Coinbase Wallet Review – Fees, Supported Coins, Security, DeFi Access
What is a Coinbase Wallet?
One of the biggest brands in the crypto world is definitely Coinbase. It was launched back in 2012 as part of Ycombinator which means that Coinbase is actually one of the oldest crypto platforms in the world. Coinbase has an extremely large user base, over 4 million users.
Coinbase is defined as a cryptocurrency exchange, but it is actually way more than that. The platform started its journey only as a broker – selling Bitcoin directly to users. Coinbase evolved and in May of 2016, Coinbase Pro was launched, an exchange, where Bitcoiners can trade Bitcoins with each other.
Moreover, Coinbase offers its users a non-custodial cryptocurrency wallet. The main purpose of the wallet is to hold all your crypto assets and NFTs in one place. The Coinbase Wallet is a global platform and one of the most used wallets in the most significant crypto market globally in the world – the US.
In this article, we will take a closer look at one of the largest crypto wallets in the world. So, without further ado, let’s jump into details.
Fun fact: Coinbase had a meeting with Vitalik Buterin in 2013 and nearly offered him a job. However, Vitalik was not interested in the role, and in early 2014, he created Ethereum.
Features of Coinbase Wallet
The main features of the Coinbase Wallet are that it offers to hold coins, NFTs (Non-Fungible Tokens) and it gives its users DeFi access. So, let me break down each of these features.
The main goal of Coinbase Wallet is to allow you to hold various coins in one place. The Coinbase Wallet is considered a safe platform where you can not only hold various crypto assets, but also transfer them to hardware wallets such as Trezor, or KeepKey.
What is probably the biggest advantage of the Coinbase Wallet is that it supports more than 4000 crypto assets, or as their website states “Every ERC-20 from Aave to ZRX”. The number of crypto assets supported is most likely one of the main reasons why the wallet has so many users – it can be used by almost all crypto investors (the ones who invest only in BTC or ETH, altcoins, and even some way less known coins).
NFTs are becoming widely popular nowadays. Therefore, the team around Coinbase has decided to allow its users to store NFTs in their wallets. I can safely say this was an efficient decision since Coinbase Wallet’s main competitors, such as MetaMask wallet, do not have this feature.
Moreover, Coinbase Wallet offers the purchase and sale of these NFTs over the internet.
Besides holding your crypto and NFTs, the Coinbase Wallet offers wide access to decentralized innovations. You can participate in airdrops and ICOs, search and collect rare digital art and other collectibles, search decentralized apps (DApps), shop at stores that accept cryptocurrency, and send crypto to anyone around the world. All in all, Coinbase Wallet offers you complete DeFi access.
Is Coinbase Wallet Trustworthy?
The first thing you will ask yourself when you decide which crypto wallet to use is “Is it safe?”. Coinbase Wallet is widely considered one of the safest and most secure wallets in the crypto world.
This wallet offers various protection options such as two-factor authentication, multiple signatures, confirmation requests, etc. My suggestion is always here to activate at least some of these measures in order to make your assets more secure. It just increases your chances to be safe from hackers’ attacks.
However, I did search for some negative experiences and users’ reviews when it comes to Coinbase Wallet and found out that earlier this year (2021), over 6000 wallets were hacked and completely wiped out from the platform.
Coinbase confirmed that the main problem was with their SMS verification system so they updated it once the issue was noticed to prevent this from happening again. Furthermore, Coinbase refunded all crypto to users whose accounts were hacked.
Getting Started with Coinbase Wallet
Getting started with the Coinbase Wallet should be a fairly straightforward process. The whole interface of the platform is user-friendly and suitable for beginners. Setting up an account is done through three simple steps and should not take more than a few minutes. So, let me break each of the steps.
#1 Sign Up
You can start signing up by clicking on the “get started” button in the top right corner of the Coinbase Wallet’s landing page. The platform will then request your first and last name, email, password, and confirmation that you are 18 years of age or older.
Make sure to set a strong password here with numbers, symbols, or characters to make your password more unique and safe. The platform will not accept passwords with common words, or even worse, anything related to your name or last name.
Once you fill out all the requested boxes, you will have to confirm your email with the link they sent you to your inbox. This is a pretty standard procedure.
#2 Select Your Account Type
The second step is to select your account type. The Coinbase Wallet offers two types of accounts – an individual and a business account. Please make sure to select the one that suits your needs and goals more.
#3 Verify Your Phone Number
Verifying your phone number is one of the standard protection measures that can help you to be safe so that nobody can access your account. The number of people who have issues with providing their private phone number to some platform is not small. However, protection-wise, it is a highly recommended thing.
Once you verify your phone number, you will have to choose a payment method. If you are a citizen of the EU or the US, Coinbase will allow you to use either a bank transfer or a credit card. You will have to verify these methods before actually depositing funds into your wallet. Verifying is being done with the help of your bank.
Coinbase Wallet Fees
We come to one of the most important points of the article – Coinbase Wallet Fees. You must have been reading and thought to yourself “It seems nice, but how much does it cost?”. Let me break it down for you.
Transaction fees are the same for both Coinbase Wallet and exchange. Transaction fees apply only if wallets other than Coinbase are involved. There are no fees for transactions between two Coinbase Wallets.
The fee depends on your payment method, location, and order mode (instant or standard). It can be from 1.49% to 3.99%. Transaction fees on Coinbase Wallet are decent, they are not cheap, but not the most expensive ones either (when compared to the wallet’s main competitors).
Deposits are free of charge, so you will be able to hold your crypto on Coinbase Wallet without any additional expenses. Furthermore, the whole registration process is completely free of charge as well.
You can also order a debit card if you are eligible for it. The issuance fee for the card is £4.95 and you can enjoy free withdrawals of up to $200 a month. Withdrawals more than $200 are charged 1% or 2% respectively.
dApp Browser by Coinbase Wallet
Coinbase Wallet offers its users a dApp (Decentralized Applications) browser that was created by a third party, or in other words, it is not owned by Coinbase. If you have any issues with some of the dApps on Coinbase, feel free to reach out to some of their developers for help.
Coinbase’s dApp browser offers a simple API for incorporating wallet services into dApps. Developers can use the dApp browser to create multi-chain Coinbase apps.
Coinbase Wallet Supported Coins
As per Coinbase Wallet’s website, the platform currently supports more than 4000 crypto assets – more than a decent number. The main cryptocurrencies are available such as Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Dogecoin, Shiba Inu, Tether, Avalanche, and many others. I found it hard to believe that you want to hold some crypto that is not supported by the Coinbase Wallet.
Moreover, the wallet currently supports more than 50 fiat currencies such as USD, CAD, AUD, EUR, and CNY.
Coinbase Wallet Review – Final Thoughts
The Coinbase Wallet is widely considered one of the most popular ones in the crypto universe.
The Wallet is a global platform where you can store your crypto assets and NFTs. Furthermore, it offers you complete DeFi access. The wallet is available in the UK, US, Brazil, and many other countries.
To be honest, the main advantage the wallet has over its competitors is the variety of crypto assets supported. Moreover, the Coinbase Wallet offers safety and security to crypto investors with various protection features such as strong passwords, SMS verification, etc. Please make sure to activate all of these measures since each one increases the security of your funds.
If you are a beginner in the crypto world, then the Coinbase Wallet is probably the place where you want to hold your cryptocurrencies. The platform is pretty easy to use and allows users to quickly learn and make their crypto portfolio bigger. Among all “online” wallets it is probably the best one, along with the Metamask wallet.
The main negative side of the platform is that earlier this year (2021) there was a hacking breach and around 6,000 wallets were completely wiped out. For sure, this kind of hacking breach is something you do not want to see in any wallet.
On the other hand, it seems that the team around Coinbase handled the situation pretty well – they resolved “the wholes” in the security system to prevent this from happening again and refunded all accounts of their lost crypto.
Keep in mind that these are only my opinions based on my thorough investigation of the Coinbase Wallet. Please do your own research before deciding whether you want to use this wallet or not.
At this point, it is good to note that all opinions and suggestions written in this article are not considered financial advice.
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Let us look at some of the most frequently asked questions when it comes to the Coinbase Wallet.
Is It Free to Use Coinbase Wallet?
The Coinbase Wallet is completely free to use, or in other words, it is free of cost. You can download a standalone app via Google Play Store, or Apple Store. There are transaction fees and this is how the Coinbase Wallet earns most of its profits.
Is Coinbase Wallet a hot wallet?
For those of you not familiar with the term “Hot wallet’, it is a digital tool that allows cryptocurrency users to store, send, and receive tokens. So, we can without any doubt consider the Coinbase wallet as a hot wallet since it provides its users with all of these services.
Does Coinbase Wallet work with cold wallets like Ledger Nano or Trezor?
- Plugin your Ledger wallet
- Open the Ledger Live application and input your password
- Select “Receive” on the left-hand side menu
- Choose an account
How do I cash out my Coinbase Wallet?
Cashing out of the Coinbase Wallet is done through a few simple steps:
- Convert crypto to fiat – log in to your Coinbase wallet account. Then, click on the Trade button on the left navigation bar as shown below or click on the Buy/Sell button on the top right
- Withdraw fiat balance – go to the portfolio tab
- Find your fiat balance
- Then select the ‘Withdraw’ tab on the right side box, then fill in the amount to withdraw or click on ‘Withdraw all’ to fill in the entire asset balance. Finally, select your payment method and the funds will be transferred to your bank account or credit card
Is Coinbase Wallet Safe to Use?
Yes, the Coinbase Wallet is considered one of the safest hot wallets in the crypto universe. There are various security measures such as two-factor authentication, multiple signatures, confirmation requests, SMS verification, etc.
Should I keep Bitcoin in Coinbase?
The Coinbase Wallet is one of the best and most secure “online” wallets where you can store your Bitcoin. I have read some opinions from various “experts” that Bitcoin should not be held on the biggest wallets such as Coinbase, but this is something I cannot agree with.
Why use Coinbase Wallet instead of Coinbase?
The reason is quite simple, to be honest, your crypto funds will be more secure with the Coinbase Wallet and it provides you greater control of your assets. It is nothing strange that crypto investors are confused when it comes to differences between the Coinbase Wallet and Coinbase exchange.
Is Coinbase Wallet better than Coinbase?
Well, there is no clear answer here. It just depends on what to do you want to do with your crypto assets – hodl them on your wallet only or work on the crypto exchange. Important is to understand the differences between the Coinbase wallet and exchange. The Coinbase Wallet is a standalone software platform, while the Coinbase app is a mobile platform that gives access to the Coinbase decentralized exchange.
Do I need Coinbase Wallet if I have Coinbase?
No, you do not need the Coinbase Wallet if you have Coinbase. Coinbase Wallet is a separate app that allows you to store your private keys and to send, receive, and spend digital money; browse and use DeFi applications, and more.
Is Coinbase a Good Cryptocurrency Wallet?
Yes, the wallet is useful and good for crypto investors, especially beginners. It supports more than 4000 cryptocurrencies, so it is pretty hard to be in a situation where you want to invest in some crypto and cannot hold it on the Coinbase wallet.
- ✅ Over 4000 crypto assets supported
- ✅ Besides holding crypto and NFTs, the wallet offers complete DeFi access (such as participation in airdrops ICOs or browsing of decentralized apps)
- ✅ Available on web, iOS, and Android versions
- ✅ Signing up is pretty straightforward
- ❌ Even though the wallet is widely considered as one of the most secure ones, over 6000 wallets were hacked and completely wiped out earlier this year (2021)
CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com