Understanding how MetaMask Work
[TL; DR]
🔹 MetaMask is a non-custodial hot wallet which connects with many blockchains, dApps and DeFi.
🔹 Metamask’s key features include swapping service and accessing multiple accounts.
🔹 Trust Wallet, MathWallet, WalletConnect, Fortmatic, Portis and TokenPocket are examples of MetaMask alternatives.
🔹 Users can send ETH and other cryptocurrencies to and from the MetaMask wallet.
Introduction
Crypto wallets are one of the major components of the blockchain since they enable users to store and access their digital assets. The good thing is that there are many wallets for cryptos you can choose from. Nevertheless, it is important to use a secure, reliable and user-friendly wallet because you store your important digital assets and use it frequently. MetaMask is one of the most widely used cryptocurrency wallets.
What is MetaMask wallet?
MetaMask is a non-custodial, hot wallet which is available as a web browser extension. Like other crypto wallets, it enables people to interact with the blockchain that stores their digital assets.
Using Metamask, crypto users can receive, store and transfer their digital assets in a seamless manner. There is no question that MetaMask is one of the most popular crypto wallets since it has over 30 million users.
Once you install the Metamask extension on your web browser you will be able to view your wallet addresses, receive and send your digital assets which include cryptocurrencies and non-fungible tokens (NFTs).
Although, in the earlier days MetaMask only handled tokens on the Ethereum blockchain, now it deals with many other networks including Polygon, Avalanche, BNB blockchain, Fantom, Cronos, Celo and EOS, among others.
As an additional fact, ConsenSys, the largest Ethereum development company launched MetaMask in 2016 to simplify how users access decentralized applications. Apart from using MetaMask as a browser extension, users can install smartphone applications on iOS and Android, making it very accessible. The Metamask extension works on various browsers such as Chrome, Brave, Edge and Firefox.
It is also important to note that MetaMask has many features which make it convenient to use.
Token swapping service: It is very easy to swap tokens using the MetaMask extension or the smartphone applications. Technically, it aggregates price data from various decentralized exchanges to give you the best offer at the lowest fee.
Accessing blockchain games: The MetaMask wallet enables its users to access various metaverse, SocialFi and GameFi platforms. As such, gamers can play various play-to-earn (P2E) games where they get various rewards.
Interaction with decentralized applications: MetaMask allows its users to interact with different decentralized applications. They can connect with social applications, decentralized exchanges and decentralized finance (DeFi) platforms.
Creation of multiple accounts within the wallet: A user can create multiple accounts within the wallet. For example, one can have two or more Ethereum wallets in MetaMask.
Interestingly, someone can also import his/her existing wallet addresses. As an example, a user can import an Atomic wallet address to Metamask.
How to get started using MetaMask?
Now that you know how the Metamask account and Metamask extension work, let’s discuss how you install and use it. The first step is to download the MetaMask extension and install it on your browser.
After installing the MetaMask extension, the configuration process will start. During this process you will choose a strong password for the wallet. As part of the configuration you will get your seed phrase which you need to keep safely at all times. Therefore, you need to write it down. Also note that during the process of creating your account you will need to confirm your seed phrase.
After accepting the MetaMask’s terms you need to confirm your account. From there, you will need to connect it to your blockchains of choice such as Polygon and Celo. Let’s look at how you carry out some important transactions such as sending and swapping tokens.
How to send Ether to MetaMask?
The first thing to do is to get your required wallet address. To do so, select the Ethereum Mainnet in MetaMask, click on the dropdown arrow and click on “Copy Address.” The address you get there is the one you will input in the wallet where you wish to transfer the cryptocurrency from, say ATOMIC wallet.
Therefore, to transfer ETH from the ATOMIC wallet, login and click on ETH. From there click on “SEND” in order for the ATOMIC wallet to open a window where you will paste your wallet address and transfer the amount of tokens you want.
How to swap tokens in MetaMask
In order to swap tokens in MetaMask click on “SWAP” and select the token you want to convert to another. From there, enter the amount you want to swap and then go to the “Swap to” field and choose the cryptocurrency that you want to exchange it for.
The next step is to click on “Review Swap.” MetaMask will show the best exchange quote and the transaction fee, gathered from decentralized exchange aggregators. If you are happy with that click on “Swap.” Once you have done that MetaMask will process the transaction.
Advantages of using MetaMask
A key advantage of MetaMask is the ease of setting it up and using it. MetaMask, an open-source and free to use application has an interface which is simple to navigate. In case you get any problems you seek assistance from its customer service department. You will get essential help within a short period.
Also, you maintain full control of your digital assets at any time on your local devices. The sign in process is very easy as a pop up comes when you want to use the browser extension. Once you make a transaction you get a confirmation in near instant time.
Since the wallet is very simple to use it is suitable for beginners and professionals. It is also best for someone to manage most of his/her assets in one place. As we noted above, you can connect it to different dApps and use it on various browsers.
Both the MetaMask app and the browser extension are highly secure. Although it is a hot wallet, its encryption and seed phrases make it very hard for hackers to exploit it. As well, it gets updates from time to time to deal with any emerging threats. Therefore, it constantly improves its privacy and security features.
In spite of its high security it is not as secure as cold wallets. That is the reason why someone should keep small quantities of their digital assets in it.
The disadvantages MetaMask has
Despite the fact that MetaMask is very popular and has several advantages, it also has some disadvantages.
One of the key disadvantages of MetaMask is that if you lose both your private key and seed phrase you will not be able to access your digital assets. This is because you have the full responsibility of keeping these safely. You will not get any help from MetaMask to access your account if you lose your private key and seed phrase. The reason is that MetaMask does not keep any of these.
Since MetaMask is a hot wallet there is a possibility that it can be attacked one day. In case of any exploit you will lose your digital assets.The interesting thing is that MetaMask has, so far, never been hacked. To prevent hacking you need to use strong passwords, VPN and firewalls.
Also, MetaMask does not support all the cryptocurrencies and digital assets on the market right now. It means that you have to find other suitable wallets to cater for the unsupported digital assets.
Its other disadvantage is that it tends to be slow at certain times of the day. This means that it takes a long time before confirming the transactions when the network is overloaded. In turn, the transaction fee is higher during such periods than at other times.
MetaMask Safety tips
Despite the fact that there are no recorded cases of MetaMask wallet exploits, each user should take steps to prevent such a possibility.
As we have emphasized above, the user should keep the recovery key and seed phrase safely. If you lose these, you lose your digital assets for good.
In a related note, never give your seed phrase or recovery key to anyone. This is because anyone with these details can access your digital assets and use them the way he/she wants.
Aside from the MetaMask wallet, you should have a cold wallet which will control most of your digital assets. The MetaMask wallet should be responsible for small sums of cryptocurrencies which you want to invest or trade from time to time.
It is important to run the MetaMask extension on a separate browser, separate from the one you use for other activities such as gaming. Also, you should not login to your MetaMask account using public shared computers and WiFi. These increase the possibility of malicious actions such as hacking.
Keep your wallet locked at all times. If your wallet is unlocked some websites or malware may access your account details. To keep your MetaMask extension locked, open the extension, click the drop down menu and click on the lock button as indicated in the image below.
It is wise to clear the browser cache regularly, say once per week to reduce the chance of unauthorized applications accessing your information. In addition, use a reliable antivirus program to check your computer for viruses.
Lastly, you should use a strong password which should have between 8 and 12 alphanumeric characters. It should include small and large capitals as well as numerical digits.
MetaMask alternatives
There are many alternatives for MetaMask in the form of other non-custodial wallets and custodial ones. Some of the alternative crypto wallets are Trust Wallet, MathWallet, WalletConnect, Fortmatic, Portis and TokenPocket.
Most of these are multi-chain and multi-platform crypto wallets. This means that they enable their users to send cryptocurrencies to different destinations such as crypto exchanges and DeFI platforms. For example, WalletConnet connects with many decentralized finance platforms such as Uniswap. It is also built on various blockchains such as Polkadot, Solana and Ethereum.
Another good example is TokenPocket which supports the major blockchains like Ethereum, Cosmos and Bitcoin. Individuals can use its web browser extension to access decentralized applications and exchanges. For instance, it connects with gaming platforms.
Like MetaMask, TokenPocket also has smartphone applications for IOS and Android. Although the other Metamask alternatives operate in similar ways, there are some variations on how they function.
However, users can also keep their cryptocurrencies on centralized exchanges such as Gate.io. Specifically, Gate.io has a multi-chain wallet which users can access to manage their different cryptocurrencies. Individuals can store BTC, ETH, BNB and Tether USDT, among others on the platform.
Conclusion
MetaMask is a popular crypto wallet which facilitates transactions in over 450 000 tokens and coins. It connects with various blockchains including Binance Chain, Ethereum, Polygon and Avalanche. It is one of the most secure hot wallets on the blockchain and enables users to access various dApps and decentralized exchanges.
FAQs about MetaMask wallet
What is MetaMask used for?
People use MetaMask in different ways such as sending and receiving cryptocurrencies and other digital assets. It is also connected with many decentralized applications and exchanges which enables the users to make various transactions. People can use MetaMask to access gaming and DeFi protocols.
Is MetaMask safe to use?
Up to this point, MetaMask has proved to be safe since it has not experienced any exploits. The encryption it uses as well as the seed phrases help to secure it against malicious actors such as hackers. It also updates its from time to time to improve its security and privacy. However, the users should ensure that they download the MetaMask Extension and applications from its websites.
Is MetaMask a good wallet?
MetaMask is one of the best web based wallets as it offers various features including swapping services. It is connected to many decentralized exchanges, DeFi and dApps which increases its utility. Above all, it is secure and accessible through web browsers and smartphone applications.
Is MetaMask only for Ethereum?
Although originally MetaMask was an Ethereum wallet it has incorporated other blockchains like Polygon, Avalanche and Binance Chain. However, each user should decide on the networks he/she wants to use on the wallet. Also, it enables transactions in more than 450 000 digital assets.
How much does MetaMask charge?
There are no fixed charges for the various transactions since the charge depends on the route to the best trade. Since it uses different decentralized exchanges for swapping services the gas fees vary. However, MetaMask factors in 0.875% into each quote. Generally, the normal charge fee is around 21,000 Gwei which, however, varies depending on the network load at the time of the transaction.
