MetaMask is a top crypto wallet that serves as a gateway to the world of decentralized finance (DeFi) and Web3. Here is how the wallet works.
MetaMask is an Ethereum wallet, and crypto users can install it as a browser extension. After installation, users are able to store ETH along with other ERC-20 tokens, allowing them to transfer funds to Ethereum addresses.
MetaMask lets users connect their wallet addresses to dApps built on Ethereum so that they can spend their crypto in games or trade on decentralized exchanges. Additionally, the wallet provides users access to DeFi apps like Aave and Compound.
How to Set Up a MetaMask Wallet
Beginners may find creating a MetaMask wallet difficult. But here is how you can set it up within a few minutes.
First, you need a browser like brave or Chrome to use MetaMask. This is because the browser enables you to download and install the wallet’s extension. Once you install it, you should see a “Get Started” button. Click it to start creating an Ethereum wallet.
The next step involves picking a password which usually has to have at least eight characters. We highly advocate using a unique password you do not use anywhere else. The password should also contain a mixture of lower and upper case letters, numbers, and symbols.
You will use the phrase to recover your wallet if you lose access to your mobile phone or desktop. Once you have written it down, click “Next.”
Now MetaMask will need you to enter the backup phrase, and when you are done, click “Confirm.” After this, you will be directed to the final page, where you just click ” All Done.” And that’s it. You have now successfully created a MetaMask wallet.
Once you log in to your wallet, you can access the list of your asset in the “Asset” tab or use the ” Activity” tab to view transaction history.
How to Use MetaMask
To send crypto, click the “Send” button, enter the recipient address and the transaction amount, then select transaction fee. After that, click “Next,” and the subsequent page will ask you to reject or confirm the transaction.
To interact with a dApp, click the “Connect to Wallet” button on the protocol’s homepage. MetaMask will then ask if you want to connect your wallet to the dApp. Click “Allow.”
It is worth highlighting that connecting your wallet to a dApp simply means allowing it to view your address, and it can’t access your crypto.
Advantages of Using MetaMask
It is popular – Most dApps are compatible with MetaMask, making it possible for users to access several of them.
It is simple – Users only need to remember the twelve-word phrase rather than managing private keys.
It saves space – Being a browser extension, MetaMask does not require much space to be installed.
Disadvantages of Using MetaMask
Insecurity – Since MetaMask provides online storage of crypto assets, it is vulnerable to cyberattacks, making it less secure than hardware wallets that provide offline storage.