First and foremost, Coinbase (also known as Coinbase Consumer) is a cryptocurrency exchange.
In this role, it's a global entity aimed at people investing in cryptocurrencies.
You can use your Coinbase account to let the company act as a storage custodian of your digital currency portfolio.
This is not the cryptocurrency wallet service I'm reviewing here.
I'm looking at Coinbase Wallet, which is a standalone product, a cryptocurrency wallet that anyone can download whether the individual has a Coinbase brokerage account or not.
Overall, I loved Coinbase Wallet (whose software is free).
I especially loved its security features and ease of use, and gave it an Editors' Choice.
While it's certainly not as pretty as our other Editors' Choice winner Exodus, it's still not a challenge to use.
Honest, Objective Reviews
Daxdi.com is a leading authority on technology, delivering Labs-based, independent reviews of the latest products and services.
Our expert industry analysis and practical solutions help you make better buying decisions and get more from technology.
While its lack of support for Bitcoin limits its usage scenarios, this will be cleared up soon.
This makes Coinbase Wallet an excellent solution for beginners who want to explore cryptocurrencies in a safer, more regulated environment.
And even without Bitcoin support, Coinbase is a very flexible platform that supports not only digital currencies but also digital tokens, digital collectibles, and the ability to use Coinbase Wallet to access airdrops and Initial Coin Offerings (ICOs).
Price and Versions
Just like most of the other cryptocurrency wallets I reviewed, such as BRD (Learn More at BRD) , downloading and using Coinbase Wallet is free.
However, once you purchase or sell your digital currency, things change a bit.
Competitors such as BRD and Copay Bitcoin Wallet simply connect you to the Bitcoin network, either directly or through a third party, and then the network charges you whatever transaction fees normally apply to your transaction.
Coinbase is its own exchange; that's the company's primary business after all.
So you're not going to connect directly to the cryptocurrency network for transactions; rather, you're going to connect to the Coinbase exchange, in which Coinbase Wallet has a varied fee structure for different types of transactions.
From that perspective, however, Coinbase Wallet remains highly competitive.
It charges an average of 3.75 percent per transaction whereas some competitors charge up to 5 percent or more.
But I'm still not done, as that's only the most likely scenario, not the only one.
Most Coinbase Wallet users have accounts with the Coinbase Consumer exchange.
This only makes sense, especially if you're just getting started with digital currencies.
However, Coinbase Wallet is, technically, a standalone entity, so you can use Coinbase Wallet to connect directly to the cryptocurrency network in question.
Again, transaction fees will then be assessed by the network; however, using the Coinbase Wallet software will remain free.
As far as versions go, there are really only two Coinbase Wallet versions: one for Apple iOS and one for Google Android.
That's OK, but it does set Coinbase Wallet behind more platform-heavy cryptocurrency wallets, especially Jaxx .
However, if you wind up simply trading currency by using the Coinbase Consumer exchange service, then Coinbase Wallet defaults to become a mobile account browser, even though it can do quite a bit more.
In this scenario, you could feasibly do anything your Coinbase can do by using your web browser-based Coinbase Wallet account management and trading screens.
So, on a practical level, even though there isn't a branded web version of the Coinbase Wallet, a Coinbase exchange account could act as one.
Using Coinbase Wallet
Again, like most of the other cryptocurrency wallets I reviewed, downloading and setting up Coinbase Wallet is relatively simple.
Just click the appropriate App Store for your mobile device, download the application, and set up an initial account by using basic information.
Enter a username, a password, and an email address that will be used to generate initial account credentials as well as the 12-word paper key, which has become pretty much standard for most cryptocurrency wallets.
Some cryptocurrency wallet makers end here, but Coinbase Wallet lets you add a phone number, too, which is something you should definitely do.
You should do so not because you want to receive marketing calls but because, once your phone number is verified, Coinbase can use it to enable two-factor authentication (2FA) in the form of a code texted to that phone number and then used as an additional authentication method.
Out of our current cryptocurrency wallet lineup, only Coinbase Wallet also supports 2FA, which makes it a differentiating feature and another way to keep your digital fortune safe.
Once these steps are completed, basic setup is done.
However, if your next step is to start buying or selling on the Coinbase Exchange, then there are additional identity (ID) verification steps through which you'll need to go.
Compared with setting up the cryptocurrency wallet, this represents a very large amount of personal information.
This information not only includes more additional contact and ID information, but also things such as your Social Security number and even a photo.
But before you jump to another review in which the cryptocurrency wallet maker asks you fewer questions, remember this: These questions aren't posed to let you use Coinbase Wallet; they're being asked to let you use the Coinbase Consumer exchange.
And, while another cryptocurrency wallet maker may ask you fewer questions, you'll still eventually need to go through a similar ID verification process to access some other cryptocurrency network provider somewhere.
In Coinbase's case, it's just notable that this process comes from the same vendor as the cryptocurrency wallet, and can happen at the same time as initial setup.
Aside from managing your Coinbase-purchased funds in Coinbase Wallet, you can also manage funds from other cryptocurrency wallets.
To do this, just set up Coinbase Wallet, and then access the menu on which you'll find a list of supported third-party wallets.
From there, just choose your cryptocurrency wallet, enter the 12-word paper key phrase you were asked to create when you originally set up that cryptocurrency wallet, and you'll be able to access their digital funds through Coinbase.
Security
As stated earlier, Coinbase Wallet supports 2FA, which already sets it apart from most of the competition.
The fact that you'll need to add a third-party 2FA app, such as Google Authenticator, makes this a little more complicated, but the added security is definitely worth the process.
Once 2FA is enabled, the third-party app will begin a near-constant stream of 2FA codes between your phone and Coinbase Wallet.
This means that to hijack your funds, hackers will need more than just access to your Coinbase Wallet account; they'll need your physical mobile device, too.
That's a significant hike in bad guy difficulty, so it's certainly worth the effort on your part.
Now for the bad news: While you can use Coinbase Wallet as a decentralized cryptocurrency wallet, that apparently doesn't work if you're using the Coinbase Consumer exchange.
In this case, Coinbase actually acts as a hosted wallet, with your funds and keys being stored on Coinbase's servers.
On the negative side, this means your coins and your credentials are stored along with many other users' data, which makes Coinbase a big-time hacking target.
If those malcontents ever succeed, then you'll likely get hurt right along with Coinbase.
On the positive side, however, Coinbase is a very well-funded U.S.-based company that has devoted significant resources to maintaining and securing its exchange, so your data is very well protected.
And there's more positive news in the form of additional features that Coinbase Exchange users can access.
The big one is Coinbase Vault.
This is where Coinbase supports multi-signatures, and it's the only cryptocurrency wallet I reviewed that does, aside from Copay Bitcoin Wallet (Learn More at GitHub) .
It's actually a separate service available to Coinbase Exchange users, but it's free to use so it's essentially a feature.
With Coinbase Vault, you and Coinbase actually set up three keys (or even five if you like)—one from their side, one from your side, and one that's shared.
Funds access is possible only with at least two of those three keys.
With Coinbase Vault, there's also a 48-hour waiting period before any withdrawals are actually transacted.
That's a good thing because it gives you plenty of time to check your list of scheduled transactions and, if you see one that you didn't make, cancel it.
Overall, Coinbase Wallet is an excellent platform for both digital currency experts and beginners.
While it definitely does its best to pull you into its Coinbase Exchange service once you download the Coinbase Wallet, you certainly are not forced to do so.
Combine that with its rigorous security and solid reputation, and Coinbase Wallet is an easy pick for Editors' Choice in our cryptocurrency wallet review roundup.
Pros
Multi-signature and two-factor authentication support.
Well funded and backed by a reputable exchange.
Ability to access more digital financial instruments than just cryptocurrencies.
Cons
Doesn't support Bitcoin at this time.
Acts as a hosted wallet, so keys are stored elsewhere.
The Bottom Line
Coinbase Wallet is an excellent cryptocurrency wallet that has great things in its future.
While it's a little limited on the digital currencies it supports, it's not only easy to use but also the safest to use of any wallet we tested.
First and foremost, Coinbase (also known as Coinbase Consumer) is a cryptocurrency exchange.
In this role, it's a global entity aimed at people investing in cryptocurrencies.
You can use your Coinbase account to let the company act as a storage custodian of your digital currency portfolio.
This is not the cryptocurrency wallet service I'm reviewing here.
I'm looking at Coinbase Wallet, which is a standalone product, a cryptocurrency wallet that anyone can download whether the individual has a Coinbase brokerage account or not.
Overall, I loved Coinbase Wallet (whose software is free).
I especially loved its security features and ease of use, and gave it an Editors' Choice.
While it's certainly not as pretty as our other Editors' Choice winner Exodus, it's still not a challenge to use.
Honest, Objective Reviews
Daxdi.com is a leading authority on technology, delivering Labs-based, independent reviews of the latest products and services.
Our expert industry analysis and practical solutions help you make better buying decisions and get more from technology.
While its lack of support for Bitcoin limits its usage scenarios, this will be cleared up soon.
This makes Coinbase Wallet an excellent solution for beginners who want to explore cryptocurrencies in a safer, more regulated environment.
And even without Bitcoin support, Coinbase is a very flexible platform that supports not only digital currencies but also digital tokens, digital collectibles, and the ability to use Coinbase Wallet to access airdrops and Initial Coin Offerings (ICOs).
Price and Versions
Just like most of the other cryptocurrency wallets I reviewed, such as BRD (Learn More at BRD) , downloading and using Coinbase Wallet is free.
However, once you purchase or sell your digital currency, things change a bit.
Competitors such as BRD and Copay Bitcoin Wallet simply connect you to the Bitcoin network, either directly or through a third party, and then the network charges you whatever transaction fees normally apply to your transaction.
Coinbase is its own exchange; that's the company's primary business after all.
So you're not going to connect directly to the cryptocurrency network for transactions; rather, you're going to connect to the Coinbase exchange, in which Coinbase Wallet has a varied fee structure for different types of transactions.
From that perspective, however, Coinbase Wallet remains highly competitive.
It charges an average of 3.75 percent per transaction whereas some competitors charge up to 5 percent or more.
But I'm still not done, as that's only the most likely scenario, not the only one.
Most Coinbase Wallet users have accounts with the Coinbase Consumer exchange.
This only makes sense, especially if you're just getting started with digital currencies.
However, Coinbase Wallet is, technically, a standalone entity, so you can use Coinbase Wallet to connect directly to the cryptocurrency network in question.
Again, transaction fees will then be assessed by the network; however, using the Coinbase Wallet software will remain free.
As far as versions go, there are really only two Coinbase Wallet versions: one for Apple iOS and one for Google Android.
That's OK, but it does set Coinbase Wallet behind more platform-heavy cryptocurrency wallets, especially Jaxx .
However, if you wind up simply trading currency by using the Coinbase Consumer exchange service, then Coinbase Wallet defaults to become a mobile account browser, even though it can do quite a bit more.
In this scenario, you could feasibly do anything your Coinbase can do by using your web browser-based Coinbase Wallet account management and trading screens.
So, on a practical level, even though there isn't a branded web version of the Coinbase Wallet, a Coinbase exchange account could act as one.
Using Coinbase Wallet
Again, like most of the other cryptocurrency wallets I reviewed, downloading and setting up Coinbase Wallet is relatively simple.
Just click the appropriate App Store for your mobile device, download the application, and set up an initial account by using basic information.
Enter a username, a password, and an email address that will be used to generate initial account credentials as well as the 12-word paper key, which has become pretty much standard for most cryptocurrency wallets.
Some cryptocurrency wallet makers end here, but Coinbase Wallet lets you add a phone number, too, which is something you should definitely do.
You should do so not because you want to receive marketing calls but because, once your phone number is verified, Coinbase can use it to enable two-factor authentication (2FA) in the form of a code texted to that phone number and then used as an additional authentication method.
Out of our current cryptocurrency wallet lineup, only Coinbase Wallet also supports 2FA, which makes it a differentiating feature and another way to keep your digital fortune safe.
Once these steps are completed, basic setup is done.
However, if your next step is to start buying or selling on the Coinbase Exchange, then there are additional identity (ID) verification steps through which you'll need to go.
Compared with setting up the cryptocurrency wallet, this represents a very large amount of personal information.
This information not only includes more additional contact and ID information, but also things such as your Social Security number and even a photo.
But before you jump to another review in which the cryptocurrency wallet maker asks you fewer questions, remember this: These questions aren't posed to let you use Coinbase Wallet; they're being asked to let you use the Coinbase Consumer exchange.
And, while another cryptocurrency wallet maker may ask you fewer questions, you'll still eventually need to go through a similar ID verification process to access some other cryptocurrency network provider somewhere.
In Coinbase's case, it's just notable that this process comes from the same vendor as the cryptocurrency wallet, and can happen at the same time as initial setup.
Aside from managing your Coinbase-purchased funds in Coinbase Wallet, you can also manage funds from other cryptocurrency wallets.
To do this, just set up Coinbase Wallet, and then access the menu on which you'll find a list of supported third-party wallets.
From there, just choose your cryptocurrency wallet, enter the 12-word paper key phrase you were asked to create when you originally set up that cryptocurrency wallet, and you'll be able to access their digital funds through Coinbase.
Security
As stated earlier, Coinbase Wallet supports 2FA, which already sets it apart from most of the competition.
The fact that you'll need to add a third-party 2FA app, such as Google Authenticator, makes this a little more complicated, but the added security is definitely worth the process.
Once 2FA is enabled, the third-party app will begin a near-constant stream of 2FA codes between your phone and Coinbase Wallet.
This means that to hijack your funds, hackers will need more than just access to your Coinbase Wallet account; they'll need your physical mobile device, too.
That's a significant hike in bad guy difficulty, so it's certainly worth the effort on your part.
Now for the bad news: While you can use Coinbase Wallet as a decentralized cryptocurrency wallet, that apparently doesn't work if you're using the Coinbase Consumer exchange.
In this case, Coinbase actually acts as a hosted wallet, with your funds and keys being stored on Coinbase's servers.
On the negative side, this means your coins and your credentials are stored along with many other users' data, which makes Coinbase a big-time hacking target.
If those malcontents ever succeed, then you'll likely get hurt right along with Coinbase.
On the positive side, however, Coinbase is a very well-funded U.S.-based company that has devoted significant resources to maintaining and securing its exchange, so your data is very well protected.
And there's more positive news in the form of additional features that Coinbase Exchange users can access.
The big one is Coinbase Vault.
This is where Coinbase supports multi-signatures, and it's the only cryptocurrency wallet I reviewed that does, aside from Copay Bitcoin Wallet (Learn More at GitHub) .
It's actually a separate service available to Coinbase Exchange users, but it's free to use so it's essentially a feature.
With Coinbase Vault, you and Coinbase actually set up three keys (or even five if you like)—one from their side, one from your side, and one that's shared.
Funds access is possible only with at least two of those three keys.
With Coinbase Vault, there's also a 48-hour waiting period before any withdrawals are actually transacted.
That's a good thing because it gives you plenty of time to check your list of scheduled transactions and, if you see one that you didn't make, cancel it.
Overall, Coinbase Wallet is an excellent platform for both digital currency experts and beginners.
While it definitely does its best to pull you into its Coinbase Exchange service once you download the Coinbase Wallet, you certainly are not forced to do so.
Combine that with its rigorous security and solid reputation, and Coinbase Wallet is an easy pick for Editors' Choice in our cryptocurrency wallet review roundup.
Pros
Multi-signature and two-factor authentication support.
Well funded and backed by a reputable exchange.
Ability to access more digital financial instruments than just cryptocurrencies.
Cons
Doesn't support Bitcoin at this time.
Acts as a hosted wallet, so keys are stored elsewhere.
The Bottom Line
Coinbase Wallet is an excellent cryptocurrency wallet that has great things in its future.
While it's a little limited on the digital currencies it supports, it's not only easy to use but also the safest to use of any wallet we tested.
