Coinbase Wallet Review 2022
Cryptocurrencies are taking over the world as they finally go mainstream in 2021. And if you also want to be involved in crypto, it is vital that you get the best crypto wallet.
No matter if you are a beginner or expert, interested in crypto as a trader or an investor, or want to try non-fungible tokens (NFTs) or decentralized finance (DeFi), you still need a wallet!
In this Coinbase Wallet Review, we will cover its features, security, pros & cons, so you can decide if this popular wallet is the best choice for you.
Table of Contents
What is Coinbase Wallet?
First things first, Coinbase and Coinbase Wallet are two separate entities. The Coinbase we have all come to know is the cryptocurrency exchange. The Coinbase Wallet, however, is a standalone product that you can use even if you do not use the Coinbase exchange or any of its other products. Coinbase Wallet is self-hosted crypto wallet, i.e. it is hosted on your device.
With so many users trusting the Coinbase exchange with billions of dollars of their assets, Coinbase Wallet is certainly one of the most popular and used wallets by extension.
In November 2021, Coinbase announced that its wallet was now also available as a standalone browser extension on Chrome. It was in May 2021 that the exchange first introduced a downloadable browser extension of this wallet. But at the time, it only allowed users to link their wallet account to the extension.
Coinbase Wallet’s new version allows users to directly access different services offered by the platform such as trading, decentralized apps (dApps), and NFTs, all from their browser without having to provide confirmation via their mobile apps.
Now you do not have to install the Wallet mobile app at all. In a recent article on their blog announcing this browser wallet extension, Coinbase said it wants to “empower everyone to use dapps and web3 by building the easiest-to-use and most accessible self-custody wallet in the ecosystem.” Recently, Coinbase acquired the crypto wallet start-up, BRD, “to help accelerate web3 adoption.”
Coinbase Wallet Features
This cryptocurrency trading platform is aimed at people who want to invest in digital currencies. It acts as a storage custodian of your assets. You don’t have to be an existing Coinbase account holder or user to to make use of its custodial service. You could use a different exchange and use the Coinbase Wallet just to store your cryptocurrencies.
The Coinbase Wallet has clean and simple interface, so you can navigate it without getting confused about what you are clicking. It also provides easy access to all the different functions.
Going beyond the sleek UX, it allows you to store your crypto wealth and your NFTs, which have become increasingly popular this year, all in one place. On top of that, you can access decentralized exchanges (DEXs) to trade more than 500 crypto assets without any centralized intermediaries.
You can lend your crypto to earn interest right from the wallet too. The Coinbase Wallet lets you to compare different interest rates and view the balance on your home screen.
For user convenience, Coinbase Wallet is compatible with major fiat currencies and can also be connected to crypto-friendly bank accounts. It follows strict compliance measures through KYC rules.
This hot wallet is also compatible with hardware wallets like Ledger and Trezor.
Coinbase Wallet Fees
The best part about this wallet is that it’s free!
You don't have to pay anything to store your cryptocurrencies or USD in this wallet. There is no charge for transferring your crypto assets from one Coinbase wallet to another either.
Charges do come into the picture once you start using the wallet to purchase or sell crypto, through the Coinbase exchange. You will be subject to its varied fee structure, and the fees will be disclosed at the time of transaction (3.75% on average). If you borrow USD from Coinbase, the platform will sell your collateral crypto assets and charge you a flat fee of 2% of the total transaction.
Coinbase Wallet Security
Just because it is free, it does not mean the Coinbase Wallet slacks off when it comes to security. Coinbase’s digital wallet is actually one of the safest crypto wallets to store your crypto. One of its features involves managing private keys directly into your device. For security, Coinbase’s biometric authentication curbs access to your funds by enabling a restricted user-only entry.
It’s Secure Enclave technology makes Coinbase Wallet even more trustworthy among its users. This technology uses multiple security features, including two-factor authentication (2FA), to control access and protect your crypto assets.
How does the Coinbase Wallet work?
So, now that you know what Coinbase wallet has to offer you, how do you use it?
As we said earlier, the user interface of this wallet is pretty easy to use, which makes sense as it is designed for beginners in crypto. So you wouldn’t find it difficult to use the wallet. Still, let us guide you through the process.
First, go to the App Store on your mobile device and download the application or download the Coinbase Wallet Chrome extension. Once downloaded, put in your basic information.
To sign up, you will need to enter a username, an email address, and a password that will generate a 12-word seed phrase—a standard for most cryptocurrency wallets. You will also need to verify your phone number with a 2FA method, which is an added security layer.
Then, you will have to choose either an individual or business account. You will also have to set up a payment method and choose a suitable currency for storage, sending, and receiving. Coinbase users also have the option of using their credit cards and wire transfers to move your fiat money in and out of the wallet easily. Now you’re are all set!
Coinbase Wallet Pros & Cons
Pros: The Good Stuff
Safe: Coinbase Wallet is one of the safest cryptocurrency wallets in the world. Because the wallet that uses hot storage and is associated with a legit exchange and public company, it makes investors and crypto-enthusiasts feel safe about storing their digital assets on it. The wallet implements multi-signature access for all users and utilizes advanced capabilities for providing access, as well as restricting access to your digital coins and digital art
Decentralized: You can use the wallet to interact with decentralized applications, whose ecosystem has grown more than 12x this year to past $260 billion. Because it can easily be integrated into dApp browsers, Coinbase Wallet users can create their accounts on all devices and platforms using Android or iOS
Easy to use: While the rest of the crypto world is full of technicalities and jargon, Coinbase’s wallet is easy and user-friendly. It has a simple and quick registration process as you only need to download mobile app or start using it from your browser
Future proof: Because it is backed by a well-funded company (Coin: Nadaq), it can afford to recoup lost or stolen digital assets. Recently, Coinbase promised to deposit stolen funds to the hacked accounts
Cons: The Not So Good Stuff
Vulnerable: Coinbase Wallet is a hot wallet. Thus, a majority of the coins are stored online, unlike a hardware wallet, which stores your crypto in cold storage and is considered to be the most secure type of crypto wallet
Limited currencies: Compared to others, Coinbase Wallet supports a limited number of cryptocurrencies. But it has been working on expanding its list by constantly adding new coins and fiat currencies to its portfolio
What is Coinbase?
Coinbase is the leading cryptocurrency exchange in the US, founded in 2012. In April 2021, Coinbase went public through a direct listing on Nasdaq under the ticker COIN. At the end of Q3, Coinbase reported 73 million verified users and $255 billion worth of crypto assets on its platform.
Coinbase is more than just an exchange though. Besides offering trading services, it has an Earn programme that allows users to learn about crypto and consequently earn that crypto. It has a staking service where you can stake your cryptocurrencies and earn rewards on them. And, it has the Coinbase card which allows users to spend their cryptocurrencies or US dollars anywhere VISA cards are accepted.
Coinbase is also behind the popular stablecoin USDC, in collaboration with Circle, which is backed by dollar-denominated assets held in segregated accounts with US-regulated financial institutions.
Their future plans include an NFT marketplace, which has garnered an extremely positive response, with 1 million users signing up for its waitlist within mere 24 hours of the announcement.
A Coinbase Wallet Review for 2022
Coinbase Wallet is an excellent solution for new crypto users who want to explore digital currencies in a safe environment.
When it comes to customer service, you can reach the company through phone, email, social media, or through an online form. To better serve its users, Coinbase has been increasing its support staff headcount and preparing to provide 24/7 phone support and live messaging by the end of 2021.
Overall, the time-tested Coinbase Wallet is a good option for a crypto curious people who are just getting starting out as it offers diverse experiences and multiple features in a seamless and user-friendly fashion.
Coming from the same stable as it’s publicly traded parent company, Coinbase (Nasdaq: COIN), makes Coinbase Wallet a sought-after choice among crypto adopters worldwide.
Frequently Asked Questions
Yes! Coinbase Wallet is a non-custodial, user-controlled digital wallet. It is available in Canada and over a 100 other countries. The wallet is backed by Coinbase (Nasdaq: COIN), which recently went public.
This user-friendly wallet allows you to buy and sell tons of crypto assets, supports fiat currencies and stablecoins, NFTs and, provides access to decentralized apps (Dapps). Coinbase Wallet can be downloaded on iOS and Android devices or used as a Google Chrome browser extension.
Coinbase Wallet is a hot cryptocurrency wallet designed for beginners who have full control over their private keys and funds. The user-controlled and non-custodial wallet generates a 12-word recovery phrase, which only the user can access. Coinbase never has access to this seed phrase.
The wallet also uses 2FA, a 2-step verification as an added security layer.
To withdraw your crypto funds from Coinbase Wallet, you can use PayPal. For Canadian users, cash out limits are CAD 12,000 (per transaction) and CAD 30,000 (24 hours).