diff --git a/homeassistant/components/coinbase/config_flow.py b/homeassistant/components/coinbase/config_flow.py
index 5901aeeed9a..37311bbd1af 100644
--- a/homeassistant/components/coinbase/config_flow.py
+++ b/homeassistant/components/coinbase/config_flow.py
@@ -51,6 +51,15 @@ async def validate_api(hass: core.HomeAssistant, data):
             get_user_from_client, data[CONF_API_KEY], data[CONF_API_TOKEN]
         )
     except AuthenticationError as error:
+        if "api key" in str(error):
+            _LOGGER.debug("Coinbase rejected API credentials due to an invalid API key")
+            raise InvalidKey from error
+        if "invalid signature" in str(error):
+            _LOGGER.debug(
+                "Coinbase rejected API credentials due to an invalid API secret"
+            )
+            raise InvalidSecret from error
+        _LOGGER.debug("Coinbase rejected API credentials due to an unknown error")
         raise InvalidAuth from error
     except ConnectionError as error:
         raise CannotConnect from error
@@ -110,6 +119,10 @@ class ConfigFlow(config_entries.ConfigFlow, domain=DOMAIN):
             info = await validate_api(self.hass, user_input)
         except CannotConnect:
             errors["base"] = "cannot_connect"
+        except InvalidKey:
+            errors["base"] = "invalid_auth_key"
+        except InvalidSecret:
+            errors["base"] = "invalid_auth_secret"
         except InvalidAuth:
             errors["base"] = "invalid_auth"
         except Exception:  # pylint: disable=broad-except
@@ -218,6 +231,14 @@ class InvalidAuth(exceptions.HomeAssistantError):
     """Error to indicate there is invalid auth."""
 
 
+class InvalidSecret(exceptions.HomeAssistantError):
+    """Error to indicate auth failed due to invalid secret."""
+
+
+class InvalidKey(exceptions.HomeAssistantError):
+    """Error to indicate auth failed due to invalid key."""
+
+
 class AlreadyConfigured(exceptions.HomeAssistantError):
     """Error to indicate Coinbase API Key is already configured."""
 
diff --git a/homeassistant/components/coinbase/strings.json b/homeassistant/components/coinbase/strings.json
index ce80db35918..3e0b986365c 100644
--- a/homeassistant/components/coinbase/strings.json
+++ b/homeassistant/components/coinbase/strings.json
@@ -13,6 +13,8 @@
     "error": {
       "cannot_connect": "[%key:common::config_flow::error::cannot_connect%]",
       "invalid_auth": "[%key:common::config_flow::error::invalid_auth%]",
+      "invalid_auth_key": "API credentials rejected by Coinbase due to an invalid API Key.",
+      "invalid_auth_secret": "API credentials rejected by Coinbase due to an invalid API Secret.",
       "unknown": "[%key:common::config_flow::error::unknown%]"
     },
     "abort": {
diff --git a/homeassistant/components/coinbase/translations/en.json b/homeassistant/components/coinbase/translations/en.json
index 0c5b296bce0..fe7370cb016 100644
--- a/homeassistant/components/coinbase/translations/en.json
+++ b/homeassistant/components/coinbase/translations/en.json
@@ -6,15 +6,15 @@
         "error": {
             "cannot_connect": "Failed to connect",
             "invalid_auth": "Invalid authentication",
+            "invalid_auth_key": "API credentials rejected by Coinbase due to an invalid API Key.",
+            "invalid_auth_secret": "API credentials rejected by Coinbase due to an invalid API Secret.",
             "unknown": "Unexpected error"
         },
         "step": {
             "user": {
                 "data": {
                     "api_key": "API Key",
-                    "api_token": "API Secret",
-                    "currencies": "Account Balance Currencies",
-                    "exchange_rates": "Exchange Rates"
+                    "api_token": "API Secret"
                 },
                 "description": "Please enter the details of your API key as provided by Coinbase.",
                 "title": "Coinbase API Key Details"
diff --git a/tests/components/coinbase/test_config_flow.py b/tests/components/coinbase/test_config_flow.py
index e487cb5d837..fff03797fbb 100644
--- a/tests/components/coinbase/test_config_flow.py
+++ b/tests/components/coinbase/test_config_flow.py
@@ -1,4 +1,5 @@
 """Test the Coinbase config flow."""
+import logging
 from unittest.mock import patch
 
 from coinbase.wallet.error import AuthenticationError
@@ -63,23 +64,25 @@ async def test_form(hass):
     assert len(mock_setup_entry.mock_calls) == 1
 
 
-async def test_form_invalid_auth(hass):
+async def test_form_invalid_auth(hass, caplog):
     """Test we handle invalid auth."""
     result = await hass.config_entries.flow.async_init(
         DOMAIN, context={"source": config_entries.SOURCE_USER}
     )
 
+    caplog.set_level(logging.DEBUG)
+
     response = Response()
     response.status_code = 401
-    api_auth_error = AuthenticationError(
+    api_auth_error_unknown = AuthenticationError(
         response,
         "authentication_error",
-        "invalid signature",
-        [{"id": "authentication_error", "message": "invalid signature"}],
+        "unknown error",
+        [{"id": "authentication_error", "message": "unknown error"}],
     )
     with patch(
         "coinbase.wallet.client.Client.get_current_user",
-        side_effect=api_auth_error,
+        side_effect=api_auth_error_unknown,
     ):
         result2 = await hass.config_entries.flow.async_configure(
             result["flow_id"],
@@ -91,6 +94,53 @@ async def test_form_invalid_auth(hass):
 
     assert result2["type"] == "form"
     assert result2["errors"] == {"base": "invalid_auth"}
+    assert "Coinbase rejected API credentials due to an unknown error" in caplog.text
+
+    api_auth_error_key = AuthenticationError(
+        response,
+        "authentication_error",
+        "invalid api key",
+        [{"id": "authentication_error", "message": "invalid api key"}],
+    )
+    with patch(
+        "coinbase.wallet.client.Client.get_current_user",
+        side_effect=api_auth_error_key,
+    ):
+        result2 = await hass.config_entries.flow.async_configure(
+            result["flow_id"],
+            {
+                CONF_API_KEY: "123456",
+                CONF_API_TOKEN: "AbCDeF",
+            },
+        )
+
+    assert result2["type"] == "form"
+    assert result2["errors"] == {"base": "invalid_auth_key"}
+    assert "Coinbase rejected API credentials due to an invalid API key" in caplog.text
+
+    api_auth_error_secret = AuthenticationError(
+        response,
+        "authentication_error",
+        "invalid signature",
+        [{"id": "authentication_error", "message": "invalid signature"}],
+    )
+    with patch(
+        "coinbase.wallet.client.Client.get_current_user",
+        side_effect=api_auth_error_secret,
+    ):
+        result2 = await hass.config_entries.flow.async_configure(
+            result["flow_id"],
+            {
+                CONF_API_KEY: "123456",
+                CONF_API_TOKEN: "AbCDeF",
+            },
+        )
+
+    assert result2["type"] == "form"
+    assert result2["errors"] == {"base": "invalid_auth_secret"}
+    assert (
+        "Coinbase rejected API credentials due to an invalid API secret" in caplog.text
+    )
 
 
 async def test_form_cannot_connect(hass):