Coinbase wallet vs MetaMask: how do they compare? A cryptocurrency wallet allows you to store, receive, and send cryptos. Crypto wallets allow peer-to-peer (P2P) transactions without any middleman or third-party service. Coinbase is an example of an online wallet connected to a cryptocurrency exchange. There you can trade cash or crypto tokens for a range of cryptos. How do Metaverse-friendly wallets like MetaMask compare?
Coinbase wallet vs MetaMask
What’s the difference? Coinbase is a cryptocurrency exchange and wallet which allows users to buy or sell digital currencies (like bitcoin, Ethereum, and Litecoin). You can also link your bank account to purchase crypto tokens. You’ll need to provide some personal data like your name, address, and date of birth. This information is to prove your identity and avoid money laundering. MetaMask is a digital wallet similar to Coinbase’s. However, MetaMask is compatible with Ethereum-based decentralized applications (dApps) across the emerging Metaverse.
The rise of MetaMask
A MetaMask wallet consists of two public addresses—one for Ethereum (ETH) and one for ERC-20 tokens. ERC-20 tokens are tokens that use Ethereum’s blockchain instead of their own. Famous examples are Decentraland’s MANA or Shiba Inu (SHIB). MetaMask’s interface makes it easy to switch between accounts, allowing you to move funds from your cryptocurrency exchange wallet (for example, Coinbase) into your MetaMask wallet. Instead of switching back and forth between sites like Coinbase and MyEtherWallet or managing several wallets in one place, MetaMask allows you to access all of your Ethereum-based coins in one place easily.
Limitations of MetaMask wallets
If you plan on using MetaMask for transactions and transfers, there are some limitations to keep in mind. For one, MetaMask only supports Ethereum and ERC-20 tokens. Additionally, it will only interact with other accounts that run on Ethereum. Coinbase, on the other hand, can interact with all of these networks simultaneously and provide your funds with higher security than a browser plugin wallet. As far as safety is concerned, both MetaMask and Coinbase are online wallets. That means they are convenient for accessing your funds and more susceptible to hackers than physical wallets.
Why use MetaMask?
When you’re new to cryptocurrencies, there are a lot of crypto wallets out there with different features. As mentioned above, one notable difference between a Coinbase wallet vs MetaMask is that Coinbase is designed to store other cryptos while MetaMask focuses on ETH and ERC-20 tokens. Another key difference is that Coinbase wallets connect to Coinbase’s crypto exchange, while MetaMask focuses on Metaverse use.
Storing your crypto in MetaMask is one of your best options for holding onto your digital assets in the Metaverse, if only because it’s compatible. Think of your MetaMask wallet as a ‘walking around’ wallet for your online adventures. You can transfer funds from your main crypto wallet to MetaMask to control how much you spend in the Metaverse. That way, your MetaMask wallet only registers P2P transactions and you can avoid linking sensitive information like your bank account. All the while, you keep the bulk of your tokens in a separate wallet. That can be Coinbase, another online wallet, or a hardware wallet.
