Coinbase Wallet - Your Portal to The Crypto World

What is a Coinbase Wallet

Coinbase is one of the top 3 crypto exchanges in the world. The Coinbase platform also features a Coinbase Wallet, which is among the most popular wallets used to safely manage and store cryptocurrencies. However, you do not need a Coinbase.com exchange account to use the Coinbase Wallet.

Coinbase wallet is a free decentralized hot wallet, meaning it stores ownership keys to your cryptocurrencies directly on your computer or a mobile device. It is not a hardware cold wallet that can keep your data offline on a physical device. A hot wallet is connected to the internet, so it is easy to trade and spend crypto. It is an ideal choice for active traders providing access to a wide spectrum of decentralized innovations and anyone just getting started in the cryptocurrency industry, thanks to its convenience and simplicity.

Coinbase Features and Functions

All Your Cryptos & NFTs in One Place

Coinbase wallet makes it easy to store all your crypto and NFTs in one place. You can even link your existing wallets from other providers to the Coinbase Wallet and it will display transactions made through those wallets as well. It will keep all your crypto investments in order so you can manage your portfolio more efficiently.

Connect Coinbase Wallet To a Cold Wallet

It is now possible to integrate your Coinbase Wallet with cold storage wallets like Keep Key, Ledger, and Trezor. These wallets store users' private keys offline to protect them against online threats and hacks. Ultimately, a combination of a hot & cold wallet offers a perfect balance between convenience and safety. Substantial and long-term investments are better stored safely in a cold wallet, while actively traded assets are easily accessed through a hot Coinbase Wallet.

Send & Receive Crypto For Free

Coinbase Wallets lets you send crypto to any email address in 100+ countries instantly and for free. This offers an alternative for bank wire transfers and money transferring services that charge fees. The transfer is also instant and can be done through a mobile.

Connect Coinbase Wallet To a Crypto Exchange

Coinbase Wallet does not directly connect to your bank account. You cannot instantly purchase cryptocurrency with a fiat bank account. However, it can be easily linked to exchanges like Coinbase.com, Binance, or Crypto.com to sell or buy crypto for dollars, euros, or any other fiat currency.

Shop Using Cryptocurrency

Coinbase Wallet can be used for crypto payments at major retail & services accepting cryptocurrency. Payments in crypto are more secure than other methods, such as debit/credit cards, due to data being stored in a merchant's crypto wallet rather than an online server provided by a third party. Crypto payments are also convenient to merchants as transactions are processed instantly and funds become available in seconds.

Access Decentralized Applications

Coinbase Wallet Supports hundreds of thousands of tokens and decentralized applications (dApps). It allows you to instantly swap assets on decentralized exchanges. It also lets you participate in online airdrops, which distribute crypto rewards to the holders. Coinbase Wallets provides access to more advanced crypto activities like yield farming, staking, lending, borrowing, and much more. More advanced users can even join a DAO and participate in shaping a major web3 project.

Participate in ICO

Purchase altcoins at the lowest market price through Initial Coin Offerings (ICO). By the time newly released crypto is listed on a major exchange, its price might have already gone up substantially. Participating in ICO allows you to purchase newly released altcoins at the lowest market price. `

Access Your Investments Through Your Mobile

There is no need for a computer, you can explore the decentralized web on your mobile device. The Coinbase Wallet App uses a pin system for secure access and in some cases Google Authenticator can provide additional safety measures.

Customer Support

Coinbase Wallet offers live customer support for its users. You can call, live chat, or email them to speak with a representative if any issues occur. However, it has been reported that it might take a while to receive help in some cases.

Is Coinbase Wallet Safe?

Zero-hack History

This hot wallet gives you complete control of your crypto investments, but is it safe? Coinbase Wallet protects your digital assets with an industry-leading security system, as hot wallets are prone to possible cyber attacks and hacking. Coinbase recommends using a 2-step verification (also called 2FA) for an extra layer of security. The platform has a zero-hack history so far and is big enough to cover any losses in case one does occur in the future.

Protect Your Account

The customer is responsible for keeping the password and other information secure. If you lose or forget the password, which is also known as a seed phrase or your private key, you will lose access to your account entirely. And if anyone else gets access to your password, they can have complete control over your assets. Furthermore, Coinbase will not cover any investments lost due to the loss or theft of the password.

SIM Swap Fraud

The customer should take necessary precautions to keep the account safe. One of the most popular ways for hackers to gain access to your hot wallet is known as SIM swap fraud. Crypto hackers collect all possible information about you through social media to figure out your address, email, and phone number. They then call your phone company pretending to be you using this info to request a virtual SIM card swap, which then gives them access to your Google Authenticator or Authy on their phone.

It is imperative to protect your SIM with a pin or ask your service provider to use Port Freeze or Number Lock to protect your mobile number from unauthorized transfers.

How to Create a Coinbase Wallet

Creating your own Coinbase Wallet is quite straightforward.

1. Start with downloading the Coinbase Wallet App. You do not need to provide any personal info such as your address.

2. Create a Coinbase Wallet account. You don’t need to share your personal details.

3. The most important step is to write down your 12-word private key and keep it in a safe location. It is not recommended to email this password to yourself or store it on your phone. If you lose or forget this 12-word phrase, you will not be able to access your crypto.

4. Then transfer your existing investments or buy cryptocurrencies from an exchange like Coinbase.com.

Conclusion

With so many cryptocurrency wallets available on the market, it might be hard to pick the right one for your investments. Signing up for a Coinbase Wallet is one of the easiest ways to store your digital assets. It is free and beginner-friendly yet provides access to more advanced features that let you explore the ever-expanding crypto world. For reasons analyzed above, Coinbase Wallet is featured on our list of Top DeFi Wallets.

Additionally, the Coinbase Wallet platform has never been hacked or been a victim of a data breach, which demonstrates its competence in managing cyber security and keeping your investments safe. However, a combination of a Coinbase hot wallet and a separate cold hardware wallet can help reduce crypto vulnerability in a long term.