Crypto wallets are tools that store private keys. passwords that allow you to access your cryptocurrencies. In fact, they do not hold cryptocurrencies, since these are always kept inside a blockchain.
The Coinbase exchange platform has been around since 2012 and permits several million users to buy, sell and store cryptocurrencies. Via this guide, we will seek to give our opinion of the Coinbase wallet based on its features of the wallet.
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What Is a Crypto Wallet?
A crypto wallet is a program that allows an investor to store their cryptocurrency using encryption protocols.
Any cryptocurrency asset must be held in a blockchain. But to access the passwords that allow you to manage and trade digital securities, you need a crypto wallet.
They can be compared to a cryptocurrency bank account but can be accessed without the need for intermediaries.
There are two types of wallets: hot and cold; the main difference between the two is that hot wallet are connected to the internet, while cold wallets are not.
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What Is a Hot Wallet?
It is a tool that allows cryptocurrency investors to hold or trade tokens.
Because hot wallets are connected to the internet, they tend to be more prone to cyber-attacks and theft than cold wallets. At the same time, it is important to remember that they are not entirely without safety mechanisms.
Their main advantage is that they speed up basic transactions and are easy to use.
What Is a Cold Wallet?
A cold wallet is an offline cryptocurrency wallet that keeps the addresses and private keys of users, which is why it is clarified as cold storage.
Cold wallets are regarded safer than hot wallets since access keys are physically stored in isolation on a hardware device not connected to the internet.
They work with compatible wallet software that connects to the internet only when the user wants to trade with cryptocurrencies.
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What Is a Coinbase Wallet?
The Coinbase Wallet delivers a simple, fast, efficient, and cost-free solution. It is an optimal solution for storing, sending, and receiving cryptos.
To buy or sell cryptos, you will have to go through the Coinbase platform which also offers its integrated wallet.
If you want to start the adventure, it only takes a few minutes to download the application of this crypto wallet and create your first exchanges of Bitcoin, Ethereum, and many other currencies.
How to Use the Coinbase Wallet?
Using the wallet requires a simple app download. Creating an account will only take a few minutes. The registration process will be detailed here.
- Download the Coinbase wallet app
To open a Coinbase wallet, you will first need to download the application.
You will then have to click on the blue button “Create a new wallet”.
The rest of the registration is done by choosing a username (username), as the image below suggests.
The final step of registration gives you access to a 12-word phrase. This is your ” recovery phrase ” which allows you to connect to your wallet. This mnemonic phrase must be kept carefully.
- Get Cryptos
After creating the account, you should end up on the following screen:
It is then possible to send or receive cryptocurrencies.
- The Crypto Exchange
For now, it is not yet possible to exchange cryptocurrencies with each other using the Coinbase wallet application. However, it is possible to do so via the platform.
The Coinbase Wallet Can Be Used for Several Things:
- Send cryptos
- Buy tokens
- Receive tokens
On the other side, it is not yet possible to exchange cryptocurrencies. To exchange tokens of one virtual currency for another, you will then need to use the Coinbase platform.
How to Exchange Tokens
1 – Download the Coinbase Wallet app
2 – Start receiving cryptos
3 – Open an account to exchange your tokens
How Do I Get a Coinbase Address?
To obtain a Coinbase address from the wallet, it is necessary to create an account on the Coinbase Wallet application.
If you want to receive tokens on your wallet account, one of the solutions is to send your address for receiving tokens.
To obtain an address, it is also possible to open an account on the Coinbase platform.
Security: Is The Coinbase Wallet Secure?
Security is at the main of Coinbase’s matters. Whether for Coinbase or for its wallet, the company has never suffered a hack, which is rather considerable.
Nearly 98% of crypto assets held on Coinbase wallets are actually held offline. Ensuring greater security of client funds.
In addition, at Coinbase, customer funds are guaranteed against theft, up to 10,000 euros. The Coinbase ecosystem was designed to disconnect sensitive user data from the internet.
Fees and Commissions On Coinbase
The use of the Coinbase wallet application is free of charge. Whether through Google Play or the App Store, installation is completely free. To download the application and the Coinbase wallet, you will have to go to Google Play or the App Store. Installation and account creation will only take a few minutes.
Coinbase fees, on the other hand, are present on the platform when crediting your account in fiat currency. The fees applied to deposits are as follows:
Bank transfer: 1.49% of the deposit amount
Bank card: 3.99% of the deposit amount
Sending virtual currency from one wallet to another is never charged.
For transfers outside of the Coinbase platform, fees may apply. These are network transaction fees that Coinbase must pay and then pass on to the mover. Regarding the transfer of a virtual currency to another, Coinbase charges a spread.
Which Hardware Wallets Work with Coinbase?
A hardware wallet is a physical wallet that stores tokens. They are obviously compatible with the Coinbase platform.
If you hold cryptos on your Coinbase wallet and want to store them on a physical wallet, you will first need to transfer the funds to your Coinbase account.
Once the funds have been transferred to your Coinbase account, you can use a hardware wallet like the Ledger Nano X or the Ledger Nano S.
How Do I Send Cryptocurrency to Coinbase?
To send cryptocurrency from the Coinbase wallet, simply click on the “Send” button. Several options are then available to you:
- Send with the available balance on your wallet
- Send crypto from your Coinbase account
- Use another wallet to send cryptos.
If you have funds in your wallet, sending cryptos happens as follows:
- Open the Coinbase wallet app
- Click on “Send”
- Enter the amount you want to send
- Select the crypto you want to pay with
- Click on “Next”
- Scan the QR code associated with the account or enter the beneficiary’s address
Summing Up
Through the Coinbase platform, you have a wallet to store your cryptocurrencies. The Coinbase wallet is also a wallet but works separately from the Coinbase platform. This wallet allows you to store cryptocurrencies acquired by means other than the Coinbase platform but it also allows you to explore the decentralized web.
It will simply be necessary to link the Coinbase and Coinbase wallet accounts to be able to make transfers. It is possible to transfer funds from the wallet to the platform but also from the platform to the wallet. To do this, go to the settings tab of your applications.
Upon registration, Coinbase provides you with a 12-word mnemonic phrase that helps secure your account. You will be the only one to know this sentence. If you lose it, you will unfortunately no longer be able to access your Coinbase wallet.
In this post, we explained how CoinBase Wallet works in low-complexity terms. We hope it provides you with a good understanding of it.
