Is Coinbase Wallet Safe?

Yes, Coinbase Wallet is considered safe and reliable for a hot wallet. It's non-custodial, meaning only you control your private keys—Coinbase cannot access your funds. The wallet uses AES-256 encrypted storage, biometric authentication, and includes transaction simulation to warn about potential risks. However, as with any hot wallet connected to the internet, it's less secure than hardware cold storage for large holdings.

What Is the Downside of Coinbase?

The main downsides of Coinbase Wallet include limited customer support for wallet-specific issues, higher network fees during peak blockchain congestion, and occasional confusion between the wallet and exchange apps for new users. Some users also find the learning curve for advanced DeFi features challenging. Being a hot wallet makes it less suitable than hardware solutions for storing large amounts long-term.

Should I Keep My Crypto in Coinbase or Coinbase Wallet?

It depends on your priorities and use case. Keep crypto on Coinbase (exchange) if you prioritize convenience, want access to customer support, and trade frequently. Use Coinbase Wallet if you want true ownership with your own private keys, plan to interact with DeFi applications, or philosophically prefer self-custody. Many experienced users split their holdings between both platforms for optimal flexibility and security.

Coinbase Wallet Review 2025: The Best Crypto Wallet ?

Lukas

Dec 14, 2025

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16 min read

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