Is Coinbase Wallet a good idea?
As the cryptocurrency industry gained traction in the financial landscape, investors and traders began to explore these cryptocurrency wallets in detail.
Among them, Coinbase wallet has emerged as one of the most popular cryptocurrency wallets in the world.
A major reason for the popularity of Coinbase Wallet is the widespread use of Coinbase Consumer, a decentralized cryptocurrency exchange. In 2021, Coinbase became one of the largest cryptocurrency exchanges in the world.
And the majority of traders invest in bitcoin through the Coinbase Consumer exchange.
People are more familiar with this online platform than any other crypto exchange service.
Since Coinbase is one of the three largest crypto exchanges in the world, it also offers wallet services with Coinbase Wallet. In this Coinbase Wallet review, various aspects of the digital wallet were examined. From wallet and security features to crypto services and customer support, this Coinbase wallet review covers all aspects to evaluate this cryptocurrency wallet. Let us get started.
What is a Coinbase wallet?
To begin with, you need to understand the difference between Coinbase and Coinbase Wallet. On this platform, users can buy, sell, and trade cryptocurrencies. Coinbase Wallet, on the other hand, is a wallet for cryptocurrencies. The main function of Coinbase Wallet is to securely store users' crypto assets.
Coinbase Wallet is considered to be one of the most secure cryptocurrency wallets in the world. Due to its integration with the Coinbase exchange platform, investors and crypto enthusiasts feel safe when storing their digital assets in this wallet. Coinbase Wallet is a digital wallet that uses hot storage for cryptocurrencies.
This means that Coinbase Wallet is a hot crypto wallet.
Based on the characteristics of hot wallets in the crypto space, Coinbase Wallet stores the majority of crypto coins online. It does not use cold storage services like hardware wallets and an encrypted data device. However, being a hot wallet, it is also vulnerable to cyber threats and online crypto hacking.
The wallet is actively used to interact with decentralized applications (dApps) in the Bitcoin (BTC) and Ethereum (ETH) ecosystems. The wallet can be easily integrated with dApp browsers, allowing users to create a Coinbase account on all devices, including Android and iOS mobile platforms.
Coinbase was founded in 2012 to create a crypto-friendly trading environment.Today, the Coinbase platform handles billions of dollars worth of cryptocurrencies with its exchange services and wallet services.
Advanced innovations have made Coinbase a reliable and well-funded company in the cryptocurrency market.For this reason, Coinbase wallet has become a coveted choice for crypto followers worldwide.
Coinbase Wallet Features
Based on online reviews of Coinbase wallet, this wallet has some powerful features that make it the best wallet for cryptocurrencies. The wallet is equipped with robust security features and ensures that its "hot wallet" status does not lead to hacking incidents.
The main feature of Coinbase wallet is to manage the private key and store the cryptocurrency wealth of the users directly on their devices. It is used as a hot wallet that is compatible with a hardware wallet such as KeepKey, Ledger, and Trezor. The wallet is not used as a centralized broker or exchange; however, it is used to send and receive these exchanges.
Coinbase Wallet can be connected to crypto-friendly bank accounts.
The wallet also has various features that help users buy or sell cryptocurrencies at profitable margins. The wallet is also compatible with major fiat currencies such as the US dollar (USD).
The wallet has high compliance features where certain KYC rules are implemented in the company's policies. For those with an unpleasant credit history, this wallet may not be ideal. Regardless, everyone would like the cool features and support services of the wallet.
One of the main features of the wallet is its support for users to store digital collectibles. Non-fungible tokens (NFTs) are becoming increasingly popular in the consumer digital market. Crypto punks and kitties are being digitized as collectibles. These NFTs can be properly stored in the Coinbase wallet. Moreover, the wallet also helps in buying and selling these NFTs over the internet.
The wallet provides secure storage services. Private keys and public keys are strictly protected in the Wallet. The Secure Enclave feature is perhaps the strongest security measure developed by Coinbase. Moreover, cryptocurrencies on the wallet are protected with biometric authentication. This restricts access to cryptocurrency and allows limited access for users only. The optional cloud backups of the wallet are also very useful for recovering lost private keys and crypto assets.
Is Coinbase Wallet trustworthy?
Secure Enclave is the main reason why people trust this hot wallet. Coinbase is protected by Secure Enclave technology. This technology stores the user's private keys securely. It uses authentication options like 2FA to control access.
SMS authentication via verified phone numbers can help access the wallet. In exceptional cases, the Wallet also uses Google Authenticator. In addition, there is a Coinbase wallet app that grants access only via a four-digit security number PIN. This PIN can unlock the wallet on the mobile app and also help authorize transactions.
The hacking history of Coinbase is interesting. Despite all the security measures provided by the wallet, hackers have not managed to steal a major chunk of crypto loot from these wallets. They are secure and have a zero hacking record.
This should answer the main question "Is Coinbase Wallet secure?". Yes, the wallet is secure and follows the best practices for.
Although it is a hot wallet, Coinbase is a leader in securing payment services in the crypto industry. It ensures that security features are enforced at multiple levels.
For example, the wallet handles all of its traffic through web-based https-encrypted, multi-level SSL encryption. Users can store their sensitive user data securely and not worry about sharing with redundancy. The wallet encrypts data using AES -256. It also creates a backup on FIPS-140 USB drives. After that, the drives are kept safe in physical lockers and security vaults in various locations around the world.
Services offered by Coinbase Wallet
Coinbase also offers some unique wallet utilities. As a software product, the wallet provides authorized access to decentralized financial innovations (DeFi). Users can buy and store their Ethereum ERC-20 tokens or digital currency in the wallet and link them to DeFi projects. They can participate in online airdrops that allow them to receive crypto coins for free.
The wallet also supports ICOs. It helps Coinbase users invest in new altcoins and stablecoins at the lowest market prices. Collecting rare digital artifacts like NFTs and digital collectibles is also an additional service supported by the wallet.
Browsing dApps and shopping at crypto-friendly stores becomes easy with this wallet.
Most stores accept Coinbase for its wallet services when sending cryptocurrencies. People who simply want to invest in digital financial assets can use this wallet. The Coinbase wallet is by far the easiest and most secure digital wallet for managing, buying, and selling digital currencies.