MetaMask is one of the most useful wallets in the crypto space that gives you access to Ethereum’s vast ecosystem. And let’s be honest, who has no desire to participate in everything that is going on in the Ethereum ecosystem?
NFT sales are skyrocketing and companies are launching their own products. You may be wondering how you can participate in this new ecosystem between digital artists and buyers of speculative objects. Perhaps you’ve even heard of the DeFi protocols and want to earn a steady passive income through farming or staking.
These are just a few reasons to equip yourself with a good wallet. This guide to MetaMask shows you how to quickly find your place in this space.
In this article you can expect:
Before we start with a guide to MetaMask Wallet we should first see what the wallet is for. When blockchain technology was first used in 2009, the blockchain was tightly geared towards a peer-to-peer payment system. As you know, the cryptocurrency is stateless, limitless, deflationary and open money as opposed to controlled, centralized and inflationary fiat money.
Over time, Bitcoin development has split into two specializations – Bitcoin Cash (BCH) for fast, cheap daily transactions and Bitcoin (BTC), which is comparable to digital gold and enables more expensive transactions. In the meantime, thousands of other altcoins have hit the market trying to copy the success of the cryptocurrency. Among them, Ethereum (ETH) had a completely different development philosophy.
At the time of its conception, the Ethereum blockchain had a general use case in mind instead of just enabling crypto currencies. By executing smart contracts within the data blocks, the flexibility has been extended far beyond a simple payment system. This enables digital and automated forms of legal or financial contracts with decentralized and security-relevant features of blockchain technology. Essentially, Ethereum created decentralized finance, or DeFi. This is primarily a series of smart contracts that together form a decentralized application or dApp.
These dApps enable the digitization of all imaginable banking services – Lending, borrowing – without the banking system itself. But not only that, marketplaces and games can also run on the basis of Ethereum. They all use Ethereum’s own cryptocurrency, ETH, to pay for various fees. You can also exchange ETH for the tokens of the dApps.
MetaMask is a crypto wallet that supports ETH-based tokens, ERC-20 or ERC-721, in addition to ETH itself. You will also see in this manual MetaMaskthat it connects seamlessly with any Ethereum-based dApp as soon as you have installed the MetaMask Wallet as a browser extension. So if you want to use a dApp, such as NFT marketplaces or yield farming protocols, you can connect your MetaMask wallet to it and move funds fluidly. Just as you like it.
This integration into your web browser – Edge, Chrome, Firefox or Brave – does the MetaMask Wallet extremely convenient and popular, as you can see from the rapidly growing number of users.
The integration of web browsing, blockchain and DeFi stands for Web 3.0, a new type of internet in which both financial services and information are decentralized. In other words: Ethereum is the technical platform for Finance 2.0, and MetaMask is the gateway to this exciting ecosystem.
The first step in gaining access to Ethereum’s rich ecosystem from dApps is to download the MetaMask extension from the official website. Here you will find support for all three major operating systems – MetaMask Windows, MetaMask iOS, and MetaMask Android. Accordingly, MetaMask can be either desktop or mobile, depending on the platform.
As soon as you have installed the MetaMask Wallet in your favorite browser, click on the prompt “Yes, let’s get set up!“To create a wallet.
This is the critical part of the installation where you create a private key to access your money. After all, crypto wallets are not fund holders, but only containers for the private key that grant access to blockchains. Every time you access it with the private key, your transaction is recorded in the digital ledger.
Seed phrase as a recovery point for your MetaMask wallet
After you click on “Create a wallet“You will be asked to create a password for the MetaMask app yourself. The most important part comes after that! Because then you have to create a backup phrase. This security phrase, also known as a seed phrase, consists of 12 words and allows you to restore your wallet even if your device is lost.
So you have two options – import wallet and create wallet. If you’ve already lost your device and all of the data on it, you can restore your crypto assets by selecting the “Import Wallet” option with your seed phrase. So try to keep the 12-word seed phrase separate, securely on a piece of paper or in a hardware password manager. After you’ve made sure that your seed phrase is stored in a safe place, you’ll see this token swapping screen.
As already mentioned, enables MetaMask Wallet the exchange between ETH and dozens of DeFi tokens. You can see ETH as the master cryptocurrency for the entire DeFi ecosystem. Protocols like Uniswap or 1inch are mini ecosystems, each of which has a token for management and network charges.
How to transfer money to your MetaMask wallet
However, before you begin token swapping or other activities with the MetaMask wallet You have to supply your wallet with money first. This means that you have to convert fiat currency to ETH first. MetaMask Wallet offers you two options – Wyre payment processor or wire transfer via a blockchain address.
Not many people have Wyre, and most buy cryptocurrencies on exchanges, so the second option is the most convenient. Of course, you need an account with a crypto exchange to buy ETH. Coinbase, Binance, StormGain are just a few of the most popular crypto exchanges where you can easily buy cryptocurrencies as soon as you have completed the KYC (Know-Your-Customer) procedure.
If you already have an account with some ETH, you can simply add the coins to yours MetaMask Wallet transfer. And this is how it works:
- Copy the receiving address of your MetaMask wallet
- Add this receiving address to the send text box on the crypto exchange
- Carry out the ETH transfer from your crypto exchange (send) to the MetaMask wallet (receive)
Remember that your crypto exchange account is also a wallet. However, you do not have the private key. Hence such a wallet safekeeping. In contrast, MetaMask is a non-custodial Wallet in which you are the owner of your private key. You can access and export your private key at any time by clicking on “Account details”.
Keep your private key safe
You will then see the option “Export private key”, with which you can display or export this on Etherscan. If someone gains access to your private key, they of course also have access to all of your cryptocurrencies. This is exactly what crypto exchange hacks are all about.
The advantage of an exchange is that it protects your private key, but if hackers steal it, they are also stealing all of the exchange’s money. For this reason, you should always have one non-custodial Use (non custodial) wallet, preferably a hardware wallet. Fortunately, MetaMask supports the most popular hardware wallets – Trezor and Ledger.
With the ETH funds in your wallet, the next step is to use it to access dApps.
Remember that dApps are themselves smart contracts that run on Ethereum (others like BSC, Cardano or Solana have their own dApps). The interface level of dApps is your web interface. You will see this when you connect to Uniswap – one of the most popular decentralized exchanges for yield farming.
When you go to Uniswap you will see “Connect to a wallet” in the top right corner.
If MetaMask is installed, a confirmation message will appear asking you to connect your account and the corresponding dApp.
As soon as you click on “Next”, the dApp has access to the credit in your wallet. You can then use this for stakes in a liquidity pool for token pairs. When traders use this pool to exchange tokens, you will receive a share. This is known as yield farming. In Uniswap, this is the option in the top left, right next to Swap.
In the same way that you connect to Uniswap, you will also be able to connect to NFT marketplaces and blockchain games, i.e. all dApps that run on Ethereum.
The matter is pretty simple, even if it’s your first time using it MetaMask working. After you have clicked on the wallet icon in the top right, you will see a list of wallets with direct download links. For example, OpenSea, the leading NFT marketplace, offers its web wallet connection.
It will also appear in the same upper right corner on Rarible.com, the second largest NFT marketplace.
Finally, if you want a more gamified dApp experience, Axie Infinity is a compelling choice. As of July, the project has generated $ 485 million in revenue. Axie Infinity is a yield farming adventure in which you develop your fantasy creatures, complete quests, manage kingdoms and trade NFTs.
If you’re interested in this Pokemon-like project, we’ve already put together a comprehensive guide to Axie Infinity for you. Lots of people use the game as a source of passive income, so it’s worth learning how it works. Now that you can use MetaMask, you have access to myriad opportunities in the growing Ethereum dApp ecosystem.
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