Coinbase has recently announced the launch of their new crypto wallet. In fact, Coinbase’s new crypto wallet is a revamped version of its previous wallet. The company also ditched the old name, Toshi, replacing it with Coinbase Wallet. The Coinbase Wallet also received a number of new features. It currently supports only Ethereum’s ETH and ERC-20 tokens, but Coinbase plans to add support for other cryptocurrencies. ERC-20 are tokens that work on the Ethereum blockchain and are easily interchangeable. Most Initial Coin Offerings (ICOs) are using the ERC-20 standard. Therefore, Coinbase’s New Crypto Wallet will be able to support ICO tokens and receive airdrops.
What Is A Crypto Wallet?
A crypto wallet is an application that stores private keys that allow transactions in cryptocurrency. Essentially, to send or receive tokens, the private keys that a user keeps should match the public keys that are assigned to cryptocurrency. Since there is no actual currency involved, a transaction is stored in the blockchain and recorded through changes in balances. A crypto wallet allows interacting with the blockchain, helps with executing transactions, and monitors the balance.
There are several types of crypto wallets. Crypto wallets are based on desktop, online (cloud), hardware, mobile, and paper. Each has its own advantages and downsides. Coinbase’s new crypto wallet is on mobile. Making it easier to use crypto payments anywhere.
Other Features of Coinbase’s New Crypto Wallet
The Coinbase Wallet also supports crypto collectibles, which are unique crypto assets. What makes a crypto asset different than a cryptocurrency is a digital sacristy. Crypto-collectible tokens are all limited quantities or unique. Unlike cryptocurrency in which all tokens are exactly the same. An example of a crypto collectible is CryptoKitties. Similar to collecting Neopets or Tamagotchis, CryptoKitties are avatar like collectibles. But these crypto-based assets can be worth thousands of dollars.
In addition, through the Coinbase Wallet, users can access other major exchanges to buy and sell tokens. The wallet also includes a decentralized browser (dapp browser) that was present in the previous version. Coinbase says that they were the first to launch a mobile dApp browser. By using the dapp browser, users can access third-party blockchain-based applications.
Coinbase claims that their crypto wallet and dapp browser is the easiest to use. In addition, because Coinbase has become a staple name in the cryptocurrency space, they put a lot of emphasis on security. In this way, the Coinbase Wallet secures private keys through the device’s Secure Enclave and features biometric authentication. If you lose your wallet key, it can be hard to recover.
Coinbase’s previous wallet, Toshi, has been highly rated among reviewers and was always ranked among the best crypto wallets. Coinbase’s new crypto wallet builds on that legacy and adds more functionality. Therefore, once they add support for Bitcoin and other coins, it will most likely continue to score high in terms of security and usability.
Should You Keep Cryptocurrency in Coinbase Wallet?
No matter how secure a company claims their digital crypto wallet is, it’s not 100% secure. If a crypto wallet has permanent Internet access, it means that hackers can get to it. Even hardware wallets, which are much more secure, are not entirely safe. Just recently, someone hacked the BitFi hardware wallet, which was supposedly “unhackable.” Nevertheless, hardware wallets are more secure for storing cryptocurrency, because the only way for hackers to access it is by stealing the device itself. If you don’t want to trust anyone, consider a paper wallet. Paper wallets are just a piece of paper that keep the private keys. In any case, a digital wallet should not be used for long-term storage of crypto.
If you are in the market for a new crypto-wallet, Coinbase’s new crypto wallet is a big step that brings crypto and blockchain closer to becoming mainstream. Coinbase has partnered with a lot of retailers that accept crypto and having the Coinbase Wallet make transactions easier. Including dApps, like a game where you can collect crypto collectibles. You now can exchange the Britsh Pound for crypto, as well. Moreover, through the Coinbase Wallet, you get access to a dapp browser with many blockchain-based applications and have access to one of the most popular cryptocurrency exchanges.