Launched under the name Toshi, the multi-coin Coinbase Wallet allows storage and transfer of select virtual currencies. The coins supported include Bitcoin Cash (BCH), Bitcoin (BTC), Litecoin (LTC), Ethereum Classic (ETC) , Ethereum (ETH), and all ERC-20 tokens. The hot wallet works without opening an account with the Coinbase exchange. It is available for download on Android and iOS smartphones and is free to use.
Since leaving digital currencies with an online crypto exchange is considered extremely risky, the Coinbase Wallet sports multiple security features to protect the user funds from cybercriminals. Additionally, it supports a limited number of crypto coins for a seamless trading experience. This article will elaborate more on the applicability of the Coinbase Wallet.
Step-by-step Guide
Using Coinbase Wallet is quick, simple, and starts with installing the app on the mobile phone. Even though the Coinbase exchange is accessible from 32 countries only, including the US, its wallet has no such restrictions. Plus, it does away with the KYC procedure that consumes lots of time and makes user details vulnerable to hacking.
Once the app is on the mobile device, the user needs to register by navigating the Create New Account option, followed by a unique username and password. The next step requires clicking on the Create A New Wallet, accepting the terms, and protecting the wallet with a six-digit Password or Touch ID (fingerprint) using the mobile device.
The account set up completes with a 12-character secret recovery key generated by the Coinbase Wallet. The user is supposed to save this somewhere safe since it is needed to recover the wallet if the mobile phone is lost. It is worth noting that the wallet account uses two-factor authentication for enhanced security.
To send or receive crypto assets, one needs to login into the wallet account and go through the following stages:
- Click on the Tokens button
- Choose a crypto asset
- Tap on the Send or Receive tab (based on the purpose)
- Enter the desired crypto amount
- Input the recipient’s wallet address or scan the QR code to send or provide the wallet address or the QR code to the sender to receive crypto
- Hit the Continue button to proceed with the transaction
While the Coinbase Wallet generates ten wallet addresses for each transaction, experts recommend users change it every time they transfer cryptos. Please keep in mind that the wallet has no transaction limits, but there is a fee for sending cryptos.
Coinbase Wallet – PROS and CONS
PROS
- Account recovery option
- Allows users to participate in airdrops and initial coin offerings
- Backed by regulated Coinbase exchange
- Charges no usage fee
- Grants access to decentralized applications
- Simple and intuitive interface
- Adopts sufficient security measures
CONS
- Supports limited cryptocurrencies
- Does not provide access to the private key
- Less secure than hardware digital wallet
How Safe Is Coinbase Wallet?
The Coinbase Wallet implements top-notch security measures, making it one of the safest crypto wallets. First of all, it does not store private keys on the Coinbase exchange servers online. Instead, the Secure Element Technology puts keys on the user’s mobile device, safeguarding them against cyber-attacks. Similarly, the Touch ID feature allows users to use their fingerprints to limit access to private keys, which reduces the risk of hacking.
FAQ
How Do I Withdraw Money From My Coinbase Wallet?
Users can withdraw funds from their Coinbase Wallet using a debit card, wire transfer, or PayPal.
How Do I Access My Coinbase Wallet?
The Coinbase Wallet is accessible only after registering with the Android or iOS app.
Is Coinbase Wallet Free?
Yes. The Coinbase Wallet charges no fees for using the app and storing the cryptos.
Can Coinbase Wallet Be Hacked?
The Coinbase Wallet secures user funds in various ways, such as Touch ID, two-factor authentication, and the Secure Element Technology, making hacking nearly impossible.
Conclusion
The Coinbase Wallet facilitates storing, sending, and receiving cryptos between different exchanges. With no-usage fees and state-of-the-art security technology, the wallet becomes a haven for people with selective crypto choices. Not to mention the wallet comes from the reputed Coinbase exchange, which makes it a trustworthy digital wallet that is worth trying.