Is Coinbase Wallet Safe?

2 years ago · Updated 2 years ago

✍️ 27 March, 2023 - 4:28 👤 Editor: Jakub Motyka

The Coinbase Wallet offers an alternative to store cryptocurrencies. It also includes storing of NFT, DeFi, and DAO support.
But, is Coinbase Wallet safe? Are there any other better alternatives to store cryptos in a safe way?

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Coinbase Wallet is one of the alternatives to send, receive, and transact cryptocurrencies backed by a major exchange –Coinbase. The platform gives users complete self-custody of digital assets with non-fungible tokens (NFT) support.

Coinbase Wallet can be linked to Coinbase account for users to easily and instantly access their cryptocurrencies. It can also be connected to decentralized finance (DeFi) apps for yield farming. But, is Coinbase Wallet safe?

This iOS Android–supported wallet allows for swapping digital assets on decentralized exchanges and supports decentralized autonomous organization (DAOs). You can also participate in crypto airdrops, and Initial Coin Offering (ICO) using the wallet, or even transact on the outlets accepting cryptocurrencies.

The Difference Between Coinbase App and Coinbase Wallet

Of importance to note is that there is a difference between the Coinbase app and the Coinbase Wallet app. The former supports purchasing cryptocurrencies through various ways, including fiat options. The Coinbase app is funded with credit or debit cards. Supported in more than 100 countries, users need not manage their private keys on the app.

Coinbase Wallet, on the other hand, lets users store and custody their crypto holdings –with no need to connect to the Coinbase account. Coinbase Wallet can be downloaded and used globally. Unlike the Coinbase app, the wallet is not linked to a bank account. However, a user can import recovery phrases from other wallets like MetaMask for use in Coinbase wallet.

Can You Safely Store Crypto In Coinbase Wallet?

To protect the loss of digital assets held in Coinbase Wallet –users must safely keep their recovery phrases (human-readable form of private keys.) There is the option of using Google Drive and iCloud. You can also write down the seed phrase and keep it in a safe place. Also, when sending ERC-20 tokens (cryptocurrencies based on Ethereum), a user will incur gas fees. Such transactions require ETH to complete.

The latest update from Coinbase released on November 29 notes that the wallet will no longer support Bitcoin Cash (BCH), Ethereum Classic (ETC), Stellar (XLM), and Ripple (XRP) due to low usage. However, the platform has allowed users to use recovery phrases and access their stored tokens after the suspension.

Ledger Nano X

Ledger Nano X is the highest-end hardware wallet from the Ledger manufacturer. It has absolutely everything so that your cryptos are stored safely.

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In any case, check the alternatives to store your cryptos using a cold wallet. There are good options like Ledger or Trezor, which will allow you to store your cryptos without using any external company.

More crypto articles:

What Are The Ledger Nano X Supported Coins

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Jared Kirui

EN: Jared Kirui is an experienced financial writer with a passion for all things blockchain technology. Previously, he was into stock markets and forex, providing asset managers with top-notch content. With a flair for producing high-quality articles, he started covering crypto news in 2021. He is open-minded, trades for fun, and enjoys sports.

ES: Jared Kirui es un escritor financiero experimentado apasionado por todo lo relacionado con la tecnología blockchain. Anteriormente, estuvo en los mercados bursátiles y forex, brindando a los administradores de activos contenido de primer nivel. Con un don para producir artículos de alta calidad, comenzó a cubrir noticias crypto en 2021. Tiene una mente abierta, comercia por diversión y disfruta de los deportes.