Coinbase vs. Coinbase Wallet

The main difference between Coinbase and Coinbase Wallet is that Coinbase is a custodial exchange that holds users' funds, while Coinbase Wallet is a non-custodial wallet that gives users full control over their private keys and funds.

Coinbase is a leading cryptocurrency exchange platform. It is widely recognized for its user-friendly interface and support for U.S. individuals and institutions. However, you might not be aware that Coinbase offers two distinct products, Coinbase and Coinbase Wallet. While they may appear similar, they serve different purposes. Each product is designed to meet specific needs in the cryptocurrency space.

This detailed comparison of Coinbase vs Coinbase Wallet will help you differentiate between the two products to navigate your crypto journey. 

Claim Now

Invest $2 in Cryptocurrency & Get Up to $200 in USD or BTC

Invest as little as $2 in a cryptocurrency of your choice, and win a bonus of up to $200 in USD or BTC.

Claim Now

Are Coinbase App and Coinbase Wallet the Same?

No. The Coinbase App and Coinbase Wallet are distinct products with unique purposes and functionalities. Coinbase offers both to enhance your digital currency experience. Coinbase focuses on trading and ease of use, while Coinbase Wallet emphasizes personal control and a broader ecosystem engagement.

What is Coinbase Exchange?

Coinbase Exchange is a well-known cryptocurrency exchange based in the United States. The platform caters to institutional and sophisticated investors as well as beginners. It offers a regulated environment with deep liquidity, allowing trade in a wide range of digital assets. The crypto exchange provides high-volume trading capabilities, advanced trading APIs and access to futures markets. Its mission is to create a trusted and transparent way for people to engage with the digital economy. 

What is Coinbase Wallet? 

Coinbase Wallet is a non-custodial cryptocurrency wallet that gives users full control over their digital assets, including cryptocurrencies and non-fungible tokens (NFTs), by providing self-custody. It supports various coins and decentralized applications (dApps), which enable users to manage their assets, interact with DeFi protocols and explore the decentralized web. The cryptocurrency wallet prioritizes security and offers additional protection options, including hardware wallet support.

Coinbase vs. Coinbase Wallet: Primary Features

Coinbase and Coinbase Wallet are products that serve different purposes. With both services under the Coinbase umbrella, knowing the key features of each is crucial for both novice traders and seasoned investors.

Coinbase Features

• User-friendly interface: Ideal for beginners because of its intuitive design
• Security: Emphasizes strong security measures, including SSL, 2-factor authentication and AES-256 encryption
• Cryptocurrency variety: Offers a broad selection of cryptocurrencies for trading
• Visa debit card: Provides a Visa debit card to spend cryptocurrency easily
• Educational resources: Offers educational courses and quizzes about crypto
• Mobile app: Aside from the web browser, Coinbase is available for both IOS and Android users

Coinbase Wallet Features

• Self-custody: Gives you complete control over your crypto and private keys
• Support for multiple assets: Supports Bitcoin, Ethereum, Solana, Dogecoin and all Ethereum-compatible networks
• NFT management: Safely store and manage Ethereum, Base, Optimism, Polygon and Solana NFTs
• Industry-leading security: Offers additional security options and hardware wallet support
• dApp browser: This app browser allows users to explore Web3, DeFi, NFTs, staking and more
• Mobile app: You can access the Coinbase Wallet as a mobile app on Android and iOs aside from the web browser.

Coinbase vs. Coinbase Wallet: Supported Cryptocurrencies

Coinbase supports over 250 digital assets and offers over 400 different trading pairs. It also provides custody for more than 425 digital assets, including 38 chains and regularly updates its list of supported cryptocurrencies to reflect the dynamic nature of the crypto market. 

Coinbase Wallet supports all ERC-20 tokens, numbering in the thousands, and major cryptocurrencies such as Bitcoin, Dogecoin and Litecoin, as well as Ethereum, Polygon, Solana and all EVM-compatible networks. However, it recently discontinued support for Bitcoin Cash, Ethereum Classic, Stellar Lumens and Ripple because of low usage. 

Coinbase vs. Coinbase Wallet: Fees

Coinbase charges variable fees based on the payment method used, cryptocurrency type, market conditions and transaction size. The platform includes a spread in the quoted price for simple buy and sell orders and users may also incur additional costs for payment processing or currency conversion. 

Coinbase Wallet does not charge fees directly. However, users must pay network fees or gas fees for transactions. These fees are not set or controlled by Coinbase and vary based on the blockchain used and network congestion. 

Coinbase vs. Coinbase Wallet: Security

Is the Coinbase Exchange Safe?

Coinbase is generally considered a safe cryptocurrency exchange for users. Coinbase offers a hosted wallet service that safeguards your cryptocurrency assets and manages your private keys. It is committed to complying with strict regulatory standards. Coinbase implements sound security measures like two-step verification and AES-256 encryption to protect user assets and information.

Is Coinbase Wallet Safe and Legit?

Coinbase Wallet provides a self-custody option where users have complete control over their private keys. This feature means that the keys are stored directly on the user's device, offering a higher degree of personal security. The cryptocurrency wallet also includes additional security features like biometric access controls, recovery phrase and optional cloud backups for your wallet's private key. 

Coinbase vs. Coinbase Wallet: Insurance

Coinbase provides crime insurance that safeguards a portion of digital assets held in their storage systems against losses from theft, including cybersecurity breaches. However, this policy does not cover losses from unauthorized access to your Coinbase or Coinbase Pro accounts from a breach or loss of your credentials. Coinbase holds fiat currency in custodial accounts for U.S. customers, which is covered by the Federal Deposit Insurance Corporation (FDIC) insurance up to $250,000 per account. 

Coinbase Wallet doesn't offer insurance to that same level for assets held in the custodial wallets of the Coinbase exchange. Being a self-custody cryptocurrency wallet, users are fully responsible for the safety of their assets.

Is Coinbase Wallet Better Than Coinbase?

This depends on the user’s needs and level of experience with cryptocurrency. Coinbase Wallet is favored by users seeking control over their assets and a decentralized experience, as it allows ownership of private keys and enhances security. In contrast, Coinbase is a centralized exchange that simplifies trading but holds users' funds, appealing to those who prefer ease of use. Coinbase Wallet also supports more cryptocurrencies and decentralized applications, making it a versatile option.

Can You Send Money From Coinbase to Coinbase Wallet?

Yes, you can send money from Coinbase to Coinbase Wallet. Here's a step-by-step guide:

• Log in to your Coinbase account where your funds are stored.
• Navigate to the Send option on the Coinbase platform.
• Input the address of your Coinbase Wallet where you want to transfer funds.
• Choose the amount of cryptocurrency you want to send from Coinbase to your Coinbase Wallet.
• Review the transfer details and confirm to initiate the transaction.

Once the transfer is processed, the funds will appear in your Coinbase Wallet. It's a straightforward process that allows you to manage your crypto assets with greater control.

Can You Send Crypto From Coinbase to Coinbase Wallet?

Yes, you can transfer crypto from your Coinbase.com account to your Coinbase Wallet. First, you must link your Coinbase.com account to your Coinbase Wallet and then follow these steps:

• Open the Coinbase Wallet app and go to the Assets tab.
• Click Receive and then select Receive from Coinbase.
• Choose the crypto asset you want to transfer from your Coinbase balance.
• Follow the prompts to confirm the transfer.

How Do I Convert Crypto From Coinbase Wallet to Cash?

To convert crypto from your Coinbase Wallet to cash, follow these steps:

• Ensure your Coinbase Wallet is connected to your Coinbase account.
• Go to the Assets tab in your Coinbase Wallet.
• Tap on Cashout.
• Select the asset you want to sell or cash out from the Sell for USD prompt prompt.
• If you’re holding the asset on multiple networks, choose the one you want to sell.
• Enter the amount you wish to sell or cash out.
• From the Deposit To prompt, select the destination for the funds (your local currency balance or your bank account).
• Select Continue, review the details and then select Confirm to initiate the transaction.

Please note that cashing out is currently only supported for USDC, and more assets will be supported in the future. For U.S. customers, you can sell crypto from your cryptocurrency wallet to your local currency balance on Coinbase or cash out crypto from your wallet to your linked bank account on Coinbase.

Coinbase vs. Coinbase Wallet: Deciding Your Cryptocurrency Path 

When choosing between Coinbase and Coinbase Wallet, consider your trading preferences, security needs and desired level of control over your digital assets. Coinbase is a trading platform for crypto that offers ease of use and a wide range of supported cryptocurrencies while Coinbase Wallet allows you to hold crypto with personal control and security.  

Frequently Asked Questions