbase exchange platform therefore, investors and crypto-enthusiasts feel safe to save their cryptocurrencies in this wallet. This wallet also uses hot storage for cryptocurrencies therefore, the Coinbase wallet is a hot crypto wallet.
Overview Of Coinbase Wallet
|Wallet name||Coinbase Wallet|
|Type of Wallet||Decentralized Wallet|
|Coins Accepted||BTC, BCH, LTC, ETH, ETC, XRP, XLM, DOGE, and all ERC-20 tokens|
|Supported Hardware Wallet||No|
|Charges||Network Fee & Variable Fee in range (1.49 – 3.99%)|
|Customer Support||via Phone, Email, and Twitter with Submit Form Support|
Features Of Coinbase Wallet
Coinbase Wallet has some high-end features that make it the best digital wallet for cryptocurrency in the world. It is packed with some robust security to ensure that its “hot wallet” status does not lead to hacking incidents. Some key features of Coinbase wallets are-
1. Coinbase wallets support all ERC-20 tokens including USDC and DAI as well as the ICO tokens
2. The Coinbase Wallet app is available for both iOS and Android operating system
3. Coinbase Wallet is available to users around the world and you don’t have to provide any type of residency information
4. This wallet allows the users to manage their private key and store the cryptocurrencies direct into their device
5. Coinbase wallet is compatible with a hardware wallet, such as KeepKey, Ledger, and Trezor
6. You can connect the Coinbase account to crypto-friendly bank accounts
7. This wallet is compatible with major fiat currencies including the US Dollars (USD)
8. You can store the non-fungible tokens (NFTs) in this wallet
9. This wallet has the Secure Enclave feature which is the strongest security feature for a digital wallet
Pros And Cons Of Coinbase Wallet
|Pros of Coinbase Wallet||Cons of Coinbase Wallet|
|Coinbase is well funded to recoup lost or stolen digital assets||Higher fees than other cryptocurrency exchanges|
|Excellent security with two-factor authentication||This wallet works as a hosted wallet by storing the private keys elsewhere|
|You can access nearly 100 cryptocurrencies|
|Low minimum to fund account|
|Cryptocurrency is insured for events like website hack|
|Multi-signature access is available|
|Provide access to digital financial instruments such as NFTs, altcoins, and stable coins|
Pricing And Fees Of Coinbase Wallet
The Coinbase wallet mobile app is free to download and install on iOS and Android platforms. You can use this wallet without any fees or charges. You can easily find this wallet as a digital mobile application on Google Play Store and Apple App Store. However, there are transaction fees available for the wallet and exchange services by Coinbase. Though, you don’t have to pay any transaction fees for Bitcoin Cash (BCH) transactions in between Coinbase wallets.
You only have to pay network fees for transactions with other crypto wallets. The fees are variable for the wallet user on the Coinbase platform. The fees usually depend on payment methods. It also depends on the location of the user and the trade order mode. There are two types of trade order modes available and they are standard or instant. Depending on the order mode, the transaction fees might range from 1.49% – 3.99% of the transaction amount. You can get Coinbase crypto debit cards at an issuance fee of £4.95. With this debit card, you will be able to enable free domestic usage for monthly cash withdrawals of up to $300. Above this limit, you will be charged a 1% transaction fee.
List Of Coins Supported By Coinbase Wallet
Coinbase Wallet supports a limited number of cryptocurrencies. The cryptocurrencies supported by Coinbase Wallet are –
1. Bitcoin (BTC)
2. Ethereum (ETH)
3. Bitcoin Cash (BCH)
4. Litecoin (LTC)
5. Ethereum Classic (ETC)
6. Ethereum 0x Protocol token (ZRX)
7. US-dollar Ethereum (USDC)
8. Basic Attention Token (BAT)
9. Chainlink (LINK)
10. Zcash (ZEC)
11. Augur (REP)
12. Ripple (XRP)
13. Lumen (XLM)
14. Electro-Optical System token (EOS)
15. Dai (DAI)
Coinbase wallet also supports the fiat currencies of several countries. It supports more than 50 fiat currencies including US Dollar (USD), Canadian Dollar (CAD), Australian Dollar (AUD), Euro (EUR), etc. Therefore, people from around the world can add funds to their wallets easily.
How To Setup Coinbase Wallet
The user interface of the Coinbase wallet is very simple and easy to use. If you are a beginner in the cryptocurrency world then you will find this wallet very user-friendly. To get started with the Coinbase wallet, follow these instructions below –
1. First, you have to download the wallet on your mobile phone
2. Now open the wallet and if you don’t have an account then click on the “Sign Up”
3. Then you have to provide some information including your name, active email addresses, and phone numbers
4. Next, you have to create a secure password for the Coinbase wallet account
5. In the next step, you have to select account type –
a. Individual Account
b. Business Account
c. Then you have to verify your mobile number with the 2FA method
d. Once you verify your mobile number, you will be able to add a payment method
e. Finally, you will be able to use the wallet to store, receive and send crypto asset
FAQs About Coinbase Wallet Review 2021: Is Coinbase Wallet Safe?
Is Coinbase wallet safe from hackers?
The Coinbase wallet is very secure and it uses strong credentials therefore, you should have little to worry about the security of this wallet. Though Coinbase doesn’t insure by the SIPC, but it does carry crime insurance that will protect some assets.
Do I need a Coinbase account to use Coinbase wallet?
No, you don’t need a Coinbase account to use the Coinbase wallet. So, you can use the Coinbase Wallet like a traditional cash wallet that gives you direct control over your crypto asset.
Is Coinbase wallet different from Coinbase app?
Yes, Coinbase wallet is different from Coinbase app. The Coinbase app is a crypto exchange that allows you to buy and sell cryptocurrencies. On the other hand, with Coinbase wallet you only be able to store, receive and transfer cryptocurrencies.
How good is Coinbase’s wallet?
Currently, the Coinbase wallet is the best cryptocurrency wallet available in the market. It is packed with some amazing features as well as strong security features. Moreover, this wallet has a very simple and user-friendly interface.
How Do I Protect My Coinbase Wallet?
To protect your Coinbase account from hackers and fraud activities, you can follow the below tips –
1. Use a strong password
2. Enable 2-Step Verification
3. Secure the mail that you use in the wallet
4. Keep your mobile clean and updated
5. Use a strong password for the cloud storage account
6. Always remain alert for phishing
Magalie D. is a Diploma holder in Public Administration & Management from McGill University of Canada. She shares management tips here in MGTBlog when she has nothing to do and gets some free time after working in a multinational company at Toronto.