As cryptocurrency is rising in popularity across the globe and an increasing number of people are embracing it, the amount of theft in the cryptocurrency world has also boomed. It has risen at an incredulous rate and as a result of that, security of cryptocurrency has become even more critical these days. Digital wallets are very important for you to store your cryptocurrency.
Digital wallets serve the same as a physical store, storing your digital currencies. Here we are going to talk about the main differences between two of the most popular ones Metamask and Coinbase. Let’s get started.
Metamask vs Coinbase Wallet: All You Need To Know
What is the difference between Hot and Cold wallets?
Hot wallets are those that are online. Their main feature is that they can be accessed from any device with internet access. As a result, they are more exposed to the tricks of hackers.
If a hacker accesses the raw keys on the servers, he can steal your cryptocurrencies
The private keys are stored on the wallet’s online servers, while the person only has the username and password of their account. If a hacker manages to access the wallet servers, they can steal your information and the cryptocurrencies that you have stored in your hot wallet.
That does not mean that no one should use them. In fact, they are very useful for those who need to make transactions very frequently. Coinbase is a popular hot wallet.
In contrast to hot wallets, cold wallets store cryptocurrencies off the grid. In this case, there are three subtypes:
The portfolios desktop: these are downloaded and installed on a device. An advantage and disadvantage at the same time is that you can only access this wallet from the computer on which you downloaded it. Although that is the reason why it offers a higher level of security, the stored cryptocurrencies will be susceptible to theft if the computer or device is hacked or in the case of a virus. Among the best known are Electrum, Bitcoin Core or Bitcoin Armory, among others.
The portfolio’s hardware: is a device, usually a USB where you store your private key user. Although they are used to make online transactions, the funds are kept off the network, which guarantees a higher level of security as long as you do not lose the hardware. They can support different types of digital currencies and be compatible with various web interfaces. Some of the most used are: Ledger, Trezor and Keep Key.
The portfolio’s role: as its name suggests, it generates a QR code for your Bitcoin for, literally, having it printed on paper. It also refers to a physical copy of the public and private keys. Or, it can be a piece of software that is used to generate a key pair in a secure way, which in the same way you must then print. With this option, transactions have more steps, since you must transfer the funds from the software wallet to the public address of the paper wallet or vice versa.
Coinbase Wallet is Coinbase’s digital wallet and it serves to store cryptocurrencies for the long term if we do not intend to constantly operate with them. It is an independent application that does not need to be linked to an account on the platform, although they may be compatible. We review the main features of this application, what it is, how it works and how it relates to Coinbase.
What is the Coinbase Wallet
It’s a virtual wallet that is called to store cryptocurrencies. Inside this wallet is where the private keys are stored for the security and accessibility of the user to their cryptocurrencies. Also, through a digital wallet, it is possible to send and receive cryptocurrencies, as well as make payments or purchases in certain cases.
How does the coinbase wallet work?
Through the Coinbase Wallet application, the user will be able to have a series of actions and tools, among which the following stand out:
- Access to your cryptocurrencies stored in a secure and password-protected environment.
- Control of keys and passwords.
- Send and receive cryptocurrencies without geographic limitation.
- Use usernames and not public key addresses (long addresses) for interaction.
- Perform scans of decentralized finance applications.
- Make purchases in stores that accept cryptocurrencies.
Is Coinbase the same as Coinbase Wallet?
No. Although they are compatible, they offer different services. Coinbase is the main platform through which it is possible to buy and sell or exchange cryptocurrencies with fiat money , or transfer that money to bank accounts. It is an environment designed for cryptocurrency investment operations, in which access to private keys is managed by the platform itself to guarantee security.
While in Coinbase Wallet it is possible to store private keys, and also send or receive cryptocurrencies, that is, it is like a wallet where you store cryptocurrencies in a more secure way. It is also possible to explore decentralized applications as well as make payments in environments that allow the use of cryptocurrencies for this purpose. It is non-binding, so it is not necessary to have a Coinbase account .
The cryptocurrency only exists in huge databases called books of account. These accounting books are a record of all cryptocurrency transactions that have taken place.
What are some of the pros of the MetaMask wallet?
- Open source: MetaMask’s code can be accessed online for free. Which means that if you have a knowledge of the field, you can build it yourself at home. Open source also helps MetaMask get improved continuously.
- HD Configuration: The hierarchical determinist configuration helps users make a security copy of their accounts. You can give the user a list of words called similar phrases. The initial sentences can be used to restore the lost information of the account.
- Purchase of built-in coins: MetaMask links directly with the exchanges where users can buy cryptocurrencies. Users can select Coinbase to buy Ether and ShapeShift to buy Ether or ERC-20 tokens.
- Customer attention: MetaMask wants to involve the largest number of possible people on the Ethereum red. It has a video introduction on its home page and a detailed support page.
- Simple interface: Once configured, MetaMask is very easy to use – This is a feeling that is also repeated in revisions of the MetaMask billet of other users. All its features are clearly presented so that sending and receiving money is easy, even for beginners.
- Local key storage: Some billet suppliers store keys in their own servers . These are common exchanges that provide wallets, such as Coinbase. The MetaMask keys are stored in the user’s own browser, on any remote server. This gives the user more control over his public and private keys.
What are some cons of MetaMask wallet?
Browser access: MetaMask does not have access to your information, but the browser is the one that is installed. Your browser will not have access to your private codes, but you can collect information about when and how you use the application. Mozilla and Google are not so popular in the crypto community. Many crypto users will feel uncomfortable allowing these companies to gather information about them. This may prevent some potential users from using the MetaMask wallet.
Online : Online wallets have advantages and disadvantages. One of the main disadvantages is security. Any information that is stored online runs more risk for computer pirates than the information that is stored without connection. MetaMask does not provide enough security by itself. Remember to always use multiple wallets for storing your cryptocurrency.