What You Need to Know About Metamask

The crypto market entered a bull market phase in 2020, which continued in 2021 and created many new opportunities for retail and institutional investors. Today, not only are there over 5,000 new cryptocurrencies, but it's estimated that the number of crypto users has grown to 300 million on a global scale.  

One of the main components of crypto trading is that crypto users have crypto wallets. Without them, the businesses and the users won't be able to transfer funds on the blockchain network. MetaMask is regarded as one of the most popular crypto wallets used by over 20 million crypto owners worldwide. So, what is Metamask? How does it differ from other crypto wallets? We cover everything you might want to know about MetaMask and crypto wallets below.
 

Crypto Wallets and MetaMask 

Crypto wallets, as we mentioned, are essential for crypto users. Digital crypto wallets are utilized to virtually sign and transfer the crypto transactions on the blockchain network, keep track of the crypto payments, and store the crypto funds.  

Crypto wallets come in many formats nowadays, including web wallets, mobile, desktop, and hardware digital wallets. What they all have in common is that they have public and private keys, which are virtually used for the authorization of crypto transactions.  

Otherwise, there are some differences when it comes to the storage of the funds based on the type of crypto wallet. Obviously, if you choose a hardware crypto wallet, you won't be able to access online trading sites directly, but you will access your funds offline.  

When it comes to MetaMask, it's an open-source wallet by Aaron Davis and Dan Finlay, which means you will install the wallet application to your device. Specifically, there is a web-based wallet and a mobile app. Hot wallet are generally considered unsafe when it comes to their vulnerability to possible cyberattacks. However, MetaMask, to this date, hasn't suffered an attack, and it runs on a high-end HD backup setting. Also, you will have total control over your funds from both apps.  

Main Advantages of MetaMask 

What makes this wallet great is that the users are able to access the secure MetaMask browser extension and mobile app. The browser extension is available on Brave, Chrome, Edge, and Mozilla web browsers.  

What makes this software-based crypto wallet unique is that it's designed to interact with Ethereum's blockchain. Actually, the main purpose of the wallet is to make it easier for users to access Ethereum's blockchain.  

As a result, users can easily and safely, without downloading the entire Ethereum blockchain, receive ERC-20 and ETH tokens. The wallet is integrated with popular exchange sites like Coinbase, which means retail investors can quickly access their accounts, keep track of their investments, and trade on the move. In addition, since it's created basically for the Ethereum blockchain, users can also use the same wallet to store NFT art, for example.  

Otherwise, some of the main features of crypto wallets are that it enables users to manage account keys, make Ethereum-based crypto payments, and also receive Ethereum transactions. Another advantage is that the users can connect to blockchain-based decentralized applications or (DApps). 

Final Thoughts 

In conclusion, whether you're looking to trade crypto online or invest in crypto in the long run, you need to do your own research before you sign up on any crypto wallet. Of course, having hot wallets is a much better alternative for online trading, and they are necessary for most transactions online. 

But, it's equally important to invest in cold storage options like hardware wallets to back up your crypto funds. The same applies to MetaMask; it's a great software-based crypto wallet, especially for Ethereum users. It's very secure and quite popular in the crypto community, and you can use it on the go, but, again, it would be advisable to back up your crypto funds with a cold-storage option.