In this Coinbase Wallet review, we talk about one of the safest and easiest-to-use crypto wallets there is. If you are planning to invest your money into the metaverse and bet on the likes of cryptocurrency and NFTs, the first thing you need to have is your own crypto wallet. This is where your cryptocurrency is stored. Crypto wallets will give you access to blockchains, marketplaces, and the virtual world of sending and receiving crypto.
What is a Crypto Wallet?
A , software program, or online service that stores the public and private keys related to a cryptocurrency transaction. A crypto wallet allows you to be your own bank and safely store your cryptocurrency assets.
Before we discuss Coinbase Wallet, you need to know the answer to this simple question: Where are digital assets stored? No, they aren’t present on the markets, in your Coinbase Wallet (a crypto wallet we’ll talk about later), on your computer, or anywhere else. Your cryptocurrency assets are stored on a particular blockchain, such as the Ethereum blockchain. So nothing is transmitted from one computer to another when you purchase an NFT or a coin from someone. Instead, the owner of the digital asset is having their address changed by the blockchain.
Why is it so important for security if your crypto wallet is not storing your cryptocurrencies and NFTs? That is because your crypto wallet is responsible for storing private keys, which can be compared to a password to access all your digital assets.
Types of Crypto Wallets
Crypto wallets are divided into two types of wallets: hot wallets and cold wallets.
Hot wallets: Generally speaking, the term “hot crypto wallet” refers to all software wallets. An internet-connected wallet is referred to as a soft wallet. The most typical hot wallets accessible today are mobile, web, and desktop wallets.
Cold Wallets: The word “secure” comes to mind when considering cold wallets. A cold wallet is tough to steal from. The most prevalent forms of wallet in this category are hardware wallets.
Coinbase Wallet Review – Introduction
Coinbase Wallet is a free-to-use hot wallet that lets you access multiple cryptocurrencies and has a built-in browser for Dapps. Since it is a hot wallet, it is connected to the internet. Coinbase Wallet is powered by the It already has a great reputation when it comes to security and transparency. If you already have a Coinbase account, you can easily connect it to the wallet and use it without any hassle to manage all your assets, including your coins, currencies, and NFTs. Let us check out the Coinbase Wallet in a nutshell.
How to Sign Up with Coinbase Wallet
Coinbase is a self-custody wallet, meaning you are the sole one in complete control of your crypto. This means it’s your sole responsibility to keep your assets safe. Coinbase will provide you with all the software elements, but you must protect and remember your private key. If you lose it, you will not be able to retrieve your crypto.
A self-custodial wallet not only helps you remain in charge of your crypto, but it also offers more advanced crypto activities. This includes yield farming, staking, lending, borrowing, and more. Here is how you can set up your Coinbase Wallet:Â
- Download the wallet app
- Create your account: In the case of a self-custody wallet, you would not have to share any personal information. Yes, not even an email address.
- Ensure the safety of your private key: Your private key is a 12-word phrase. Keep it in a super secure location. Remember, it is the password to all your crypto assets.
- Transfer your assets to the wallet: Sometimes, you would have to use cryptocurrencies bought from exchanges to buy new cryptocurrency. That is why you might have to transfer your cryptocurrency from elsewhere into the wallet to take any action.
Advantages of Coinbase Wallet
Security: Even though hot wallets are generally less secure than cold wallets, Coinbase provides robust security features and ensures that your crypto assets are not exposed to hacking incidents.
User-Friendly: If you have used the Coinbase before, you will have no problems using this wallet. Anyone with basic crypto knowledge can navigate quickly and safely store their cryptocurrency. You can instantly create an account and transfer your assets from the exchange into the wallet without hassle.
Free to use: You can access this wallet for free even if you are not a Coinbase user. You can connect it to other exchanges and use it just like any other hot wallet in the market. It is to note that although there are no cryptocurrency storage fees, there are fees for sending and receiving cryptos.
NFT storage: If you have been in the crypto space for some time, you might also have your own NFT collection. Coinbase Wallet allows you to store all your crypto assets in the same place. You can easily buy NFTs from marketplaces and keep them in your Coinbase Wallet.
Dapp Browser: You will be able to use your Coinbase Wallet to browse a lot of decentralized apps (dApps). These dApps include crypto exchanges, crypto lending platforms, blockchain games, and digital collectibles.
Hardware support: Your Coinbase Wallet is compatible with Ledger hardware wallets. As mentioned earlier, hardware wallets are much safer and thus help you get an additional layer of security. When you use a hardware wallet, you must have a physical wallet to authenticate each transaction.
Features of Coinbase Wallet That Need Improvement
Limited Browser Capability: Coinbase Wallet is only available with the chrome extension. So many people are moving towards using new browsers such as Brave, Safari, etc. It would be helpful for users if Coinbase Wallet were available for these browsers too.
No Cold Storage: Coinbase Wallet is a software wallet that remains connected to the internet. To be honest, Coinbase Wallet has an excellent reputation regarding security, and software wallets are much easier to use than hardware wallets. But it would be great if they could have their own cold storage version.
Coinbase Wallet Pricing and Fees Review
While the wallet app is free to download, some fees are associated with it. You can download the app easily from the Google Playstore or the Apple App Store. However, you have to pay some transaction fees. For making any trade, your wallet may get charged a variable fee. This fee may depend on the type of payment you choose. It also is associated with your location and the trade order modeâ whether you want to trade instant or standard. Most fees come in the range of 1.49%-3.99% of the transaction fees. The issuing charge for Coinbase crypto debit cards is $4.95 for users. By using these debit cards, you will be able to withdraw $200 monthly without any fee. But if you exceed this limit, you will have to pay a 1% transaction fee.
Customer Service of Coinbase Wallet
You must choose a wallet with good customer service because who knows what may go wrong in the crypto space. In the case of Coinbase, you can easily connect with their customer service via phone, email, and even Twitter. You can get access to their email and phone number via their website. Coinbase is very responsive when it comes to answering queries. However, submitting their online form is possibly the best method for the wallet.
Conclusion
Considering everything, the Coinbase Wallet is an excellent choice as a cryptocurrency wallet. It is safe and easy to use, and its pros outweigh the cons. In the future, it will surely evolve in terms of security and become a much more efficient crypto transaction wallet. The Coinbase Wallet is tested and proven and goes great with the Coinbase exchange platform. So if you are looking for a software wallet and are already on Coinbase, you should look no further than the Coinbase Wallet.