Coinbase crypto wallet: all pros and cons

Judy Rubio

Coinbase Wallet is a modern application that serves as a wallet for many cryptocurrencies. How reliable is the storage it provides? Does the service really deserve its popularity? Let's study in detail the advantages and disadvantages of this company. On the "Coinbase crypto Exchange" page, you can read more about the organization itself.

Advantages of the Coinbase crypto wallet

  • A large number of supported currencies. The wallet allows you to store both Fiat and digital money. And regularly added more and more new coins.
  • Mobile application. The company has developed applications for iOS and Android, thanks to this, wallets can be actively used in everyday life. Without Internet access, the possibilities for its use are very limited.
  • Small or zero commissions. If the transfer is made from one Coinbase wallet to another, then there are no commissions. For other paid operations, the user bears very small expenses.
  • "Cold-hot" storage of funds. The main amount of money users are best kept in a "cold" wallet, only part of the amount is recommended for fast operations. This approach is used by various crypto exchanges.
  • Insurance. All customer deposits are insured for their full amount. Therefore, in case of proven attacks and theft, all losses incurred by Coinbase Wallet users will be fully compensated. Insurance is based on American law. This is good, but in some cases, it is necessary to apply for justice in court and wait for the appropriate decision.
  • Affiliate program. If the user attracts a referral who will register on his link, his account will be replenished by 10 dollars. For Americans, this reward is small. However, citizens of other countries often prefer Coinbase due to this bonus.

Cons of the Coinbase crypto wallet

The cryptocurrency service operates in full compliance with American law. Some drawbacks stem from this fact:

  • Limit the geography of users. The company fully operates in more than forty countries. Restrictions apply to Eastern Europe. Citizens of the United States and Western Europe can use the full functionality of the site.
  • Deanonymization requirements. In order to use the service, the user must provide information about certain personal data. You can apply all functions of the website need to pass the complete verification, including to confirm passport details.
  • Storage of private keys. They are usually located on the user's devices. Coinbase uses its own servers for this purpose. According to the developers, they are fully protected. However, some customers are concerned about this fact.

As you can see, the Сoinbase wallet is positioned as a reliable and functional place to store cryptocurrency. Thanks to insurance, users can not worry at all about the theft or attack of their assets. Additional protection is provided by full compliance with American law. If you have an opportunity, try to register an account with Coinbase and get acquainted with the possibilities of the wallet and trading platform.