What is Metamask? A Comprehensive 2023 Guide

Cryptocurrencies and the decentralized internet have many building blocks, but few are more important than the humble cryptocurrency wallet. Wallets are part and parcel of the blockchain user experience, and MetaMask is perhaps the biggest name in the wallet game.

Ease of use and simple, effective design are hallmarks of MetaMask, and it’s an extremely convenient solution since it works across practically all devices. This is a good thing because, wherever you are on your crypto journey, MetaMask is bound to come up as an option for your use.

But what is MetaMask, and where does it fit in among the spectrum of crypto wallets? Let’s investigate.

What is a Crypto Wallet?

Before truly going into the details of what MetaMask is and how it works, though, we need to explore the significance and need for crypto wallets.

Whatever assets you own on a public blockchain can only be accessed with a private key. You can compare this private key to the physical key of your house, which has an address just like your on-chain assets do.

This private key is kept safe and accessible by your crypto wallet. Essentially, a wallet provides an interface through which you can interact with your on-chain assets. Therefore, you need a wallet to send, spend, and receive digital assets such as cryptocurrency coins and tokens, including NFTs.

A blockchain client is what’s required to do this, but a classic command-line interface isn’t suitable for average users, even though it’s the tool of choice for developers. For this reason, blockchain communities have developed many resources that allow connections between the traditional internet and blockchain networks.

MetaMask is one of these resources, developed for the Ethereum blockchain network but usable across many others.

What is MetaMask?

MetaMask is a web browser plugin and mobile app that serves as a crypto wallet as well as an interface allowing users to interact with various blockchain networks and decentralized applications (dApps) that are integral to Web3.

Given that it’s available as a browser plugin or app, it can be classified as a ‘hot’ wallet. This means that it relies on an internet connection, and while it does keep assets safe while offline, you need internet connectivity to use it.

According to the MetaMask extension’s documentation, it does not store your email address, passwords, recovery seed phrase, or other private keys.

However, the crypto community went into a frenzy in 2022 over a report that banking giant JPMorgan owned an influential stake in MetaMask developer ConsenSys AG.

MetaMask’s position on the topic is that JPMorgan is merely one of many participants in multiple funding rounds carried out by the firm.

Why is JPMorgan’s Involvement a Problem for MetaMask?

It’s considered an industry standard for blockchain firms to have funding from venture capitalists, Web2 firms, and even TradFi institutions. However, JPMorgan doesn’t appear to have the best reputation in the community, being synonymous with a laundry list of fines for various violations and the alleged support of then-client Wall Street sex trafficker Jeffrey Epstein.

Jeffrey Epstein with Donald Trump at the ex-president’s Mar-a-Lago Estate in Florida, 1997

Jamie Dimon, the JPMorgan CEO, is also embroiled in the lawsuit, and an attorney for the U.S. Virgin Islands argued in a federal court that “Dimon knew in 2008 that his billionaire client was a sex trafficker.”

Dimon, who takes home a salary of over $34 million, is famous on the internet for his lack of understanding of household budgeting, as demonstrated by Californian representative Katie Porter. He is also an outspoken critic of Bitcoin, but his bank gives wealth management clients (read: millionaire customers) access to several crypto funds.

Different Types of Wallets

Now that you know that MetaMask falls under the category of a hot wallet, what other types of crypto wallets are there? Let’s take a look.

#1. Hot Wallets

As mentioned, a hot wallet connects to the internet. This can pose additional risks to the user since a connection to the internet introduces the possibility of hacking, but convenience balances that out. Accessing MetaMask is just a matter of clicking on the browser plugin tool and logging in with your password.

Hot wallets can also come in the form of more complex desktop blockchain clients. Bitcoin Core is a notable example of this.

#2. Cold Wallets

Cold wallets are the direct opposite of hot wallets because they do not require an internet connection. That makes them very safe by comparison since they can’t be hacked, but the problem of physical storage does arise. A simple piece of paper is likely to be your first cold wallet, but there are far more sophisticated options out there.

#3. Hardware Wallets

Hardware wallets individually handle public addresses and keys and come in the form of small, easily portable devices with an OLED screen and buttons. They don’t usually have batteries and can be connected to your computer to be accessed by a native app.

Wallets like MetaMask often interface quite easily with these hardware wallets, and they offer the safety of a cold wallet, though with a significant investment if you’re a crypto newbie.

#4. Multi-asset Wallets

Multi-asset wallets can come in different forms, but the key distinction is that they store keys for multiple blockchains. They’re convenient for users trying to build a crypto portfolio, offering non-custodial storage for many different coins and tokens in one place.

#5. Mobile Wallets

Made especially for smartphones, mobile wallets allow you to enjoy the same benefits and functionality as their desktop versions while on the go. Many wallets nowadays are primarily mobile, but others, including MetaMask, have mobile versions you can use instead of the classic browser extension.

What Makes MetaMask Unique?

Sheer popularity may not make MetaMask unique, but it bears mention. It’s not too contentious to suggest that MetaMask is the most popular crypto wallet bar none, and it’s got tens of millions of downloads from stores such as Google Play.

Popularity is a mysterious thing, but it often has a reason.In MetaMask’s case, not only is it a slick, safe, and user-friendly product, but it’s also the go-to for many blockchains. Interoperability is a buzzword in crypto, and many blockchains are designed to work in tandem with Ethereum. MetaMask tends to go hand in hand with that.

How to Get Started Using MetaMask

MetaMask is one of the simplest cryptocurrency wallets out there, and it won’t take you very long to get started. Let’s take a look at how to get the classic browser extension wallet up and running.

#1. Download MetaMask

MetaMask is compatible with all of the top browsers out there, including Firefox, Chrome, Brave, Edge, and Opera. Where you download it generally depends on your exact browser, so you’ll have to visit the Chrome web store or the Firefox addons page to search for it.

#2. Create a Wallet

Assuming you don’t already have an Ethereum wallet address that you want to use MetaMask with, you can get the ball rolling by hitting the “create a wallet” option when MetaMask starts up.

#3. Create a Password

Now you’ll have to create a password for your MetaMask wallet that gets installed in your browser. It’s not the end of the world if you lose or forget the password, but try your best to create a unique but easy-to-remember password. Anyone who uses your computer can access your crypto with this password, after all.

#4. Backup Phrase

MetaMask will now show you your backup phrase, also called a seed phrase or recovery seed. This is the most important thing for you to keep safe, bar none! Anyone who has your seed phrase can access your crypto from anywhere, so make sure to keep this safe, easy to find, and offline.

#5. Confirm Backup Phrase

Enter the words of your seed phrase again to confirm that you’ve written them down or otherwise stored them safely.

#6. All done!

That’s it! Now you can go ahead and enjoy your new MetaMask wallet. You can buy crypto directly from the wallet using a credit card, swap crypto, or start exploring Web3 with it.

How to Interact With dApps or Smart Contracts Using MetaMask

If you want to use a dApp, such as playing a Web3 game or swapping tokens on a decentralized exchange (DEX), you’ll need to find a button that says “Connect to Wallet.”All you have to do is click this button, at which point your MetaMask wallet will activate and prompt you to log in, then authorize the connection.

Remember to make sure that you’re connecting to the correct dApp. There are plenty of fake websites out there trying to get you to connect your wallet to them. It’s still not the end of the world if you connect to the wrong dApp since all it can do is view your addresses, but a request to sign your funds away won’t be far behind.

What to Do If You Lose Your MetaMask Password

This isn’t the biggest problem in the world since, hopefully, you still have your recovery seed stored away safely. You can reinstall MetaMask or install it on another device or browser on the same device.

Instead of creating a wallet when you get started, restore a wallet using your recovery seed. Now you have access to your funds again, and you have learned firsthand why recovery seeds are so important!

If you lose your recovery seed but still have your password, you can do the reverse of this. Create a new wallet on another device or browser, and this time take good care of the new recovery seed! Now, since you can still access your original wallet using its password, send all of your assets to the new one.

Is MetaMask Safe?

Given the sheer number of people who use it and the fact that it’s the number one wallet for not just Ethereum but multiple other blockchains, safety is a massive priority for the folks at ConsenSys.

While a good deal of the burden of safety in crypto lies with you, the user, MetaMask does have a wide selection of features that attempt to elevate its security, namely:

• Hardware wallet integration. As mentioned, MetaMask works well in tandem with hardware wallets, allowing you to move assets from your hot wallet into a form of cold storage. MetaMask has linked up with two top hardware wallet makers, Ledger and Trezor, to activate this ability.
• Open source. MetaMask’s code is available on GitHub, where anyone can audit it and file reports on bugs and vulnerabilities. Plenty of the people doing this are users with significant motivation to protect themselves and their assets.
• Privacy. MetaMask comes with various privacy features and requires user approval to share public addresses and balances with dApps that it connects to.
• Local data storage. Private keys and metadata are stored on the device on which the wallet is installed. This means that there’s no centralized server for hackers to target, although it also means you need to use your device as responsibly as possible.

Should You Use MetaMask?

MetaMask is one of the best options for wallets when it comes to Ethereum and several other compatible blockchains. But is it right for you? Let’s take a look at some of the pros and cons of MetaMask.

Benefits of MetaMask

• Blockchain connections. MetaMask was developed for Ethereum but can be used for a variety of smart contract and dApp-rich blockchains such as BNB Smart Chain, Fantom, and Avalanche.
• Open source. As mentioned, MetaMask is open source, making it far more secure than if it were a closed development project dependent on the skills and systems of a limited development team.
• Free to use. MetaMask is absolutely free to use and doesn’t charge fees or spam you with ads. There are costs involved with in-app operations like swapping and purchasing coins, but those aren’t charged by MetaMask itself or the company behind it.
• Integrated on-ramps. To the nth degree, MetaMask allows you to buy ETH from within the wallet itself, thanks to integrated on-ramp partners. It’s also got integrated swap and exchange functions, which speaks to the strength of its partnerships and integrations.
• Permissionless. Just as it’s free to use, MetaMask isn’t limited to any region. It also doesn’t require any form of KYC (Know Your Customer), meaning that you can simply download MetaMask and start using it right away.

Disadvantages of MetaMask

• Centralized. MetaMask is run by ConsenSys, which is a blockchain-based development studio but has funding from and, therefore, likely answers to the likes of Microsoft, JPMorgan, Temasek, and many venture capital firms.
• Hot wallet. The sheer convenience and safety measures notwithstanding, MetaMask is a hot wallet and, therefore, can theoretically be compromised by hacks and other online attacks.

10 Best Alternatives to MetaMask

MetaMask’s status as one of the top wallets in the blockchain business cannot be contested, but it’s absolutely fine if you decide that it isn’t for you. It’s got plenty going for it, but no product is perfect for everyone!

So, here are some of the other wallets you might want to consider using instead of (or in addition to) MetaMask!

#1. Trust Wallet

Trust Wallet is a non-custodial multi-asset wallet that can store practically any cryptocurrency you own. It’s also great for connecting to dApps on various blockchains, just like MetaMask.

Centralization is a concern, however, given that Binance acquired Trust Wallet in 2018 and has been running it since. That said, Trust Wallet is open-source, so its code can be audited by anyone.

#2. GameStop Wallet

GameStop has made a splash since its entry on the Web3 stage, and the GameStop Wallet for Ethereum is a simple but very polished offering that’s just as easy to use and has integrated layer 2 functionality.

Despite being controlled by a single company, GameStop, centralization is far less of a concern since, uniquely, the company’s shares are owned and registered by a record number of household investors rather than VCs or hedge funds.

#3. Ledger

One of the most reputable brands in the crypto wallet industry, Ledger is famous for its range of hardware wallets that provide safe cold storage and link up very well with hot wallets like MetaMask.

Ledger devices often cost a fair bit, but they’re considered the gold standard for safety.

#4. Trezor

Often mentioned in the same breath as Ledger, Trezor hardware wallets are top-of-the-line, although more beginner-friendly products are available. Trezor also has plenty of partnerships with other wallet providers, making it an excellent option to work with a hot wallet.

#5. Exodus

Exodus is a reputable set of hot wallets that come in the form of a mobile app, desktop program, or browser extension. It features in-wallet staking, integrated on-ramps, and exchanges, and is free to use. It’s also a multi-asset wallet, storing over two hundred popular cryptocurrencies.

#6. Atomic Wallet

Atomic Wallet features storage for well over a thousand cryptocurrencies that can be staked directly from the wallet interface, but it doesn’t feature any sort of cold wallet integration options. It also can’t connect to dApps since it doesn’t come in browser extension form.

#7. Guarda

Supporting perhaps the most digital assets out of all wallets, with an advertised 400,000+, Guardia comes in desktop, mobile, and browser extension forms. It can also easily link up with a hardware wallet to give you the option of cold storage.

#8. SafePal

A hybrid wallet system incorporating both hot and cold features, SafePal stores private keys on a relatively inexpensive hardware device while offering a mobile app and browser extension for dApp connections. It offers storage for thousands of assets and features on-platform staking.

#9. Coinbase Wallet

Either as a mobile app or browser extension, the Coinbase wallet is a non-custodial option that’s easy to use. Given that it’s a product of the Coinbase exchange, it’s also centralized, but it links up very well with the exchange, making it a useful option for beginners.

#10. Crypto.com DeFi Wallet

Specifically designed for DeFi, as the name suggests, the Crypto.com Defi Wallet isdApp-friendly and non-custodial, although it’s a product of one of the top custodial crypto exchanges (CEX). Unlike many, if not most, other top wallets, it offers two-factor authentication (2FA) as an additional safety feature.

The Future of MetaMask

MetaMask is one of the top wallets in the entire cryptocurrency space, and it’s unlikely that this will change. It could be argued that MetaMask usage has hit a critical mass among the wider market, and it’s certainly the go-to wallet option for Ethereum and many other blockchains.

The wallet’s only Achilles’ Heel may well be the fact that its developers, ConsenSys, are backed by a raft of VC firms along with divisive banking titan JPMorgan. While ConsenSys has refuted claims that it is controlled by the bank, the fact remains that companies are beholden to their shareholders to some extent.

As such, MetaMask may one day be overhauled by competitors such as the arguably more decentralized (thanks to the company’s huge proportion of household or retail investor ownership) GameStop Wallet. However, that day has not yet come, and MetaMask remains the top dog for now.

Key Takeaways

MetaMask is a non-custodial cryptocurrency wallet developed for the Ethereum blockchain that you can download as a browser extension or as an app for your mobile device. It allows you to store cryptocurrency and establish a connection to blockchain-based Web3 dApps.

The wallet is considered one of, if not the best, wallets in the blockchain industry, and it’s one of the most popular with users given how easy it is to use with Ethereum as well as a number of other blockchains such as BNB Smart Chain, Fantom, and Avalanche.

MetaMask FAQ

• Is Metamask safe?

  MetaMask is one of the safest wallets you can use. It’s open source, which means anyone can audit and file reports on its source code. The developers at ConsenSys are constantly working to ensure a top product and user experience.

• Which cryptocurrencies can Metamask store?

  MetaMask began as an Ethereum wallet and can store any and all digital assets on the Ethereum blockchain. It can also be configured to use many other blockchains, including BNB Smart Chain, Fantom, Avalanche, and more, and can store all assets on those chains too.

• Where can you download Metamask?

  You can download MetaMask from the Google Play Store, the iOS App Store, and the official MetaMask website. Make sure that you’re downloading the legit app if you’re on an app store, though, and check that you’re on the right website. Fake MetaMask apps are a known crypto scam.

• Can you store Bitcoin with Metamask?

  No. MetaMask is used with Ethereum and many other blockchains that are interoperable with Ethereum, but it can’t be used to store Bitcoin.

• Will there be a Metamask airdrop?

  It’s possible, although rumors about a MetaMask airdrop have been going around for ages. Only time will tell if the MetaMask team decides to launch a native crypto token and airdrop it to users.