Coinbase vs Coinbase Wallet: What’s The Difference?
The crypto world is getting bigger and bigger every day that passes.
Crypto users are constantly looking for new forms to store each digital currency they earn from trading and other transactions.
Coinbase offers a reliable platform where Coinbase users are able to store their digital assets, save money on fees, participate in transactions, withdraw fiat currency, and more.
Nonetheless, participating in the crypto market always involves taking risk.
That creates the need to store coins and digital collectibles in a safe cryptocurrency wallet.
That’s what Coinbase Wallet is for, but don’t get mistaken - we are talking about a standalone app and not about an exchange.
In today’s blog post, we are going to provide you with important information about the following topics:
- Coinbase vs. Coinbase Wallet;
- Main differences between Coinbase platform and Coinbase digital wallet;
- Is Coinbase a good service provider?
Understanding the Differences Between Crypto Wallets and Crypto Exchanges
At first glance, it’s pretty obvious that when we talk about Coinbase Wallet and Coinbase, we are talking about two different things.
Nonetheless, it’s normal for a Coinbase consumer to get confused since the platforms share almost the same name.
So first, let’s understand what is Coinbase and what is Coinbase Wallet.
Pro Tip: You could even Delete your Coinbase Account and keep on using Coinbase Wallet without a problem.
Unlike other wallets, the Coinbase Wallet doesn’t require their users to have a Coinbase account to store a private key or assets.
What Is Coinbase Wallet?
The Coinbase Wallet is a digital mobile app or desktop wallet where you can store cryptos, digital assets, NFTs, and more.
Digital wallets provide a next level of security for those who want to keep larger amounts of cryptos in custodial accounts, where they take full care of their assets.
Learn more about Coinbase Wallet on the official website.
What is Coinbase Cryptocurrency Exchange?
On the other hand, Coinbase is a cryptocurrency exchange where people can simply invest, withdraw fiat currency to their bank account, use the Coinbase app for daily trades, and more.
Unlike other cryptocurrency exchanges, Coinbase has a friendly user interface, and it’s relatively easy to buy and sell cryptocurrency.
If you sell cryptocurrency, you can keep the funds in Coinbase’s hosted wallet.
Nonetheless, as it has been stated before, cryptocurrency wallets hosted in major exchanges are not usually the most secure solution.
Coinbase vs. Coinbase Wallet
So, now that we understand the differences between the Wallet Coinbase and Coinbase Exchange, it’s time to take a look at the different features these services offer.
The Coinbase Wallet supports similar cryptocurrencies as Coinbase.
The thing is that having a Coinbase Wallet account will undoubtedly provide you with greater control of your assets.
Coinbase Account Features and Services
As we mentioned before, Coinbase also has a built-in cryptocurrency wallet.
Crypto wallets are necessary to ensure safe transactions on all platforms.
1. Up-to-Date Security Features
Coinbase is a really safe platform.
What’s more, you can link your account with Google Authenticator or activate Two-Factor Authentication to make your account even safer.
Learn more about Coinbase security features by clicking here.
2. Perform Crypto-to-Crypto Transactions
Do you want to Transfer from Binance to Coinbase or vice versa? You can do it here!
The private keys of your assets are held in the platform’s wallet.
Coinbase offers a cold storage feature where your crypto assets are safe, but there’s always a risk related to keeping your coins there.
3. Exchange Your Crypto Assets for Fiat Money
Add a payment method, buy cryptos, add your bank details and withdraw your money as fiat currency.
It’s really easy on Coinbase!
That’s why this exchange has become one of the main choices of crypto enthusiasts all over the world.
Coinbase Wallet Services and Features
Now, it’s time to talk about Coinbase Wallet.
Coinbase Wallet was created for those who want to go beyond the standard security measures of their private keys.
1. Safely Store the Private Keys on the Crypto Space
Here, the private key linked to your crypto assets is stored in the device you use and not on the platform.
This is what we call a custodial wallet, so you have absolute control of your funds.
2. The Coinbase Wallet App is Compatible with Hardware Wallets
Hardware cryptocurrency wallets are devices that store your assets as safely as possible.
You can link your Coinbase Wallet to your hardware wallet, hence creating an even safer environment for you.
3. Use the Coinbase Wallet to Store a Large Number of Cryptocurrencies
You can store Bitcoin, Ethereum, Bitcoin Cash, Litecoin, and more in your Coinbase Wallet.
Therefore, there are almost no limitations when it comes to keeping your assets safe in your wallet.
Final words - both Coinbase Wallet and Coinbase Exchange are great options to dive deeply into the world of crypto.
Are you a regular trader, or just want to store small amounts of cryptos?
Go for the hosted Coinbase wallet in the exchange.
Do you want to store large amounts of cryptos, or are you constantly worried about the safety of your assets?
Go for Coinbase Wallet.
The choice is yours!
Coinbase vs Coinbase Wallet FAQ
Is Coinbase Wallet Trustworthy for Regular Use?
In general, software wallets are safer than exchange wallets.
In the case of Coinbase Wallet, we can say that it’s a pretty safe option for daily uses.
Learn more about this by clicking here.
Are Coinbase Transaction Fees High?
Both options have similar network fees related to transactions within the platforms since they belong to the same company.
To check each variable fee on Coinbase and Coinbase Wallet, we recommend checking the official Coinbase Website.
Steve specializes in cryptocurrency and finance. As a born researcher, he won’t leave any stone unturned when it comes to topics he covers.