Coinbase Wallet Review 2022: Withdrawals & Other Benefits

Coinbase Wallet Review: Setup & Configuration

It won’t take much of your time to set up your Coinbase Wallet. Simply follow the steps below to get started.

Installation

Depending on your phone, you can download and install the Android/iOS app of the Coinbase Wallet, if your device operates on Android, click on this link. As for iOS devices, you can check out this link.

Creating a Wallet Account

You can follow the procedure below to create a wallet account on iOS or Android platforms. Coinbase Wallet doesn’t ask for your email address or phone number to create the account. Instead, you only have to provide a unique username, which is not already used by someone else.

A popular feature of the Coinbase Wallet is that it provides anonymity to users who send, receive, and store cryptocurrencies. However, should you wish to buy or sell cryptocurrencies using fiat currencies, or if you need to effect withdrawals, then you will need to open a verified Coinbase account. Coinbase is a regulated exchange which requires that all users provide personal details in order to open and operate an account. You can find more information about verification requirements on our Coinbase Exchange review.

1. Open the Coinbase Wallet app on your phone and tap the button titled ‘Create a new wallet’
2. Go through the terms of service and tap the ‘Accept’ button to proceed further.
3. Then, enter the username for your wallet account so that other Coinbase Wallet users can transfer funds easily by using the name.
4. Here, you will be shown two options to protect your account: Touch ID or Passcode. If your phone has a built-in fingerprint sensor, then you can protect your account with Touch ID. Otherwise, create a unique 6-digit passcode to secure your account. (Be sure to avoid using your birthday or anniversary dates, or any sequence of predictable numbers. Try to keep the passcode as strong as possible, while still memorable). Touch ID offers better protection for your account as it is hard to falsify fingerprints.
5. Next, your screen will show the title ‘Back up your account’. In this step, you will be shown a secret recovery passphrase which will help you to recover your wallet in case your phone is stolen or lost. (You can tap the ‘Skip’ button if you want to do this later). Tap the checkbox and continue button if you would like to note down the recovery phrase. It is not recommended to skip this step.
   
6. Note down the 12-character recovery code and be sure to keep it in place of safe keeping. Never make the mistake of storing the code on your mobile, computer, email, GDrive or anywhere else online, as it can be hacked, which consequently puts your funds at risk.
7. Finally, you have to drag and drop the recovery code in the correct order from the list.

Congratulations! You have successfully created an account on the Coinbase Wallet and finished the initial configuration.

How to Send Cryptos from Coinbase Wallet

You can send Ethereum and other ERC20 tokens from Coinbase Wallet to other exchange wallets,  hardware wallets or other users.

1. Open the Coinbase Wallet app on your phone.
2. Log in to your account and follow the necessary authentication steps.
3. Under the tab Tokens, select the name of the token or digital currency (eg. ETH) you would like to send.
4. Tap the ‘SEND’ button.
5. Next, enter the amount of the ERC20 token or digital currency you would like to send.
6. Then, enter the receiving address of the wallet manually or scan the QR code and click the ‘Continue’ button.

Congratulations! You have successfully sent the digital currency from your Coinbase Wallet.

How to Receive Cryptos on Coinbase Wallet

To receive Ethereum, BTC, ERC20 tokens or other collectibles, you must provide your Coinbase Wallet address to the sender.

1. Follow Steps 1 to 3 mentioned in the above section.
2. Tap the ‘RECEIVE’ button.
3. Now, your screen will display your personal public address and its corresponding QR code. Either you can copy the address or provide the QR code to the sender.

That’s it! You will receive the digital currency or ERC20 tokens from the sender once the transaction gets completed.

The wallet app lists 10 different addresses to receive the tokens. By default, the Wallet 1 address is selected. If needed, users can select any other address in the list as the default address by navigating to Settings > Advanced > Active wallet.

Fees & Limits

While the Coinbase Wallet is free to download and set up, users are charged fees based on certain usage and transactions. Receiving and depositing funds is also free, however, sending funds will incur charges. Fees are also applicable when you convert coins, such as exchanging Bitcoin for Ethereum. Generally, fees range between 1.49% and 3.99%, but they can also exceed these values in certain situations.

As we carried out research to write this Coinbase Wallet review we did not find any details regarding transaction limits. It is likely that no significant limits are in place when sending and receiving coins and tokens. However, keep in mind that Coinbase Exchange limits apply if you want to buy or sell coins through the online broker.

Buying & Selling Cryptocurrencies

As we’ve mentioned earlier in this Coinbase Wallet review, the wallet itself does not directly support buying and selling coins. Instead, you can connect it to your Coinbase account in order to convert fiat currency into cryptocurrencies. With this integration, you will be able to use your Visa card or any other supported method to exchange currencies.

The same applies for effecting withdrawals back to your bank account. If you have Bitcoin, Ethereum or any other coin stored in your Coinbase Wallet you will first need to transfer it to your Coinbase account. From there, you can sell it and give instructions for the funds to be deposited into your bank account in the appropriate currency. This means that if you live in the UK, for example, you would be able to instruct Coinbase to deposit your funds in GBP.

Coinbase Wallet is considered to be highly liquid and there are no signs that users have experienced significant delays to trade their funds. The wallet forms part of the greater Coinbase organisation and can, therefore, rely on the muscle of a major corporation to ensure its liquidity if this ever became an issue.

Closing Your Coinbase Wallet

Should you wish to permanently close your Coinbase Wallet you should get in touch with customer service directly from the Android or iOS app. Before your account is closed, ensure that you do not have any funds in your wallet. You can sign out of your app anytime, but it is important that you have stored your recovery phrase as you will need it to log in.

Security

Since the Coinbase Wallet is a standalone product, the private keys will be stored only on the user’s device using Secure Element Technology and not on the server of coinbase.com. If your wallet account is protected with a Touch ID (biometric authentication), as to get an identical fingerprint-like yours is almost impossible for funds hackers to steal funds. Also, it is possible to configure an auto-lock timeout from 1 minute to an hour. If this feature is enabled, the app will get locked automatically after the specific timeout and it can be reopened only after authentication using Touch ID.

Coinbase Wallet is not an HD (Hierarchical Deterministic) wallet and the recovery phases follow the BIP39 standard.

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Recovery Options

If your mobile phone gets lost, broken or stolen, there’s no need to panic, as you can easily recover your account if you have the 12-word recovery passphrase. This is shown at the initial setup of your wallet account. If you forget or wouldn’t have taken note of the recovery passphrase, it wouldn’t be possible to recover your Coinbase Wallet account. The best option would be to contact the Coinbase Wallet team by sending a detailed email to [email protected].