Cryptocurrency trading has become an investment niche in itself, with more and more traders and investors opting to follow the decentralized finance path every day. A wallet to store funds is an essential aspect for whoever wants to succeed in this market, so choosing the best option among the several available out there must be a real concern for serious investors and traders. Coinbase Wallet is a standalone app pegged to Coinbase.com, allowing users to easily send and receive cryptocurrencies worldwide.
How Does Coinbase Wallet Work?
Despite the name, Coinbase Wallet and Coinbase.com work apart from each other.
Coinbase.com is currently the world’s largest Bitcoin broker. It allows users to make law-regulated and secure on-ramp to cryptocurrency using US dollars or other supported local fiat currencies.
On the other way, Coinbase Wallet works as a separate application, allowing users to store their cryptocurrency assets, exploring the decentralized ecosystem via the DApp browser.
Every platform user has an exclusive username, which serves as an address to easily receive fund transfers from the users within the app.
Even though Coinbase Wallet is pegged to Coinbase.com, users do not necessarily have to own an account on Coinbase.com to use the wallet.
The service helps investors to manage their private keys and store their cryptocurrencies directly on their device, without any sort of middlemen throughout the process.
Coinbase Wallet can be used anywhere around the globe, hence interested people (wherever they are located) can download it and start using it immediately.
Dig Into It
More than just another web3 wallet, Coinbase Wallet is a software that offers users a whole spectrum of possibilities, such as buy/store ERC20 tokens, browse DApps, shop online using cryptocurrencies and send crypto worldwide, all under a single platform.
It offers multi-coin support, so users can manage BTC, ETH, BCH, ETC, LTC, XRP, Stellar Lumens, Dogecoin and all ERC20 tokens available on the blockchain.
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Users can switch from other web3 wallets to the platform, as every wallet uses a private key to secure its assets, so users can import them into Coinbase Wallet.
The wallet is fully user-controlled and non-custodial. To protect users against access loss the app generates a 12-word phrase as a recovery tool, giving the user exclusive access to his account.
The platform will never have access to the phrase, so it cannot move funds even if the user loses access to his recovery phrase. For that, the team built an encrypted Google Drive and iCould recovery phrase backup.
Coinbase Wallet does not support sends to email addresses, only using the exclusive username system to do that. Users’ private keys are protected with Secure Enclave and biometric authentication technology.
Store Exclusive Digital Collectibles
Coinbase Wallet has an interesting feature that allows users to collect rare digital art and other collectibles. People can store all their ERC-721 collectibles within a single customized art gallery.
Learn more: All You Need To Know About Bitcoin Cold Storage
The platform integrates with ENS (Ethereum Name Service). It is an open-source project managed by a non-profit organization, offering a decentralized and secure way to address resources (both on and off the blockchain) by using human-readable names.
It is seen as a key component for the decentralized finance world, and more than 50 wallet projects have stated support for the integration of ENS into their applications.
Why Is It Interesting For DeFi Users?
Here is an objective overview of the Coinbase Wallet from a DeFi user.
Although the philosophy of the blockchain is based on the user’s freedom and privacy, the process of exchanging or selling cryptocurrencies is often affected by problems both in terms of sending and receiving crypto money.
The great aspect of Coinbase Wallet is that it enables users to easily send and receive cryptocurrency, being able to pay anyone around the globe just by using the person Coinbase Wallet username.
Coinbase Wallet is a separate app under Coinbase.com that aims to allow users to receive and send crypto funds quicker and easily via blockchain technology.
The system works by giving exclusive usernames to customers, to users can seamlessly transfer and receive crypto.
The platform allows users to buy and store several crypto coins (BTC, ETH, LTC, and many others), as well as buy online on stores that support cryptocurrencies, to browse DApps and store ERC721 collectibles under a digital personal art gallery.