Coinbase and MetaMask Warn Over Privacy as Global Crypto Rules Take Shape (2024)

FAQs

Is Coinbase Wallet as safe as MetaMask? ›

Although both wallets are hot wallets that always stay online, MetaMask and Coinbase wallets feature integrations that make them safe. MetaMask wallet can integrate with hardware wallets such as Ledger Nano and add an extra layer of security and keeps the seed phrase safe as well.

Consensys, the company behind MetaMask, has updated its privacy policy to improve user consent, transparency and control of their personal data. According to a press release shared with Cointelegraph, the changes aim to apply greater privacy and security measures for users of Consensys' services, including MetaMask.

Yes. MetaMask is a trusted crypto wallet used by millions of investors. However, your wallet is only as secure as you are, so you should follow best practices to secure your crypto.

Is MetaMask safe? Yes. MetaMask is one of the most trusted cryptocurrency wallets for the Ethereum blockchain.

Keep your assets secure

Coinbase Wallet is a self-custody web3 wallet, putting you in full control of the private keys to your assets on the blockchain. Nobody, including Coinbase, can access your tokens or NFTs without your recovery phrase.

Other important factors to consider when researching alternatives to Metamask include user interface and user experience. The best overall Metamask alternative is Zengo Wallet. Other similar apps like Metamask are Coinbase Wallet, Trust Wallet, Exodus, and Coinomi.

When security alerts are turned on, your transaction is simulated locally before you sign it, checking whether it could result in you losing funds. The security alerts do not prevent you from losing funds or interacting with fraudulent dapps.

Transactions made using MetaMask are registered on Ethereum blockchain and are publicly available. If someone knows your account address, they can see the transaction is made by you because accounts on the Ethereum network are pseudonymous. MetaMask requires that you store your Secret Recovery Phrase in a safe place.

MetaMask itself does not report to the IRS or any tax authorities. However, it's important to note that individuals are generally responsible for reporting their cryptocurrency transactions and any resulting taxable events to the IRS or relevant tax authorities.

The new technology is being built by Special Mechanisms Group (SMG), a blockchain infrastructure firm that MetaMask owner Consensys purchased last year.

Does MetaMask hold your keys? ›

MetaMask includes a self-custodial (also commonly referred to as non-custodial) cryptocurrency and token wallet. It gives you complete control of your access keys and therefore your assets. 'Self-custodial' refers to the fact that it's you ('self') who holds your wallet's private key(s).

Yes. In the United States, your transactions on MetaMask and other platforms are subject to income and capital gains tax. If you've earned or disposed of crypto (ex. Sold or traded away cryptocurrency) during the year, you'll have a tax liability to report to the IRS.

Users from Venezuela and Iran report on Twitter that they have been blocked from using the crypto wallet MetaMask and can no longer access the NFT marketplace OpenSea.

Crypto wallets like MetaMask are called self-custodial for this reason: You are the custodian and the only one who can access your private keys. There is no other custodian required to give you permission to control your assets, so there is nobody who can prevent you from interacting with them.

Is Coinbase Wallet safe and legit? Yes, Coinbase Wallet has robust security measures, making it a safe and legit method of interacting with the decentralized web (web3).

You can also import your MetaMask or Trust Wallet into the Coinbase Wallet via your 12-word recovery phrase to make it easier to track your balances and conduct transactions.

In summary, the choice between Trust Wallet and Coinbase Wallet depends on your specific needs and preferences. If you value a wide range of supported cryptocurrencies, strong privacy and security features, and compatibility with DeFi platforms, Trust Wallet may be the better choice.

Coinbase also charges a spread-based fee of 0.50%, while other fees depend more on which method of payment you're using — ACH transfers are free, whereas using a bank account or USD Wallet adds a 1.49% fee, using a credit or debit card adds a 3.99% fee and wire transfers rack up an extra fees of $10 incoming and $25 ...