We repeatedly get asked questions like, “What's the difference between Coinbase, and Coinbase Wallet?
In short, Coinbase is a crypto exchange where you buy and sell different cryptocurrencies in exchange for cash, and on the other hand, Coinbase wallet is a crypto wallet where you store your purchased cryptocurrencies.
Here, in this blogpost, we have provided all the differences between Coinbase, and Coinbase Wallet, so you can understand these crypto terms in more detail.
Coinbase is one of the most popular crypto exchanges in the world, founded by Brian Armstrong and Fred Ehrsam in 2012.
You can use Coinbase to buy, sell, and manage your cryptocurrency online, and it offers web, IOS, and Android support, which means no matter which device you are using, you can easily access it.
In the beginning, Coinbase was a platform solely for trading Bitcoin, but over time, this platform has evolved into a full-fledged crypto exchange. Now, Coinbase deals with over 70 different cryptocurrencies, allowing you to buy, sell, and hold a variety of different digital currencies.
Not only does Coinbase Exchange support digital currencies, but also has support for fiat currencies, such as USD, GBP, and Euro.
Coinbase wallet is a self-custody (decentralized) wallet, which allows users to store cryptocurrencies.
Unlike the Coinbase exchange wallet, this wallet is decentralized, which means you are able to store your currencies in this wallet without the involvement of a third party.
Coinbase wallet allows people to make peer-to-peer transactions. Also, the private keys of the wallet are held by the owner, instead of the third-party platform.
Just like all the other decentralized wallets, the Coinbase wallet also relies on blockchain technology, ensuring the highest level of security.
There are plenty of differences between the Coinbase exchange, and the Coinbase wallet. The only similarity between both of these platforms is that you can use both of them for storing your digital assets (Although both store your cryptocurrencies differently).
Thus, below, we have provided you with all the differences that exist between both of these platforms, so you can better know which one you should go for.
The first key difference between both of these platforms is the purpose. Both of these platforms serve a very different purpose, as both of these platforms do serve a very different purpose.
Coinbase is a crypto exchange that allows you to buy, sell, and buy cryptocurrencies as well as fiat currencies. People use Coinbase for buying, and selling of the currencies, and sometimes they hold the currencies in the centralized setup, which is controlled by Coinbase.
On the other hand, Coinbase wallet serves a very different purpose. Coinbase Wallet is a self-custody wallet that allows you to save your cryptocurrencies offline.
Unlike the Coinbase exchange, which is a centralized platform, the Coinbase wallet is a decentralized platform, meaning the platform has no control over the cryptocurrency stored in the wallet.
Currency support is where the Coinbase Wallet takes the lead, as the wallet has support for thousands of cryptocurrencies including big names like Bitcoin, Ethereum, CAKE, the minis like DOGE, SHIB, etc.
That means there is vast support for the currencies, and your wallet can take up whatever you throw at it.
On the other hand, the Coinbase exchange has very limited support for cryptocurrencies as compared to the wallet.
To be more precise, the exchange has support for over 70 cryptocurrencies, and over 170 assets in total, which are very less compared to the wallet.
There is only one thing common in both the platforms, which is the cryptocurrency wallet, even here, there are differences.
Coinbase exchange is a centralized platform, so, your crypto wallet here is regulated by Coinbase, and your private keys are held by Coinbase, so, any of your transactions go through the platform.
On the contrary, Coinbase Wallet is a decentralized platform, which means that users have full control over the wallet including the private keys, and you can make peer-to-peer transactions without the involvement of any platform.
Safety is the foremost priority for users in this digital era, and the good news is that both of these applications come with a robust security system. Below, we have listed all the safety and security features of the Coinbase exchange and the Coinbase Wallet.
Coinbase Exchange Comes With the Following Safety and Security Features:
- Coinbase comes with two-factor authentication, which means, you will need to enter the password, as well as a security code sent to your device, providing you with additional security.
- 90% of the funds stored in the Coinbase exchange are Cold Stored, which means the funds are offline, safe from online theft.
- Coinbase offers full insurance up to 250K USD, so, if anything goes wrong on Coinbase’s end, you are fully covered.
- Withdrawing Whitelist is also there, allowing you to withdraw your funds on a designated wallet.
Coinbase Wallet Comes With the Following Safety and security Features:
- Coinbase Wallet provides users with private keys, so you have full control over your assets.
- Wallet app is based on blockchain technology, which means this application uses the most safe and secure technologies to provide you with top-notch safety.
- The Coinbase wallet is designed in a way that when it interacts with other dApps apps, it keeps the identity safe.
- Coinbase Wallet uses the Secure Enclave technology to provide you with the utmost safety and security.
So, you might be thinking if both of these platforms do offer wallets, what’s the difference between both of these wallets, and which one should I choose between these two?
Well, despite the fact that both of these platforms offer wallets, there is a huge difference between the wallets offered by both of these platforms, as the Coinbase exchange offers a centralized wallet, and on the other hand, the Coinbase Wallet is a decentralized wallet.
If you are still confused about what a centralized and decentralized wallet means, we have explained these terms in simple words below.
In centralized platforms, the platforms have control over the wallet, and you have to make transactions through the platform. Additionally, the keys are also held by the platform.
In the case of the decentralized platforms, you have full control over the wallet, including the private keys, and transactions.
Summing it up, the Coinbase exchange wallet is centralized, and on the other hand, the Coinbase wallet is decentralized. Coinbase exchange wallet is controlled by the platform, while the Coinbase wallet is a self-custody wallet without any third-party involvement.
Ease of use is another important thing that you need to keep in mind while you are choosing a platform.
Luckily, both the Coinbase exchange and the Coinbase Wallet have a kind of similar UI. These applications are super-easy to navigate, in fact, they are one of the most user-friendly applications in the crypto world.
On top of cherry, there are in-depth tutorials and guides provided by Coinbase which provide you with easy learning of the platform.
Coinbase exchange supports both cryptocurrencies and fiat currencies, although a very low amount of currencies is supported by the platform.
In contrast, the Coinbase Wallet has support for thousands of currencies, but, there is a drawback that the Coinbase Wallet does not support any of the fiat currencies.
Coinbase exchange has support for over 170 assets which includes fiat currencies like USD, Euro, etc, and crypto currencies.
The best thing about the Coinbase exchange is that you are able to buy, sell, and hold all currencies. People use Coinbase exchange when they do not want to hold the currencies for an extended period.
List of Notable Supported Currencies:
Here are the Salient Features of Coinbase Exchange:
- It has support for both fiat & cryptocurrencies.
- There are very low fees involved in the transactions.
- Coinbase exchange is super-secure.
- Private keys are held by the platform, so you don’t have any responsibility for it.
Unlike the Coinbase Exchange, the Wallet has support for over three thousand cryptocurrencies, but, there is no support for the fiat currencies, meaning, you cannot hold any fiat currencies.
List of Notable Supported Currencies:
- Ethereum 2
Here are the Salient Features of Coinbase Wallet:
- There are no charges for holding currencies, and making Coinbase wallet-wallet transactions.
- You can make free transactions from one Coinbase Wallet account to another without any charges.
- Keys are privately held by the user, so, there is no involvement of any third party involved.
- You can interact with other dApps, and make peer-to-peer transactions quite easily.
Coinbase fees can be quite complicated, especially, if you are a beginner to the platform. Thus, we have compiled complete details regarding the fee structure on both the Coinbase exchange and the Coinbase Wallet.
Coinbase exchange charges a certain percentage on the amount of the transaction. This fee is low for the small transactions, and high for the significant amounts. One of the most notable features of the Coinbase exchanges is that it does not charge for creating an account.
Below, we have provided you with complete details regarding the fee structure.
Coinbase Wallet is completely free to use, just like the Coinbase exchange, and there are no charges involved when you are making a transaction between different Coinbase wallets, however, when you make a transaction between Coinbase and other wallets, you may experience fees that depend upon the other wallet.
The use case of both the Coinbase and the Coinbase wallet is a little different. You use Coinbase for buying, selling, and holding the cryptocurrencies, while the Coinbase wallet is used when you need to store the cryptocurrencies in your decentralized wallet.
Here are the typical use cases of both of these platforms:
Coinbase exchange is a platform that is used for buying, selling, and holding cryptocurrencies, as well as fiat currencies.
Below, we have provided you with the use cases of Coinbase exchange:
- You can use Coinbase exchange to buy cryptocurrency or fiat currency.
- Likewise, you can also use the Coinbase exchange for the selling of the currencies.
- Also, you can use the centralized platform of the Coinbase exchange for storing cryptocurrencies.
On the contrary, the Coinbase Wallet is used for storing cryptocurrencies in a decentralized manner. This is perfect for people who do want to store their assets for the long term, as the cryptocurrency is safely held by the self-custody wallet, and there is no involvement of any third party.
Both the Coinbase and Coinbase wallets are amazing products that offer exceptional features. Here, we have compiled all the advantages, and disadvantages of both of these apps.
- Coinbase is a user-friendly platform, which means you don’t need dedicated guides for using the platform. This feature makes Coinbase one of the most popular platforms on the planet.
- You can use the Coinbase platform for the buying, selling, and saving of cryptocurrencies.
- This platform is super-safe, as Coinbase uses cutting-edge technologies to safeguard the investments of the users.
- It’s a cross-platform app, available for the web, IOS, and Android. So, whatever device you are using, it has got you covered.
- It’s a very liquid platform, which allows you to sell the assets at a fraction of the fees.
- Coinbase has a limited number of asset buying options as compared to the other exchanges, which is a serious drawback of using the Coinbase exchange.
- The transaction costs on the Coinbase platform are significantly higher as compared to the other exchanges, especially, for the lower ticket transactions.
- You don’t have control over your saved assets as the keys are held by the platform.
- Using Coinbase wallet allows you to store cryptocurrencies on your own without the interference of any third party or platform.
- There are a large number of cryptocurrencies supported by Coinbase wallet, which means, you would not have any multiple wallets for storing all of your cryptocurrency.
- You have full control over the private keys, unlike the centralized platforms that do hold the private keys.
- The ability of the Coinbase wallet to interact with other decentralized apps makes it much more than a self-custody wallet.
- You cannot buy regular currencies like the USD, GBP, and Euro by using the Coinbase wallet, which is a serious drawback.
- The support for the Coinbase wallet is also very limited as compared to the other wallets, and the Coinbase exchange.
- It can be hard for first-time users to get comfortable with the system.
Well, since both of the platforms serve a very different purpose, there should not be any confusion in the use case of Coinbase, and the Coinbase wallet, except when storing your digital assets.
You use Coinbase when you are trying to buy or sell cryptocurrency, for instance, if you need to buy bitcoin, you need to use the Coinbase platform, and also, you can use Coinbase for selling cryptocurrencies as well.
While the Coinbase wallet is there only for storing the cryptocurrency offline, it’s a decentralized wallet, and can only be used to store cryptocurrency.
Now, if you want to buy, and sell cryptocurrencies, Coinbase is the perfect platform for you. On the other hand, if you want to store cryptocurrencies, you need to have a Coinbase wallet.
People usually get confused between Coinbase, and the Coinbase wallet, as the names are pretty similar.
There is a huge difference between the two, as Coinbase is a crypto exchange that is used for the buying and selling of different cryptocurrencies, including Bitcoin, Ethereum, etc.
Coinbase Wallet is a different app from Coinbase, which is your personal crypto wallet used to store all the currencies that you have bought.