How to Set Up a Crypto Wallet in Coinbase

Coinbase is a reliable and comprehensive online platform to purchase, sell, transfer, and store digital currency, i.e., cryptocurrency. Thus, the tool that you use to store the digital currency is known as your crypto wallet on Coinbase. There are various types of crypto wallets on this secure platform, and each of them ensures that your cryptocurrency savings are safe.

Two of the most common crypto wallets include hosted wallets and non-custodial wallets. Each of these wallets has some varying features. So, you should pick based on what safety net you want for your cryptocurrency and what you want to do with your crypto savings.

How to Set Up a Crypto Wallet in Coinbase

Each of the two common wallets mentioned above is set up differently. So, here’s a guide on how to set up a crypto wallet in Coinbase.

Hosted Wallets

A hosted wallet is the most popular crypto wallet among crypto users. In addition to that, it’s relatively easy to set up the wallet. So, your crypto is held in a hosted wallet when you purchase it from platforms like Coinbase.

A hosted wallet gets its name from the fact that it is handled by a third party. Therefore, it acts similar to a bank by holding your crypto for you. The advantage of a hosted wallet is that you don’t have to stress about ‘losing your USB wallet’ or ‘losing your keys.’

Another big advantage of this Coinbase crypto wallet is that you won’t lose your crypto savings if you forget the password to your account. That said, the drawback of this type of wallet is that you cannot access all the features that crypto can offer.

Here's how to set up your hosted wallet on Coinbase.

Download the App on Your Mobile OS

You must download the Coinbase app to use its features. So, depending on your OS, you can download it from the Google Play Store and the Apple Store for your mobile phone. In addition to that, you can download the app on the Google Chrome Web Store for your computer.

If you can’t find it on your respective online store, visit the website and click the button for your desired store. Doing so will redirect you to the app in the Play Store, Apple Store, or Web Store.  

Create an Account on Coinbase

On the Coinbase app, you must create a personal account for a hosted wallet. Therefore, you must provide your personal information (primarily your email address). You will also need to enter a secure password. After that, your account is ready to use. That said, it’s best to opt for the 2-step verification feature for additional security.

Transfer or Buy Crypto

You can purchase crypto with your credit card or bank account on Coinbase. If you already have crypto, you can transfer it to your new hosted account. The hosted account will keep your crypto secure.

Non-Custodial Wallets

Another popular crypto wallet on Coinbase is a non-custodial wallet. You can also create this type of wallet on other platforms like MetaMask. The biggest difference that non-custodial wallets have from hosted wallets is that the former does not keep your crypto safe by relying on a third party (or custodian). As a result, you have full control over your crypto.

What this great level of control also means is that you have the sole responsibility to remember and safeguard your password. Therefore, even though Coinbase provides the necessary software to store your crypto, it won’t help you if you lose your password—also known as the “seed key” or “private key.” You also cannot access your crypto through any means if you forget this key.

In addition to that, another party will have full access to your stored crypto if they get acquire the key from you. So, crypto users should only consider this option if they can guarantee that they will not forget their private keys.

One of the biggest advantages of this Coinbase crypto wallet is that you have access to various advanced crypto activities—in addition to full control over your crypto’s security. Some of these advanced activities include yield farming, lending, stalking, borrowing, and much more.

That said, a hosted wallet is a much better solution if you only plan to purchase, sell, receive, and send crypto. You can also recover your crypto assets if you forget your password with a hosted wallet.

Here's how to set up your non-custodial wallet on Coinbase.

Download the Coinbase App

The instructions for this step are similar to that of a hosted wallet.

Create Your Wallet

You can create your non-custodial wallet on the Coinbase app. You don’t need to create an account with any personal information. You simply have to create the wallet and set the private key for it. So, you don’t even have to provide an email address.

Write Down Your Private Key

You should write down your private key that’s presented as a phrase of 12 random words and store it safely somewhere. You should not rely on memory alone because you will lose access to your assets if you forget your private key.

Transfer Your Crypto

You will need to transfer your crypto to your non-custodial wallet on Coinbase to store it safely.

Last Few Words

Now that you know how to set up a crypto wallet in Coinbase, you can ensure your assets remain secure. Also, when you consider using a platform like Coinbase, it’s best to make sure that it complies with governmental and financial regulations in your region.

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