The wallet allows you to manage your crypto assets, as well as assisting you in connecting to decentralized apps (or DApps) which are rapidly increasing in popularity and include the likes UniSwap, PancakeSwap, Maker, and Compound.Finance to name a few.
What is MetaMask?
MetaMask is a cryptocurrency wallet that is predominately Ethereum based, although can also be connected to the likes of the Binance Smart Chain network. The wallet is most commonly used as a browser extension, with over 4 million downloads and provides users with a gateway to using blockchain apps. However, MetaMask mobile is also available for Android or iPhone where users can sync the app with the account on your desktop in a matter of seconds.
MetaMask equips you with everything you need to manage your digital assets including a key vault, secure login, token wallet, and token exchange.
With the ability to connect to both Ethereum and Binance Smart Chain based DApps, users can use their tokens to trade on decentralized exchanges, play games, and spend in gambling applications. Its also a great entry point for DEFI, providing users with a way to interact with decentralized finance applications such as the likes of UniSwap, PancakeSwap, Compound, or Zapper.Fi.
MetaMask Private Keys
MetaMask requires that you store your seed phrase or private keys in a safe place. It is the only way to recover your funds should your device crash or your browser reset. Its recommended that you write this down and stored offline. The most common method is to write your 12-word phrase on a piece of paper and store it safely in a place where only you have access. Its safety is important as if you lose your seed phrase, MetaMask cannot help you to recover your wallet.
Also never share your seed phrase or your private key to anyone, anyone will access will have complete control over your funds.
What is a Web3 Wallet?
You’ll often hear MetaMask described as a Web3 wallet. This is because Metamask enables you to interact with decentralized apps (dApps). In fact, MetaMask is also the most widely supported wallet across the larger DeFi ecosystem.
Web3 Wallets are the software that allows you to interact with Web 3.0, a third generation of the internet. Web 3.0 applications are mostly referred to as decentralized applications or dApps and these are often powered by the blockchain. DApps that exist on the blockchain will often need the user’s tokens to use its features, such as game tokens, trade, stake, earn interest, etc. By using MetaMask you are able to use these dApps while keeping control of your tokens.
Is MetaMask Safe?
MetaMask is only as safe as your own ability to keep your seed phrase or private keys secure. The wallet is also deemed as a “hot” wallet as it connects to the internet, therefore there are also risks.
It is recommended that you only keep small amounts of assets within the wallet (longer-term) or one of the safest ways to use MetaMask is by connecting it to a hardware device, such as a Ledger or a Trezor. In this way, MetaMask is working as a middle man and your funds are not exposed.
Can MetaMask Hold Bitcoin BTC?
Metamask is predominately, for ERC20 tokens, although also supports BEP20 tokens when connected to the Binance Smart Chain. If you send non supported tokens to MetaMask you will lose your crypto. However, you can wrap your BTC, and each WBTC is backed 1:1 with Bitcoin, enabling you to track the Bitcoin price.
MetaMask Swaps Tutorial
MetaMask users can not only store but also compare and swap tokens directly within their wallets. The token swaps feature fetches quotes across multiple decentralized liquidity sources to ensure users the best available prices, with the lowest network fees.
The feature is initially available to users of the MetaMask extension on the Firefox browser, with plans to be rolled out to other browsers and mobile app.
Up to now, MetaMask users would need to go to the website of a specific decentralized exchange or exchange aggregator, sign in, approve each token on each dex, costing money in gas, and then run the swap.
However, now MetaMask has collaborated with ConsenSys to build Swaps: a feature that enables any Web3 or DeFi user to easily access the tokens they need for the sites they use.
Connect MetaMask to Binance Smart Chain (BSC)
Binance Smart Chain (BSC) mainnet was launched on the 1st September 2020 and allows developers to build dApps. BSC relies on a system of 21 validators with a Proof of Staked Authority (PoSA) consensus.
New Defi platforms are already taking advantage of the BSC and their fast transactions and low fees. PancakeSwap and BakerySwap have already gained traction, but to connect to these platforms you will need to use the likes of MetaMask or Trust Wallet.
Louise created the Every Bit Helps YouTube channel back in 2017, after finding the process of buying Bitcoin difficult. Therefore, in an aim to help others, she hopes that her tutorials will make the process of buying, selling and storing crypto a lot easier for newbies in the future.
After spending 20 years working in London in cyber security, she left the corporate life after having her second child in 2018. Louise now travels the world with her two small children trying to make the most out of life.