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 dont 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.
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
- More than 70 cryptocurrencies
- User-friendly interface
- High liquidity
- Very low minimum fund account
- Crypto is insured
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
- Decentralized wallet
- Support of multiple coins
- Easy to use interface, is also beginners’ friendly
- Available in 100+ countries
- Secured private key
- Insurance coverage
- Excellent customer service
Difference Between Coinbase And Coinbase Wallet
Coinbase is a cryptocurrency exchange, whereas Coinbase Wallet is a crypto wallet. The key differences between Coinbase Wallet and Coinbase are stated below.
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%.
Coinbase vs. 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-step verification
- Biometric login support
- Insurance on your coins
- Cold storage (98% 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
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
Being one of the largest names in the crypto world, both Coinbase and Coinbase Wallet provide military-grade security, an easy user interface, and support a large number of cryptocurrencies. Coinbase and Coinbase Wallet are both best suited for beginners and advanced users in the crypto space. But it must be noted that you don’t need to have a Coinbase account to use the Coinbase wallet.
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.