How To Store Bitcoin On MetaMask?
For distributed applications powered by Ethereum, MetaMask is a well-known wallet (DApps). The largest cryptocurrency, Bitcoin (BTC), however, can MetaMask hold?
Bitcoin is a significant component of many cryptocurrency investors’ portfolios. Bitcoin can be used as a payment mechanism and an investment asset. The payment process with blockchain technology has been considerably simpler thanks to wallets like MetaMask. Millions of investors may take advantage of everything the cryptocurrency industry offers thanks to this Ethereum wallet. Even if Ether (ETH) is a highly well-liked payment option, most individuals choose to purchase Bitcoin.
However, whether discussing purchasing a non-fungible token (NFT) or investing in decentralized finance, Bitcoin is not the cryptocurrency that comes to mind (DeFi). However, there may be instances where you want to carry out these tasks using Bitcoin. Consequently, this article will teach you how to use MetaMask to store bitcoin.
Bitcoin wallet MetaMask
The Ethereum wallet MetaMask is accessible as a web browser extension and as an app. In other words, MetaMask enables users to securely store their private keys and access apps and websites that use DApps and smart contracts based on Ethereum. MetaMask, one of the most widely used cryptocurrency wallets, exceeded the 30 million user threshold in March 2022. This is mostly because decentralized finance (DeFi) and non-fungible tokens are becoming more popular (NFTs).
Is MetaMask limited to Ethereum only?
Only the so-called ERC-20 tokens, which use the Ethereum blockchain, are compatible with MetaMask. You will need to trade other tokens (those not ERC-20 tokens) for ERC-20 tokens if you want to use them. Then, you would be able to save these tokens in your MetaMask.
Zcash, a cryptocurrency appropriate for anonymous transactions, is an illustration of this. This coin is not an ERC-20 token because it is not based on the Ethereum network. You can still utilize Zcash, though, by wrapping Zcash tokens.
Wallet hardware from MetaMask
When people initially begin their cryptocurrency inquiry, the topic of protection frequently comes up. It is quite significant, which is why a nice wallet is necessary. Since a hardware wallet can store your cryptocurrency offline, it is frequently advised. Is MetaMask a hardware wallet as well, though?
A hardware wallet is not what MetaMask is. It’s a digital wallet. You may still link MetaMask to a hardware wallet, though. This enables you to utilize MetaMask with a Ledger, the most popular hardware wallet. These online-connected wallets, often known as hot wallets, are.
Launch the ETH app to connect your Ledger hardware wallet to MetaMask and choose “Connect Hardware Wallet.” When a pop-up window appears, select your device and click “Connect” to continue. The Ledger software wallet only serves as a portal when used with the MetaMask browser plugin, not as a wallet. Your private keys are not kept on MetaMask because they never leave the Ledger.
Does MetaMask offer Bitcoin support?
Bitcoin is supported by MetaMask, but not in the same sense as an exchange wallet. Since the most popular cryptocurrency, Bitcoin, is not an ERC-20 token, MetaMask does not directly accept it. However, there is a side route you may take to receive BTC into your MetaMask.
Nevertheless, avoid attempting to transmit Bitcoin straight to your MetaMask. If you attempt to do so, MetaMask won’t be able to accept the token, which can have unfavorable effects. A catastrophic scenario would be if you lost all of your sent Bitcoin at once!
How can Bitcoin be sent to MetaMask?
As you’ve read, sending BTC straight to MetaMask is not possible. However, this does not imply that getting Bitcoin into your MetaMask wallet is impossible on its blockchain, BTC functions. Transactions can only be transmitted to Bitcoin addresses on this blockchain. This holds for other blockchains like Ethereum in addition to Bitcoin.
Sending bitcoin through the Ethereum network is like purchasing in the US using the euro. Although the euro is not recognized as legal tender in the US, there are still ways you can spend your euros. You can use these euros as payment by exchanging them for the equivalent amount in U.S. dollars. Only Ethereum-related tokens can be sent on the Ethereum blockchain.
There are alternative options if you don’t wish to convert your Bitcoin to Ethereum. As a result, you must first lock your BTC somewhere before transferring it to the Ethereum blockchain as a new token that stands in for the BTC that has been locked on the Bitcoin network. Wrapped BTC (wBTC), which stands for Bitcoin as an ERC-20 token, is another name for this.
How is Bitcoin packaged?
You can wrap your Bitcoin in a variety of ways. Take Binance as an illustration. You can trade BTC and wBTC on Binance because they are two separate tokens. You can access the exchange’s trading platform by selecting “Classic” under Binance’s Trade section. The trading pair for both Bitcoin tokens is available here. Enter the amount of WBTC you would like to purchase here and click the Buy WBTC button to confirm.
Address of a MetaMask wallet
The wallet address of your MetaMask is crucial and simple to locate to use your wBTC. You can go to the main MetaMask screen by starting the app and logging in. You can locate your special code under the account name, which serves as your address. Cryptocurrency can be received at this address.
You may divulge this code to others, but you must never divulge any other codes. Your login and recovery information is there to safeguard your possessions. If other people discover these codes, they can misuse them and cost you your cryptocurrency holdings.
Also, read – MetaMask, An Ethereum Wallet, Announced – Token Launch Will Not Be A “Cash Grab.”
Although MetaMask is a well-known software wallet, there are other choices. Numerous wallets are only appropriate for a certain blockchain due to the variety of blockchains. The Yoroi wallet of Cardano and the Phantom wallet of Solana are two examples.
The ERC-20 tokens on the Ethereum blockchain can be used with various software wallets. The ability to use MetaMask via websites and apps is a benefit. This is the area where MetaMask stands apart from its rivals. As an alternative to MetaMask, The Trust Wallet, a highly regarded software wallet, can be utilized on mobile devices. Popular MetaMask alternatives include the website wallets MyEtherWallet and Mist Wallet, both of which accept ERC-20 tokens.
Although MetaMask is the most widely used software wallet overall, having several wallets is never bad. A risk management tactic is using many wallets. If only one of your wallets is hacked, you won’t lose all your cryptocurrency holdings if you use multiple wallets.