Selecting the right crypto wallet and exchange is one of the most crucial aspects of personal crypto investing. Generally speaking, a wallet stores and manages your public and private keys and allows you to interact with the blockchain.
A secure crypto wallet is also what will protect your digital assets in case of a security breach or hacking. Having said this, you can see why making the right choice is so important.
Here is where Coinbase Wallet and MetaMask enter the chat.
Both are popular online options and in this post we are going to dive deep into each one of them, sharing their features, fees, security measures and user feedback. This will serve as a guide to give you a clear understanding of the difference between the two and also offer alternative wallet options that will meet all of your needs.
Coinbase Wallet Vs. MetaMask
Arguably two of the most popular and used online wallets, Coinbase and MetaMask have millions of global users. But, before we dissect each one into further detail, here is a brief review:
Coinbase Wallet
Part of the popular crypto exchange of the same name, this is a decentralized, self-custody hot wallet that is known for its user-friendly interface that appeals to both beginners and experienced crypto traders.
Originally created to store ETH and ERC-20 tokens, it has continued to grow in the DeFi ecosystem and now supports a wide range of cryptocurrencies such as BTC, Litecoin, XRP and more.
The wallet integrates easily with the Coinbase exchange, making it a great option for many users looking for convenience.
MetaMask
On the other hand, MetaMask functions solely on the Ethereum network, giving access not just to their wallet but also to decentralized apps (dApps) on the Ethereum blockchain.
It’s a go-to for Ethereum-integrated users, as you can trade ERC-20 tokens and interact with smart contracts. It is a hot wallet but you can link hardware and cold wallets into its system.
You can use MetaMask as a mobile app, available for Android and iOS, and it also has a web browser extension for Firefox and Chrome.
💸Fees
- Coinbase Wallet: Does not have any fees for having an account or storing your crypto. But, if you use dApps, or send transactions, then network fees do apply. These fees go towards paying miners on the blockchain, not to Coinbase itself. If you’re buying crypto directly through the Coinbase Wallet app using your bank account or card, then additional fees might apply from those third-party services.
- MetaMask: Like Coinbase Wallet, MetaMask doesn’t charge a fee for holding or managing cryptocurrencies but charges a service fee for swaps. A flat rate fee of 0.875% of the transaction amount is automatically applied and is used to support the continuous development of MetaMask. Gas fees depend on the Ethereum network’s congestion at the moment the transaction is requested.
📱Supported Devices
- Coinbase Wallet: Available on both iOS and Android devices, you can also use a browser extension on your PC.
- MetaMask: Can be used with browser extensions compatible with Chrome, Firefox, Brave, and Edge browsers, and also offers mobile applications for iOS and Android.
🧑💻Usage
- Coinbase Wallet: Famous for its user-friendliness, Coinbase Wallet has a clean and intuitive interface with easy navigation throughout the platform, making it a great choice for beginners as it isn’t so overwhelming compared to other online wallets. The setup process is also straightforward. You download the app, create a wallet, and set up the recovery phase.
- MetaMask: The use of this platform is easy for new crypto investors but is also appealing to the more advanced user since you can interact with dApps through the Ethereum network. To set up MetaMask, you need to install either the app on your phone or with the browser extension, then create the wallet and recovery phrase.
⚠️Storage of your recovery phrase, also known as the seed phrase, is an important security measure that can be the saving grace of regaining your crypto. Storing this 12-24 word phrase on a separate crypto cold wallet is highly recommended!
🔐Security Features
- Coinbase Wallet: Uses biometric access and a 12-word recovery phrase.
- MetaMask: Utilizes password entry, a 12-word recovery phrase, and a full guide for Web3 privacy and security.
❗Remember that both are hot wallets, meaning that they are connected to the internet 24/7 – this puts you and your data at higher risk of crypto scams and fraud. The only way to securely keep your digital assets safe is by transferring your crypto to a cold hardware wallet.
✴️ Both Coinbase Wallet and MetaMask can be paired with cold wallets such as Material ETHER, Arculus or Ellipal
🪙Cryptocurrency Support
- Coinbase Wallet: Supports ERC-20 tokens, Ethereum, Bitcoin, Litecoin, and many others.
- MetaMask: Focused on the Ethereum blockchain and supports Ether and other ERC-20 tokens, and other NFTs.
Pros and Cons of Coinbase Wallet and MetaMask
Both wallets have strong features and are aimed at specific types of crypto investors and traders. Depending on your personal needs and investing strategies, you may lean toward one more than the other. To help draw out a clearer picture, here are the pros and cons of each:
✅ Coinbase Wallet Pros:
- User-friendly and good for new users.
- Integrated into the Coinbase exchange.
- Supports a variety of crypto.
❌ Coinbase Wallet Cons:
- Hot wallet.
- Needs the Coinbase ecosystem and therefore not ideal if looking for decentralized usage.
✅ MetaMask Pros:
- Can access the entire Ethereum blockchain.
- Supports many Ethereum applications directly.
❌ MetaMask Cons:
- Hot Wallet.
- Limits users to other cryptocurrencies as it only supports the Ethereum blockchain.
- The platform can be intimidating for beginners with Web3 and dApp availability.
Which One Is Best For You?
If left with the choice between the two, then there are a couple of things to ask yourself:
1. Am I a beginner investor/trader?
➡️ For Beginners, Coinbase Wallet is most likely the better choice as it’s easier to navigate and you can directly integrate it into the Coinbase exchange.
2. What use do I want to get out of my wallet?
➡️ If you are looking to trade other tokens and use dApps, then the obvious choice is MetaMask. It’s one of the best choices for anyone looking to fully integrate into the Ethereum network.
3. Is the safety of my crypto and the security of my private keys and seed phrases important?
➡️ For Security-focused users the answer might be surprising. The best choice is neither.
Although both provide high-security systems and backups, passwords and seed phrases, they are both software wallets and therefore will always be a security risk.
A security measure that could help you is to complement your hot wallet with a seed phrase wallet.
Coinbase Wallet Vs. MetaMask: User Feedback and Reviews
User reviews and community feedback are vital to growing and shaping any crypto tool.
Apart from forums and blogs from both Coinbase Wallet and MetaMask where their users can give feedback and help each other out with technical issues, user opinions and complaints are just as important for shaping these online platforms and giving new potential investors a warning about the downside of each wallet.
While both have positive reviews about their platforms and seamless navigation, the majority of the negative user reviews are around their security, lack of safety and customer support.
Take a look at these examples and see for yourself.
There are entire subReddits dedicated just to discussing the lack of security measures on both wallets.
From what we gather, users are generally happy with the technology on each platform and the easy access they have instantly through their phones, but the issue of protecting and safeguarding crypto is the #1 problem that keeps coming up.
So, what can be an alternative solution?
Safer Alternatives
The security and safety of your crypto, private keys and recovery phrases are crucial, and while Coinbase Wallet and MetaMask offer unique features to their online wallets, they do not specialize nor excel in the field of safeguarding.
For peace of mind, a cold wallet like Material ETHER is your best option. Apart from being a fire and waterproof steel card, the Material ETHER wallet has several security features enabled to keep your crypto in your hands.
A main advantage of using Material Wallets is the safeguarding of your seed phrases. Material DIY is a self-custodial seed phrase wallet, guaranteeing that your sensitive recovery phrase is never kept online. Rather, you manually engrave the steel plate with each word for your 12-24 word recovery phrase, giving you the protection that neither Coinbase Wallet nor MetaMask can provide.
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