Coinbase Wallet packs a lot of functionality into an easy-to-use mobile app or browser extension. Safely store your cryptocurrencies while accessing Metaverse worlds, games, marketplaces, and decentralized financial applications.
With nearly 100 million verified users, Coinbase is one of the largest cryptocurrency exchanges in the world. However, according to Coinbase CEO Brian Armstrong, while Coinbase is best known for its exchange platform, about 54% of Coinbase users are currently engaged in crypto activities other than trading. In particular, many users are taking full advantage of the growing ecosystem of Coinbase wallets, self-custody wallets that can be connected to Coinbase accounts, or decentralized applications.
What is Coinbase Wallet?
Coinbase Wallet provides a generally secure and beginner-friendly way to store cryptocurrencies and explore the ever-expanding world of cryptocurrencies.
A crypto wallet protects your assets from exchanges and protects your crypto from risks that can occur on exchanges, such as B. Hacking, breaches, government actions, coding errors, or other risks to cryptography.
Following Coinbase's signature user-friendly approach, Coinbase Wallet is aimed at beginners and most features are just a click or two away. However, Coinbase Wallet still includes some advanced features such as decentralized exchanges (DEX), non-fungible tokens (NFT), and access to a selection of protocols.
Coinbase's easy-to-use wallet shares many features with other well-known wallets such as Trust Wallet and MetaMask. However, it also adds support for Bitcoin, Litecoin, and other assets not natively supported by MetaMask.
How does Coinbase Wallet work?
Coinbase Wallet uses well-tested technology by implementing a BIP39 compatible seed phrase to secure your wallet. A seed phrase, also called a mnemonic phrase, is a group of 12 or 24 words that are easy to remember and act as a private key for your wallet.
Referencing Bitcoin Improvement Proposal 39, BIP39 allows cross-wallet compatibility with several other popular crypto wallets. Seed phrases can be used to restore wallets for Coinbase Wallet, Trust Wallet, Coinomi, Exodus, and other software wallets, as well as secure hardware wallets such as Ledger and Trezor wallets.
Coinbase Wallet is available as a mobile app for iOS or Android or as a web extension for Google Chrome and Chrome-based browsers such as Brave and Microsoft Edge. For most applications, mobile apps offer more functionality, such as B. Ability to browse available dApps.
- Ethereum Wallet: At the heart of the Coinbase wallet is an Ethereum wallet that supports ERC-20 tokens used on the Ethereum or EVM-compatible blockchain.
- Bitcoin wallets: Native support for Bitcoin distinguishes Coinbase wallets from Ethereum-focused wallets like Metamask.
- Litecoin and other crypto support: Store LTC, BCH, DOGE, XLM, and XRP with the Coinbase wallet. The browser extension adds support for SOL and SPL tokens.
- Exchange cryptocurrencies on 16 trading platforms: exchange Ethereum-based tokens for hard-to-find tokens on Uniswap or other decentralized exchanges.
- Connect to popular Defi protocols: Earn or finance on various Defi platforms including Compound, AAVE, and more.
Pros and Cons of Coinbase Wallet
Pros:
- User-friendly NFT and crypto storage
- Compatibility with other BIP39 wallets
- Link to your Coinbase account or use it alone
Cons:
- Internet-connected hot wallet
- High fees on some transactions
- not open source
Notable Features of Coinbase Wallet
Coinbase provides a list of supported apps and marketplaces, but you will find that the Coinbase wallet can connect to many other protocols and Web3 properties not listed. You can also connect to virtual worlds like Cryptovoxels, collect NFTs with OpenSea, or manage your Web3 portfolio with Zapper. Notable features of Coinbase Wallet are:
Extensive integration with dApps
To use crypto applications and marketplaces, you need a wallet that speaks the same language. Most marketplaces and apps support MetaMask wallets, but his Coinbase wallet is also widely supported with the option to connect your wallet with just a few clicks.
Multicoin help
Many cryptocurrency wallets support Bitcoin, Ethereum, Litecoin, or Dogecoin. However, wallets that support all these cryptocurrencies at once are pretty rare, but the Coinbase wallet does just that.
Coinbase offers the following off-exchange storage:
- Ethereum
- Ethereum-based (ERC-20) token
- Bitcoin
- litecoin
- bitcoin cash
- dogecoin
- Stella lumen
- ripples
- NFTs
Integration with Coinbase
Possible Drawbacks of Coinbase Wallet
No crypto wallet fits all use cases perfectly, and even the venerable Coinbase wallet has some potential drawbacks. These include:
Limited coin aid
Coinbase Wallet natively supports more blockchains than popular wallets such as MetaMask. However, this wallet supports fewer blockchains than many competing wallets such as Trust Wallet and Exodus.
However, there is a workaround for limited coin support. Simply restore your Coinbase wallet using your multi-coin wallet settings and a 12-word seed phrase for Trust Wallet, Exodus Wallet on Binance, and DeFi Wallet on Crypto.com.
With this option, you can store and access more types of crypto while accessing fast-connected dApps designed to work with Coinbase wallets and Ethereum-based assets. Simply select the wallet you need for the task at hand. Anyone can access the same assets if they are supported.
limited market options
If you have used Trust Wallet or Crypto.com's DeFi wallet, you may find that the selection of dApps listed on Coinbase falls short in comparison. However, you will have access to more dApps than listed on Coinbase. Connectivity options in apps and marketplaces often include MetaMask, Coinbase Wallet, or WalletConnect compatible wallets, including Trust Wallet and Crypto.com's DeFi wallets.
Hot wallet
The term hot wallet refers to an internet-connected crypto wallet. Connectivity comes with risks. Apps and logs may have bugs or security concerns that lead to potential leaks.
However, the recently added support for Ledger hardware wallets makes Coinbase wallets even more secure when using the Chrome extension. You can connect your Ledger Nano to our Chrome extension to keep your crypto assets under lock and key.
How to installation your Coinbase Wallet
1. Install the app or browser extension
2. Start a brand new pockets or import a pockets
Your Coinbase wallet is protected by a private key, but instead of using hard-to-remember strings of letters and numbers, use a 12-word seed phrase.
When you start a new wallet, Coinbase assigns a seed phase to your wallet. Write this down on paper and keep it in a safe place. Do not scan or digitally store your seed phrase as it can be accessed by hackers.
You can also import an existing wallet. However, it's important to note that not all wallets are compatible. You may not see all ciphers if the wallet you are importing into does not support that type of cipher.
3. Load Coinbase Wallet
Coinbase Wallet connects to the Coinbase exchange, so funding your wallet is easy. Just transfer some of the crypto to your wallet.
If your Coinbase account is connected, you can also send crypto from another wallet you own or buy crypto from your wallet.
Coinbase Wallet provides transparency regarding network charges and warns you when network charges may be higher than usual.
4. Connect to dApps
As a fundamental function, the Coinbase wallet protects crypto from the risks associated with storing assets on exchanges. However, much of the attraction for many cryptocurrency investors lies in the new opportunities that cryptocurrencies can offer, including his NFTs, DeFi lending and lending, staking, and trading emerging tokens. Bookmark your favorite dApps for easy access.
Final mind on Coinbase Wallet
Coinbase Wallet is a wallet option for beginners, with great features to get you started quickly. Power users may miss some features that more advanced wallets like MetaMask offer, but Coinbase Wallet ticks all the boxes for many users, allowing Bitcoin, Litecoin, XRP and more. Adds support for additional cryptocurrencies in .
If you're using a Coinbase wallet or other internet-connected hot wallet, consider adding a hardware wallet like the Ledger Nano to the mix for an extra layer of security.