MetaMask is a well-known wallet for Ethereum-enabled distributed applications (DApps). But can MetaMask hold Bitcoin (BTC), which remains the largest cryptocurrency?
For many crypto investors, Bitcoin is an important part of their portfolio. Besides being an investment asset, Bitcoin can also be used as a payment method. Thanks to wallets such as MetaMask, paying via blockchain technology has become much easier. This Ethereum crypto wallet enables millions of investors to participate in everything the crypto market has to offer. Even though Ether (ETH) is a very popular means of payment, most people buy Bitcoin.
However, Bitcoin is not the cryptocurrency you think of when you talk about buying a non-fungible token (NFT) or investing in decentralized finance (DeFi). Still, there may be situations where you would like to use Bitcoin for these actions. So in this article, you will learn how to store Bitcoin with the MetaMask!
MetaMask crypto wallet
MetaMask is an Ethereum wallet that is available as an app and as an extension in the web browser. In other words, MetaMask allows users to store their private keys and then securely use apps and websites with Ethereum-based DApps and smart contracts. One of the most popular crypto wallets, MetaMask recently passed the 30 million user mark in March 2022. This is due, in part, to the rise of decentralized finance (DeFi) and nonfungible tokens (NFTs).
Is MetaMask only for Ethereum?
MetaMask is only suitable for tokens that use the Ethereum blockchain, the so-called ERC-20 tokens. If you want to use other tokens (i.e., tokens that are not ERC-20 tokens), you will have to exchange them for ERC-20 tokens. It would then be possible to store these tokens in your MetaMask.
An example of this is Zcash, a cryptocurrency suitable for making anonymous transactions. This cryptocurrency is not based on the Ethereum network and is therefore not an ERC-20 token. But by wrapping Zcash tokens, you can still use Zcash.
MetaMask hardware wallet
Protecting cryptocurrencies often comes up when people first start their crypto research. It is of great importance, which is why a good wallet is indispensable. A hardware wallet is often recommended because it can be used to store your cryptocurrencies offline. But is MetaMask also a hardware wallet?
MetaMask is not a hardware wallet. It is a software wallet. These wallets are also called hot wallets and are connected to the internet. Even so, you can still connect MetaMask to a hardware wallet. This way, you can also use MetaMask with a Ledger, which is the most well-known hardware wallet.
To do so, open the ETH app, and select "Connect Hardware Wallet" to integrate your Ledger hardware wallet into MetaMask. Then, a pop-up window will open, prompting you to choose your device and click "Connect."
When you use a Ledger with the MetaMask browser extension, the software wallet only functions as a portal and not as a wallet. Your private keys do not leave the Ledger so they are not stored on MetaMask.
Does MetaMask support Bitcoin?
MetaMask supports Bitcoin, but not in the way an exchange wallet accepts the cryptocurrency. Bitcoin is not an ERC-20 token, so the largest cryptocurrency is not accepted directly by MetaMask. However, you can get BTC into your MetaMask in a roundabout way.
That said, do not try to send Bitcoin directly to your MetaMask. If you try to do so, MetaMask will not be able to receive the token, which could lead to negative consequences. You could lose all the Bitcoin you have sent at once, which would be a terrible situation!
How to send Bitcoin to MetaMask?
As you have read, it is not possible to send BTC directly to MetaMask. But this does not mean it is impossible to get Bitcoin into your MetaMask wallet. BTC runs on its own blockchain. On this Bitcoin blockchain, transactions can only be sent to Bitcoin addresses. This is true not only for Bitcoin but also for other blockchains such as Ethereum.
On the Ethereum blockchain, it is only possible to send Ethereum-related tokens. Sending Bitcoin over the Ethereum network is comparable to paying with the euro in the United States. The euro is not accepted as a currency in the United States, but you can use your euros in a roundabout way. By exchanging these euros, you can receive the same value in U.S. dollars and use this as a method of payment.
Nonetheless, if you do not want to exchange your Bitcoin for Ethereum, there are other solutions. This means that you need to lock your BTC in one place and then bring it to the Ethereum blockchain as a new token, which represents the Bitcoin locked on the Bitcoin blockchain. This is also called Wrapped BTC (wBTC), which means Bitcoin as an ERC-20 token.
There are several ways to wrap your Bitcoin. Let's take Binance as an example. On Binance, BTC and wBTC are two different tokens, so you can trade them. By clicking on “Classic” in the Trade section of Binance, you will be taken to the exchange's trading platform. Here you can find the trading pair with both Bitcoin tokens. Here you can enter how many WBTC you want to buy and confirm this by clicking on Buy WBTC.
What if you don’t see your wBTC in your MetaMask? You can easily change this by adding the wBTC token using the steps below:
MetaMask wallet address
To put your wBTC to work, the wallet address of your MetaMask is very important and easy to find. By opening the application and logging in, you will arrive at the main MetaMask screen. Under your account name, you will find your unique code, which acts as your address. This address can be used to receive crypto.
You can share this code with others, but never share the other codes with anyone. Your login and recovery data are meant to protect your assets. If others get these codes, they can abuse them and cause you to lose your crypto assets.
MetaMask alternatives
MetaMask is a popular software wallet, but there are also alternative options. Because of all the different blockchains, several wallets are suitable only for a specific blockchain. Two examples are the Yoroi wallet of Cardano and the Phantom wallet of Solana.
Several software wallets are suitable for the ERC-20 tokens on the Ethereum blockchain. The advantage of MetaMask is that you can use it through websites and the app. This is where MetaMask distinguishes itself from its competitors.
The Trust Wallet, for example, is a much respected software wallet, which can be used as a mobile application as an alternative to MetaMask. The MyEtherWallet and Mist Wallet, two website wallets that accept ERC-20 tokens, are also popular MetaMask alternatives.
Although MetaMask is the most popular all-around software wallet, it never hurts to use multiple wallets. Using different wallets is a type of risk management strategy. By using multiple wallets, you will not lose all your crypto assets when only one wallet is hacked.
Metamask is rather limited, as it is able to store keys for Ethereum cryptocurrencies only. Unfortunately, it cannot be used to store the keys for other types of crypto or digital currencies.
I would only recommend storing small amounts of cryptocurrency in a MetaMask wallet. Better yet, you should use a hardware wallet for all of your storage needs, and use MetaMask as an interface where you'd manage those stored assets. One of the best hardware cryptocurrency wallets ever made.
If you would send your Bitcoin to any Metamask address this would either end up in a failed transaction or a complete loss of your BTC. You of course do not want this to happen. But you still might want to use your BTC on your Metamask wallet, on either Ethereum, Solana BSC, or any other EVM blockchain.
Metamask does not provide a 1099, end of year financial statement, or tax report. In addition, Metamask does not report directly to the IRS. Metamask doesn't collect users' personal information so is unable to generate any of these statements.
Don't share your Secret Recovery Phrase and private keys
Anyone who has your Secret Recovery Phrase or private keys can send tokens out of your accounts. Never share them with anyone, including the MetaMask team. We will never ask you to provide your Secret Recovery Phrase.
It can be used as either a hot wallet (which is always connected to the Internet) or as a cold wallet, where you can connect to such hardware wallets as Trezor or Ledger. Think of the MetaMask wallet as your gateway to everything Ethereum.
Best for Beginners: Coinbase Wallet. Why we chose it: We chose Coinbase Wallet as the best crypto wallet for beginners because it's an intuitive and highly secure wallet backed by a well-known exchange. Coinbase Wallet is an excellent wallet for beginners with little to no experience with crypto.
In order to store your own crypto, you'll need access to a crypto wallet. Hardware wallets and custodial wallets are some of the safest ways to store your crypto, but there are advantages and drawbacks to both options. As you'll learn, crypto users may have a strong preference for one over the other.
Users can lose bitcoin and other cryptocurrency tokens as a result of theft, computer failure, loss of access keys, and more. Cold storage (or offline wallets) is one of the safest methods for holding bitcoin, as these wallets are not accessible via the Internet, but hot wallets are still convenient for some users.
Yes. A variety of large crypto exchanges have already confirmed they report to the IRS. Back in 2016, the IRS won a John Doe summons against Coinbase. A John Doe summons compels a given exchange to share user data with the IRS so it can be used to identify and audit taxpayers, as well as prosecute those evading taxes.
The IRS can and has requested these records from exchanges. In the past, the IRS has issued John Doe Summons to exchanges like Coinbase and Kraken. In addition, exchanges like Coinbase, Gemini, and Kraken issue 1099 forms to customers and to the IRS reporting on your crypto transaction activity.
Yes, the government (and anyone else) can track Bitcoin and Bitcoin transactions. All transactions are stored permanently on a public ledger, available to anyone. All the government needs to do is link you to your wallet or transaction.
Being an online wallet, your browser will collect information about how and when you use MetaMask. This can be a potential privacy concern for cryptocurrency users. MetaMask also holds private keys in your browser. While this makes the app easier to use, it presents serious risks if your browser is hacked.
The scammers prompt the victim to enter their seed phrase into the form, supposedly to unlock the wallet. If the user is taken in and enters the secret phrase, they are redirected to the real MetaMask site, however, their wallet is now in cybercriminal hands.
For example, Coinbase allows its users to run dApps via a web-based platform, while MetaMask offers hardware wallet integrations. Even though Coinbase has integrated with multiple blockchains, it cannot compete with MetaMask's ability to connect with every dApp on the Ethereum blockchain.
Hardware wallets like Trezor, Ledger, Lattice 1, Keystone, or AirGap Vault help make sure you're in full control over your assets with an added layer of security. Using a hardware wallet improves your security with both your private keys and when interacting with smart contracts.
What advantages does MetaMask have? MetaMask offers a secure and convenient wallet. As an open-source application, MetaMask is a reliable tool with an easy-to-navigate user interface and consistent customer support. It offers the users complete control over and access to their funds on local devices.
The main risk to holding all your crypto assets in one wallet is that if you got phished and hacked, you would lose all your funds, whereas if you have them spread out, only that one wallet would be vulnerable.
CryptoVantage Verdict: MetaMask Better for dApps, Coinbase for More Assets. When it's all said and done, the ultimate choice will be determined by a user's preferences and specific needs. Granted, both MetaMask and Coinbase Wallet offer nearly the same functions; however, there are subtle differences to consider.
For the most part, MetaMask is likely a safe wallet to use. The company has not suffered a major hacking incident. MetaMask doesn't store any user data, which can protect you if there are hacks. MetaMask also utilizes local key storage — meaning your private keys are stored by your browser rather than a central server.
A hardware wallet is the safest option for crypto enthusiasts, although it lacks convenience. If you're only looking to invest and hold a few of the big-name coins, an account with a well-trusted exchange could be a safe and convenient option for storing your crypto.
As mentioned previously, it is not wise to keep large amounts of cryptocurrency in any hot wallet, especially an exchange account. Instead, it is suggested that you withdraw the majority of funds to your own personal "cold" wallet (explained below). Exchange accounts include Coinbase, Gemini, Binance, and many others.
Even though Coinbase has integrated with multiple blockchains, it cannot compete with MetaMask's ability to connect with every dApp on the Ethereum blockchain. In the end, you have to consider accessibility and convenience while picking a wallet, especially to store your assets securely.
To send your NFTs to your MetaMask wallet, click on the NFT section on Coinbase or head over directly to Coinbase NFT's official page. Once there, choose the NFT you wish to transfer and copy the NFT ID. On MetaMask, click on the “Add NFTs” section and paste the asset's ID on the ID Box.
We have compiled a list of solutions that reviewers voted as the best overall alternatives and competitors to Metamask, including Coinbase Wallet, ZenGo, Trust Wallet, and MyEtherWallet.
A hot wallet is a cryptocurrency wallet that's connected to the internet. Hot wallets are convenient, but they're also less secure than cold wallets because hackers can more easily access your crypto holdings. Example of Hot Wallets include MetaMask, TrustWallet and the CoinBase Wallet.
There is a higher security risk when using the Android applications you've downloaded. This is because Android is an open source operating system and therefore there are thousands of applications which available on the app store.
To make sure you securely manage your crypto, we designed two hardware wallets: the Ledger Nano S and the Ledger Nano X. Our devices allow you to manage multiple assets with a single hardware wallet, in a secured environment.
Introduction: My name is Saturnina Altenwerth DVM, I am a witty, perfect, combative, beautiful, determined, fancy, determined person who loves writing and wants to share my knowledge and understanding with you.
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