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Coinbase Wallet Review 2024: Is It Really Safe?
Swen Keller
- URL: https://www.coinbase.com/wallet
- Hardware Compatible: Yes (Ledger)
- Price: Free
- Staking Rewards: Yes
- Platform App: Mobile, Web
- NFTs Storage: Yes
- No. of Assets Supported: 100,000+
- Type of Wallet: Non-custodial crypto software wallet
Coinbase Wallet Review: Our Opinion
The Coinbase Wallet is a great starting point for beginner crypto investors looking to fully own their cryptocurrencies and NFTs. It is easy to use and supports a wide range of assets plus staking rewards.
That said, in comparison to the industry standard for non-custodial crypto wallet fees, the Coinbase Wallet fees are high.
Coinbase Wallet also offers limited NFT support and poor customer service, as users on various client review platforms have complained of slow response times.
In general, Coinbase Wallet is a good hot wallet for newbies as it is seamless to set up, features hardware wallet compatibility, and is connected to the Coinbase exchange for easy buy and sell transactions.
An Overview of Coinbase
The company behind the Coinbase Wallet is Coinbase Global Inc., and it was founded by Brian Armstrong and Fred Ehrsam to help anyone including complete novices transact in Bitcoin securely.
Coinbase Global Inc. was launched in 2012 and has since grown from offering just bitcoins to supporting a wide range of digital assets. It is also the second-largest cryptocurrency exchange in the world, coming only behind Binance.
In 2018, Coinbase launched its non–custodial hot wallet called the Coinbase Wallet in line with its vision of “increasing economic freedom globally”.
With the Coinbase Wallet, crypto investors can fully own their cryptocurrencies as it stores their private keys locally on their devices. This makes wallet users fully responsible for their digital assets
The Coinbase Wallet is connected to the Coinbase exchange and when the latter stops supporting a group of assets, users will be unable to access them on the self-custody wallet as well.
Pros
- Beginner-Friendly
- Large selection of cryptocurrencies
- Supports staking
- Compatible with Ledger hardware wallet
Cons
- Poor customer service
- High fees
Coinbase Wallet Review: What Is It?
Coinbase wallet is a self-custody crypto hot wallet and NFT wallet that gives you full control of your digital assets.
Unlike with custodial crypto wallets, with the Coinbase Wallet your private keys for coins, which represent ownership of your assets, are stored directly on your device and not on a centralized cryptocurrency exchange like Coinbase.com or Binance.
It is important to note that Coinbase Wallet isn’t the same as Coinbase.com, and you don’t need to have a Coinbase crypto exchange account to use Coinbase Wallet.
The Coinbase Wallet is also compatible with the Ledger hardware wallet.
Coinbase Wallet Review: How Does It Work?
The Coinbase Wallet is a hot self-custody cryptocurrency wallet. This means it isn’t a cold wallet but software (web and mobile) that gives the user complete control of their assets. It achieves this by storing the private keys of the wallet on your phone or device.
Coinbase Wallet, a non-custodial crypto wallet, ensures the safety of your NFTs and cryptocurrencies without the need for custodians or any third-party involvement.
All it does is provide the software necessary to secure your crypto assets. The responsibility of protecting the passwords and recovery seed phrases is solely on you.
If you lose your private keys or seed phrase there is no way to access your assets as Coinbase Wallet does not store any personal data.
Coinbase Wallet Review: How to Set Up Coinbase Wallet
To create a Coinbase Wallet, go to the official website: https://www.coinbase.com/wallet and then tap on the Google Play Store or Apple App Store download links on the page depending on your smartphone’s operating system (Android or iOS).
Next, launch the app and tap the “Create a New Wallet” button at the bottom of your screen.
On the next screen, you’ll need to back up your recovery seed phrase, which is 12 random words that represent your private keys (a readable version of your private keys).
Coinbase Wallet gives 2 options to backup your recovery phrase: Backup to Google Drive/iCloud or Backup Manually.
If you choose to backup manually, the Wallet will request that you enter each word of your recovery phrase in the order they were shown to you before you can proceed.
Next, you’ll be asked to choose an additional layer of security for your digital wallet, either biometrics or a passcode.
Select one, and agree to the terms of service if you’re good with it.
Choose an ENS username (you can skip this step). Note that you won’t be able to change this username after creation.
Before you can access dApps or NFTs you’ll need to add cryptocurrency to your wallet.
You’ve successfully set up your Coinbase Wallet.
Coinbase Wallet Review: How to Send and Receive Coins
To receive cryptocurrency, launch the Wallet app and then tap on “Receive”.
Choose the coin you want to receive from the list of supported assets or use the search function to find it.
Tap on it and copy the wallet address or share the QR code with the Sender.
If you claimed a Web3 username, it can be used to receive crypto on all supported networks
To send cryptocurrencies, launch the Wallet app and then click on “Send”.
Select the coin you want to send and request the recipient’s Web3 username, wallet QR code, or wallet address.
Enter the address and amount then tap on “Send“.
Coinbase Wallet Review: Unique Features
Swap
The Coinbase wallet offers a swap feature. This feature lets you easily convert or swap one token for another using the wallet’s integration with decentralized exchanges.
The swap feature is available on the Coinbase browser extension and Coinbase wallet mobile app. It allows you to swap your crypto for thousands of tokens that may not be available on a centralized exchange.
When you use the swap feature, your funds are sent directly from your Wallet to a decentralized exchange service like SushiSwap or Uniswap where the conversion will be executed.
You can access the Swap feature by pressing “Swap” on your Coinbase Wallet extension or mobile app.
The Wallet supports crypto-to-crypto conversions of assets hosted on Ethereum, BNB Chain, Avalanche C-Chain, Polygon, and Solana network.
The in-app DEX does not support direct bank account transactions and cross-chain transactions.
Swaps are subject to possible price fluctuations since they take place on a third-party decentralized exchange. All swaps are executed at a price within 3% of the estimate. If this is not possible the transaction will be canceled and the funds returned to the user’s wallet.
The Wallet offers a Swap simulator that runs Hardhart. Hardhart can replicate an on-chain transaction without committing it to the chain. This means that it can tell you if a transaction is likely to fail without submitting it.
It does not charge Coinbase Wallet fees on swaps. But swaps are touted through 0x, a DEX aggregator which takes a 0.1% fee. The fee is deducted from the destination token you receive.
NFT Storage
The Coinbase wallet allows users to buy, sell, and exchange NFTs without intermediaries. This feature offers NFT investors total custody of their assets; they don’t have o store them with a centralized exchange.
Coinbase Wallet Review: Cryptocurrencies Supported
The Coinbase wallet supports a whopping 300,000+ crypto assets. The wallet supports Ethereum and all EVM-compatible wallets in both the mobile app and browser extension.
Some supported cryptocurrencies include Bitcoin, Dogecoin, Ethereum, Litecoin, Aave, Solana, USD Coin, Tether, Polygon, Binance Coin, Optimism, Gnosis, Uniswap, Avalanche, Shiba Inu, etc.
Supported networks include Optimism, Fantom Opera, Arbitrum, BNB Chain, Avalanche C-Chain, Solana, xDai, Gnosis Chain, and Polygon.
In February 2023, the wallet discontinued support for some of the crypto communities’ favourites Bitcoin Cash, XRP, Ethereum Classic, and Stellar Lumens.
Coinbase Wallet Review: Does it support NFTs?
Yes, the Coinbase Wallet supports NFTs and allows you to hold and view your Ethereum and Polygon NFTs. Coinbase Wallet also allows you to buy NFTs.
Coinbase Wallet Review: Coinbase Fees Explained
The Coinbase Wallet does not charge fees for transactions between 2 Coinbase crypto wallets but for non-coinbase wallets, you’ll need to cover the network charges.
If you link your Wallet to your Coinbase account to trade then you’ll have to pay Coinbase fees from 0.5% to 4.5%.
Coinbase Wallet Review: Security
The Coinbase cryptocurrency wallet is a self-custody hot wallet that gives you 100% control of your crypto assets, digital wallet, and keys.
Coinbase cryptocurrency exchange, the parent exchange of the Coinbase Wallet is a public company and the second largest public crypto company. The exchange is audited annually by an independent third party. It also publishes its financial statements quarterly.
Coinbase Wallet holds users’ assets 1:1. It does not lend or take any action with your funds without your approval. It also offers different multifaceted risk management programs designed to protect users’ assets.
It uses state-of-the-art encryption and security. It also has a security team that is constantly working to ensure that users, their assets, and the platform, in general, are protected from emerging threats.
To keep funds stored in the Coinbase Wallet safe, the wallet offers users several security tools and features that they can use to protect their accounts. This includes multi-approval for withdrawals in the Coinbase vault, hardware wallet compatibility, password protection, and two-factor authentication. All Coinbase wallet users are automatically enrolled in two-step verification when they sign up.
Coinbase does not store users’ passwords in plain text. All user’s passwords stored in the Coinbase database are irreversibly hashed using the bcrypt algorithm with a strong work factor. This means that nobody (including Coinbase) can read them or decrypt them.
The Coinbase security team constantly monitors third-party data breaches and darknet markets for threat indicators. To keep users’ funds in the Coinbase Wallet safe, if an account appears at risk, the system will automatically secure the login credentials of the account.
You can also automatically lock your Coinbase account if you see any suspicious activity. Once the account is locked any further activity or transactions will be instantly stopped from occurring.
The Coinbase team will also contact you for all major security changes to your account settings. You have the option of locking your account if you did not initiate the change.
The Coinbase machine learning models also evaluate each user’s crypto transactions. If things don’t look right with a transaction, you will be given the option to cancel the transaction before it is submitted to the blockchain.
Coinbase Wallet offers a Security prompt
The security prompt is a 2-step verification method that delivers push notifications from your active mobile app session to either deny or approve a login attempt that is made with a different device. This can be from the web, the mobile app on a different device, or the mobile web.
The Security prompt feature is enabled by default for users who chose text messages (SMS) as the two-step verification method.
Users also have access to the Coinbase Vault, you can quickly move your crypto from the wallet to the Vault. The Coinbase Vault offers more security than the Coinbase wallet and it is available for free to every Coinbase user.
Withdrawals from the Vault are more secure than withdrawals from the wallet. Also, 98% of the funds in the Vault are stored offline in hardware wallets.
All withdrawals from the Vault are delayed for 48 hours during which they can be canceled. Also, you can only make one withdrawal request at a time. You must wait for an existing withdrawal to be completed or canceled before creating a new one.
Once the Vault is created, the security settings, owner, withdrawal delay period, and notification settings cannot be changed. You will have to create a new Vault if you need to make any changes to the Vault settings.
That said, despite being secure, the Coinbase Vault does not offer the convenience offered by the Coinbase wallet.
Coinbase Wallet Review: Opening an Account
Coinbase Wallet does not require you to open a Coinbase Wallet account. To use the crypto wallet you just need to download it, backup your recovery phrase, select a passcode, and start trading.
Upon setting up the wallet, users can seamlessly store, swap, buy, and sell digital currencies in one place.
Coinbase Wallet Review: Coinbase Wallet App
Coinbase Wallet’s mobile app is a self-custodial decentralized finance wallet that allows you to buy, transfer, send, swap, and store your crypto assets.
With the Coinbase mobile wallet, you can view and collect non-fungible tokens and earn staking rewards on supported cryptocurrencies like Ethereum.
The Coinbase mobile wallet is a multi-chain crypto wallet. The app supports Ethereum and all Ethereum-based chains.
Through the digital wallet, you can access thousands of decentralized applications (dapps), join a DAO, and earn yield with DeFi.
The Coinbase mobile wallet allows you to buy crypto from the Coinbase cryptocurrency exchange. But that’s not all, the app allows you to do more including:
- Transfer: You can transfer crypto held in other cryptocurrency exchanges or crypto wallets to your Coinbase Wallet. You can also send and receive crypto payments to/from anywhere in the world.
- Swap: The Wallet allows you to convert your crypto with decentralized exchanges.
- Hold: You can hold or lend your crypto with decentralized finance and earn interest.
- Bridge: The Wallet’s bridging feature allows you to easily transfer your crypto between blockchains.
- Earn: You can earn free on-chain crypto rewards through web3 learning. This entails learning how to swap, stake, and delegate.
Note: To buy or transfer crypto from your Coinbase account to your Coinbase Wallet, You need to link your Coinbase crypto exchange account to your Coinbase Wallet.
Sending of funds between your Coinbase Wallet and your Coinbase.com account is subject to standard network fees because the transfer takes place on the blockchain.
Supported cryptocurrencies on Coinbase Wallet may not be available for buying and selling on Coinbase.com and vice versa.
All NFTs you own are automatically added to the digital wallet. The Wallet also has an NFT gallery that allows you to view important details of NFTs like unique attributes, floor price, and collection.
The mobile Wallet allows you to claim a free Web3 username which you can use to engage with the Web3 community. It is available in 25 languages and supports over 170 countries. This allows you to access the Web3 world in your preferred language.
The wallet supports Coinbase Pay, which allows you to easily buy crypto within the app.
You can view your DeFi positions on Ethereum through the wallet app’s DeFi portfolio view. You can also access real-time price charts for assets in your wallet in your local currency as well as sign messages cryptographically with your private key from within the wallet.
As already stated the mobile wallet is a non-custodial wallet. This means your private keys are stored on your device and you have full control of them. Coinbase does not have access or control over your funds.
The wallet has several security features to protect you from phishing scams and malicious sites. It offers support for cloud backups of your recovery phase. This prevents you from losing access to your funds if you lose your device or misplace your recovery key.
Coinbase Wallet Review: Customer Satisfaction
Coinbase Wallet offers customer support via phone, live chat, or email at wallet.support@coinbase.com. Depending on the hours, Coinbase offers real live-human support or support through its virtual assistant.
There is also a robust Help Center with several articles on quick solutions to common problems.
That said, Coinbase customer reviews show that the Coinbase wallet support team provides poor customer service. There are also several complaints about the inability to withdraw funds or accounts being blocked without any explanation.
Coinbase Wallet Review: Who should use Coinbase Wallet?
This wallet is best for beginners who want to completely own their cryptocurrencies.
Coinbase Wallet Review: Why Use a Coinbase Wallet?
A Coinbase Wallet gives you complete ownership of your coins by storing the wallet’s private keys on your device.
Alternatives to Coinbase Wallet
Popular alternatives to Coinbase Wallet include MetaMask, Exodus, Atomic Wallet and Guarda Wallet.
Final Thoughts
Coinbase Wallet is an easy-to-use self-custody wallet that allows users to own their cryptocurrencies by storing their private keys on their devices. That said, it has high transaction fees and poor customer support.
FAQ
Most frequent questions and answers
High fees and poor customer support are 2 major problems users have complained about with the Coinbase Wallet.
The point of the Wallet is to give users full ownership of their crypto assets to promote a free economy.
If you lose your recovery phrase you’ll be unable to access your funds and the Coinbase support team can’t help you.
The Coinbase Wallet gives security against exchange hacks or bankruptcy as the company does not hold your private keys.
We always try to provide the most accurate information available, and make sure our team follow through.
If you want to know more about our Crypto Exchanges Review Methodology follow the link below
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