Last Updated: June 25th, 2024
Author: Derpatide
This guide aims to cover using Coinbase Wallet, paired with a Coinbase.com account, to purchase and send USDC. While it may appear to have a few extra steps compared to purchasing and sending Bitcoin, and does require purchasing ETH as well, USDC is 1:1 with USD and provides fast payment confirmations.
Leveraging the self-custody Coinbase Wallet paired with a Coinbase.com account allows you to easily purchase cryptocurrencies like USDC for quick and easy transactions with friends, family, and vendors. This flow reduces steps, confusion, and time to send a payment.
If you're already Coinbase.com user, using this method eliminate steps that you may encounter with using other self-custody wallets like Exodus.
Bitcoin, Monero, and many other cryptocurrencies are great. However, at times you may want a fast, convenient, relatively low transaction fee payment option that is 1:1 with USD. Fast, no math or volatile coins. Did your friend or vendor request $300 USD? Send them exactly $300 USDC and you're set.
This guide is long and detailed for beginners, those needing a refresher, and those new to Coinbase Wallet. Each step is outlined with almost no steps skipped.
Don't let the length and number of steps scare you. Once you do this once or twice, you can complete the process -- start to finish -- in just a couple of minutes. Even faster depending on transaction times.
Buying and sending crypto is generally quite easy after you've done it once, it's often the terminology, settings, and exchanges that confuse newcomers.
Note that this guide assumes that you already have a verified Coinbase.com account with payment methods. Links to official Coinbase.com account creation guides are below.
Always double-check the site's URL/address when accessing Coinbase.com, following official guides, or downloading apps.
Never share your recovery phrase/keys, passwords, and two-factor authentication codes with anyone. Coinbase support will never contact you via email, phone, text, or direct message requesting this information.
Only download and use official wallet apps. https://www.coinbase.com/wallet
Always triple-check the recipient wallet address any time you send crypto -- whether to your own wallet or to someone else's. Crypto sent to the wrong address, or on the wrong network, will be unrecoverable.
Please review each section of this guide carefully, in order, to understand the process. ETH is necessary to cover transaction fees when sending USDC and that will be covered as well.
For more on setting up a Coinbase.com account, a required step, please see the following official Coinbase.com resources.
Creating an account: https://help.coinbase.com/en/coinbase/getting-started/getting-started-with-coinbase/create-a-coinbase-account
Verifying your identify: https://help.coinbase.com/en/coinbase/getting-started/getting-started-with-coinbase/id-doc-verification
Adding payment methods: https://help.coinbase.com/en-gb/coinbase/getting-started/add-a-payment-method/add-method
For regular and large crypto currency purchases, it's recommended to connect a bank account and leverage ACH (bank) based purchases. Note that these may incur holds initially but, over time, holds typically stop occurring.
For time-sensitive purchases, needing immediate transfer, a debit card may be used. These purchases typically have higher fees but often proceed without a hold.
Your initial purchases may take time to approve and become available for transfer.
Consider adding some funds to your account immediately after creation to help proceed past the initial hold time.
Maintaining and leaving a small balance of a cryptocurrency on your Coinbase.com exchange account can reduce or eliminate holds on new purchases.
Never share your recovery phrase/keys, passwords, and two-factor authentication codes with anyone. Coinbase support will never contact you via email, phone, text, or direct message requesting this information.
Only download and use official wallet apps. https://www.coinbase.com/wallet
Coinbase.com is a secure & centralized cryptocurrency exchange for buying, selling, transferring, and storing cryptocurrency (crypto). Coinbase offers trading for over 20,268 cryptocurrencies, including Bitcoin (BTC), Ethereum, Litecoin, Cardano, Dogecoin, and Solana. As an exchange, you do not have full custody (control) of your crypto assets. Your assets are stored in what's called a custodial wallet. While useful for purchasing cryptocurrency, it's not recommended to leave long term investments on the platform nor is it recommended to use for sending cryptocurrency directly to some vendors Instead, a self-custody wallet like Coinbase Wallet is recommended.
Only download and use the official Coinbase Wallet via reputable app stores. Links can be found at https://www.coinbase.com/wallet
Additional Coinbase Wallet support documentation is available at https://help.coinbase.com/en/wallet
Coinbase Wallet is a branded self-custody wallet that allows you to store, hold, and send cryptocurrencies independent of an exchange. You own and control the wallet and it cannot be deactivated by Coinbase.com. Self-custody wallets give additional control and provide some risk mitigation. For example, if Coinbase.com shut down or cancelled your account, you would still retain access to your cryptocurrencies held on your self-custody wallet.
As a standalone self-custody wallet, Coinbase Wallet may be used to send and receive from other exchanges and is not limited to Coinbase.com. In this gudie, we will be covering how to pair Coinbase Wallet with your Coinbase.com account so that you may make quick and easy purchases of cryptocurrencies such as USDC.
A self-custody wallet does impose some risk. You must maintain your own security of your wallet's key (recovery phrase). Do not share your backup/private key with others, you must store it in a safe place to ensure you retain access to the wallet in the future.
Using wallet, like Coinbase Wallet, is recommended for sending to friends, family, and vendors.
Learn more about differences between Coinbase.com (custodial wallets) and Coinbase Wallet (self-custody wallets) at https://help.coinbase.com/en/wallet/getting-started/what-s-the-difference-between-coinbase-com-and-wallet
Ethereum is a decentralized blockchain platform that enables the development of smart contracts and decentralized applications (DApps).
The ETH token, also known as Ether, is the native cryptocurrency of the Ethereum blockchain network, used for various purposes including transaction fees, powering smart contracts, and as a store of value.
For the purpose of this tutorial, we will be leveraging ETH to handle the transaction fees for our USDC payments.
Note that there are other blockchain networks such as Solana (SOL) that also support USDC and often have lower fees. The steps in this guide, with minor tweaks in network settings, could be applied to purchase Solana and USDC on Solana. However, we will not be using another network in this specific guide.
USDC, also known as USD Coin, is a stablecoin cryptocurrency that is pegged to the value of the US dollar. It provides a digital representation of the dollar that can be easily transferred and used in decentralized applications and platforms.
With its 1:1 relationship with the US dollar, it can make digital payments very easy without worrying about the fluctuations typically present in other cryptocurrencies.
USDC, in the context of this guide, is a token on the Ethereum network and is sent and received over the Ethereum network to a recipient's wallet.
Note that there are other blockchain networks such as Solana (SOL) that also support USDC and often have lower fees. The steps in this guide, with minor tweaks in network settings, could be applied to purchase Solana and USDC on Solana. However, we will not be using another network in this specific guide.
In order to send USDC, it is necessary for your wallet to hold some ETH to cover transaction fees associated with using the Ethereum network.
IMPORTANT: Note that this guide assumes that you already have a verified Coinbase.com account with payment methods.
To get started with standalone the self-custody Coinbase Wallet, follow these steps to create a new wallet.
Download the Coinbase Wallet app: The first step is to download the Coinbase Wallet app from your mobile device's app store or install the Coinbase Wallet extension available on popular browsers. It is available for both iOS and Android devices.
https://www.coinbase.com/wallet
Launch the app: Once the app is downloaded and installed, open the app to begin.
Set up your wallet: Follow the on-screen instructions to set up your wallet.
IMPORTANT: Backup your wallet: Coinbase Wallet offers a backup feature that allows you to securely store your wallet's recovery phrase. It is essential to back up your wallet in case you lose access to your device. Follow the instructions provided in the app to complete the backup process. Do not share this with others. You must maintain your own security of your wallet's key (recovery phrase), do not share your backup/private key with others, and you must store it in a safe place to ensure you retain access to the wallet in the future.
Explore the wallet features: Once your wallet is set up, take some time to explore the various features offered by Coinbase Wallet. You can manage multiple cryptocurrencies, interact with decentralized applications (DApps), and more.
After you have created your Coinbase Wallet, you can use Coinbase.com Onramp to buy ETH (Ethereum's Ether token) and USDC (USD Coin) directly from within the wallet. This will purchase the crypto with your Coinbase.com account and send it directly to your self-custody wallet in one simple flow.
In order to send USDC, it is necessary for your wallet to hold some ETH to cover transaction fees associated with using the Ethereum network. We will cover buying ETH first.
If you plan on making multiple transactions with USDC in the future, it's generally recommend to hold at least $5 to $15 of ETH to cover transaction fees. The average transaction fee for a USDC send can vary but often ranges from $0.50 to $1.
For future purchases, you may skip to the USDC purchasing section if you already have enough ETH in your wallet.
IMPORTANT: Note that this guide assumes that you already have a verified Coinbase.com account with payment methods.
Within your wallet, click or tap the Buy button to get started.
Select the option to "Add crypto with Coinbase Onramp"
Select the option to "Buy or transfer with Coinbase"
Log in to your Coinbase.com account when prompted to authorize purchases from Coinbase.com to be sent directly to your Coinbase Wallet.
IMPORTANT: Next, you will be presented with a purchase screen. First, we will want to change the Network from Base to Ethereum. This is very important as, for the purposes of this guide, will want to send ETH and USDC over Ethereum and not another network. Some of your friends and family may want to use another network. For this guide, we assume our recipients want to receive the USDC via the Ethereum blockchain. Tap on Network: Base.
IMPORTANT: Change the network to Ethereum.
Adjust the Buy option to ETH if not already selected and tap Pay with to change your Coinbase.com payment method.
For larger purchases and/or reduced holds, it is generally recommended to use the ACH Bank Account option. However, using ACH may lead to holds initially.
For time-sensitive purchases, needing immediate transfer, a debit card may be used. These purchases typically have higher fees but often proceed without a hold.
Adjust the amount of ETH to purchase. Holding $5 to $15 USD is recommended for most. Transaction fees on USDC transactions may vary but are often around $1 USD.
Once done, tap "Continue to payment."
Next, you will be presented with a purchase confirmation screen. Verify the amount, payment method, and Network. For the purposes of this guide, ensure the Network is set to Ethereum. Tap Confirm & Purchase when ready to proceed.
It may take a few minutes for the purchase to complete and for the ETH to appear in your wallet. For now, we will proceed to purchasing USDC.
IMPORTANT: Note that this guide assumes that you already have a verified Coinbase.com account with payment methods.
This section assumes you have read the rest of the guide and followed the steps for purchasing ETH and connecting to Coinbase Onramp. For the purposes of this guide, we will be sending USDC over the Ethereum blockchain and it will be necessary to have at least $1-5 dollars worth of ETH to proceed.
If you already have some ETH in your wallet, you may proceed.
Open the Coinbase Wallet home (assets) screen and tap the Buy button.
If asked, select the option to "Add crypto with Coinbase Onramp" and proceed with signing in to your Coinbase.com account if prompted.
You will be presented with a Buy screen. First, ensure the Network is set to Ethereum. This is very important as, for the purposes of this guide, will want to send ETH and USDC over Ethereum and not another network. Some of your friends and family may want to use another network. For this guide, we assume our recipients want to receive the USDC via the Ethereum blockchain. If Network is not set to Ethereum, Tap on Network: [Network name such as Base].
Select the Ethereum network.
Next, we will want to change the Buy to USDC so that we purchase the USDC token. Tap on Buy and the token present to change to USDC.
Select USDC.
On the Buy screen, enter the amount of USDC, which is 1:1 with US dollars, that you want to purchase. For the purposes of this guide, confirm that the Network is set to Ethereum, the Buy is set to USDC, and the Pay with option is set to the Coinbase.com payment method of choice. For larger purchases and/or reduced holds, it is generally recommended to use the ACH Bank Account option. However, ACH transfer will still have holds initially. For immediate transfers, with higher fees, a debit card may be used.
Tap Continue to payment when ready.
Next, you will be presented with a purchase confirmation screen. Verify the amount, payment method, and Network. For the purposes of this guide, ensure the Network is set to Ethereum. Tap Confirm & Purchase when ready to proceed.
It may take a few minutes for the transaction to complete. Monitor your Assets tab within Coinbase Wallet to check the status of your Crypto. Pending transactions will be labeled as Pending. Once an amount appears, it is ready to send.
Once you have loaded up your wallet with some USDC and ETH, you're ready to start using it. USDC can be used to make purchases, interact with services, and more.
To send, you'll need some USDC, ETH, and a recipient wallet address to send to. Before you send anything, double-check with the recipient, or their notes, to ensure they gave you a USDC on Ethereum wallet address.
This section assumes you have read the rest of the guide and followed the steps for purchasing ETH & USDC and the transactions have completed.
For the purposes of this guide, we will be sending USDC over the Ethereum blockchain and it will be necessary to have at least $1-5 dollars worth of ETH to proceed.
Once you have some USDC and Ethereum in your Coinbase Wallet, you may send USDC by tapping Send.
On the Send screen, ensure USDC is selected. If ETH/Ethereum is selected, tap the token and change it to USDC. Then, enter the amount you wish to send. USDC is 1:1 with the US dollar. It's not necessary to send more or less. Send the exact amount of USD requested by your friend, family member, or vendor. Once ready, tap Next.
IMPORTANT: Read the next step carefully. Next, you will be asked to enter or enter a recipient. Your friend, family, or vendor should provide you with a recipient wallet address.
Check to ensure it is for USDC/ETH. It will be a long string that appears like 0x[....]0ea.
IMPORTANT: Double and triple check the address. Crypto sent to an incorrect address will be lost and unrecoverable. For the purposes of this guide, the receiving wallet must be an Ethereum wallet address explicitly for receiving USDC over Ethereum. Your friend may share it as a USDC/ETH address.
Ensure each character of the address is entered properly and proceed.
Once an address has been entered, you will proceed to the Send confirmation screen. Ensure that your USDC amount is correct (1:1 with US dollar), that the recipient address appears correct, and the Network is set to Ethereum. The transaction fee will be covered by your separate ETH balance. Tap Confirm to proceed and send.
IMPORTANT: Double and triple check the address. Send transactions to the incorrect address will be lost and unrecoverable. For the purposes of this guide, the receiving wallet must be an Ethereum wallet address explicitly for receiving USDC over Ethereum. Your friend may share it as a USDC/ETH/USDT-ERC20 address.
After confirming, your Coinbase Wallet will send the USDC to the recipient. You will be presented with a Sent confirmation screen. The transaction may take a few minutes to complete.
On the Sent confirmation screen, tap Transaction hash to copy and share with your friend, family, or vendor so they can monitor and confirm that the funds were sent and came from you.
You may also review progress and confirmation status by tapping the View on Etherscan button.
For the purposes of this guide, send the transaction hash number -- not a link to Etherscan -- to your friend, family, or vendor. If you have difficulties copying the transaction hash, tap View on Etherscan and copy the transaction ID/hash provided there to provide to your recipient.
Congrats! You just sent USDC via Coinbase Wallet.
While intimidating at first, leveraging Coinbase Wallet with Coinbase.com Onramp makes USDC purchasing and sending quick and easy while eliminating the risks associated with performing transactions via an exchange account. If you're a Coinbase.com user, using this method eliminate steps that you may encounter with using other self-custody wallets like Exodus.
With practice, you'll be able to complete these steps in just a couple of minutes. Holding some extra ETH& USDC balance in your wallet can also eliminate most of these steps -- given you have enough to send to your recipient.
Remember, cryptocurrency investments and transactions carry risks, and it's essential to do your research and understand the market before making any investment decisions. Coinbase Wallet provides a user-friendly platform to manage your digital assets conveniently, but it's always wise to exercise caution and take appropriate security measures to protect your funds.
A self-custody wallet does impose some risk. You must maintain your own security of your wallet's key. Do not share your backup/private key with others, you must store it in a safe place to ensure you retain access to the wallet in the future.
If this guide helped you with one of your first crypto transactions, you've made great progress. Why not delve deeper into the world of crypto?
Coinbase has some great learning resources at https://www.coinbase.com/learn
Here are some specific resources you might consider starting with.
https://www.coinbase.com/learn/crypto-basics/what-is-cryptocurrency
https://www.coinbase.com/learn/crypto-basics/what-is-ethereum
https://www.coinbase.com/learn/crypto-basics/what-is-a-stablecoin
https://www.coinbase.com/learn/tips-and-tutorials/how-to-set-up-a-crypto-wallet
https://www.coinbase.com/learn/crypto-basics/what-is-a-hardware-wallet
https://help.coinbase.com/en/wallet
https://help.coinbase.com/en/wallet/getting-started/what-s-the-difference-between-coinbase-com-and-wallet
https://learncrypto.com/
https://www.coindesk.com/learn/
https://www.fidelity.com/learning-center/trading-investing/how-to-learn-about-cryptocurrency
https://coinmarketcap.com/headlines/news/
https://coinmarketcap.com/academy
https://coinmarketcap.com/academy/glossary
Shoutout to T.
-Derpatide