MetaMask wallet: how does it work in 2023?

Description

With the emergence of cryptocurrencies, there was a need to create a place for safe and accessible storage of tokens for everyone. Crypto-purses became such a place: convenient online services. One of the most popular ones is MetaMask.

What is MetaMask?

MetaMask is a non-custodial over-the-counter wallet that is one of the most popular crypto wallets in the world. It was created by ConsenSys in 2016. It allows you to send, receive, store, and exchange digital assets (cryptocurrencies, tokens, NFT) and interact with decentralized services (stacking programs, DEX crypto exchanges, liquidity pools). It is because of the quality of interaction with DApps that the wallet has gained such popularity.

How to connect a wallet?

MetaMask wallet has two forms to use: as an app for iOS and Android and as a browser extension. MetaMask supports all browsers of the Google Chrome family, which can install extensions such as: FireFox, Brave, and Chrome. Go to the official website metamask.io, select the type you want to use, and download (in the app store or directly on the site).

Investors should be very careful at this stage. Now there are a lot of phishing sites similar to MetaMask. Installing an app in such a case will end up losing money. That's why you can trust the data from the official source: https://metamask.io/.

At the beginning of your work with the wallet, you should remember two types of data: your own password (you set it yourself) and the secret phrase of 12 words.

Come up with a complex password that will be difficult to guess. This will be one of the steps to secure use.

It is also important for every user to remember the secret phrase when creating a crypto wallet! This is the most valuable information for the investor. Losing the secret phrase results in the loss of all funds in the wallet, as there are no other ways to enter a non-custodial wallet.

How many blockchains and cryptocurrencies can I add to my MetaMask wallet?

MetaMask was originally a crypto wallet for Ethereum and the tokens of that blockchain. But later, adding other networks compatible with Ethereum Virtual Machine (EVM) became possible. For example, Avalanche, Avalanche Subnets, Polygon, Optimism, Arbitrum, Lightstreams Mainnet, and Binance Smart Chain. More than 35 blockchains in all. Plus, all the tokens that are created in these networks.

How do I add a new network to my wallet?

To add a new blockchain to your wallet, you need to log into your account, select the "Add New Network" option and enter the following data:

• "Network Name" - what the network will be called in your wallet;
• "New RPC URL" - the blockchain address, some blockchains may have more than one.
• "Chain ID" - numbers, different for all blockchains;
• "Currency symbol" - the designation of the main network token;
• "Block conductor URL" - the address of the site to review transactions and wallets in the network.

You can add tokens within a new network by entering a smart contract number or through CMC or CoinGecko terminals.

There are known networks that are not compatible with the MetaMask wallet. These include TRON, Solana, and the infamous Terra blockchain. Even though many of them are compatible with EVM, the wallet still does not support the tokens of these blockchains. However, an investor can still hold SOL or TRX in MetaMask. Only if these tokens in the wrapped form are created in other available networks: BSC, Ethereum, and so on.

How does MetaMask work?

All transactions and all wallet balances are stored in the cryptocurrency blockchain. The wallet acts as an application for fixing user transactions and their actualization in the network. The right to access the wallet is fixed by a secret phrase, the investor's private key. In contrast to exchanges, which keep keys to the wallets in their offices, MetaMask stores the keys in an encrypted form on the user's device. This eliminates centralized tampering and loss of investment control.

Transactions are signed and sent to the blockchain on the user's computer, and the wallet can be linked to decentralized applications.

A crypto wallet allows you to send, receive and store various cryptocurrencies and tokens. The main information for these actions is the wallet address. It looks like a combination of numbers and letters. For example, it looks like this:

0xF26b3ebF226a4aD592bfd656c559ff0c471CD00e. Knowing this address, you can send and receive cryptocurrency at any time and from any service.

The MetaMask Swap feature is also available. In the wallet, you can exchange any currency the user chooses. It is important to remember that to exchange, you always need to have a basic network token on your balance (ETH in Ethereum, BNB in Binance Smart Chain, and so on). Preferably enough for 5-10 standard transactions. This is necessary to pay the internal transaction fee.

New previously unavailable features include directly purchasing cryptocurrency for fiat in the MetaMask Portfolio DApp. The wallet announced this in April of this year. Users can go to the decentralized app, connect the wallet and select the Buy tab. The service is available in 189 countries with payment by debit and credit cards, PayPal, bank transfer, and others.

Advantages and Disadvantages of MetaMask wallet

MetaMask has the following advantages:

• it is the most accessible and convenient crypto wallet to use in decentralized services;
• a large number of blockchains and tokens available;
• a well-known brand that many major players in the cryptocurrency market recognize;
• quick and easy to get started;
• a convenient form of browser extension;
• moderate level of security.

Disadvantages of MetaMask wallet:

• frequently spoofed by phishing sites;
• possibility of losing control due to the loss of a secret phrase.

How can MetaMask be used?

A crypto wallet can be used for various functions:

• to store coins and tokens
• to receive cryptocurrency
• to participate in contests (so that prizes are credited to your wallet)
• for authorization on various sites using blockchain technology
• to pay for purchases on sites that accept crypto payments
• for replenishment/withdrawal of funds for trading on EXEX

It is important to remember that MetaMask is a hot wallet, which means it runs on a device that is connected to the internet. This puts you at greater risk than using an offline cold wallet to minimize the surface of attack vectors.

Finally, when using MetaMask, you must be aware of which sites you are granting access to. Connecting to EXEX via Metamask to replenish your balance or withdraw funds is safe. You can read about how to refill your balance on EXEX here.

Conclusion

MetaMask is a convenient crypto wallet that has won the hearts of millions of users. It is important that the wallet service does not stand still and develops together with the entire ecosystem of digital assets. Also, a significant advantage of MetaMask is that the wallet has helped many cryptocurrency investors master this type of economy, understand its properties, and use this data to their benefit.