Coinbase Wallet Review

If you’ve been in the crypto industry for some time now, you might have heard the name Coinbase once or twice (actually, probably more like a hundred times). That’s not without good reason, it’s one of the top crypto exchange platforms out there! In this Coinbase Wallet review, however, I'll be focusing on one of its core products - its crypto wallet.

The one thing that you should be aware of from the get-go is that the Coinbase Wallet and the Coinbase exchange are two separate products, unlike the Binance wallet, for example, which is built into the exchange. Sure, if you search for Coinbase, by default, you’re going to end up on the crypto exchange page. In the vast majority of cases, people associate this brand name with the exchange. Many users don’t even know that a wallet like this exists, but I'm here to tell you that it does!

Besides, keep in mind that the Coinbase Wallet is a software wallet. This means that, while it does employ relatively strong security, it doesn't compare to hardware crypto wallets like Ledger Nano X.

Verdict at a glance: The Coinbase Wallet is known for being one of the safest hot wallets to store your crypto assets and NFTs in. After all, it protects your coins with multiple advanced security features. Plus, it's easy to use and is especially convenient for connecting to a variety of dApps. However, it's still a software wallet, which means it's not the safest option out there and there are some negative Coinbase Wallet reviews regarding customer support.

Carlos Diaz

PhD Researcher in Business Innovation at RMIT University

How can decentralized governance models be implemented in crypto wallet platforms?

Governance models are implemented via on-chain and off-chain mechanisms. On-chain mechanisms focus on the rules and incentives coded into consensus protocols, while off-chain mechanisms focus on the decisions and accountability mechanisms driving the blockchain but are not coded, such as voting mechanisms or improvement proposals.

What is Coinbase Wallet?

Before getting into the depths of this Coinbase Wallet review, let me answer the main question – what is Coinbase Wallet? Well, as you already know, it's a software (hot) wallet where you can store your cryptocurrencies and NFTs. That's not all you can do with it, though. The core feature of such wallets is usability.

Since hot wallets are connected to the internet, they can be accessed in seconds. They can also be seamlessly connected to a variety of decentralized applications (dApps).

The Coinbase Wallet allows you to explore thousands of dApps on your phone and computer. It's available as a mobile app and a browser extension. By the way, note that you can create multiple wallets within one app.

Coinbase Wallet Review: PROS

Enough about the general concepts - let’s get to the actual Coinbase Wallet review. I'll start it off by talking about its beneficial aspects and features.

The Coinbase Wallet, as you’ll see in a minute, has many different benefits. Let's take it from the top and talk about the most well-known one – strong security measures (as far as security for hot wallets goes).

One of the Most Secure Hot Wallets

It’s no secret that the term “cryptocurrency” is still often associated with some negative connotations. Many of them stem from the fact that it’s a very volatile industry - one day you might become rich, and the next - you’re completely wiped clean of all your finances.

While I’m talking about the uncertainty of the market itself, there’s actually another way that this scenario could present itself - hackers. Since the topic of cryptos is quite complicated, many people who get into it aren’t sure how to protect their Bitcoin or Ethereum (or any other crypto) from potential scams and hacks.

That’s kind of the “high-point” of my review - security is one of Coinbase Wallet's key priorities (which echoes the fundamentals of the Coinbase exchange, too).

Anyone wondering is Coinbase Wallet safe can rest assured - it’s often referenced as one of the safest hot wallets in the industry. Coinbase utilizes various security measures - two-factor authentication (2FA), multiple signatures, security locks, permissions management, confirmation requests, and so on.

The Coinbase Wallet's browser extension is even compatible with Ledger wallets, which provides an additional layer of security.

As of May 2024, there have also been no notable Coinbase Wallet hacks or breaches. Naturally, this should add to the tool's reliability and trustworthiness.

Though, there are, admittedly, some user Coinbase Wallet reviews online that talk about their accounts being “hacked”. If you just look at these reviews without giving them much thought, you might miss the entire point. You see, most of the “hacks” that happen are because of a weak password, or some similar issue. In other words, it’s not the fault of the platform - rather, the user.

Getting back to the wallet's security features, it provides users with enhanced guardrails, such as a dApp blocklist and spam token management. The former protects you from malicious dApps with the help of public and private databases, while the latter automatically hides cryptocurrencies and NFTs from your home screen that are know to be malicious.

By the way, while we're on the topic of security, it's also worth noting that the Coinbase Wallet is a self-custody (or non-custodial) wallet, which means that all private keys belong only to you. Neither Coinbase nor anyone else has access to them.

So, as far as the question “Is Coinbase Wallet safe to use?” goes, the company has put a lot of effort into integrating pretty strong and resilient crypto security technologies.

A User-Friendly Interface

As I’ve eluded earlier in this Coinbase Wallet review, many people who get into the cryptocurrency market aren’t really experts in the field - far from it. Instead, most users will find that it can be quite simple to get lost in all of the jargon and technicalities.

What does this have to do with the Coinbase Wallet review, you may ask? Well, multiple people have pointed out that the particular wallet in question is actually one of the easier tools to use in this regard.

The registration process is quick and simple - and generic, too. It’s quite similar, if not the same, as with any other crypto wallet on the market - all that you need to do is download the app on your Android or iOS device (yes, the wallet is mobile-based), and input your information when prompted.

At the end of it all, you’ll receive the starter information and a recovery phrase (I'll elaborate more on the set up process later). By the way, don't forget that Coinbase allows you to add an extra layer of security - the two-factor authentication. If anything, this definitely guarantees your crypto coins are safe and sound!

Another thing that’s worth mentioning is that the interface design of the tool is actually very sleek and clean. This adds to the simplicity aspect of the wallet - you shouldn’t find yourself confused about where the different functions are, how to access your funds, or anything in between.

Hassle-Free Integration With the Exchange

I’ve already “driven this point home” before in my Coinbase Wallet review, but it’s actually a pretty big deal, so allow me to elaborate.

Since you already know what is Coinbase Wallet, you shouldn’t confuse it with the cryptocurrency exchange platform that goes by the same name. Having said that, though, you should also know that these two tools interact quite well with each other.

What do I mean by that? Well, multiple user Coinbase Wallet reviews will inform you that, once you create a Coinbase Wallet of your own, utilizing the services of the aforementioned exchange becomes much easier and smoother.

You’ll receive access to a crypto vault, and your exchange processes should present themselves to be quite seamless. Truthfully, there are quite a few users who mention that Coinbase does actively try to “suck you in” into the exchange platform. While it can be a bit annoying if you’re already using another exchange, given the reputation of this particular brand, that might not be such a bad thing!

Offers More Than Crypto Storage

You already know that the primary use case of the Coinbase Wallet (or any other crypto wallet) is storing your digital assets. However, it's not the only one.

I've briefly mentioned this before in my Coinbase Wallet review, but the wallet can be connected to thousands of dApps that provide various ways to use your crypto or simply explore the Web3 world as a whole.

On the browser, you can seamlessly connect your wallet using the browser extension. On the mobile phone, on the other hand, the most convenient way to do that is via the built-in decentralized web browser. By the way, you can use it just like you would use any other web browser, as it allows you to access basically any search engine there is.

Apart from connecting to dApps and storing digital assets, you can also buy crypto directly in the Coinbase Wallet using fiat. So, if you don't have any crypto assets yet, or you want to get a new asset, you don't have to buy it on some exchange and then transfer it to your wallet – you can do it quickly using the wallet itself.

The best part is that the Coinbase Wallet supports various payment methods, including bank transfers, local payment methods, or card payments. However, do note that this feature's availability depends on where you live. As of writing, it's supported in over 130 countries.

That's still not all when it comes to Coinbase Wallet features. It also provides quests, which allow you to earn rewards while learning about new dApps and networks. The rewards usually come in the form of crypto assets.

However, do note that apart from learning about a certain project, you'll usually need to complete some on-chain actions, too, like minting an NFT or purchasing a web domain (this will obviously not be free).

If you want to explore various Web3 projects and earn amazing rewards completely for free, check out BitDegree Missions!

Supports Hundreds of Thousands of Coins

One of the most-commonly referenced negative aspects in the past Coinbase Wallet reviews was that it supported but a small number of crypto coins (it's not the case anymore).

Whenever you’re just starting out in the crypto world, this might not prove to be such a big issue. That’s simply because most beginner traders and investors tend to stick to some of the more well-known coins, such as Bitcoin or Ethereum.

The severity of this “issue” depends on your own, personal goals when it comes to cryptocurrencies. If you’re more of a traditional trader, then sure - the main, most-popular cryptos might suit you well. However, if you like to experiment, this might be a bigger issue.

However, it doesn't matter anymore if you're the former or the latter, the Coinbase Wallet will suit your needs. As of writing, it supports hundreds of thousands of crypto assets, including Bitcoin, Ethereum, Solana, Dogecoin, and every ERC-20 token out there (and there are *a lot* of those).

Besides, it's way more compared to the Coinbase exchange, which supports a little over 200 assets (which only proves the fact that the Coinbase Wallet and exchange are separate products).

Did you know?

Compare Crypto Wallets Side by Side With Others

All Crypto wallets may look similar to you but they're NOT all the same!

Yes! Show me the Comparison Chart

Coinbase Wallet Review: CONS

Now, with all of the main positive aspects of this Coinbase Wallet review out of the way, we should also take a look at the more-negative side, too.

Truth be told, there aren’t all that many notable cons to discuss. Still, some users mention a few shortcomings of the wallet in question - let’s take a closer look.

A Hot Wallet is Not *the* Safest Option

When discussing is Coinbase Wallet safe, I’ve driven the idea that it is one of the safest hot wallets in the industry quite a few times now - that’s completely true. That is, if you’re looking for digital crypto storage.

Truth be told, hot wallets, even those that have strong security measures, are far from being the safest way to store your crypto overall. That’s simply because your cryptos are still located online - this means that they might be hacked and stolen at any given point in time, at least theoretically.

How does one avoid something like this, you may ask? Simple - by using a cold storage device.

	LEDGER NANO X	COINBASE WALLET
Security Level	| | | | | Very Poor Average Excellent	| | | | | Very Poor Average Excellent
2FA Two-factor Authentification
Multi-signature
Pin Code
Anonimity Level	| | | | | Very Poor Average Excellent	| | | | | Very Poor Average Excellent
Backup Type	24-word seed phrase or Nano S Plus	12-word seed phrase
Private Key Owner	You	You
Full Wallet Control	| | | | | No Partial Yes	| | | | | No Partial Yes
	Visit site Read review	Visit site Read review

Table: The security features of the Coinbase Wallet and the Ledger Nano X.

Hardware cryptocurrency wallets are the safest alternative^[1] - period. That’s because your coins are located offline, and no one can access them while they have no connection to the web.

The main issue doesn’t even lie here, though. You see, when asking, “What is Coinbase Wallet?”, you might come across the term “hosted”. That’s kind of where the core issue with the tool in question lies.

Coinbase being a hosted wallet means that all of your crypto assets are stored together with some other user coins and information, on a remote server that’s most likely connected to the internet. That’s not ideal.

If there was a security issue, and Coinbase’s servers were breached, this would potentially result in a huge scale hack. On the other hand, as I’ve noted earlier, the company behind the wallet takes security very seriously, and has implemented some top-notch measures to prevent that from happening.

Customer Support is a Bit Lacking

Another aspect that has received mixed user Coinbase Wallet reviews is its customer support. While many users have reported positive experiences with resolving issues and receiving help, there were also instances where they expressed frustration.

Some users have reported delays in response times when reaching out to customer support, leading to prolonged waiting times for assistance. Also, there have been cases where users felt that the responses received from customer support were not actually helpful in addressing their issues.

However, keep in mind that customer support experiences can vary depending on factors such as the complexity of the issue, the volume of support requests, and individual user expectations.

Coinbase Wallet Fees

Now, another aspect that's important to discuss in any Coinbase Wallet review (or any other wallet review, for that matter) is fees.

So are there any Coinbase Wallet fees? Well, the wallet in question is completely free to use when it comes to getting it! It's one of the biggest hot wallet pros compared to hardware wallets, which are usually pretty pricey.

Do keep in mind, though, that “use” here means that you will be able to transfer and keep your crypto coins in the wallet, free of charge. The whole registration procedure is completely free, too - no need to worry about having to pay money in order to download the app or create an account.

Crypto purchasing and network fees do apply, though. Network fees are based on the asset in question, as well as network congestion, and other factors. This is completely normal with any crypto wallet out there - Coinbase is no exception.

When it comes to crypto purchasing fees, it depends on the payment method in question and other factors. As of writing this Coinbase Wallet review, the fees usually range anywhere between 1,49% and 3,99%.

Fee-wise, the Coinbase Wallet is quite decent. It’s not the most low-cost option, but it’s also far from being the most expensive, too. Yet again, the actual significance of these Coinbase Wallet fees is going to depend on what it is that you plan to do with the wallet.

How to Set Up the Coinbase Wallet?

Now that I've discussed all the pros and cons, I want to turn my Coinbase Wallet review to the more-practical side and talk about setting up the wallet. I'll cover both – setting it up via the mobile app and via the browser extension.

Via Mobile App

Let's start with the wallet set up using the mobile app.

Step 1: Download the Coinbase Wallet via the App Store or Google Play.

Step 2: Open the app and click the [Create new wallet] button.

Step 3: You'll be provided with an option to create a short username (ENS name) for free, which you'll be able to share instead of your wallet address. It's way easier to remember and use it instead of long and complicated wallet addresses.

If you can't decide how you want to call your wallet, you can set it later (or don't set it at all).

Step 4: Once you set the name, you'll be taken to your wallet. As far as wallet creation goes, that's it. However, there's one more VERY CRUCIAL thing you need to do – back up your recovery phrase. Without it, you won't be able to recover it if anything goes south. To do that, click on [Settings], your wallet name, and then [Recovery phrase].

If you're using an iOS device, you can back it up with iCloud or manually by writing it down somewhere. It would probably be best to do both, but backing it up with iCloud might present you with a vulnerability (what if someone gains access to your iCloud account?).

However, you can also turn to more advanced recovery phrase storage methods, like using the ECC and splitting technique^[2], for example.

Remember, when it comes to your crypto wallet, there are two things you cannot share with others and cannot lose – the recovery phrase and your private key!

By the way, if you allow face ID for the Coinbase Wallet app, it will be used as an additional security layer when trying to access the app.

Via Browser Extension

Now, let's talk about wallet creation via the browser extension.

Step 1: Download the browser extension. You can either download one for Chrome or Brave (I'll go with the former).

Step 2: You'll find the extension by clicking on the puzzle icon at the top right corner of your browser. I suggest pining it for easier access.

Step 3: Once you click on it, an extension window that looks like the mobile app's initial page will pop up. Here, click [Create new wallet].

Step 4: You'll immediately be asked to back up your recovery phrase.

Step 5: Once you write your recovery phrase down and click [Continue], you'll also be asked to confirm that you've backed it up. To do that, you'll need to select the first and last word of your phrase.

Step 6: On your browser extension, you'll also need to set up a password, which will be used to unlock the wallet each time you want to use it.

Though, note that this password is nothing like the recovery phrase and it will only work on that specific browser you've set it on. If you import your wallet into another browser, you'll have to come up with a new password.

Step 7: Eventually, you'll be able to claim your free username I've talked about when discussing the Coinbase Wallet creation process via the mobile app. Again, you can create it immediately, later, or never.

One way or another, once you're done with this step, your browser-extension-based Coinbase Wallet will be successfully created.

Who is Coinbase Wallet Best For?

Taking into account everything I've covered in my Coinbase Wallet review, I can say that the wallet is a great fit for those who want to find a relatively secure and very convenient software wallet for exploring the Web3 space. After all, it supports thousands of dApps and can be used both via the mobile app and the browser extension.

Besides that, the Coinbase Wallet is a great fit for experienced crypto enthusiasts as well as newcomers because it's very easy to use and set up.

Moreover, if you're already a Coinbase exchange user, you might want to create the Coinbase Wallet, too, as it can be seamlessly linked with your Coinbase account.

However, if you're looking for a wallet for long-term crypto holding (especially higher amounts), I suggest getting a hardware wallet like Ledger Nano X. Software wallets are better for storing smaller amounts of crypto assets you plan to use daily (on dApps, for example).

Conclusions

To summarize this Coinbase Wallet review, I can say that there's more than one reason why crypto enthusiasts might choose this wallet for their Web3 endeavors.

For one, using the Coinbase Wallet, you can rest assured that your funds are going to be kept as safe as they can be in a hot wallet. The app itself is also quite easy to use and won’t require any “advanced technological know-how” to operate.

Moreover, the Coinbase Wallet does support a large number of cryptocurrencies, including Bitcoin, Dogecoin, Ethereum, and any ERC-20 token there is. It also supports NFTs and offers several useful features apart from digital asset storage. The Coinbase Wallet fees are decent, too!

If Coinbase sounds like your cup of crypto coins, make sure to check the wallet out! If you’re more of a hardware person, though, you can find some of the best cold wallets on the market here. On the other hand, if you want a software wallet, but the Coinbase Wallet is not really up to par for you, check out the Binance wallet.

The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.

Scientific References

1. S. Barakat, Q. Hammouri, K. Yaghi: 'Comparison of Hardware and Digital Crypto Wallets';

2. S.T. Bukhari, M.U. Janjua, J. Qadir: 'Secure Storage of Crypto Wallet Seed Phrase Using ECC and Splitting Technique'.