Almost everyone in the crypto world has heard the name Coinbase, one of the largest crypto exchanges in terms of volume and liquidity. But the most common confusion around Coinbase is if Coinbase is a wallet or an exchange; because what most people don't know is that Coinbase Wallet is not the same as Coinbase.
In this article, we’ll explore the differences between Coinbase wallet and Coinbase, and go over how Coinbase Wallet Vs. Coinbase differs in terms of security, fees, insurance, and usability.
Cryptocurrency Exchange Vs. Cryptocurrency Wallet
A cryptocurrency exchange is a brokerage service that allows the buying and selling of digital assets, and also lets you convert fiat currency into digital currency. For example, Coinbase, Binance, Gemini, and Kraken are all cryptocurrency exchanges.
A cryptocurrency wallet, on the other hand, is a physical device or software that allows you to store your crypto assets and your private key.
In addition, it also allows you to send, receive and spend your crypto. For example, Exodus, Coinbase Wallet, Ledger, and Electrum are all crypto wallets.
Founded in 2012 in San Francisco, Coinbase has evolved to be one of the most popular names in the crypto market.
Initially, Coinbase only allowed you to trade Bitcoin, but over time it has added more currencies to its selection. As of now, it supports over 70 cryptocurrencies such as Bitcoin Cash, Ripple, Litecoin, Ethereum, ERC tokens, and many more.
Key Features Of The Coinbase Exchange
- User-friendly interface: Coinbase offers a simple and intuitive platform for buying, selling, and managing cryptocurrency.
- Wide range of supported cryptocurrencies: The exchange supports a variety of cryptocurrencies, including Bitcoin, Ethereum, Litecoin, and many others.
- Secure storage: Coinbase stores 98% of customers' cryptocurrency assets in secure offline storage to protect against theft or loss.
- Payment methods: Coinbase supports a variety of payment methods, including bank transfer, credit/debit cards, and PayPal.
- Mobile app: Coinbase offers a mobile app for iOS and Android, allowing users to manage their accounts on the go.
- Referral program: Coinbase offers a referral program that allows users to earn a bonus for inviting friends to join the platform.
One of the most popular crypto wallets is Coinbase Wallet thanks to the widespread use of the Coinbase exchange which is one of the largest crypto exchanges in 2021. Coinbase Wallet is a standalone app and a DApp browser that can be controlled just by you. It ensures the ownership of your private keys is restricted to your device and not any centralized server.
Key Features Of The Coinbase Wallet
- Secure storage for cryptocurrencies: The Coinbase wallet provides a secure place to store and manage cryptocurrencies, protected by industry-leading security measures.
- Easy buying and selling: Users can easily buy and sell cryptocurrencies directly from their Coinbase wallet using their linked bank account or credit/debit card.
- Access to multiple cryptocurrencies: The wallet supports multiple cryptocurrencies, including Bitcoin, Ethereum, and more, allowing users to easily manage their digital assets in one place.
- Integration with Coinbase exchange: The Coinbase wallet is integrated with the Coinbase exchange, making it easy for users to transfer funds between the two platforms.
- Mobile accessibility: The Coinbase wallet has a mobile app for both iOS and Android, allowing users to access and manage their cryptocurrencies on-the-go.
- Two-factor authentication: The wallet has an optional two-factor authentication feature to provide an extra layer of security for users' digital assets.
- Decentralized storage: The wallet uses decentralized storage, meaning that users have full control over their private keys and have the ability to store their cryptocurrencies offline.
Coinbase vs. Coinbase Wallet
Coinbase is a cryptocurrency exchange, whereas Coinbase Wallet is a crypto wallet. The key differences between Coinbase and Coinbase Wallet are stated below.
Difference Between Coinbase and Coinbase Wallet: Primary Features
As discussed earlier, an exchange allows the buying and selling of digital assets, whereas a wallet is used to store your crypto assets and your private keys.
Coinbase Primary Features
- Easy to use, beginner-friendly user interface
- Shows portfolio balance and performance
- Excellent security
- Advanced charts, crypto-to-crypto transactions, and stop and limit order facility available in Pro version
- Minimum $2 trading
Coinbase Wallet Primary Features
- Stores keys in the device
- Excellent security
- Compatible with hardware wallets
- Provides access to decentralized apps
Coinbase vs. Coinbase Wallet: Supported Currency
Both Coinbase and Coinbase wallet have a solid number of coins that they support. As of now, Coinbase offers its U.S. users close to 70 cryptocurrencies to invest in. The Coinbase Wallet on the other hand supports Bitcoin, Ripple, Stellar, Dogecoin, and other popular cryptos as well as all ERC20 tokens.
Coinbase vs. Coinbase Wallet: Fees
The fees charged by Coinbase in the United States vary, based on the mode of payment. It is shown in the table below.
The Coinbase Wallet has a similar fees structure with network fees along with variable fees, depending on the mode of payment, ranging from 1.49% to 3.9%.
Difference Between Coinbase and Coinbase Wallet: Security
Security is one of the most important aspects of any online exchange or wallet. Coinbase and Coinbase Wallet provide solid security for its users.
Key security features of Coinbase:
- Two-factor authentication adds an extra layer of security to users' accounts by requiring them to enter a code from a separate device in addition to their password.
- Coinbase stores the majority of its digital assets offline in cold storage to reduce the risk of theft.
- Coinbase has insurance coverage for its digital assets, providing an additional layer of security for users' funds.
- Coinbase regularly performs security audits and implements best practices to ensure the safety and security of its platform.
- Coinbase is licensed and regulated in the United States, which adds to the security of its platform and users' funds.
Key security features of Coinbase Wallet:
- Private and the public key stored in the device instead of the server
- Biometric authentication
- Cloud backup for restoring lost keys and assets
- Vault protection for storing large amounts of cryptocurrency with time-delayed withdrawals.
- Insured storage for covering funds in the case of theft or loss.
- Encrypted offline storage for added security of digital assets.
- Regular security audits to ensure the safety of user data and funds.
Coinbase vs. Coinbase Wallet: Insurance
Since virtual currency is not insured by the SIPC or FDIC, Coinbase aggregates Coinbase holdings and stores them in custodial accounts made up of fiat currency (USD), market funds, and bonds.
In the case of Coinbase wallet, your digital products are covered by the vendor insurance policy. The service provider is bound to reimburse your funds if they are lost in a security breach.
The Bottom Line
As a powerhouse in the cryptocurrency realm, both Coinbase and Coinbase Wallet boast military-grade protection, a user-friendly interface, and a plethora of supported digital assets. Whether you're a seasoned pro or just starting your crypto journey, these platforms are tailored to meet the needs of all. It's worth mentioning that using Coinbase Wallet does not require a Coinbase account.
TLDR; Why to use Coinbase? If you want to buy and sell your crypto, Coinbase will be the best choice. Why use Coinbase Wallet? If you’re looking for a secure wallet for your digital assets, Coinbase Wallet will be your best bet.
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