Coinbase Wallet vs. MetaMask: Best Wallet 2024 (Expert Reviewed)

In this guide, we break down the pros and cons of two of the world’s most popular cryptocurrency hot wallets — Coinbase Wallet and MetaMask. By the time you’re finished reading, you’ll have a better understanding of which wallet is best for you.

Should I choose MetaMask or Coinbase Wallet? 

MetaMask and Coinbase are both considered good options for crypto investors. The answer to which is better for you may differ depending on your specific needs. 

Here are three questions to consider when choosing between wallets. 

Do I value decentralization and the open source ethos? 

Many cryptocurrency investors believe in decentralization and open source — as cryptocurrency was founded on the principles of financial independence and transparency. 

Because MetaMask is open source, many investors see it as more aligned with the ethos of cryptocurrency. 

Am I looking for support for multiple blockchains? 

While MetaMask is a great option if you’re looking for support for Ethereum and EVM-compatible assets, Coinbase is a better choice if you’re looking to store cryptocurrencies on other blockchains — like Bitcoin, Solana, and Dogecoin. 

Am I looking for a better user experience? 

Many users report that Coinbase Wallet runs more smoothly than MetaMask on mobile and on desktop. 

What is MetaMask?: Pros and Cons 

MetaMask is a free-to-use hot wallet designed specifically for assets on the Ethereum blockchain. 

The wallet was developed by ConsenSys Software Inc., but MetaMask’s code is open source — allowing developers all over the world to verify MetaMask’s security for themselves! 

Let’s walk through some of the pros and cons of MetaMask. 

Pros 

User friendly 

MetaMask’s mobile app and browser extension are both considered incredibly user-friendly! 

Hardware wallet integration 

MetaMask can integrate with hardware wallets such as Ledger, Trezor, and Lattice! 

Popularity

Because MetaMask is one of the world’s most popular hot wallets, it can integrate with most decentralized applications! 

Portfolio tracker 

MetaMask Portfolio allows you to view the complete value of your cryptocurrency holdings — including your holdings in MetaMask, Coinbase exchange, and Binance! 

Other crypto portfolio trackers allow you to track across non-evm chains as well.

Cons 

Ethereum only 

At this time, MetaMask can only support the Ethereum blockchain and ERC-based assets.

Is MetaMask secure? 

MetaMask is safe. Let’s walk through some of MetaMask’s key security features: 

End-to-end encryption: MetaMask protects your privacy through end-to-end encryption. 

Transaction previews: MetaMask protects you from malicious smart contract requests by providing a preview of each transaction. 

Hardware wallets: MetaMask integrates with hardware wallets like Ledger and Trezor to provide an extra layer of offline security. 

What is Coinbase Wallet?: Pros and Cons 

Coinbase Wallet is a self-custody hot wallet created by Coinbase. Currently, Coinbase Wallet offers a browser extension and mobile app, allowing investors to access their cryptocurrency on all of their devices! 

Pros 

Clean UI 

Like MetaMask, Coinbase Wallet has been praised for having a user-friendly interface.  Users have reported that Coinbase Wallet runs more smoothly than MetaMask on mobile and on desktop. 

Support for multiple blockchains 

Unlike MetaMask, Coinbase Wallet offers support for cryptocurrencies built on multiple blockchains — such as Bitcoin and Dogecoin. 

Personalized username 

Coinbase wallet allows you to set a personalized username for your wallet within the app (ex. yourname.cb.id). This eliminates the need for you to memorize your wallet address — typically a long string of numbers and letters. 

Coinbase Wallet web app 

Coinbase Wallet released a web app that allows you to get a complete view of your crypto holdings, create a free NFT mint, and trade over 2 million tokens! 

Cons 

Not open source 

Unlike MetaMask, Coinbase Wallet’s code is not fully open source. As a result, critics claim that Coinbase Wallet is not aligned with some of the cryptocurrency ecosystem’s core values, such as decentralization and transparency. 

Is Coinbase Wallet safe?

Coinbase Wallet is considered highly secure. Let’s walk through some of the key privacy features of Coinbase Wallet: 

Transaction previews: Coinbase Wallet gives you a preview of all transactions — allowing you to accept or reject each one. 

dApp blocklists: Coinbase Wallet features dApp blocklists so that you don’t interact with known malicious smart contracts. 

Hardware wallet integrations: Coinbase Wallet integrates with Ledger cold wallets — giving you an extra layer of offline security. 

Is Coinbase Wallet the same as the Coinbase exchange?

It’s important to remember that Coinbase Wallet and Coinbase exchange are two separate products. The Coinbase exchange allows you to buy and sell cryptocurrencies, while Coinbase Wallet allows you to custody your crypto and gives you control over your private keys. 

Why do I need a cryptocurrency hot wallet? 

MetaMask and Coinbase Wallet are both considered ‘hot wallets’ — cryptocurrency wallets that are connected to the Internet, give you custody of your holdings, and allow you to send and receive crypto. 

Hot wallets also allow investors to easily interact with decentralized protocols like Uniswap and NFT marketplaces like OpenSea. 

Should I use MetaMask or Coinbase for NFTs? 

Both MetaMask and Coinbase Wallet allow users to buy, sell, and trade NFTs. 

If you’re an NFT investor wondering which wallet is best for you, you should take a look at our list of pros and cons above. 

MetaMask vs. Coinbase Wallet fees 

When you transfer cryptocurrency to or from MetaMask and Coinbase Wallet, you will be required to pay relevant blockchain fees. 

Neither MetaMask nor Coinbase Wallet charges additional fees for transferring crypto. However, you may pay fees for using the wallets’ built-in exchange. 

MetaMask fees: MetaMask charges fees for buy and sell transactions using its ‘Swaps’ feature. All swaps are subject to a 0.875% flat fee. 

Coinbase Wallet fees: Buying and selling crypto within the exchange is subject to standard Coinbase fees — between 0.05 - 0.60%. 

Can the IRS track transactions on my MetaMask and Coinbase Wallet? 

While transactions on cryptocurrency wallets like MetaMask and Coinbase Wallet are pseudo-anonymous, the IRS can still track your transactions. Remember, transactions on blockchains like Ethereum and Bitcoin are publicly visible and permanent. 

In the past, the IRS has worked with contractors like Chainalysis to match ‘anonymous’ wallets to known individuals.

In recent years, the IRS has been paying close attention to the cryptocurrency ecosystem. That’s why it’s important to report all your taxable income from cryptocurrency — including your gains and losses from your hot wallets. 

Crypto tax software like CoinLedger can help you complete the process in minutes — just plug in your wallet addresses and let the platform generate your tax reports!