Decentralized finance (DeFi) and NFTs have made significant strides in the past few years. During the same stretch, crypto wallets have also made progress. Two of such wallets, Metamask and Coinbase are leading the charge.
Recently, MetaMask has switched from a simple plug-and-play wallet that could be added to your browser to one of the most prominent applications in the Ethereum ecosystem, making the Web 3.0 dream come true. On the other hand, the Coinbase wallet was grown into a tool that is focused on safety and privacy and has its own user base. So, which one is the best? Let’s put them against each other in this MetaMask vs. Coinbase wallet comparison.
What distinguishes a blockchain wallet from a conventional wallet?
Owning cryptocurrencies is fundamentally different from owning conventional money. Cryptocurrency is viewed as a database of codes rather than having a physical existence. The user’s digital wallet address is the unique address used to store cryptocurrency on the blockchain. Users can help other users distribute crypto assets by using their public keys. A private key may also be employed to open the wallet’s digital currencies and other digital assets, such as NFTs.
A crypto wallet may be thought of as a standard wallet that is required to protect the user’s assets. Having said that, crypto wallets offer more security protections than other types of conventional wallets. In truth, crypto wallets never actually store the digital assets themselves. On the contrary, they guarantee the security of the keys to cryptographic assets. The data required to link users to the assets may be stored in the crypto wallet to ensure their safety.
MetaMask Overview
Founded in 2016 by ConsenSys, MetaMask is a simple crypto wallet tailored for the Ethereum ecosystem. Initially launched as a desktop extension, it has now evolved into a full self-custody wallet with a mobile application. The application is available for both Android and iOS devices. When it comes to desktop browsers, it was only available for Firefox and Chrome browsers, but now it is available on Microsoft Edge and Brave browsers as well.
MetaMask has a lot of features that make dealing with cryptocurrencies more convenient. One example of convenience is the integration of the token swapping feature on the app rather than using one specific decentralized exchange. This feature combs through the DeFi space and finds the best liquidity deals at the lowest prices.
All things considered, MetaMask makes Ethereum blockchain interaction quite easy. Despite being a hot wallet, it can be integrated with cold wallets such as Ledger Nano to reinforce security even more.
MetaMask Pros & Cons
Pros:
- Non-custodial and Open-source
- Supports all Ethereum tokens
- Easy to use
- Available on popular browsers
Cons:
- It is a hot wallet
Coinbase Wallet Overview
Next in our MetaMask vs. Coinbase wallet comparison, let’s look at Coinbase wallet.
It is a decentralized self-custody wallet accessible from the browser of your mobile device. You can send, receive, or store Ether and other ERC20 tokens on this wallet. As it is a self-custody wallet, it does not own its user’s private keys.
With its client-side encryption, your private key is encrypted on your computer. Coinbase cannot decrypt your wallet unless you give them your password. It was first launched to store ETH and ERC20 tokens in the ever-growing DeFi space. This hot wallet has mobile apps available for both Android and iOS. Lastly, it supports cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ethereum Classic, Stellar Lumens, XRP, Dogecoin, and ERC20 tokens.
Coinbase Wallet Pros and Cons
Pros:
- Self-custodial wallet
- Designed by Coinbase’s world-leading exchange team
- Mobile app for Android and Apple
Cons:
- Not secure as it is a hot wallet
- One of the most centralized standalone wallets
Now that we have weighed both wallets, let’s start the MetaMask vs. Coinbase Wallet with this first point.
Beginner Friendliness
MetaMask or Coinbase wallets are simple and easy to use and therefore, they are ideal for beginners looking for a way to interact with dApps. These self-custody wallets also make them appealing to beginners.
You can easily integrate the Coinbase wallet into the main Coinbase app, giving main Coinbase platform users an easy transition to self-custody. On the other hand, MetaMask has the most active users due to its simple transaction process.
Another factor that reduces the barrier to entry is the no KYC process. You can simply download the app and start using it. You just need to set it up and start managing your digital assets.
Trust and Security
Whenever crypto enthusiasts use an app or a platform, one of the first things they look after is trust and security. 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. Coinbase wallet users can use the main Coinbase exchange platform to store a majority of their funds as they get insurance coverage.
Supported Cryptocurrencies
Next in Coinbase wallet vs. MetaMask wallet comparison is the number of supported cryptocurrencies. On one hand, Metamask only supports Ether and ERC20 tokens, on the other, Coinbase supports a range of cryptocurrencies such as Bitcoin, Ethereum, Bitcoin Cash, Litecoin, Ethereum Classic, Stellar Lumens, XRP, Dogecoin, and ERC20 tokens.
Therefore, Coinbase users have the freedom to interact with different types of digital assets and blockchains. Still, MetaMask is one of the most preferred wallets by users as it has a bunch of dApps hosted on Ethereum’s blockchain.
Standout Features
A feature that makes Coinbase wallet stand out from the crowd is its ability to seamlessly integrate with dApps. It comes with a dApps browser providing a gateway to interact with dApps without the need of authorizing every and every transaction.
MetaMask is not far behind as well since it has evolved from a simple web extension wallet to a full-fledged platform that features an in-built coin-swapping mechanism. You can use MetaMask to exchange ERC20 tokens throughout the DeFi ecosystem and you don’t have to visit a DEX. MetaMask connects you to the DEX rates that provide the best liquidity after a lot of evaluation.
Final Verdict
Both wallets offer some great features, but the decision ultimately falls in the hands of the user and their specific preferences. Both wallets offer almost identical functionalities, but they also have subtle differences. For example, Coinbase allows its users to run dApps via a web-based platform, while MetaMask offers hardware wallet integrations.
Even though Coinbase has integrated with multiple blockchains, it cannot compete with MetaMask’s ability to connect with every dApp on the Ethereum blockchain. In the end, you have to consider accessibility and convenience while picking a wallet, especially to store your assets securely.
FAQs – MetaMask Vs. Coinbase Wallet
1. Is MetaMask wallet better than Coinbase wallet?
MetaMask has a lot of features that make dealing with cryptocurrencies more convenient and has a token swapping feature on the app that connects to a decentralized exchange. Whereas, Coinbase is a decentralized application accessible from the browser of your mobile device. You can send, receive, or store Ether and other ERC20 tokens on this wallet.
2. Is MetaMask the best wallet?
MetaMask is a perfect beginner wallet. With MetaMask, you can quickly buy Ether and use it on Ethereum dApps that are easily accessible through the wallet. With this users don’t have to look for crypto exchanges available in their local jurisdiction and they don’t have to create an account or verify their identity.
3. Is it cheaper to buy ETH on MetaMask or Coinbase?
No, buying ETH directly from MetaMask is very expensive. If you wish to buy Ethereum at a lower cost, the best way is to buy from a crypto exchange and then send it to MetaMask using the ERC20 network. There are several exchanges where you can buy Ethereum.
As an enthusiast deeply immersed in the world of decentralized finance (DeFi), non-fungible tokens (NFTs), and blockchain technology, I bring forth a wealth of firsthand expertise in the rapidly evolving landscape of cryptocurrency. My understanding extends to the intricate details of crypto wallets, exploring their functionalities, security features, and user experiences. Let's delve into the concepts discussed in the provided article.
Decentralized Finance (DeFi) and NFTs: The article rightly points out the significant strides made by DeFi and NFTs in recent years. DeFi refers to a set of financial services built on blockchain technology, providing decentralized alternatives to traditional financial systems. NFTs, or non-fungible tokens, represent unique digital assets that are indivisible and distinguishable, often used to tokenize digital or physical assets.
Crypto Wallets and Their Role: The article introduces two prominent crypto wallets, MetaMask and Coinbase, and rightly identifies them as integral components of the crypto ecosystem. Crypto wallets are essential tools for managing digital assets on blockchains. They store private keys, enabling users to access and control their cryptocurrencies securely.
MetaMask Overview: MetaMask, founded in 2016 by ConsenSys, is highlighted as a user-friendly crypto wallet tailored for the Ethereum ecosystem. It has evolved from a browser extension to a full self-custody wallet with mobile applications. MetaMask's features, such as token swapping and compatibility with cold wallets like Ledger Nano, contribute to its popularity.
Coinbase Wallet Overview: The article provides insights into Coinbase Wallet, emphasizing its status as a decentralized self-custody wallet with a focus on safety and privacy. It underlines the client-side encryption, ensuring that private keys are encrypted on the user's device. Coinbase Wallet supports various cryptocurrencies, expanding its utility beyond Ethereum.
Comparing MetaMask and Coinbase Wallet: The article explores the nuances of MetaMask and Coinbase Wallet, evaluating their pros and cons. It touches upon factors like beginner-friendliness, trust, and security, supported cryptocurrencies, and standout features.
Beginner Friendliness: Both wallets are deemed suitable for beginners, with MetaMask having an edge due to its active user base and straightforward transaction process. Coinbase's integration with its main platform facilitates an easy transition to self-custody.
Trust and Security: Trust and security are crucial considerations for crypto enthusiasts. Both wallets, being hot wallets, implement features to enhance security. MetaMask's integration with hardware wallets and Coinbase's insurance coverage contribute to their respective security measures.
Supported Cryptocurrencies: MetaMask primarily supports Ether and ERC20 tokens, while Coinbase Wallet offers support for a broader range of cryptocurrencies, including Bitcoin, Ethereum, and various ERC20 tokens. The diversity of supported assets gives Coinbase users more flexibility.
Standout Features: The article highlights distinctive features of each wallet. Coinbase stands out with its seamless integration with decentralized applications (dApps), facilitated by a dApps browser. MetaMask, on the other hand, excels with an in-built coin-swapping mechanism, streamlining token exchanges within the DeFi space.
Final Verdict: The article concludes with a balanced assessment, acknowledging that the choice between MetaMask and Coinbase Wallet depends on user preferences, emphasizing factors like accessibility, convenience, and specific use cases.
In summary, the MetaMask vs. Coinbase Wallet comparison presented in the article covers essential aspects, providing valuable insights for users navigating the dynamic landscape of crypto wallets.
