Differences between Coinbase Wallet, Trust Wallet & Exodus

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Differences between Coinbase Wallet, Trust Wallet & Exodus

One of the drivers of the increase in Bitcoin prices and the achievement of a new record in 2021 was investors’ anticipation of the Initial Public Offering (IPO) of a crypto wallet startup called Coinbase.

Coinbase is a crypto asset trading and wallet platform that originates from the United States and was introduced in June 2012. Coinbase Wallet is a crypto wallet that allows users to store, send, and receive various types of crypto assets.

So, to understand what Coinbase Wallet is, its main function, how it works, how to use it, fees, and advantages and disadvantages, see the complete review below.

What is Coinbase Wallet?

Quoting help.coinbase.com, Coinbase Wallet is a standalone wallet that gives its users complete control over their crypto. This means that private keys (representing crypto holdings) for users’ wallets will be stored directly on their mobile devices and not with centralized exchanges like Coinbase.com.

Please note that Coinbase Wallet is not the same product as Coinbase.com, and you do not need a Coinbase.com account to use Coinbase Wallet. If your goal is only to invest in crypto, Coinbase.com remains the best place to buy, sell, and manage your crypto.

Get to Know the Main Functions of Coinbase Wallet

Quoting tokize.com , Coinbase Wallet is a crypto wallet whose main goal is to store users’ crypto safely. With this, you as a user can receive crypto in this wallet or send it to another wallet or crypto exchange. In other terms, it can be said that these crypto wallets are equivalent to crypto bank accounts.

For those familiar with the crypto sector, the name Coinbase may be familiar. Indeed, exchange Coinbase is the second leading crypto trading platform, according to data from CoinMarketCap.

Therefore, it is necessary to clarify one important thing Coinbase exchange offers an integrated wallet to users. However, this has no connection with Coinbase Wallet.

This is because the Coinbase Wallet is independent from the Coinbase exchange. In practice, you can use the Coinbase exchange without using the Coinbase Wallet, and vice versa.

There are various types of crypto wallets, each with advantages and disadvantages. What about Coinbase Hardware Wallet? To understand what Coinbase Wallet is, it is important to know that it is a type of hot wallet, not a custodial wallet. Coinbase Wallet is compatible with several blockchains and can manage various coins and tokens.

How Does Coinbase Wallet Work?

Quoting money.com, Coinbase Wallet operates or works similarly to a checking account, but it is designed specifically for crypto and digital assets such as NFTs.

platform allows users to purchase, exchange, and store thousands of tokens, including the most popular cryptocurrencies such as Bitcoin and Ethereum.

When opening a Coinbase Wallet account, users will be given a public and private key. The public key functions as a Coinbase Wallet account identification code that allows other users to discover your account and send funds to it.

On the other hand, a private key is a series of letters and numbers that act as a password, providing secure access to manage funds.

How to Use Coinbase Wallet?

Quoting coinkickoff.com, the following are ways or how to manage and carry out transactions with your Coinbase Wallet, including:

Setting up Coinbase Wallet

Go to the Coinbase Wallet Downloads page to install the version appropriate for your operating system. You can download Coinbase Wallet for Android, iOS, or, more recently, as a browser extension for Google Chrome.
Download and install Coinbase Wallet.
Open the wallet application, and select the “Create a new wallet” option.
Check the privacy policy and terms of service before proceeding.
Choose a username for your Coinbase Wallet account to make it easier for other users to find you and send crypto.
Set the desired username privacy settings.
Create a custom password for your Coinbase Wallet app, and add a facial ID or PIN code login feature for added security.
Get a unique recovery seed phrase and store it in a safe place.
You can back up your recovery phrase via the “Back up to cloud ” option with a custom password.

Start Transactions with Coinbase Wallet

If you want to send crypto, please enter the wallet and click the “Send” option.
Select the crypto asset you want to send and determine the amount.
Click “Next” and paste the recipient’s address or scan the recipient’s QR code.
If you want to receive crypto, select the “Receive” option in Coinbase Wallet.
Select the crypto asset you want to receive, and you will see its unique public address and QR code. Share this address with people who need to transfer to your account.

Coinbase Wallet and Its Integration Services

Quoting tokize.com, the main purpose of Coinbase Wallet is to store digital assets; however, this application also includes several additional features to make it easier to manage and use your crypto. The following is a complete explanation of its features, including:

1. Crypto Purchase

With Coinbase Wallet, you don’t need third-party services to buy crypto. Purchases can be made directly through the Coinbase Wallet interface. Click the “Buy or Transfer” button and follow the instructions. Coinbase Wallet allows crypto purchases with credit cards from more than 90 countries.

You also have the option to transfer crypto from another wallet or exchange (Coinbase or others). It’s important to remember that Coinbase Exchange and Coinbase Wallet are separate entities. Because of this, sending crypto from Coinbase Exchange to Coinbase Wallet will incur transaction fees commonly associated with blockchain.

2. Crypto Exchange

Coinbase Wallet facilitates cryptocurrency exchanges through an integrated decentralized exchange (DEX). This feature only applies to assets on the BNB Chain, Ethereum, Avalanche C-Chain, and Polygon networks. With this, assets hosted on this blockchain can be exchanged directly from the Coinbase Wallet interface.

Using this integrated service eliminates the need to send funds to an exchange to make an exchange. This reduces the risk of errors and ensures maximum protection for your assets.

3. NFT Storage

Non-Fungible Tokens (NFT) are increasingly popular nowadays. Although most NFTs are developed on the Ethereum blockchain, other blockchains such as Solana, Cardano, or Klaytn are also starting to gain market share.

Coinbase Wallet focuses on Ethereum NFTs and Polygon NFTs. This allows you to store NFTs safely and simplifies buying and selling NFTs.

4. DeFi (Decentralized Finance) Application

Coinbase Wallet also provides access to explore the world of the decentralized web. Some examples are as follows:

Using DeFi liquidity pools to borrow or lend money.
Crypto exchange on decentralized exchanges.
Join the DAO.
Buy and sell NFTs on NFT platforms.
And various other services.

How Much Do Coinbase Wallet Fees?

Quoting help.coinbase.com, here are details of Coinbase Wallet fees that are important for users to know and pay attention to, including:

1. Main Balance

Coinbase offers a free “Stored Crypto Asset” cash and balance service that allows users to store cash and supported cryptocurrencies at no cost. Users can transfer crypto from another Coinbase user’s primary balance to another user without incurring fees.

Network transaction fees

For transactions on crypto networks (e.g., crypto transfers from the Coinbase platform ), Coinbase pays network transaction fees (e.g., miner fees). When users send crypto from their Coinbase wallet to another wallet, Coinbase will charge a fee based on the applicable estimated network fees.

However, the final fees Coinbase pays may differ from estimated fees due to transaction clustering or changes in network congestion levels. All fees are disclosed at the time of the transaction.

Network efficiency and costs

Due to the potential efficiency of grouping transactions, the total estimated network fees paid by users in a particular group may exceed the final network fees paid by Coinbase.

Additional balance and cash withdrawals

Users may be charged a fee when they add or withdraw cash, depending on the payment method they choose. Reviewing the fee details before completing a transaction to understand the costs involved is important.

Credit transactions

If a user borrows USD from Coinbase or a Coinbase affiliate and Coinbase must sell the user’s BTC collateral (following the applicable loan agreement), Coinbase will charge a flat fee of 2% of the total transaction.

2. Trading Fees and Spreads

Coinbase Fees

Users who buy, sell, or exchange crypto on Coinbase will incur fees. These fees are calculated when a user places an order and may be affected by factors such as the user’s selected payment method, order size, market conditions, jurisdictional location, and other costs incurred by Coinbase to facilitate user transactions.

Before submitting a transaction, users can view the fees on the trade preview screen. Please note that fees may vary for similar transactions. By completing an order, the user agrees to pay Coinbase fees applicable to that transaction.

Spreads

When users place simple buy and sell orders, Coinbase includes the spread in the price. The spread is also included in the exchange rate from one crypto to another. Users can view the spread when reviewing buy, sell, or exchange orders.

On the preview screen:

Buy and sell orders: tap the tooltip next to a user’s asset price line item to view the spread.
Conversion order: tap the tooltip next to the exchange rate quoted.

Spreads help increase the likelihood of a successful transaction and allow Coinbase to temporarily lock in the price quoted by users when processing their orders. Coinbase may retain excess spread from a transaction. Please note that spreads may vary for similar transactions.

Advanced trading

No spreads are included for “Advanced Trading,” as users interact directly with the order book.

Coinbase One

Coinbase One is a subscription product that offers free buying and selling of cryptocurrencies, with certain limitations. Members may still have spreads included in quoted prices.

Changes to trading costs and spreads

Coinbase occasionally tests changes to fees and spreads. These changes may apply across regions, assets, order sizes, and trade types.

Trade execution

All “Your Principal Balance” trades are executed via Coinbase Exchange’s central limit order book or competitive auctions. Users can view the market order book, bid, ask, and depth in real time.

3. Coinbase Card

Using Coinbase Card does not incur transaction fees. Coinbase does include the spread in the price for buying or selling crypto. That allows Coinbase to temporarily lock in prices for trade execution while users review transaction details before submitting their transactions. The ATM operator may charge users fees.

4. Staking Services

There are no fees for staking or stopping staking. Coinbase takes a commission based on the rewards users receive from the network. Coinbase’s standard commission is 35% for ADA, ATOM, DOT, SOL, and XTZ (26.3% for eligible Coinbase One members) and 25% for ETH.

Some users may receive offers for staking promotions at lower rates. The APY and rewards displayed in a user’s account reflect the income received after Coinbase commissions.

5. Asset Recovery

If users send unsupported crypto to their Coinbase account, it may be eligible for recovery. Coinbase will charge a network fee for recovery efforts.

For recoveries with an estimated value above $100, Coinbase will also charge a 5% recovery fee on amounts over $100. The estimated value of the recovery may differ from the actual market value of the recovery.

Advantages and Disadvantages of Coinbase Wallet

Quoting technologyevaluation.com, Coinbase Wallet is known to have several advantages and disadvantages that are important for its users to know. Below is an explanation of each of them.

Advantages of Coinbase Wallet

As a reliable crypto wallet solution, Coinbase Wallet presents several significant advantages. The following are the advantages and benefits that users need to know, including:

High-Level Security: With features like two-factor authentication and biometric login, Coinbase Wallet guarantees maximum security that protects users from cyber threats.
Friendly User Interface: The platform’s intuitive design makes it easily accessible even to those new to crypto assets and ensures smooth navigation and operation.
Support for a Wide Range of Cryptos: From Bitcoin to Ethereum, Litecoin to Bitcoin Cash, Coinbase Wallet supports a wide spectrum of cryptos, facilitating a wide range of investment options.
Superior Customer Support: By providing 24/7 assistance, Coinbase Wallet maintains high customer service standards, creating a reliable security network for users.

Disadvantages of Coinbase Wallet

Even though it is very useful, Coinbase Wallet is not free from several shortcomings. Here are some potential drawbacks and their impact on users that are important to know, including:

Transaction Fees: Fees associated with Coinbase Wallet transactions can add up, creating a significant monetary impact for frequent users.
Limited Advanced Features: For more experienced crypto asset traders, the lack of advanced features can be a limitation in maximizing their trading profits.
Dependency on Internet Connection: As a cloud-based solution, Coinbase Wallet requires a stable internet connection for uninterrupted operations which can be a challenge in regions with poor connectivity.

Differences between Coinbase Wallet vs Coinbase App

Quoting coinledger.io, there are differences between Coinbase (exchange) and Coinbase Wallet in several ways. The Coinbase exchange is a hub for buying and selling crypto, while the Coinbase Wallet is an application designed to let you interact with the decentralized web.

Coinbase exchange is a better choice to buy, sell, and trade crypto. On the other hand, Coinbase Wallet is a better choice if you want to manage your private keys and interact with DeFi protocols. The following are some of the differences between the two, namely:

1. Coinbase Exchange

The best choice is to buy and sell crypto or exchange coins for other coins.
It is a 100% web-based application hosted by
Coinbase Exchange holds Wallets on behalf of users.

2. Coinbase Wallet

Best used to interact with DeFi protocols, NFTs, and other web3.
The wallet is stored locally on the user’s device and can be used independently of the Coinbase exchange.
Users have full control of the wallet, including private keys.

Differences between Coinbase Wallet vs Trust Wallet

Quoting cryptonewsz.com, reviewers stated that Trust Wallet is more business-oriented, while Coinbase Wallet is more user-focused. However, the quality of the latest products from Trust Wallet is not comparable to Coinbase products.

The support features of Trust Wallet are considered quite good. Coinbase excels when it comes to wallet features and firmware updates. Coinbase also provides easy-to-follow roadmaps for all types of crypto users.

Differences between Coinbase Wallet vs Exodus Wallet

Quoting investopedia.com, Exodus and Coinbase are crypto exchange platforms that provide digital wallet services, staking, and various cryptocurrencies. Exodus was founded in 2015 with headquarters in Nebraska. In April 2021, the United States Securities and Exchange Commission (SEC) approved offering its Class A common stock (OTCBB: EXOD).

Coinbase launched in 2012 and had an initial public offering via direct listing in April 2021 (Nasdaq: COIN). Coinbase functions as a centralized crypto exchange. Although headquartered in San Francisco, the company adopted a “ remote first ” model, and as of 2021, 95% of employees can choose to work from home.

Coinbase actively monitors transactions and secures assets on behalf of users. This platform remains an excellent choice for beginners or individuals who prefer a traditional exchange experience. Meanwhile, Exodus offers a wider selection of coins and gives users more control over their assets.

Exodus provides flexibility to users by supporting peer-to-peer (P2P) trading through decentralized exchanges and facilitates connections to centralized exchanges for those who prefer to buy crypto there. These two crypto platforms differ in their fee approaches and the features they offer, with details as follows:

1. EXODUS

Cost: Variable spreads and network fees
Assets: 260+
Security: Users play a big role in storing their crypto safely, as Exodus does not store funds or require personal information for accounts. The platform also takes steps to maintain security
Wallet: Hot software wallet integrated with Trezor Model T and Trezor One
Supported Transactions: P2P crypto-to-crypto exchange, connect to exchange to buy crypto, buy crypto in-app
Max Trade Amount: Unlimited
App: Mobile: Android and iOS
Desktops: Windows, Mac, and Linux

2. COINBASE

Fees: Maker-taker exchange fees of up to 0.60% and other fees for various transactions are calculated at the time of transaction
Assets: 250+
Security: FDIC-insured USD balance up to $250,000, two-step verification, cold storage, bug bounty program, and insurance against theft
Wallet: Web-based software hot wallet and optional Coinbase hot wallet
Supported Transactions: Buy, sell, withdraw, send and receive
Max Trade Amount: Limits vary by payment method, account level, and region
Apps: Mobile: Android and iOS (both Coinbase and Coinbase Wallet)
Desktop: Coinbase Wallet is available as a Chrome extension

Conclusion

In conclusion, Coinbase Wallet is a standalone wallet that gives users complete control over their crypto. This means private keys (representing crypto holdings) for users’ wallets will be stored directly on their mobile devices and not with centralized exchanges like Coinbase.com.

Coinbase Wallet operates similarly to a checking account but is designed specifically for crypto and digital assets like NFTs. The platform allows users to purchase, exchange, and store thousands of tokens, including the most popular cryptocurrencies such as Bitcoin and Ethereum.

Security is the main factor in using a wallet. Therefore, always keep private keys safe and take necessary security measures.

In addition, it is important always to be careful and avoid sharing personal information, especially private keys, with parties you do not trust. Furthermore, remain careful in your wallet usage activities.

As additional information, you can also read other interesting articles, such as the Metamask wallet on INDODAX Academy.

To deepen your understanding of blockchain technology, you are advised to explore the latest articles on INDODAX Academy.

INDODAX Academy presents materials covering basic concepts and more in-depth aspects of blockchain technology.

By reading the various articles available, you can gain a deeper understanding of this technology, including its application in various contexts, and get the latest updates regarding developments in the crypto world.