CoinPayments Cryptocurrency Wallet Review

Price 
Free

Fees 
0.5% fee for incoming payments. No withdrawal fees. Users only pay network fees for withdrawals.  

Number of Cryptocurrencies Supported 
2,300+ 

Bitcoin and Ethereum Support
Yes 

Earn (Staking/Rewards) 
No 

Customer Service 
Support Wizard, Support Tickets

In-App Features 
Buy, Convert 

Hardware Compatible 
Yes

SPV or Full Node 
SPV (Simplified Payment Verification) 

Mobile App 
Yes – Android and iOS 

Pros Explained

• CoinPayments supports more than 2,300 digital currencies and tokens. There’s an abundance of coins and tokens that can be stored in the CoinPayments wallet. 
• The application enables merchants to seamlessly accept crypto payments. Online retailers can accept a wide range of digital currencies as payment methods and hold the funds they receive in cryptocurrency. 

Cons Explained

• The wallet is custodial, which means users need to trust the company with their funds. CoinPayments holds the private keys of all user wallets, effectively holding crypto on behalf of its users. 
• The wallet’s code is not open-source. Open-source crypto wallets are generally considered more secure as the code can be vetted by anyone. 
• CoinPayments experienced a large-scale theft in 2017 due to a bug in the platform’s software. Numerous users have had XRP tokens stolen from their wallets.

Features

CoinPayments provides a multi-currency wallet that enables businesses and individuals to store, send, and receive a wide range of digital currencies and tokens. The free-to-set-up wallet is available on web and mobile, enabling account management online and on the go. 

Using CoinPayments, merchants can accept crypto payments via APIs and a mobile POS system, and choose to either hold the funds in cryptocurrency or have them automatically converted into fiat currency and sent into a company bank account. 

Users can help protect their account using two-factor authentication (2FA) and hardware wallets are supported.

CoinPayments users can also buy cryptocurrency within the app using a connected debit or credit card. What’s more, CoinPayments also provides a conversion feature for in-app crypto exchanges. 

Top 5 supported cryptocurrencies:

• Bitcoin (BTC)
• Ethereum (ETH)
• Binance Coin (BNB)
• Dogecoin (DOGE)
• Tether USD (USDT)

Security

CoinPayments users can set up 2FA upon registering for an account. Users can also connect hardware wallets to their CoinPayments account as an additional layer of security. 

Despite these security protocols in place, CoinPayments has experienced an incident of cyber theft when XRP tokens were stolen out of user accounts due to an error. While the company did reimburse all affected users, it suggested that CoinPayments’ closed-source code may be less than reliable.

Privacy and Anonymity

CoinPayments requires users to sign up using a name, a valid email address, and their location. Additionally, users who want to use the full suite of features on the CoinPayments app need to complete an identity verification process. 

Therefore, CoinPayments users have little to no privacy as all transactions can be linked to their identities. 

Setup 

To set up a CoinPayments wallet, you need to access CoinPayments.net and click on ‘Sign Up.’ 

Next, you’ll type in your name, a username, a password, and your location. You will then receive a confirmation email to confirm your email address. After this you can set up two factor authentication.

Once logged in, you can choose between creating a merchant account or a personal crypto wallet. After you have clicked ‘Wallet,’ you can choose between creating a standard wallet or a personalized $PayByName™ wallet. Finally, you can access your multi-currency wallet and start receiving cryptocurrencies. 

To use all of the CoinPayments platform’s features, however, you will also need to complete a know your client (KYC) process. 

Usability

Desktop

While the CoinPayments web application has a clean design, it may not be easy to navigate for first-time crypto users. 

Since the application is geared toward digital currency payments for online merchants, the app has the look and feel of a merchant payment system as opposed to a user-friendly crypto wallet. 

Mobile App 

The mobile version of CoinPayments is more user-friendly than the web-based platform as it comes with a simpler user interface while retaining all the features of the web version. 

Still, it doesn’t measure up in terms of user experience with industry-leading multi-currency wallets, like Guarda Wallet or Coinbase Wallet.  

Customer Service

CoinPayments provides customer support via a support wizard and support tickets.

However, reviews in both the Play Store and App Store suggest there is room for improvement when it comes to customer service. Top user complaints include difficulty removing money, missing money, and slow, unhelpful responses from the support team.

Cost & Fees 

CoinPayments accounts are free to set up, and there is no deposit fee for the first $15,000/month you place into your wallet. For higher amounts, a 0.5% deposit fee applies. 

For incoming payments, CoinPayments charges users 0.5%. While crypto purchases usually carry a fee, the company’s public fee page does not mention it. However, you should be prepared for a crypto purchase fee as well. Network fees also apply when withdrawing.

Final Verdict

CoinPayments is first and foremost a cryptocurrency payments solution for online retailers. eCommerce companies that want to accept cryptocurrency payments and hold funds in crypto will welcome CoinPayments’ comparatively low fees, the large number of supported coins, and multiple crypto withdrawal options. 

Conversely, investors looking for a wallet to store their crypto asset holdings will probably be disappointed by CoinPayments. Unlike most leading multi-asset crypto wallets, CoinPayments doesn’t provide interest accounts or the ability to earn yield in the decentralized finance (DeFi) markets. 

Moreover, CoinPayments is a custodial wallet, which means users don’t hold their own private keys, thus passing the responsibility of safekeeping onto the company. If you have been following the collapses of crypto trading platforms like Celsius, BlockFi, and FTX, you will know that storing your crypto assets in custodial crypto wallets can lead to a complete loss of funds in the case of a company insolvency or bankruptcy. As a result, crypto investors are advised to store their digital assets in non-custodial wallets, where only they have the ability to access their funds.

Methodology

One of the most important things to consider before you transact in and store cryptocurrencies is that you have a suitable crypto wallet in place. To help determine the wallet that works best for you, we conducted a comprehensive review process of the top cryptocurrency software wallets. 

Our review process is built around a quantitative ratings model that weighs key factors like security, costs, privacy, usability, customer support, and features according to their importance. Our team of researchers gathered over 40 data points and conducted extensive research for each of the 19 companies we reviewed. Our team of writers, who are experts in this field, then test drove each wallet to lend their qualitative point of view.

Our model gave preference to companies with the strongest security measures and reputations. Companies with rich features, such as supporting a large number of crypto assets, giving users the ability to sync with hardware wallets, and allowing for fee customization, also ranked highly.

Read our full methodology.