How to store Bitcoins on MetaMask?

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2022-05-02 01:50:21

Only Wrapped Bitcoin (wBTC) can be stored on MetaMask as this wallet specifically supports Ethereum-powered distributed applications.

MetaMask is a well-known wallet for Ethereum-powered distributed applications (dApps). But can MetaMask hold Bitcoin (BTC), which is still 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 like MetaMask, making payments via blockchain technology has become much easier. This Ethereum crypto wallet allows millions of investors to participate in everything the crypto market has to offer. Although Ether (ETH) is a very popular means of payment, most people buy Bitcoin.

However, Bitcoin is not the cryptocurrency that comes to mind when talking about buying a non-fungible token (NFT) or investing in decentralized finance (DeFi). However, there may be situations where you want to use Bitcoin for these actions. So in this article you will learn how to store Bitcoins with MetaMask!

Cryptocurrency wallet MetaMask
MetaMask is an Ethereum wallet available as an app and extension in a 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 partly due to the rise of decentralized finance (DeFi) and tokens. unusable (NFT).

MetaMask for Ethereum only?
MetaMask is only suitable for tokens using the Ethereum blockchain, the so-called ERC-20 tokens. If you want to use other tokens (i.e. non-ERC-20 tokens), you will have to exchange them for ERC-20 tokens. It is then possible to store these tokens in your MetaMask.

An example of this is Zcash, a cryptocurrency suitable for conducting 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
Cryptocurrency protection often comes up when people first start researching their cryptocurrencies. It is of great importance, that’s why a good wallet is indispensable. A hardware wallet is often recommended as it can be used to store your cryptocurrencies offline. But is MetaMask a hardware wallet?

MetaMask is not a hardware wallet. It is a software wallet. These wallets are also known as 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 Ledger, which is the most famous hardware wallet.

To do so, open the ETH app and select “Connect Hardware Wallet” to integrate your Ledger hardware wallet into MetaMask. A pop-up will then open, prompting you to select your device and click “Connect”.

When you use Ledger with the MetaMask browser extension, the software wallet only acts as a portal and not 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 exchange wallets accept cryptocurrencies. Bitcoin is not an ERC-20 token, so the largest cryptocurrency is not directly accepted by MetaMask. However, you can get BTC into your MetaMask in a roundabout way.

That said, don’t try to send Bitcoins directly to your MetaMask. If you attempt to do so, MetaMask will not be able to obtain the token, which may lead to negative consequences. You could lose all the Bitcoins you sent at once, that would be a terrible situation!

How to send Bitcoins to MetaMask?
As you have read, it is not possible to send BTC directly to MetaMask. But this does not mean that it is impossible to receive Bitcoins 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 of Bitcoin but also of other blockchains like Ethereum.

On the Ethereum blockchain, only Ethereum related tokens can be sent. Sending Bitcoin over the Ethereum network is comparable to paying in euros in the United States. The euro is not accepted as currency in the United States, but you can use your euro in a roundabout way. By exchanging these euros, you can get the same value in US dollars and use this as a payment method.

However, if you don’t want to exchange your Bitcoins for Ethereum, there are other solutions. This means you need to lock your BTC in one place and then put it on the Ethereum blockchain as a new token, which represents Bitcoin locked on the Bitcoin blockchain. This is also known as Wrapped BTC (wBTC), which means Bitcoin as an ERC-20 token.

How to Wrap Bitcoins?
There are several ways to wrap your Bitcoins. Let’s take Binance as an example. On Binance, BTC and wBTC are two different tokens, so you can trade them. By clicking “Classic” in the Trading section of Binance, you will be taken to the exchange’s trading platform. Here you can find a trading pair with both Bitcoin tokens. Here you can enter the amount of WBTC you want to buy and confirm this by clicking Buy WBTC.

What if you don’t see your wBTC in MetaMask? You can easily change this by adding the wBTC token following the steps below:

MetaMask . wallet address
For your wBTC to work, your MetaMask wallet address is 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’ll find your unique code, which acts as your address. This address can be used to receive cryptocurrency.

You can share this code with others, but never share other codes with anyone. Your login and recovery data is for the protection of your assets. If others receive 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 alternative options as well. Because all blockchains are different, some wallets are only suitable for a specific blockchain. Two examples are Cardano’s Yoroi wallet and Solana’s Phantom wallet.

Several software wallets are suitable for ERC-20 tokens on the Ethereum blockchain. The advantage of MetaMask is that you can use it through websites and apps. This is where MetaMask differentiates itself from its competitors.

For example, Trust Wallet is a highly respected software wallet that can be used as a mobile alternative to MetaMask. MyEtherWallet and Mist Wallet, two website wallets that accept ERC-20 tokens, are also popular MetaMask alternatives.

While MetaMask is the most popular software wallet, using multiple wallets can never hurt you. Using different wallets is a kind of risk management strategy. By using multiple wallets, you won’t lose all your crypto assets when only one wallet gets hacked.

#store #Bitcoins #MetaMask

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