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Coinbase vs. Coinbase Wallet: Understanding The Differences Between Coinbase And Coinbase Wallet

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September 27, 2021
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    Almost everyone in the crypto world has heard the name Coinbase, one of the largest crypto exchanges in terms of volume and liquidity. But what most people are not aware of is that Coinbase Wallet is not the same as Coinbase.

    In this article, we’ll explore the differences between Coinbase and Coinbase Wallet, and go over how Coinbase Vs. Coinbase Wallet 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, Electrum are all crypto wallets. 

    Coinbase

    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

    Coinbase Wallet

    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 and Coinbase Wallet are stated below.

    Mode Of Payment Fees
    Bank Account 1.49%
    Coinbase USD Wallet 1.49%
    Debit/Credit Card 3.99%
    Wire Transfer $10 ($25 outgoing)
    Crypto Conversion 2.00%
    ACH Transfer Free


    Coinbase vs. 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.

    If you want to buy and sell your crypto, Coinbase will be the best choice. And if you’re looking for a secure wallet for your digital assets, Coinbase Wallet will be your best bet.

    Coinbase Vs Coinbase Wallet FAQs

    1. Are Coinbase and Coinbase wallet the same?

    Coinbase is a crypto exchange that allows the buying and selling of digital assets, whereas Coinbase Wallet is a crypto wallet that is used to store your crypto assets and your private key.

    2. What coins are supported by Coinbase Wallet?

    The Coinbase Wallet supports Bitcoin, Ripple, Stellar, Dogecoin, and other popular cryptos as well as all ERC20 tokens.

    3. Is Coinbase safe?

    The key security features of Coinbase are:
  1. Two-step verification
  2. Biometric login support
  3. Insurance on your coins
  4. Cold storage (98% funds)
  5. 4. Is Coinbase wallet trustworthy?

    The security measures of the Coinbase wallet are:
  6. Private and the public key stored in the device instead of server
  7. Biometric authentication
  8. Cloud backup for restoring lost keys and assets

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