In this review, we will focus on Coinbase Wallet, a mobile wallet that lets you receive, send, and store thousands of cryptocurrencies and tokens. Read on to learn how the Coinbase Wallet works, what its pros and cons are, and if it’s really safe.
Coinbase Wallet review at a glance
The well-known company Coinbase made the decentralized cryptocurrency wallet Coinbase Wallet. The wallet supports thousands of cryptocurrencies including BTC and ETH and is available in two versions: as a mobile app (Android or iOS) or as a web browser extension.
Most of the time, crypto wallets are used to store and send cryptocurrency. But you can also buy cryptocurrencies, swap tokens, or “stake” with Coinbase Wallet. It goes without saying that NFT and dApps are supported.
Coinbase Wallet is a self-custody wallet, so cryptocurrencies (or private keys) are stored on your mobile and the wallet issuer cannot access them. This gives you complete control over your cryptocurrencies, but it’s also your job to keep them safe.
This is a major advantage over stock exchange apps (like the Coinbase app – not Coinbase Wallet) (like the Coinbase app – not Coinbase Wallet). Cryptocurrencies kept on the stock exchange or in the exchange office are managed by an administrator who can lose, steal, or block them.
Advantages:
- Non-custodial wallet
- It supports hundreds of tokens
- NFT, dApps, cryptocurrency swap, staking
- Intuitive environment and easy to use
Disadvantages:
- It does not have a Czech translation
- Non-public source code
- Problems importing wallet
- Multiple separate wallets cannot be created
- Cannot import a paper wallet
Coinbase Wallet – The Basics
Coinbase Wallet is a non-custodial cryptocurrency wallet developed by Coinbase, one of the largest cryptocurrency exchanges in the world. The wallet is available for both iOS and Android devices and supports a variety of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, Bitcoin Cash, and ERC-20 tokens.
As a non-custodial wallet, Coinbase Wallet gives users complete control over their private keys and funds, meaning that the user is responsible for keeping their private keys safe and secure. This makes Coinbase Wallet a more secure option compared to custodial wallets, where the user’s funds are held by a third party.
One of the unique features of Coinbase Wallet is its integration with the Coinbase exchange. This allows users to easily transfer funds between their Coinbase exchange account and their Coinbase Wallet, making it easy to trade and manage their cryptocurrency holdings.
Coinbase Wallet also supports decentralized applications (dApps) on the Ethereum blockchain. This means that users can use their Coinbase Wallet to access and interact with Ethereum-based dApps directly from their mobile devices.
In addition to these features, Coinbase Wallet also offers a variety of security options, such as biometric authentication and a passphrase feature for added protection of private keys.
Coinbase Wallet Overview
Coinbase Wallet is a decentralized mobile wallet from the cryptocurrency exchange Coinbase that supports dozens of cryptocurrencies and blockchains.
The wallet is available for Android smartphones or iPhones. There is also a version for web browsers, which has more features and tools than the mobile version (such as support for Ledger hardware wallets).
Using the wallet keeps your identity secret. The only exception is the purchase of cryptocurrencies for classic fiat currency, which cannot be done without identity verification.
SUPPORTED CRYPTOCURRENCIES
The Coinbase Wallet works with thousands of cryptocurrencies from more than 15 different blockchains. BTC, ETH, LTC, and standard ERC-20 tokens (USDT, BNB, and thousands of others) are, of course, supported.
The popular NFT can also be used with Coinbase Wallet (ERC721 type tokens). On the other hand, you can’t put tokens from the Binance Chain network (BEP-2 standard) into the wallet.
CRYPTOCURRENCY STORAGE
Through the Coinbase Wallet app, you can create a new cryptocurrency wallet or deposit an existing wallet using a refreshing phrase (seed) (seed).
The wallet can hold more than one type of cryptocurrency or token, so you can store them on it. But that’s where the benefits of Coinbase Wallet end.
Some applications (e.g. Trust Wallet or Coinomi ) can manage multiple wallets at the same time, so users can create, for example, 3 separate wallets. Coinbase Wallet, on the other hand, doesn’t have this feature, so all cryptocurrencies will be kept in one wallet and backed up by a single seed.
Coinbase Wallet doesn’t work with either watch-only wallets (where the user can see the balance but can’t spend it) or multi-sig wallets (the wallet has multiple private keys).
CRYPTOCURRENCY SWAP
The Swap button will redirect you to a decentralized exchange where you can exchange any tokens. But only tokens from the same blockchain can be traded (e.g. two ERC20-type tokens). Cryptocurrencies that use different blockchains, like BTC and ETH, can’t be traded with each other.
Coinbase charges a flat fee of 1% per exchange. However, the network fee is also included in the total costs.
You can also exchange tokens through decentralized third-party applications (dApps), which you can find in the Browser→ tab DEX. But even they can’t trade cryptocurrencies from different blockchains.
BUYING CRYPTOCURRENCIES FOR CLASSIC FIAT CURRENCY
With the Buy button, you can buy cryptocurrencies with regular money. Orders are processed through the centralized exchange Coinbase, so in order to make a purchase, you need to create an account with the exchange and verify your identity.
LINKING WITH THE LEDGER WALLET
You can manage your Ledger hardware wallet with the web version of Coinbase Wallet.
There’s no need to worry about safety. Transactions will be signed directly on the Ledger processor, so even if you use the Coinbase Wallet to make a payment, the private keys will stay in the hardware wallet, away from the Internet.
Security
Launching the application and sending transactions is secured with a PIN or fingerprint. Therefore, even if a stranger gets into your mobile phone, they cannot steal your cryptocurrency.
YOU HAVE YOUR PRIVATE KEYS WITH YOU
If you have cryptocurrencies stored on an exchange or exchange, you do not actually own them. You do not know the private keys of your wallet (they are managed by the exchange operator) (they are managed by the exchange operator).
However, Coinbase Wallet is a non-custodial wallet, so the private keys are stored directly on your mobile or computer and the wallet issuer cannot access them. So, the person who owns the cryptocurrency wallet can’t lose it, misuse it, or block it.
Coinbase Wallet and all other non-custodial ones give you full control over your cryptocurrencies. However, this means that you are responsible for the stored crypto-currencies and if you are not responsible enough, you may lose the crypto-currencies (e.g. due to careless handling of the seed) (e.g. due to careless handling of the seed).
WALLET BACKUP AND RESTORE
We suggest that you immediately back up wallets made with Coinbase Wallet by writing down a recovery phrase or seed. This is a list of 12 random English words that the app will use to make addresses and keys for cryptocurrency.
Write the seed down on paper and put it somewhere safe. If you lose or break the phone with the wallet on it, you can still get the coins back by putting the original seed into a new wallet.
You can find the seed in the section called Recovery phase under Settings.
Coinbase Wallet Fees
Coinbase Wallet is a free app, but there are some things that will cost you:
- Network Fee: When you send cryptocurrency to a different address, you have to pay a fee to the miners so that they can process the payment. The fee is built into the cryptocurrency network, and no wallet will be charged for it.
- The fee for exchanging one cryptocurrency for another on a decentralized exchange is usually up to 0.5%. The cost to swap using the integrated exchange is 1% plus the network fee.
- Fees for buying cryptocurrency: The Coinbase exchange is in charge of buying cryptocurrency. Fees are between 2% and 5%. (depending on the chosen payment method and order size). In Poplatky’s review of Coinbase, you can find more information.
WHERE TO BUY CRYPTOCURRENCIES?
Do you want to use crowns, dollars, or euros to buy cryptocurrency? You can do this with Coinbase Wallet, but you will have to pay quite high fees.
Experience with Coinbase Wallet
The well-known cryptocurrency exchange Coinbase made the Coinbase Wallet in 2017. It has been around since 2017.
The app has been downloaded millions of times and is used by hundreds of thousands of people, making it one of the most popular decentralized wallets.
Users love how easy it is to use, how simple the interface is, and how many cryptocurrencies it supports.
The bad thing is that the app doesn’t work with all types of Bitcoin addresses. So, if you import a bitcoin wallet, the app might not show you the full balance. Bitcoins stored at addresses that start with the number 3 are not shown in Coinbase Wallet (P2SH format). On the other hand, P2PKH (where the address starts with 1) and bech32 (where the address starts with “bc1”) formats work fine.
Users can’t import a private key from a paper wallet or manage more than one wallet at the same time, which is very disappointing.
The fees to buy cryptocurrencies are also high, but this is a problem that almost all self-custody wallets have. Cryptocurrency exchanges like Coinmate in the Czech Republic or Binance in another country are much cheaper.
One more bad thing:
The source code for Coinbase Wallet is not available to the public because it is a closed-source app. So, there’s no way to check how the app actually works or how it handles sensitive data.
Coinbase Wallet Review Summary
One of the most popular crypto wallets for phones is Coinbase Wallet. It is simple, new, and has a catchy name.
As an alternative, we can call the wallets Coinomi or Trust Wallet, both of which work with different wallets and support more than one blockchain. Also, Coinomi is available in Czech and works with all kinds of bitcoin addresses.
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