The advent of the digital financial system has highlighted the importance of a digital wallet that is safe and efficient. Digital wallets serve the purpose of storing digital assets such as cryptocurrencies or tokens. One crypto wallet that has gained prominence in recent years is the Coinbase wallet.
Coinbase wallet is part of the popular exchange, Coinbase. However, it is a standalone product, and users don’t need to have an account on Coinbase to use the Coinbase wallet. Coinbase is one of the largest crypto trading platforms in the world and is a safe space for both beginners and seasoned traders.
Currently, the Coinbase wallet is regarded as the safest crypto wallet in the industry with its easy interface and strict security measures. This Coinbase wallet review will cover all aspects of the wallet, including fees, login process, and Coinbase wallet extensions, to discuss if it’s a safe wallet.
What Is The Coinbase Wallet?
Coinbase wallet is a digital wallet that allows users to buy, sell, transfer and store their digital assets. It is a hot storage crypto wallet which means a majority of the crypto assets are stored online for a seamless trading experience.
The wallet originally supported only Ethereum and ERC20 tokens, but now it has expanded its horizon by supporting more than thousands of coins and tokens. It supports all tokens on EVM-compatible chains such as Polygon and Avalanche C-Chain and ERC-20 tokens.
Coinbase wallet is more than just a crypto storage wallet. It enables users to take part in Initial Coin Offerings (ICO) and airdrops, shop online using cryptocurrencies, and access decentralized apps (dApps) on supported networks. It acts as a one-stop shop for everything digital, including collecting digital art.
The Coinbase wallet differs from the exchange wallet at Coinbase.com. While the exchange wallet stores the user’s private keys on the centralized exchange platform, the Coinbase wallet stores them on the user’s mobile device itself. This allows for greater independence with regard to the movement of assets from one wallet to another or from your Coinbase wallet to other trading platforms.
The wallet is compatible with hardware wallets such as Ledger, Trezor, and KeepKey. One of the attractive features of the Coinbase wallet is that it allows users to collect Non-fungible Tokens and store them in the wallet. NFTs are gaining popularity with time, and the Coinbase wallet permits the selling and buying of NFTs across the internet.
Is Coinbase Wallet Safe?
Coinbase wallet is currently regarded as the safest crypto wallet in the industry, with zero hacks reported so far. The secret lies in the wallet’s state-of-the-art security features that keep it safe from any breaches or cyberattacks. Few of its security features include:
Secure Enclave Technology
The secure enclave technology is a hardware-based implementation of the encryption in use. It allows the private keys of the user to be stored on the user’s mobile device rather than on any centralized exchange platform.
The technology uses a 2FA (factor authentication) system to access your Coinbase wallet on your device. You can use a Google Authenticator to add an extra level of security to your crypto wallet. Also, the Coinbase wallet app can be accessed on a mobile device through a 4-digit unlock pin.
Coinbase wallet processes all transactions through a web-based encrypted multi-layered SSL approach. All sensitive data stored by the user are encrypted with AES-256, which supports the largest bit size and is the strongest encryption standard. The Advanced Encryption Standard (AES) is chosen by the US Government to protect classified information.
Support for Google Drive and iCloud
Coinbase wallet enables users to safely store their private keys on Google Drive and iCloud. There have been instances of users losing their keys and eventually losing their funds forever. However, uploading their private keys to the cloud offers a backup against lost keys if the keys get misplaced in the future.
Users must back up their 12-word recovery phrase to avoid losing their funds if they lose their keys. With Coinbase wallet, users can encrypt this recovery phrase to their cloud accounts which will be made accessible through a password. Neither the cloud service nor Coinbase wallet will have access to the user’s funds because the password will be known only by the user.
Other security features
Coinbase wallet supports biometric authentication through Touch-ID in mobile devices, thus enhancing the security measures of the app. It makes it practically impossible for hackers to access your Coinbase wallet account using a fingerprint like yours.
Also, users can configure an auto-lock timeout when using the app. The auto-lock timeout feature is available for a time from 1 minute to 1 hour, so depending on the time your set, the app will automatically lockout. You will need to use the Touch-ID to reopen the app.
How To Withdraw From Coinbase Wallet
Coinbase wallet does not allow direct withdrawals. You will need to link your Coinbase wallet to your Coinbase account or any other crypto exchange account you have. Transfer crypto from your Coinbase wallet to your Coinbase account and then withdraw funds from Coinbase.
How To Create A Coinbase Wallet
Creating a Coinbase wallet is simple, easy, and takes only a few minutes. You can either use your desktop browser or your mobile to create a Coinbase wallet account.
Creating Coinbase Wallet On Mobile
Download the Coinbase wallet app from your iOS or Android play store.
- Choose the “Create a new wallet” option.
- The next step is to pick a username through which other users can find you. As you type your name on the box, the app will automatically show you if the username is already taken. If you have a common name, then you can add numbers such as your birth date or year to make your username unique.
- The app will now ask for your privacy preferences. Unless you want to use the Coinbase wallet only for personal storage or transactions, it is recommended to set your account as “Public .” You can always change these settings later.
- The next step is to add an extra layer of protection to your wallet through biometric authentication. You get the option to either use biometric authentication such as Face ID or Fingerprint or set up a Passcode. It is always recommended to go for biometric authentication.
- Next, you will get an option to backup your wallet. Your Coinbase wallet account’s secret recovery phrase will show on the screen, which will be the only key to your wallet. This key will allow you to access your account if you lose your phone.
Remember to note down the 12-character recovery code and keep it somewhere safe. Don’t make the mistake of saving it on your phone!
- If you choose “Back up now,” then the app will show your recovery phrase and ask if you want to back up to the cloud or backup manually. The best option is to do both just to be on the safer side.
- After this, your Coinbase wallet is ready for use!
Creating Coinbase Wallet On Desktop
- Go to www.coinbase.com/wallet and click on “Download Coinbase wallet” on the page.
- You will be directed to add the Coinbase wallet as an extension to your browser.
- Add the extension and “Create a new wallet.”
- Choose a “username.”
- Back up your wallet by saving the 12 words that are shown on the screen. Memorize the 1st and the 12th word because you will be asked to choose them in the next step.
- The next step is to choose a password. The password should have at least 8 characters with at least 1 number. Click “Submit“
- Your Coinbase wallet is ready! Remember to pin your Coinbase wallet extension to your browser.
Coinbase Wallet FAQs
You need to first buy Ethereum (ETH) to buy Saitama cryptocurrency. Buy ETH from your Coinbase account and transfer the ETH to your Coinbase wallet. Open the Coinbase wallet app and select “Trade,” Choose “Ethereum (ETH)” under the convert option, and choose “Saitama” coin to swap ETH to Saitama. Make sure you have enough funds to cover the transaction costs.
Connect your Coinbase and Coinbase wallet account. Go to Coinbase wallet and click on “Transfer“>choose the coin you wish to transfer and complete the process.
Open the Coinbase wallet app on your mobile, go to “Settings,” and “Connect your Coinbase account.”Choose “Send” select the coin and amount you wish to transfer and select “Next.” Next, choose “Coinbase” as the address you want to send to and complete the transfer.
Coinbase wallet offers one of the easiest and safest ways to store your crypto assets on a digital platform. It is user-friendly interface works great for both beginners and professionals. It allows the ease of importing from an Ethereum-based wallet such as MetaMask or Trust wallet if you already use their services.
Its security features are top-notch in the industry, with no breaches or hacks so far. Coinbase wallet is by far the most efficient storage wallet in the market right now just like how the referral program is top tier. This you can read more about in our Coinbase referral program review.