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For many cryptocurrency investors, Bitcoin is an important part of their investment portfolio. Besides being an investment asset, Bitcoin can also be used as a payment method. Thanks to wallets like MetaMask, payments via blockchain have become much easier. This Ethereum cryptocurrency wallet allows millions of investors to participate in everything the cryptocurrency market has to offer. Even though Ether 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 NFTs or investing in decentralized finance (DeFi). However, there may be cases where you want to use Bitcoin for these actions. So, in this article you will learn how to store Bitcoin with MetaMask!
1. MetaMask cryptocurrency wallet
MetaMask is an Ethereum wallet in the form of an app and web browser extension. In other words, MetaMask allows users to store their private keys and then securely use applications and websites with Ethereum-based DApps and smart contracts. One of the most popular cryptocurrency wallets, MetaMask recently surpassed 30 million users in March 2022. This is partly due to the rise of DeFi and NFTs .
2. Is MetaMask only for Ethereum?
MetaMask is only suitable for tokens on Ethereum, called ERC-20 tokens. If you want to use other tokens (i.e. tokens that are not ERC-20 tokens), you will have to convert them to ERC-20. You can then 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, you can still use Zcash.
3. MetaMask hardware wallet
When people first learn about cryptocurrencies, they often think about how to protect them. This is of great importance and that is why a good wallet is indispensable. A hardware wallet is often recommended because it can be used to store your cryptocurrency offline. But MetaMask is also a hardware wallet?
The answer is that MetaMask is not a hardware wallet. It is a soft wallet, also known as a hot wallet, and is connected to the internet. Even so, you can still connect MetaMask to a hardware wallet. This way, you can also use MetaMask with Ledger, the most famous hardware wallet.
To do so, open the ETH app and select "Connect hardware wallet" to integrate your Ledger wallet into MetaMask. A pop-up window will then open, prompting you to select your device and click on "Connect". When you use Ledger with the MetaMask browser extension, the software wallet only acts as a gateway and not a wallet. Your private keys do not leave Ledger so they are not stored on MetaMask.
4. Does MetaMask support Bitcoin?
MetaMask supports Bitcoin, but not in the way that an e-wallet accepts cryptocurrency. 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. You may not send Bitcoin directly to MetaMask. If you try to do so, MetaMask will not be able to receive the tokens, which can lead to the terrible consequence of losing all your funds.
5. 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 that 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 like Ethereum.
On the Ethereum blockchain, only tokens related to Ethereum can be deposited. Sending Bitcoin over the Ethereum network is like paying with Euros in the US. The Euro is not accepted as a currency in the US, but you can use your Euros 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 Bitcoin 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, representing the Bitcoin locked on the Bitcoin blockchain. And it is also called wrapped BTC (wBTC), which means Bitcoin as an ERC-20 token.
6. How to wrap Bitcoin?
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 on “Classic” in Binance's Trading section, you will be taken to the exchange's trading platform. Here you can find trading pairs that include 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 wBTC in your MetaMask? You can easily change this by adding the wBTC token following the steps below:
7. MetaMask wallet address
For your wBTC to work, your MetaMask wallet address is important and easy to find. By opening the app and logging in, you will arrive at the MetaMask home screen. Under your account name you will find your unique code, which is your address. This address can be used to receive cryptocurrency.
You can share this code with others but not any other code because otherwise you will send it to the wrong recipient address. Remember not to share other codes with strangers, there will be other people who receive these codes, they can abuse them and cause you to lose your crypto assets.
8. MetaMask alternatives
MetaMask is a popular software wallet, but there are alternative options as well. Due to all the different blockchains, some wallets are only suitable for a specific blockchain. Two examples are Cardano's Yoroi wallet and Solana's Phantom wallet.
Some software wallets are suitable for ERC-20 tokens on Ethereum. The advantage of MetaMask is that you can use it through websites and applications. This is what sets MetaMask apart from its competitors.
For example, Trust Wallet is a highly rated software wallet that can be used as a mobile app alternative to MetaMask. MyEtherWallet and Mist Wallet, two website wallets that accept ERC-20 tokens, are also popular MetaMask alternatives.
Although MetaMask is the most popular multi-purpose software wallet, using multiple wallets will help you a lot. Using different wallets is a type of risk management strategy. By using multiple wallets, you won't lose all your crypto assets when just one wallet gets hacked.
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