MetaMask vs Coinbase Wallet: Which Is Safer?

There are many new coins appearing on the cryptocurrency market, and each one carries a unique set of values and features. As more individuals put money into these digital assets, more jurisdictions have started taking advantage of their enormous potential. 

Regardless of the type of investment they make, crypto investors should always take measures to ensure the safety of their cryptocurrency holdings. Namely, they can secure their cryptos using a variety of different strategies, such as locking them in a digital wallet to protect them.

A cryptocurrency wallet is a sort of digital storage or device that safeguards private keys and assets. Wallets can be downloaded directly into a user’s computer or mobile device. They offer customers the ability to send, receive, and spend crypto in a secure manner. 

Currently, the two most well-known Web 3.0 wallets are Metamask Wallet and Coinbase Wallet.  The following is a side-by-side comparison of MetaMask vs Coinbase Wallet for those who are having trouble deciding between the two.

The MetaMask Wallet

All ERC-17 and ERC-20 tokens, as well as other Ethereum-based dApp tokens, can be stored safely in a single wallet thanks to MetaMask. MetaMask was first built as a browser plugin that streamlined asset interaction with Ethereum’s decentralized network. Since its inception, however, it has expanded into a full self-custody wallet that also features a mobile application.

In 2016, Aaron Davis and ConsenSys, a startup specializing in blockchain software technologies, launched this extensively used digital wallet. It has quickly gained popularity as a leading Ethereum wallet to be used with DEXs (decentralized exchanges), NFTs (non-fungible tokens), online games, and other services.

MetaMask is one of the most popular Ethereum wallets due to its ease of use and configuration compared to other digital asset storage options. Metamask is to the Ethereum network what Google Chrome is to the Internet. 

Even better, MetaMask creates unique passwords and keys on your device so that you and no one else can access your accounts or data. Everything you do, say, or share via MetaMask is subject to your discretion.

The Coinbase Wallet

When you store your cryptocurrency, keys, and data in a self-custody wallet like Coinbase Wallet, you control everything related to your coins and tokens. This crypto wallet is widely acknowledged as one of the best mobile wallets available on both Android and iOS app stores.

Initially, it was released for Ethereum and other ERC20 currencies as part of the expanding decentralized finance industry. At this point, you should make a clear distinction that  Coinbase.com and Coinbase Wallet are two separate services.

Here’s the deal. While Coinbase Wallet stores the private keys on a user’s mobile device,  Coinbase.com is a crypto trading platform that uses the exchange’s wallet, which is hosted on a server. There is also a desktop browser plugin version of Coinbase Wallet, which can be used with Brave and Google Chrome.

Moreover, you can use Coinbase Wallet without ever having to sign up for a Coinbase.com account. If you just want to purchase and trade cryptocurrency and keep track of your holdings, Coinbase.com is still your best bet as a crypto trading novice.

MetaMask vs Coinbase Wallet: The Comparison

Main Features

When compared to other wallets, Coinbase Wallet stands out due to its ability to easily incorporate into decentralized applications. There’s a built-in browser for decentralized applications (dApps) that allows users to access them and engage in transactions without having to repeatedly provide authentication credentials. 

As a result, users can easily buy Ethereum ERC-20 tokens or other blockchain-based digital currency, keep them safely in the wallet, and then associate those digital assets with DeFi projects.

Coinbase Wallet also works with ICOs (initial coin offerings). It allows Coinbase customers to buy stablecoins and new altcoins at the best prices available. An additional feature provided by the wallet is the collection of rare forms of digital art, including NFTs, as well as the option to make purchases in crypto-friendly stores.

In the same vein, MetaMask has progressed from a simple browser extension wallet to a fully-fledged platform with an integrated coin-swapping mechanism, so it is not far behind. 

MetaMask is a wallet that can be used for three main purposes: exchanging tokens, accessing decentralized applications, and storing digital assets. Combined, these features provide everything an average cryptocurrency user needs to interact with the Ethereum blockchain.

You can also conduct P2P (peer-to-peer) token swaps directly from your MetaMask wallet, thanks to its built-in trading feature. Basically, MetaMask enables you to trade ERC20 tokens directly in your wallet without leaving the platform.

In the bargain, MetaMask links you up with DEX rates that offer the best liquidity after a thorough market analysis. For this, MetaMask crypto swaps collect data from many DEXs, AMMs, or DEX aggregators instead of using order books, DEX liquidity models, or exchanges themselves to complete trades.

Security

One of the most important considerations for crypto fans when using any software or platform is the level of security it offers. Both MetaMask and Coinbase Wallet are considered to be secure despite being hot wallets and always connected to the Internet.

The MetaMask wallet has the capability to integrate with hardware wallets like the Ledger Nano, which not only adds a degree of security but also ensures the safety of the seed phrase. 

No sensitive information that you store on our servers is under MetaMask’s control. All data is encrypted in transit between your browser and MetaMask, making it impossible for anyone to access it without your password. Your Secret Recovery Phrase is the only way to regain access to your lost MetaMask accounts.

The Coinbase wallet is a highly sought-after cryptocurrency storage solution. Investors and crypto fans can feel at ease knowing their digital assets are secure on this wallet because of its integration with the popular Coinbase trading platform.

On the other hand, the vast majority of crypto coins are kept in the online (hot) Coinbase wallet. Namely, this digital wallet doesn’t take advantage of offline safekeeping options like hardware wallets or encrypted storage media. As a hot wallet, however, it is also vulnerable to online crypto hacking and other forms of cyber attack. 

User-Friendliness

MetaMask and Coinbase are two of the most popular wallets for interacting with decentralized applications (dApps), and for а good reason. Having wallets that the user controls adds a certain allure, especially for newcomers.

Coinbase Wallet can be easily integrated into the primary Coinbase app, allowing users of the main Coinbase trading platform to make a smooth transition to self-custody of their cryptocurrency.

In contrast, MetaMask has one of the most active user bases because of its straightforward transaction procedure. The absence of a know-your-customer (KYC) procedure also helps lower the bar to the entrance since the MetaMask app is immediately available for use after you download it. In little time at all, you can begin managing your digital holdings stored in a MetaMask wallet.

MetaMask vs Coinbase Wallet: Similarities and Differences

These two well-known cryptocurrency wallets share more than just a reputation for being user-friendly to newcomers. Here are just a few examples:

• Users of each service can employ two different devices to log into their accounts, increasing the security of their private keys. This is a safeguard against malicious code and computer hackers.
• MetaMask and Coinbase Wallet are both compatible with Ethereum-based currencies like Ether (ETH) and ERC-20 tokens.
• In addition to providing access to DeFi services, they also provide interfaces for engaging with Ethereum-based apps.
• Since Coinbase wallet and MetaMask both function as add-ons for web browsers, they open the door to Web 3.0, the decentralized, blockchain-based Internet.

Even though MetaMask and Coinbase have some overlapping features, they are fundamentally different services. Listed below are some of the differences between the two that investors should consider when deciding which crypto wallet is better for their investment needs. 

• Unlike Coinbase, which is closed-source, MetaMask is freely available to the public. This implies that the MetaMask community is able to review the code and provide feedback in the form of suggested improvements. Coinbase, on the other hand, requires its users to raise any issues directly with the company.
• Coinbase supports a wide variety of cryptocurrencies, but MetaMask is exclusively compatible with ERC17 and ERC20 cryptocurrencies.
• To keep users’ private keys safe, MetaMask stores them on a hard drive. Coinbase Wallet, on the other hand, employs two-factor authentication in addition to time-sensitive one-time passwords (TOTP).

Supported Blockchains

By far, MetaMask is the most interoperable Web 3.0 wallet, and the blockchains it supports are large in number. Namely, Metamask Wallet works with all blockchains that are compatible with Ethereum Virtual Machine (EVM), such as Ethereum, Optimism, Avalanche, Avalanche Subnets, and Polygon, to name a few.

Unlike MetaMask, Coinbase Wallet does not support the Avalanche Subnet blockchain, but it’s functional with all other blockchains that are compatible with the EVM.

Coinbase vs Metamask DEX Fees

Using the Coinbase Wallet built-in DEX, you can instantly trade between the vast majority of DeFi assets. The fees reach up to 3.99%, while Ethereum blockchain gas fees reach $120 per trade (even when on-chain fees are low).

To be more specific, Coinbase Wallet users could be subject to a variable fee when making trades on the Coinbase platform. This fee is changeable and varies with the chosen form of payment. It also relies on the user’s location as well as the trade order mode, which can either be instant or standard. Such costs can range from 1.49% to 3.99% of the total value of a transaction, making Coinbase Wallet the priciest DEX available.

On the other hand, the free use of MetaMask is one of its most appealing features. This is due to the wallet being an open-source app and a non-custodial wallet, both of which are freely available to everyone. Because of this, it stands out in comparison to other wallets of a similar nature that impose certain costs.

But when you send a transaction, you may have to pay something called a gas fee. Gas fees are necessary because they facilitate the execution of your trading activities on the Ethereum network. 

Once you pay the 0.875% gas fee, the Ethereum network will confirm your transaction. To defray the expense of continually improving MetaMask, this blockchain cost is automatically included in all quotes. As a result, Metamask is a steal at a fraction of the cost of Coinbase Wallet.

Conclusion

To realize the vision of Web 3.0, MetaMask has recently evolved from a basic plug-and-play wallet that could be installed in your browser into one of the most successful applications in the Ethereum ecosphere. For this reason, many users have migrated to the Metamask Wallet because it is capable of supporting a greater number of blockchains at the most affordable price and maintains the highest standard of safety.

In contrast, Coinbase Wallet has evolved into a standalone app with a dedicated user base and an emphasis on security and anonymity.

The good news is that both of these crypto wallets have gained widespread acceptance. If your favorite app doesn’t accept Coinbase Wallet as a primary method of authentication, you can still log in with the help of a wallet integration tool like WalletConnect.

Finally, if you already have a MetaMask wallet and want to switch, you can import it into Coinbase Wallet. Not the other way around, though. For the time being, Coinbase Wallet cannot be imported into MetaMask.

These are just a few nuggets of wisdom about these two popular cryptocurrency wallets that any crypto owner would benefit from knowing.