Coinbase Wallet Questions in 2022 (Quick Answers!)

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Coinbase is one of the most popular crypto apps and exchanges available with over 56 million verified users in 2020.

In 2018, Coinbase started offering a wallet with their platform in addition to the ability to purchase and trade crypto.

Many people, however, have questions about how the Coinbase wallet works and what some of the benefits and limitations are of using it.

In this post, I answer some of the more common questions that people have.


In this Post:


Are Coinbase and Coinbase Wallet the Same?

Coinbase and Coinbase Wallet are two separate services offered by the same company, supporting Bitcoin.

Coinbase is a global digital asset exchange company (GDAX), providing a venue to buy and sell digital currencies and send information about those transactions out to the blockchain network to verify those transactions.

Coinbase Wallet is an app that allows users to store digital currencies. In the case of ERC20 tokens on Ethereum, Coinbase Wallet will also hold the private keys for those ERC20 tokens. The Coinbase Wallet app is available for download on IOS and Android devices.

Coinbase operates as a digital wallet service with an online interface to buy and sell (trade) cryptocurrency such as Bitcoin. Coinbase Wallet is a mobile application for Android and iOS that offers the same functionality as its web-based counterpart. 

However, unlike Coinbase, it does not provide a way to buy and sell cryptocurrency. Instead, Coinbase Wallet is a mobile app that allows customers to store private keys in their phone or tablet.

Why is My Coinbase Wallet Empty?

A common problem users encounter with the Coinbase wallet is that their Bitcoin, Litecoin, or Ethereum account balance seems to be empty. This happens when transactions fail to arrive

The primary reason for this is that transactions take time (10 minutes in Bitcoin’s case), and sometimes merchants don’t propagate Bitcoin payments quickly enough.  

To provide clarity and transparency, we will outline the most common reasons transactions fail to arrive and how to remedy each scenario.

Are You Still Not Getting Paid: What’s Going On?

The number one reason a transaction will not confirm is that it has low fees attached. This means that miners will not accept your transaction because you are trying to pay too little for it to be included in a current block. 

If you want your transaction to go through, then be sure that you’re attaching the appropriate fee.

Transaction Malleability and Your Payment’s Journey

Another common reason why transactions may not arrive is “transaction malleability.” This refers to the slight possibility that Bitcoin transactions can be mutated after being sent. If someone else can alter a Bitcoin transaction, it can lead to problems with sending and receiving Bitcoin funds.

Transaction malleability should not affect any other part of your Bitcoin journey, but if you are concerned, here are two ways you can check the integrity of your transactions:

1. Check transaction ID’s to assure that they’re legitimate by using a service like OXT

2. Use a local wallet and check if it detects any double-spend transactions in the network

The Blockchain Never Arrives

If you have sent a payment from Coinbase into the Bitcoin or Ethereum networks, there is no way for Coinbase to know if it has arrived. This is because the Bitcoin and Ethereum networks are decentralized, and there is no main hub through which all transactions must pass.

Once you have sent a payment from your Coinbase wallet, the only thing you can do is wait for it to arrive at its destination. If your transactions still haven’t arrived after an extended period, then the likelihood is that it has been lost, or you will need to contact support.

Is Coinbase Wallet and Trust Wallet the Same?

No, Coinbase Wallet and Trust Wallet are separate companies, but they have a shared history. Both started in the past few years as offshoots of their host businesses.  

Coinbase Wallet used to be called Toshi, an ERC20 Ethereum wallet created by Coinbase in 2016. In 2018, Coinbase rebranded Toshi to be its product. 

It doesn’t offer any coins besides Bitcoin at present, so it’s not a direct competitor with other wallets from Coinbase competitors such as Xapo or Xeeda, which work with various coins. 

Things worked out very differently for ‘Trust’ – called initially Token, this was an Ethereum based wallet created by the Binance team in 2017.  

On May 11, 2018, Google announced that it would be removing all affected crypto-based apps from its Play Store market. Trust Wallet was one of the many apps to face this action and remain absent to date. 

However, Trust Wallet reappeared on the Play Store on July 5th after an official name change. The rebranding effort included wallet migration for existing users to use your original account at the new company.

Costs: Free – $2 per month (when used with Google Authenticator)

Coinbase Wallet isn’t free but does allow users to buy Ethereum and Litecoin directly through their platform. As a result, they earn money when people use their wallets to make purchases instead of fees on transferring coins.

Features

  • Send and Receive Cryptocurrency Funds 
  • QR Code Support 
  • ShapeShift Crypto Exchange Integration  

In terms of features, Coinbase Wallet is a very basic cryptocurrency wallet. Sending and receiving digital assets is easy. If you’re looking for a more significant number of coins to choose from or a more diverse list of other features, then Coinbase Wallet may not be what you’re looking for. 

Trust Wallet doesn’t support any fiat currencies at present but offers Ethereum based tokens such as OmiseGO (OMG), Kyber Network (KNC), and Binance Coin (BNB). The wallets also provide two-factor authentication options and integration with the Trezor hardware wallet.  

Cost: Free – $2 per month (when used with Google Authenticator)

Trust Wallet is free for iOS users to download, but Android users must pay a monthly subscription fee of $2 when using the app with Google Authenticator. This monthly fee isn’t an attempt at monetizing Trust Wallet, however. 

The mobile wallet still offers its services without charging fees and has disclosed that other blockchains will eventually adopt this model once they become more efficient in scalability.    Tokens supported are limited compared to Coinbase Wallet, which supports Bitcoin, Ethereum, Litecoin, and Bitcoin Cash. 

However, Trust Wallet continues to accept new token requests from developers on request. If you’re looking for the best cryptocurrency wallet, you’ll need to consider both wallets and make the choice that suits your needs best. 

1. Copy the crypto’s address on Trust Wallet. To begin with, open Trust Wallet on your mobile device and navigate to your wallet. In the “Receive” tab, you will see a list of all your crypto addresses. Pick one that has Coinbase funds in it and copy the address

2. Select the crypto on Coinbase that you want to send.

3. Send the crypto by pasting its address from Trust Wallet. It’s as easy as this.

What if you have a Coinbase account already linked with Trust Wallet?

If you have a Coinbase account, all you need to do is go to settings and select the option “Linked Accounts,” after which it will automatically appear as an available coin.

Coinbase’s interface is clean, intuitive, and easy to use. However, once you get involved in cryptocurrency trading, you might want to transfer/move your digital assets saved on different exchanges or wallets. Transferring funds between these accounts is not easy since it has to be done manually. 

Can Coinbase Wallet Connect to Opensea?

This is possible with the desktop version of OpenSea since it supports ERC-20 tokens. Currently, you have to use the Metamask plugin to connect Coinbase Wallet with Opensea’s web platform. 

However, if you want to play around on Opensea using mobile devices (for example, in a shop or your car), you have to use the OpenSea mobile app. This is because both Coinbase Wallet and Metamask do not work on web browsers. However, only the OpenSea mobile app supports ERC-20 tokens.

Can Coinbase Wallet Connect to Pancakesap?

Coinbase Wallet can connect to Pancakesap, but only if the Pancaking secures it with a KDF. 

It is currently possible for users of the Coinbase Wallet app to connect their wallets with a custom node, which traders and exchanges traditionally use. In hex speak, these URLs consist of “X+Integer,” where ‘X’ means protocol name and ‘Integer’ means port number. 

First of all, it is worth noting that this custom node was not built solely for Coinbase Wallet. It has been used by another service called The Ocean XCH, which allows users to trade directly from their wallets.

Why Might Coinbase Wallet Need A Connection With Pancakesap?

The wallet uses BIP32 public derivation and so is already compatible with the wallet’s m/44’/0’/0′ seed.

Coinbase Wallet is already an existing and popular decentralized application (DApp), and as such, the devs should be interested in growing its use case and community. 

One extra feature that could boost its adoption would be support for Pancakesap’s Mainn et nodes since currently there are very few wallets that can connect to said network. 

The average user will be unaware or care little about what type of blockchain they are using rather than the experience of using the app.

Can Pancakesap’s Mainnet Nodes Connect To Coinbase Wallet?

Unfortunately, Pancakesap’s Mainnet nodes can’t connect with Coinbase Wallet at this moment. This is because Coinbase Wallet currently uses a custom node URL that has been specially made for the wallet app.

Unfortunately, there are no plans to open this up or support other blockchains outside of Ethereum.

However, it should be noted that this does not mean there cannot be any future connection possibilities between the two. As mentioned before, The Ocean XCH service already uses these same connections to interact with Coinbase Wallet over their decentralized exchange platform. 

So, although problematically, it will depend on whether or not developers are willing to make this connection technology available to others in the future.

Can I Use Coinbase Wallet For Mining?

Did you know that Coinbase wallets can be used to mine? This is possible because of the current Ethereum mining craze. If you’re not familiar with mining, it’s just using your computer hardware to solve complex mathematical equations for which you are rewarded Ether (the cryptocurrency that powers the Ethereum network).

To use a Coinbase wallet for mining, it must be an Ethereum address, and a Geth program must be installed on the computer performing the mining. Geth needs to be installed because it turns your hardware into a node connected to the Ethereum network. 

To use a Coinbase wallet with Geth, start here: https://github.com/ethereum/go-ethereum. Scroll down to “Installation” and follow the installation instructions. Once Geth is installed, you’ll need to open up a separate tab for it. This tab will contain an Ethereum address that can be used by mining programs such as Genoil’s Ethminer to send mined Ether to.

Once you’ve set up your Coinbase wallet with Geth, there are two ways in which you can mine using it. The first way is solo mining using Geth, which requires downloading the entire Ethereum blockchain (a couple of GBs of data) onto your computer. 

Solo mining using Geth is better than pool mining because there is no chance you will be cheated, and it also has a 100% chance of successfully mining Ether. However, the only downside to solo-mining is that you won’t receive daily payouts like pools.

The second way of using Coinbase wallet for mining is through pools such as nanopool. This method involves connecting your wallet to a remote node which acts as an intermediary between you and the Ethereum network. 

You can mine blocks at a steady rate this way without having to download entire blocks of data like with solo mining. The main downside to this method is that you won’t be 100% sure if the pool is cheating you, and also, pools take a 3-5% fee from your mined Ether.

Why is Coinbase Wallet Not Updating?

Some browser cache on your computer may cause the issue. When working with new web pages, browsers usually save key pieces of information called “cache” so that it doesn’t have to re-download them every time you visit a page or refresh it. Clearing your cache can help eliminate problems like this one.

The first thing you should try is clearing your cache, so you don’t have to do all of these steps again in the future.

Close down Coinbase Wallet Open up a browser and go to chrome://settings/clearBrowserData Scroll through until you find a section called “Cached images and files.” Select “Clear browsing data.” 

Reload Coinbase Wallet after it has finished reloading, wait for it to load, and try making a new send transaction by clicking the “+” button (or any other transactions) again.

If that doesn’t work, you should try closing your browser entirely and then reopening it before trying anything else.

Close down Coinbase Wallet Open up a browser and go to chrome://settings/clearBrowserData Reload Coinbase Wallet after it has finished reloading, wait for it to load, and try making a new send transaction by clicking the “+” button (or any other transactions) again.

If neither of those options resolved the issue you were having, there could be another problem at hand. There may be an issue with something on their servers preventing your request from being completed correctly. Please submit a support request or chat with them for further assistance.

Are Coinbase Wallets Anonymous?

The Coinbase wallet is not anonymous. It requires proof of identity at sign-up and collects identifying documents from customers at that time. However, its privacy policy does not refer to how it handles user data once an account has been created. 

This suggests that coins are likely kept with their owners’ names attached for ease of auditing, rather than being obfuscated or anonymized in any way.

Are Coinbase Wallets Free?

Yes, Coinbase offers their USD Wallet and Hosted Cryptocurrency Wallet Service free of charge.

There are no setup fees, monthly charges, or minimum balance. Coinbase’s hosted digital currency wallets have zero transaction fees.

The only fee you’ll pay is the one associated with sending cryptocurrency off-platform via blockchain transactions. 

They pass that fee on directly to customers rather than adding it as a cost for Coinbase services. This ensures that your wallet isn’t weighed down by overpriced exchange rates when using them to send funds off-platform.

Are Coinbase Wallets Insured?

Are Coinbase wallets safe? Of course, the answer is yes. Anytime you have a product that connects people to “hundreds of billions of dollars,” in this case, in cryptocurrency, it’s natural to be concerned about security.

Here are a few things to know:

1. Coinbase is an FDIC-insured company based in San Francisco with over $20 billion in virtual currency exchanged on its platform, according to the Coinbase website. It was founded in June 2012 and has been considered one of the most reputable exchanges today.

2. Coinbase offers a variety of wallets that are either “hosted” or “non-hosted.” With hosted wallets, the private keys for your wallet are securely stored by Coinbase and can be restored via email should you lose them. 

Non-hosted wallets give you ownership over your private keys. There is no place to store these offline other than on devices like USB sticks or other hardware wallets, though we would urge extreme caution in doing this as it would make you more vulnerable to hacking. 

Hosted wallets are much more secure by design but come at the tradeoff of convenience.

3. As with any cryptocurrency exchange platform, it’s always best to never keep all your coins/tokens/cryptocurrencies/assets in one place. You are generally more vulnerable to being hacked if you have all of your cryptos stored simultaneously.

Therefore, keeping most of your holdings distributed across various wallets and exchanges is recommended.

4. Coinbase is subject to U.S. laws and regulations, including Know Your Customer (KYC) and Anti-Money Laundering (AML) laws that require all financial institutions to collect personal information on their customers before opening accounts with them. 

For this reason, Coinbase may ask for a copy of your government-issued ID card as part of the process of creating a hosted wallet or conducting an exchange transaction or trade. 

This is required by law but can be somewhat inconvenient for those who wish to remain anonymous. However, there are still ways to register an account using a fake identity if that’s your preference.

5. Coinbase claims on their ‘About us page’ that they “store over 98% of customer funds offline in air-gapped cold storage.” 

You can’t find any third-party audits proving that claim. However, Coinbase is FDIC insured can make you confident that they’re storing most or all user deposits securely and paying out some claims when required by law.

6. Coinbase has had its share of controversy in the past, including some security issues with one of their hot wallets in 2016. You will never hear of cases where users have had crypto stolen from them on Coinbase’s platform. 

However, this underscores the importance of using your wallet rather than keeping your coins or tokens at a hosted wallet like Coinbase. This is because they can be hacked along with that exchange’s wallet if the attacker is proficient enough.

Can Coinbase Wallet Hold AVAX?

Coinbase Wallet does not currently support Avalanche tokens, including xdna, cchain, pchain, xtoken and AVAX. 

However, they will continue to evaluate the possibility of adding support for these tokens in the future. Please note that unsupported ERC-20 tokens sent to your Coinbase wallet address will result in the permanent loss of funds.

Recommendation

It is recommended that you not send unsupported ERC-20 tokens to your Coinbase wallet address. Unsupported ERC-20 tokens sent to your Coinbase wallet address will result in the permanent loss of funds. 


Wrapping Up

The Coinbase Wallet app is has been tested on the iOS Store after months of speculation. This wallet comes with a decentralized infrastructure, meaning that users are solely responsible for their funds, unlike most wallets that hold your money on online servers. 

The team boasted about this move throughout the media (on Reddit and Twitter), stating that “mobile has increasingly become a critical component of crypto life.”

Reference

  1. https://help.coinbase.com/en/wallet/getting-started/what-s-the-difference-between-coinbase-com-and-wallet
  2. https://www.reddit.com/r/CoinBase/comments/qm3r9f/my_whole_wallet_is_empty_on_coinbase_wallet/
  3. https://insightssuccess.com/trust-wallet-vs-coinbase-wallet/#:~:text=Trust%20Wallet%20also%20makes%20it,interest%20on%20your%20crypto%20holdings.&text=Coinbase%20wallet%2C%20on%20the%20other,easily%20send%20or%20receive%20crypto.
  4. https://www.followchain.org/connect-metamask-or-coinbase-wallet-opensea/#:~:text=To%20connect%20Coinbase%20Wallet%20to%20OpenSea%2C%20you%20need%20to%20install,and%20scan%20the%20QR%20code.
  5. https://www.coinbase.com/how-to-buy/pancakeswap#:~:text=Some%20cryptocurrencies%20are%20harder%20to,PancakeSwap%20that%20works%20for%20you.
  6. https://help.coinbase.com/en/coinbase/other-topics/legal-policies/how-is-coinbase-insured

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