Coinbase, a cryptocurrency exchange, is popular among crypto users. In this article, we will talk about how many wallets does Coinbase have and explanations of their functions and target audience of each app.
How many wallets does Coinbase have?
Coinbase offers three different apps, including two wallets and a trading app. What they do is as follows. Although Coinbase, Coinbase Pro, and Coinbase Wallet sound like they serve the same purpose, they actually target different customer bases.
The main Coinbase app
Coinbase's main app is known simply as "Coinbase." It lets you to buy a number of cryptocurrencies, keep them in its built-in wallet, and trade them for other coins. It is the main app for individual investors who want to buy small amounts of cryptocurrency. It can be used through a web interface or a mobile app.
However, the app is kind of expensive (particularly for small transactions). The app either charges a set price between $0.99 and $2.99 when buying or selling cryptocurrency, or a fee that changes based on a number of factors, whichever is higher. Additionally, a 0.5% spread on the sale is charged. In this case, Coinbase keeps the difference between what you pay for the cryptocurrency you're buying and the market price.
Therefore, if you want to buy $25 worth of cryptocurrency, you'll likely pay a fixed charge of $1.99 plus a spread of $0.12, for a total of $2.11, or about 8.4%.
Coinbase Pro for advanced trading
More than 43 cryptocurrencies are supported on Coinbase Pro, along with 125 trading pairs, the ability to view historical trading data, and the ability to put "limit" orders, which let users specify the exact price at which they want to purchase or sell a coin. For algorithmic traders who want to create their own automated trading systems, an API key is also made available.
Pro is one of the most liquid cryptocurrency exchanges in the world and charges lower fees than Coinbase. Generally, sending fiat money into Coinbase Pro and making purchases through its platform is less expensive than doing so through Coinbase's main app. However, it requires a little more technical skill because you need to understand how to make trades, and if you don't know what you're doing, it's easy to make mistakes.
You can also send your funds between Coinbase's main app and Coinbase Pro very easily and for free. Simply select your Coinbase amount and the amount you want to move between them when you go to deposit or withdraw money. This means that if you want your money to be in the more user-friendly wallet, you can buy cryptocurrency on Coinbase Pro and transfer it to Coinbase.
Coinbase Wallet
Coinbase Wallet is another wallet that does one thing differently. With Coinbase Wallet, you can truly own your cryptocurrency rather than having Coinbase manage it on your behalf.
One of the cool things about cryptocurrencies is that you can actually own them, kind of like how carrying cash in your wallet feels. Private key controls every cryptocurrency, and this is a long string of alphanumeric digits that effectively act as your password, enabling you to spend your coins. You can store this private key as a seed phrase, or a list of 12-24 words.
The benefit of this is that it means you are in control of your money, can take care of them, and can do whatever you want with them. The disadvantage is that you run the risk of losing your money if you make a mistake. For instance, you would lose your money if you lost your phone and didn't keep a safe record of your seed phrase. There are risks, then.
You can store Bitcoin, Ethereum, all ERC20 tokens (or tokens issued on Ethereum), and crypto-collectibles that conform to the ERC721 token standard using the Coinbase Wallet (such as digital art or NFTs issued on Ethereum).
Thus, Coinbase offers three platforms that are targeted at the retail sector. They are all entryways for new users into the burgeoning crypto market, but offer different products based on each user's individual needs and privacy requirements.
