Metamask® Extension - The crypto wallet for Defi, Web3 Dapps
Last updated
Last updated
MetaMask is a popular cryptocurrency wallet that supports a broad range of Ethereum-based tokens and non-fungible tokens (NFTs) on supported blockchains. While experienced crypto investors may appreciate the speed and simplicity of the wallet, new investors may find it difficult to navigate. In addition, the wallet does not support Bitcoin, making it a turn-off for investors whose primary investment is Bitcoin.
While all leading cryptocurrency wallets provide a high level of security for safekeeping your crypto assets, improper security practices on behalf of the user can lead to a complete loss of funds. Crypto enthusiasts should take care to store the bulk of their assets meant for trading on exchanges using cold storage methods, and never share your wallet’s login details, recovery phrase, or private keys with anyone.
Easy setup process: Downloading and setting up MetaMask across several platforms is relatively easy. Users can start by creating one wallet and importing it across platforms using the 12-word seed phrase.
Earn rewards via staking and holding: MetaMask users can earn additional tokens through airdrops and staking.1 Staking is the process of locking up tokens in a vault for a certain period to make a profit represented in APY.
Supports a broad range of Ethereum-based tokens: MetaMask supports diverse crypto assets built on the Ethereum network. Examples include Ethereum (ETH), Tether (USDT), USD Coin (UADC), and several others.2
Central hub for dApps: MetaMask supports a broad range of decentralized applications (dApps), which are essential for builders, NFT, and Web 3 enthusiasts.2
No coin-to-fiat conversion: As a decentralized wallet, MetaMask does not support third-party remittance companies, hence users do not have the luxury of directly converting coins to fiat currency.
Absence of 24/7 live customer support: While MetaMask may be good for the majority of its services, customer support is not one of its strengths. Given that the wallet is quite technical for beginners, there is a need for a 24/7 support system. Unfortunately, it does not have one that operates around the clock.
Security, anonymity, and decentralization are some of the most attractive features in the crypto industry and MetaMask does not fail to exhibit these traits. Users can download the wallet software or add it as a browser extension and install it without disclosing identifying data such as name, email, social security number, and address.2 Decentralization is a valuable feature that ensures transactions on the blockchain are visible to connected nodes. It also prevents a single entity from having access to the entire wallet system. This is another feature that is quite different from that of the bankrupt FTX protocol, where a particular entity gained unauthorized access to the central system, stealing around $600 million in crypto from the protocol.3
Besides supporting cryptocurrencies, MetaMask is a versatile product in the marketplace, supporting tokens on the ERC-20 protocol, and storing non-fungible tokens (NFTs) which can be connected with marketplaces such as OpenSea.2 The wallet also supports multiple blockchains including the Build and Build (BNB) chain, Polygon, Avalanche, and more.
Despite having over 30 million active monthly users, there are some downsides.4 The wallet does not support Bitcoin, the largest digital asset based on market capitalization. Being technical, with no live customer support, the wallet may not be suitable for new crypto investors.
MetaMask's approach to security is through anonymity and entrusting private keys to users. Since the wallet does not keep users' personal information, accounts are protected by a user-generated password during installation and setup, or biometric data on mobile devices. The wallet can be recovered via a 12-word mnemonic phrase as the wallet doesn't keep custody of private keys. It is, therefore, necessary to keep this seed phrase safe as it will be essential if the device gets damaged or stolen.2
MetaMask has just one way of recovering a single wallet across multiple devices. This makes the wallet susceptible to hacks and malware. Notable among these are Banker Trojan, social engineering attacks, and other crypto scams. MetaMask wallet users can be attacked with phishing scams that prompt them to reveal their seed phrases on suspicious websites, or by downloading and installing a fake version of the wallet extension which hackers can leverage to steal users' assets after gaining control of the wallet.
One of MetaMask's priorities is anonymity. Unlike centralized crypto exchanges that require users to meet Know Your Client (KYC) requirements, this wallet doesn’t require users to submit personal information. However, the wallet warns that transactions are not solely anonymous, but classifies exchanges as pseudonymous. Since transactions are recorded on the public blockchain, the wallet ID acts as a pseudonym for the user.
Given that MetaMask does not support Bitcoin, CoinJoin transactions are not enabled. A CoinJoin is a process in which different users mix their coins together before sending them to recipients, ensuring that the senders and recipients remain anonymous.
The process of setting up MetaMask is easy. Users start by downloading the mobile app for Android or iOS, or the browser extension for Brave, Google Chrome, Opera, Microsoft Edge, or Firefox. After this, users will either be prompted to import an existing wallet using the 12-word seed phrase or create a new wallet. New users can click “Create a Wallet” and will be asked permission to gather anonymous usage data to improve the product. Users can opt out of those that may seem privacy sensitive, such as requests for private keys, transaction data, or IP addresses, as part of MetaMask’sprivacy policy.2
Users can then proceed to set up their eight-character password and their 12-word seed phrase will be presented. Users must keep these safe because should they go missing, access to the wallet will be lost permanently. Once the seed phrase is confirmed, users can carry out transactions such as send, buy, swap, and stake seamlessly.
MetaMask functions as an in-browser application for desktop or laptop computers, as well as a smartphone app available on the Google Play Store and Apple App Store. The wallet can be seamlessly integrated with various crypto websites such as OpenSea, Uniswap, and QuickSwap.
The MetaMask wallet app allows users to send or receive coins with any other wallet or smart contract provided a supported blockchain is used. Users also have the option of buying coins using providers on the platform, such as MoonPay, Wyre, and Transak. While the wallet doesn’t require users to meet KYC verification, these third-party providers do to remain compliant. The wallet is compatible with hardware wallets such as Ledger and Trezor, giving users room to transfer crypto and NFTs from a software-based hot wallet to a hardware-based cold wallet for safe storage.2
While it is easy to use MetaMask on a connected website to send, swap, and receive tokens, users cannot sell tokens on the wallet. As such, they will have to send their coins to an external wallet before converting them to cash.e converting them to cash.
