Getting Started with Coinbase Smart Wallets
One of crypto's most persistent challenges has been creating onchain experiences that are more accessible to everyone. Regular crypto wallets can come with steep learning curves thanks to unfamiliar onboarding and security processes.
That's what Coinbase is trying to tackle with Coinbase Smart Wallets—their new attempt at making onchain actions simpler for crypto enthusiasts and newcomers alike.
What are smart wallets?
Coinbase Smart Wallets are built on ERC-4337, a standard for account abstraction that enhances wallet functionality.
Unlike traditional wallets that require users to manage private keys and recovery phrases, these smart wallets leverage passkeys—secure, easy-to-use authentication methods linked to your device or cloud accounts like Google or iCloud.
Experienced crypto users can link ownership of a smart wallet to their existing Ethereum wallet for a streamlined experience with added benefits, like batched transactions or signing a transaction once and applying its effects across multiple networks. For newcomers, these smart wallets eliminate barriers to entry by simplifying the onboarding process and enhancing security.
Why do smart wallets matter?
- 🔰 Easy onboarding — Coinbase Smart Wallets allow users to set up a secure, self-custody wallet in just a few seconds. There's no need to download additional apps or browser extensions. Users can authenticate using familiar methods like Face ID, fingerprint scans, or hardware devices like YubiKeys.
- 🔑 Passkey security — Passkeys are end-to-end encrypted and stored on your device, backed up by providers like Apple, Google, or hardware solutions. This approach simplifies the user experience and also makes accounts more resistant to phishing attacks and unauthorized access.
- 🫡 Streamlined UX — Thanks to cross-app portability, smart wallets let users readily “carry” their balances and identity across different platforms. Additionally, developers can sponsor network fees to enable gasless transactions, removing the need for users to have funds for transaction costs.
- 🪙 Spend with Coinbase — Coinbase Smart Wallets integrate directly with Coinbase accounts. This allows users to spend funds directly from their Coinbase balance without needing to transfer assets between multiple accounts.
Making your first smart wallet
In July 2024, Coinbase unveiled its revamped Coinbase Wallet web app, designed to be a hub for readily managing all your onchain activities. Here you can connect multiple existing wallets or spin up new smart wallets. To dive in, you could follow these steps:
- Head to the Smart Wallet page of the Coinbase Wallet web app and press the “Create a smart wallet” button.
- In the ensuing pop-up, press “Sign up” and choose your preferred passkey saving method, e.g., an iPhone or Android device. Then follow through with the save instructions.
- Next, you’ll arrive at wallet.coinbase.com/assets, automatically signed in with your new smart wallet. Here, you can use the “Receive” button to deposit funds or click on the wallet icon to connect more of your existing wallets.
- To enable the “Spend with Coinbase” feature, open your settings by clicking the gear icon and then press the “Smart Wallet” tab. Press “Connect” on the “Pay with Coinbase balance” option and complete the connection process.
And that’s all it takes to get set up! At this point, you can use the “Apps” page of the Coinbase Wallet web app (wallet.coinbase.com/apps) to find projects to try with your new smart wallet. Not everything listed in this directory is compatible with smart wallets yet, but some options you can consider include:
When prompted by a supporting platform, simply press the “Coinbase Wallet” login option to sign in with your smart wallet. The “Trending” tab on the “Home” page of wallet.coinbase.com also curates NFT mints and token swaps that you can try with your smart wallet, so be sure to check these opportunities out, too.
