Coinbase Wallet: The 2025 Guide

In 2025, the world of crypto is more dynamic than ever. While the Coinbase exchange is a centralized platform for buying and selling crypto, the Coinbase Wallet is a separate, non-custodial wallet that puts you in complete control of your digital assets. This means you hold your own private keys, enabling you to interact directly with the decentralized web (Web3).

Coinbase vs. Coinbase Wallet: What's the Difference?

Understanding the key distinction between these two products is crucial for managing your crypto.

Coinbase (Exchange)

A centralized, custodial platform.
Coinbase holds your private keys and manages your security.
Best for beginners who want to easily buy, sell, and trade crypto.
US dollar balances are FDIC-insured up to $250,000.

Coinbase Wallet

A decentralized, non-custodial wallet.
You hold and manage your own private keys and security.
Best for users who want to interact with DeFi, trade NFTs, and use dApps.
You are responsible for your own security; no custodial insurance.

How to Use Coinbase Wallet in 2025

Using the Coinbase Wallet is straightforward, but it requires careful attention to security, as you are your own bank.

Download and Set Up

Download the Coinbase Wallet app or browser extension. Create a new wallet and write down your 12-word recovery phrase. Store this phrase in a secure, offline location. This is the only way to recover your funds if you lose your device.

Fund Your Wallet

You can easily transfer crypto from your Coinbase exchange account to your Wallet. Use the "Add crypto from Coinbase" on-ramp feature within the Wallet app for a seamless, fee-free transfer.

Explore Web3

Use the in-app dApp browser to connect to DeFi protocols, NFT marketplaces, and other Web3 applications. The wallet supports a wide range of assets, including Bitcoin, Ethereum, Solana, and thousands of other tokens across multiple networks.

Security and Best Practices

While a self-custody wallet gives you total control, it also puts the full responsibility for security on your shoulders.

Guard your recovery phrase: Never share it with anyone or store it on a computer or in the cloud.
Watch for scams: Be vigilant against phishing and malicious dApps. Coinbase Wallet provides warnings, but you must still verify the transactions yourself.
Use a Ledger device: For an additional layer of security, you can pair your Coinbase Wallet with a Ledger hardware wallet to secure your private keys in cold storage.