Coinbase Wallet – An Easy to Follow Guide for New Users

Wallet Reviews / 24.11.2020

The Coinbase wallet is a non-custodial platform and Dapp browser designed to streamline the most common crypto users’ daily activities. The simplistic nature of the wallet makes it a good choice for novice traders. Anyone can send crypto to anyone around the world with no prior technical understanding using the Coinbase Wallet.

Coinbase Exchange Vs. Coinbase Wallet

You must understand that the Coinbase Wallet is separate from the Coinbase exchange wallet. Both platforms come from the same crypto giant. However, they serve different users with a wide array of services. For example, Coinbase’s exchange wallet is custodial, whereas the Coinbase Wallet is non-custodial.

The Coinbase exchange wallet was designed specifically for use with the cryptocurrency brokerage platform. As such, it allows you to buy, sell, and trade crypto with ease. There is also a fiat on-ramp. You can convert Bitcoin into fiat currency in seconds using this platform. However, it is a regulated network that requires full KYC/AML compliance. The exchange also keeps a lot of data on its users. Specifically, your crypto is stored in their wallets. Your private keys reside on Coinbase’s servers.

The Coinbase Wallet is a standalone Dapp that functions in a completely different manner. This wallet was built to demonstrate the full potential of decentralization. Consequently, there is no KYC, and you don’t need a Coinbase account to use the Dapp.

Benefits of the Coinbase Wallet

One gains a lot of benefits when they use the Coinbase Wallet. The network offers top-notch security with competitive fees. Additionally, as part of one of the largest blockchain firms globally, the Coinbase Wallet features a solid business model supported by an expansive network with considerable pull in the market. 

Easy to Use

The developers behind the Coinbase Wallet put extra emphasis on simplicity. They created a usable multi-coin wallet that allows anyone to store, send, and receive top cryptos in seconds. 

International Support

The Coinbase network provides services to the international crypto community. Keenly, you can find the current price of any digital assets in your local currency. The wallet supports more than 100 different currencies, including EUR, GBP, USD, AUD, and CAD.

Safety First

The Coinbase Wallet earned a reputation as one of the safest hot wallet options available to consumers. The platform leverages Coinbase’s years of experience in the market. For example, there are 2-factor and e-mail authentication protocols in place for withdrawals. 

Non-custodial

Its often said in the blockchain community, “Not Your Keys, Not Your Crypto.” The Coinbase wallet never stores your private keys. Instead, your keys are stored directly on your mobile device. This method of storage means that only you have access to your private keys. 

Even Coinbase is unable to access these keys. Critically, this method of storage is safer but requires that you don’t lose your private keys. If you do lose these keys, your crypto is gone forever. 

ERC-20 Tokens

The Coinbase Wallet was built atop the Ethereum blockchain. This decision means that users gain access to the ERC-20 ecosystem. There are over 200,000 ERC-20 tokens in existence today. Coinbase Wallet users can participate in ERC-20 token events such as airdrops and ICOs. You can even receive tokens bought from other exchanges.

ERC-721

The ERC-721 standard is used for crypto collectibles. These non-fungible digital assets are easily verifiable on the blockchain. Many hold considerable value, such as the top CryptoKitties. Consequently, there’s a growing community of users who collect rare digital art and other game collectibles.

Conversion

Another nice feature of the Coinbase Wallet’s design is that it’s easy to convert from other ERC-20 wallets to the platform. You need to enter your 12-word recovery phrase into the import option. 

How Does the Coinbase Wallet Work?

The Coinbase wallet combines the best aspects of the Ethereum network and introduces some additional technologies. Users gain access to leading decentralized exchanges and a decentralized web application with a Dapps browser. This layout makes it easy to interact with the blockchain. You can even see at a glance what shops and stores accept cryptocurrency in your area.

History of the Coinbase Wallet

The Coinbase Wallet originally entered the market as the Toshi Wallet. In August 2018, the platform rebranded as part of a larger shift to serve more of the market. Notably, the platform started as an ERC-20-only wallet. In February 2019, developers added support for Bitcoin. Today, the platform handles most top cryptocurrencies.

How To Get the Coinbase Wallet

It’s free to register and keep crypto coins in the Coinbase Wallet. Unlike its exchange counterpart, there is no KYC or geographical restrictions associated with the Dapps use. Currently, you can download the Coinbase Wallet on IOS or Android devices. You will need iOS 11.0 or later and Android 6.0 version and up. 

How to Use The Coinbase Wallet

Once you have the Dapp installed, you will be prompted with a 12-word recovery phrase. You will need to write it down and keep it private and safe. If you lose access to your recovery phrase, even the Coinbase Wallet developers can’t help you get your crypto.

Like most popular wallet options, you can use QR codes to make it easy to pay. You scan the QR code, and it will pre-fill the recipient’s bitcoin address. You can send or receive funds using a cryptocurrency address, Coinbase Wallet username, or ENS (Ethereum Name Service for ETH/ERC-20). 

Coinbase Wallet- A Solid Option from One of the Most Reputable Names in the Market

The Coinbase Wallet is a smart option for novice crypto users. The integrated Dapp browser is a feature that improves usability and isn’t found on most other platforms. Additionally, the project’s high-security standards and strong financial backing ensure that your funds will remain safe regardless of what the future holds.

David Hamilton aka DavidtheWriter is a long time Bitcoinist and cryptocurrency journalist. Currently, he has over a thousand articles published on blockchain technology. His expertise and experience makes him one of the most reputable writers in the sector.