What is the Better Exchange for Crypto?

This article outlines an overview of two popular crypto wallets, namely MetaMask and Coinbase, and compares them on various features such as security and trust, cost, listing, purpose, and decentralization.

Introduction

ConsenSys founded MetaMask in 2016. It is a crypto wallet that was mainly designed for the Ethereum ecosystem. Originally, it was started as a simple desktop extension. Later, it evolved into a full-fledged self-custody wallet and also has a mobile application available on Android and iOS devices.

First, it was only compatible with Firefox and Chrome browsers. Then, MetaMask expanded its access to include Microsoft Edge and Brave browsers.

The advantage of MetaMask lies in its simplicity and convenience. It gives a customer-friendly interface that makes handling cryptocurrencies an easy venture for its users.

It’s a non-custodial and open-source wallet that permits customers to control their assets and supports all Ethereum-subsidized tokens. Moreover, it supports easy integration with cold wallets like Ledger Nano for greater security enhancement.

Coinbase Wallet is a decentralized application that is accessible from any device’s browser. It allows users to store, send, and receive Ether along with a plethora of ERC20 tokens.

It does not own any private keys as it is a DeFi wallet. Therefore, its users have no guarantee of compensation if they lose funds. However, the advantage of this is that the users have greater control over their funds.

Private keys are encrypted on the user’s computer as it implements client-side encryption. Coinbase can decrypt a consumer’s wallet if users provide their passwords to Coinbase. 

It was released on August 16, 2018, and in the beginning it was referred to as Toshi. It was launched to facilitate the storage of ETH and ERC20 tokens in the growing DeFi landscape. 

It has a mobile app that is accessible on both Android and iOS. 

Comparison of MetaMask and Coinbase

Purpose of Establishment and Functionality

MetaMask is a browser extension so it’s rather user-friendly and it can be accessed from anywhere and on any device that has a web connection.

In contrast, the Coinbase wallet is primarily an app-based software that requires a download and log-in to get entry to the wallet.

Supported Cryptocurrencies

MetaMask supports only Ether and ERC20 tokens. It is the most favored wallet for users engaged in DeFi packages taking place on the Ethereum blockchain.

Coinbase Wallets supports various famous cryptos which includes Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ethereum Classic, Stellar Lumens, XRP, Dogecoin, and ERC20 tokens. It allows users to engage with more than one digital currency and blockchain network.

Trust and Security

All the crypto users should first check for trust and security before investing in any of the wallets. Both wallets are hot wallets, i.e., they stay online. 

Both of them feature integration that makes them safe.

MetaMask wallet allows integration with hardware wallets such as Ledger Nano and adds an extra level of security to keep the seed phrase safe as well. 

Coinbase wallet users can use the Coinbase exchange platform to store the majority of their funds as they get insurance coverage. It emphasizes security through encryption and multi-factor authentication.

Differentiating Features

One of the features of the Coinbase wallet is its built-in dApps browser. It allows users to seamlessly interact with various decentralized applications without individually authorizing each transaction.

It creates a gateway to decentralized finance and expands the possibilities for users.

In contrast, MetaMask has evolved from a simple web extension wallet to a comprehensive platform. Its notable feature is the integration of coin-swapping within the app.

Conclusion: Pros and Cons

The advantages of the Metamask wallet are that it’s a non-custodial and open-source wallet that supports all of the Ethereum tokens. It is straightforward to use, has a client-friendly interface, and is available on all the popular browsers.

The cons of the MetaMask wallet are that it is a hot-wallet that has better protection in comparison to hardware wallets. It has restricted compatibility with different cryptocurrencies, apart from Ethereum and its tokens. Its transaction fees can be relatively higher compared to other wallets.

The pros of Coinbase wallets are that they are self-custodial wallets. Coinbase’s reputable exchange team designed it. It has a mobile app for Android and iOS. It allows integration with dApps.

The cons of the Coinbase wallet are that they aren’t as stable as hardware wallets because it is a hot wallet. This wallet is more centralized in comparison to a few different standalone wallets. Limited customization options are available for the user interface and transaction processes.

FAQs

Which of the two wallets is more beginner-friendly?

Both wallets are simple and easy to use. So, both wallets are beginner-friendly.

Which wallet is more cost-effective?

The Coinbase wallet is cheaper in comparison to MetaMask. So it is cost-effective to invest through Coinbase.

Which wallet has more coins listed?

Coinbase wallet has a higher number of securities listed on it.

Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.