Bale had a hand in all three of Wales' goals at the Cardiff City Stadium as James Collins and Sam Vokes netted either side of Ashley Williams diverting the ball into his own net.
The Real Madrid star got his name on the scoresheet 20 minutes from time, much to the delight of Coleman.
"Some of the things he does are absolutely fantastic, it really is," Coleman told Sky Sports.
"Once we're in a game, if it's 1-0 to us, 1-1 or even 1-0 down, with him on the pitch, we just know we've got a chance to score and the opposition know that.
"That's a great confidence booster for us."
Aside from Williams' own goal, Iceland struggled to threaten the Welsh back four, while also failing to contain the in-form Bale.
And Coleman believes the win can be used as a platform for his team ahead of the start of UEFA Euro 2016 qualifying later this year.
"We want to win any game we play for, especially when you are representing your country.
"We did that and also we got a new cap in Emyr Huws who did very, very well.
"They're a good team, Iceland.
"It was a good win for us, it gives us a nice confidence boost going into another tough one we've got in June away to Holland which we're thoroughly looking forward to."
Wales were also given a glowing approval from Iceland coach Lars Lagerback, who said: "I think Wales have a great chance in their group. Wales have a good chance to qualify."
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