Contributor, Benzinga
January 20, 2022

In 2021, a huge year for cryptocurrency adoption, saw the number of Ethereum users rise from 51 million to 71 million. Because of the rise of non-fungible tokens (NFTs), decentralized finance (DeFi) and high yield products, more people are looking to get in on the action. An Ethereum “user” is identified by their wallet address – the Web3 version of username and password. Creating an Ethereum wallet is simple, and many people use MetaMask to create their first wallet. Here’s everything you need to know about how to use MetaMask. 

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How To Use MetaMask: Step-by-Step

MetaMask is a cryptocurrency wallet that holds your blockchain address information to access your crypto while providing access to new projects on the blockchain. MetaMask is like a PayPal Holdings Inc. (NASDAQ: PYPL) account for crypto as it can be used in a variety of places. However, unlike PayPal, funds in a MetaMask wallet are wholly custodialized by the user. In this sense, MetaMask is more of an intermediary between crypto traders and decentralized finance (DeFi) applications. 

  1. Download MetaMask on Google Chrome.

    The first step in obtaining a MetaMask wallet is to download the browser extension onto Google Chrome through MetaMask’s website

    The browser extension is designed for quick and easy use when browsing the blockchain. Once you have the application downloaded, you need to create a wallet.

  2. Keep your seed phrase safe.

    To create a MetaMask wallet, you will be assigned a seed phrase. This phrase is a string of words and is a key to your wallet in the event that you become locked out. 

    It is important to keep your seed phrase safe. If a hacker were to obtain your seed phrase, they could easily access your account and steal all of the funds. The most secure recommendation is to write down your seed phrase on paper and store it somewhere safe.

  3. Send crypto to your MetaMask wallet.

    Once you have MetaMask set up, you need to fund it. To do so, you create an account on a trading platform. Benzinga recommends Coinbase Global Inc. (NASDAQ: COIN), eToro, Webull, FTX and Gemini for a smooth and straightforward experience. 

    Once you have an account on a trading platform, you can fund it with a bank transfer. From there, you’ll want to purchase Ether, the native asset of Ethereum, as it’s the most widely used cryptocurrency on Ethereum’s blockchain, and it’s necessary to pay transaction fees in Ether.
    After you have ETH or another Ethereum-based cryptocurrency, you send it to your wallet. At the top of your MetaMask wallet, there is a 64 character string of letters and numbers. This is known as your wallet address. Copy this and enter it into the send feature on your trading platform. If you would like to send a crypto that is not based on Ethereum, you will have to add a new chain to your wallet, which this article covers later.

    It is best to send a small amount to your wallet first to test if everything is working. If you successfully transfer a small amount from the trading platform to your wallet, you can go ahead and send the rest. This process is not required, but could potentially save the entirety of your investment in the case that there is an issue with the transfer.

  4. Connect your MetaMask to Web3 dApps.

    With your funded MetaMask, you are ready to begin using Ethereum applications in their full capacity. You need to connect your wallet to projects in order to trade your crypto. Most projects have a button in the upper right hand corner that says “connect your wallet.” When you click this and select MetaMask, you will be prompted to enter your password. It is important to only connect to sites that are safe.

BZ

Never Do This!

Never connect your wallet to websites that are sent to you via links on Twitter or Discord. These are often phishing scams! Anything that asks you to connect your wallet, advertises an NFT mint presale, or a free airdrop is likely trying to scam you!

What Is MetaMask Used For?

In essence, MetaMask allows users to access their Ethereum wallet and connect to DeFi protocols. But what does that actually mean?

The three major uses of MetaMask are access, NFT trading and staking. NFTs and staking are DeFi systems. DeFi is a broad term that essentially means the ability to make fiscal transactions without the need for an intermediary, such as a bank or brokerage. 

NFT trades and staking both require wallets in order to be accessed. NFTs are ways for digital media to be represented and to have ownership verified since each NFT has a distinct code attached to it. To buy, sell or hold an NFT, you need a wallet.

Staking is another DeFi system. It involves the borrowing and lending of money. Users can lend (or stake) their crypto positions and receive a reward for doing so. Crypto interest rates are often much higher than traditional sayings accounts as there is no intermediary taking a cut for itself.

MetaMask can be used as a place to access your crypto because wallets give holders full custody over their funds. This feature differs from a trading platform in which the platform holds your funds and makes trades on your behalf. Storing crypto on MetaMask may be safer in this regard, as you are no longer taking the risk of the trading platform being hacked and having your investment stolen.

How To Add Binance Smart Chain To MetaMask

MetaMask’s default blockchain is Ethereum. If you would like to trade on another blockchain, you have to add it manually. Fortunately, you will find this to be a simple process. An example would be to add the Binance Smart Chain (BSC) to gain access to projects on its chain such as PancakeSwap and Venus.

On your MetaMask wallet, head to the settings tab in the top right corner. Enter the Networks page. In the top right, select “Add Network.” From there, you will be asked to enter in some information about the chain. Here is the info and where it should be entered:

Network Name: Smart Chain

New RPC URL: https://bsc-dataseed.binance.org/

ChainID: 56

Symbol: BNB

Block Explorer URL: https://bscscan.com

After this, you will be able to trade on BSC. However, you need to repeat steps 3 and 4 from earlier to fund your account with BNB

This process can be applied to most blockchains. If you search for the Remote Procedure Call (RPC) input plus the chain you are looking for, you will be able to find the correct inputs.

MetaMask Airdrop

Crypto projects that issue tokens often reward early adopters with a share of the token’s supply at launch. These airdrops occur when a project gives out tokens to users for free or at a discount as a reward for using the project.

Rumors of MetaMask’s own airdrop of MASK tokens have been swirling. While an airdrop has not been confirmed, it could very well happen. Most likely, the airdrop would be set up in a way so that the users with the oldest MetaMask accounts or most usage would receive the most tokens.

Is MetaMask Safe?

If used correctly, MetaMask is safe. It uses passwords and account deactivation measures to help protect its users' investments. However, MetaMask user error can result in funds getting stolen. Crypto scams are common and involve having users connect their wallet to the scammer’s site, which it then uses to steal the contents of the wallet. To avoid this, read up on sites before connecting your wallet. Explore what has the community said about them and find out if the developers are public or anonymous. Questions like these could potentially save your crypto holdings.  

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts
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About Caden Pok

Caden has been involved with crypto since 2018, when he began investing, trading, and mining tokens. He took part in undergraduate research studying cryptoeconomics at the University of Michigan, where he will graduate Phi Beta Kappa with a bachelor’s in economics in 2025. He is experienced with DeFi technology and multiple blockchains, currently investing in Ethereum and Bitcoin.