What is MetaMask? How to use the DApps? Table of Contents
What is MetaMask and how to use it?
A wallet that simply stores and protects information is not enough to experience all the services that cryptocurrency has to offer. You need something that allows you to interact directly with the blockchain as well as a secure cryptocurrency wallet.
The MetaMask wallet is just that. Meta mask decentralization app (DApps), decentralized financing (DeFi), de-centralized exchange (DEX: DEX), such as Ethernet Leeum as a ‘bridge’ serves to connect to any network service that is provided.
Getting started and using MetaMask may seem complicated at first, but the process is quite simple once you get the hang of it. From now on, we will guide you step by step.
What is a cryptocurrency wallet?
Cryptocurrency blockchain transaction in order for it to be properly validated the private key must be signed and verified using the public key (public key) to (private key). Only when these processes are executed does the blockchain update with new blocks of information. Each person has their own private key, and as the name suggests, the private key must be kept private, just like passwords.
To protect your private key from others, you should store your private key in crypto wallets.
Just as a private key is essential for a transaction, a cryptocurrency wallet is essential to secure your cryptocurrency. Cryptocurrency wallets ensure the safety of private keys.
There are two types of cryptocurrency wallets.
Hot wallets are software programs, platforms, and browser extensions on the Internet that allow access to private keys. Requires access to the Internet, a smart device such as a laptop computer, smartphone, and a web browser.
Cold wallets, on the other hand, are cryptocurrency wallets in the form of physical hardware, such as USB hardware. Cold wallets are much safer because they work offline, and you only need computer access to verify your transactions. However, in Cold Wallet, you cannot use the services provided by Hot Wallet.
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What is MetaMask?
Meta mask 2016 blockchain software company consensus system was created by (ConsenSys).
MetaMask is one of the most popular cryptocurrency wallets on the market today. Additionally, MetaMask is an open-source (software accessible to everyone) wallet. It supports all ERC-20 tokens running on the Ethereum blockchain and network.
You can use MetaMask as an app on your phone, and as an extension feature on the web. Currently, the browsers supported by MetaMask are Chrome, Firefox, and Brave.
Meta masks, as well as store passwords currency Pool Together, is also a decentralization intermediary for the app (DApps) and interaction in the financial decentralization (DeFi), etc. (PoolTogether).
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How to use MetaMask?
It may take some time to learn how to use MetaMask as there are so many features that cryptocurrency wallets offer. Let’s go step by step.
1. How to install MetaMask in your browser
First, you need to install MetaMask. Go to MetaMask’s official website and click “Download Now” to download MetaMask. Then add the extension to your web browser.
The three browsers that support MetaMask extensions are Chrome, Mozilla Firefox, and Brave, so you must use one of the three web browsers.
Once the extension is added, the MetaMask is ready to start the program.
2. How to use MetaMask after installation
After installing MetaMask, you must click the “Get Started” button to officially start MetaMask.
You will then be asked if you already have a wallet or want to create a new one. If you have a wallet, you will need to write down a seed phrase, which is a set of words used to verify that the person accessing the account is who you are. If you do not have a wallet, you will need to create a new one.
If you are importing an existing wallet, you must create a new password of at least 8 characters. You must also agree to the terms and conditions of MetaMask.
When creating a new wallet, you will need to create a password. You will then receive a seed phrase with a combination of 12 words. The seed phrase should be recorded in a safe place (we recommend writing it down on paper). If you forget your seed phrase, your account cannot be recovered.
Once the seed phrase is received and other personal information is added, you can access MetaMask, a virtual cryptocurrency wallet.
When the installation is complete, you will be asked to allow us to track your activities to improve the software.
You can choose the answer you want. The answer does not affect software functionality.
You can now access all the features of MetaMask. Click on the extension to access the assets. The asset bar shows your current funds and the activity bar shows your transaction history.
Also, there are options to buy, transfer and swap cryptocurrencies.
The buy option allows you to buy Ether (ETH) or import Ether from another wallet.
The “Send” option allows you to send Ether to another account. To do so, you must enter the correct address for the account you are sending Ether to. However, you must have enough Ether to cover the gas fees for this service. You can send at a slow rate (less gas rates), average rates (normal gas rates), or fast rates (more gas rates).
Gas rates change every time. If you want to know the best gas price for the current network, you can check on sites like ETH Gas Station .
The “Swap” button allows you to swap Ether for other tokens supported on the Ethereum network.
3. How to connect to various decentralized apps (DApps)
A big advantage of using MetaMask is that it can be connected to a variety of decentralized apps, i.e. DApps.
To connect to a decentralized app, you need to go to the website of the desired decentralized app. Go to the website and look for a button like “connect wallet” that will allow you to connect MetaMask to the corresponding decentralized app.
Then a pop-up window will appear, all you need to do is confirm that you are connected. It’s just a link between your wallet address and the app. You may need funds whenever you use the services of a decentralized app. However, the app does not immediately withdraw the funds, but first asks the user if they are willing to pay the required amount.
Here is a simple procedure for downloading MetaMask. These steps buy, sell, exchange, and link tokens with decentralized apps (DApps).
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Advantages and disadvantages of using MetaMask
There are pros and cons to using a MetaMask as an extension or app.
Here are some of the pros and cons you will encounter when using MetaMask:
1. Advantage Popularity
In recent years, Metamask has received a lot of attention. This not only improved the safety and performance of the software but also made other decentralized apps support MetaMask. Moreover, MetaMask has succeeded in building a loyal fan base among its users, which has allowed the MetaMask team to further develop the software.
2. easy access
A great advantage of MetaMask is that it is easy to access. Anyone can create a new wallet or import an existing wallet through MetaMask. All you need is a trusted web browser, computer access, and a secure Internet environment. You can then download MetaMask and create a wallet with just a few clicks.
3. Open-source
Another advantage that MetaMask has as a cryptocurrency wallet is that it is open-source software. MetaMask users can actively participate in and access updates and information related to the software, making using MetaMask a safer and better experience for all users. Please keep in mind that not all cryptocurrency wallets are open source.
Disadvantages of MetaMask
1. Lower security level than Cold Wallets
When it comes to security, cold wallets are more secure than hot wallets. All on the line is the use of meta-mask so vulnerable to harmful viruses, hackers, or any kind of malware Leisure (Ledger), or Treasure is not safe as using hardware such as a purse (Trezor). Also, after creating an account, when writing a seed phrase, you should write it down on a piece of paper that is stored in a safe place and not on your computer. If a hacker or virus gets through your firewall, everything on your computer can be misused. The same goes for seed phrases. If you lose your seed phrase, you will never be able to access your account again, no matter how much you invest.
2. User information
MetaMask does not collect data, but the web browser you use may do so. Therefore, you should be aware that your activities may be collected in Big Data. Also, you should make sure that any extensions you use are legitimate, as there may be unwanted extensions that can steal your personal information. The only thing MetaMask can track is the interactions within the wallet to improve the software. Whether or not you want to do this can be decided in your extension settings or when you first create your wallet.
3. node
Since MetaMask works through external nodes, problems with external nodes can also cause problems with the MetaMask system software.
4. Ethereum only
Another downside of MetaMask is that it only supports the Ethereum network. You can use all the services provided by the Ethereum network, but there are many cryptocurrency proponents who want MetaMask to support other networks in addition to the Ethereum network in the future.
It seems that these shortcomings will work against MetaMask, but as MetaMask continues to upgrade its software, some of the shortcomings are likely to disappear soon.
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How does Metamask monetize?
So, what does Metadesk do to get as much profit as the services it provides?
Since MetaMask is free to download and use, there must be a way to monetize MetaMask to operate at this level.
Each time tokens are swapped in Metamask, an additional 0.875% fee will be paid. Those additional charges are taken by MetaMask. It may seem like a small amount, but there is a huge amount of token swaps happening every day. Considering the fact that there are people who trade with thousands of dollars, 0.875% will bring returns to the Metamask admins.
Decrypted according to (Decrypt) metadata mask is to earn about $ 100,000 a day. In January 2021, MetaMask generated record sales of approximately $220,000 with total daily swaps of approximately $50 million.
So while MetaMask can be downloaded and used for free in apps or web browser extensions, it is generating huge amounts of revenue from token swap fees.
Keep in mind that running a huge cryptocurrency wallet that can store and protect your funds, as well as connect them to other decentralized apps on the Ethereum network, is expensive.
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Conclusion
MetaMask is one of the most important cryptocurrency wallets. Being easily accessible and being able to connect with decentralized apps (dApps) and other traders is why MetaMask software is so important in the cryptocurrency world. In fact, cryptocurrency wallets like Metamask give reasons why cryptocurrencies are no longer just cryptocurrencies. Because it offers many services that more people will be looking for in the near future.
It remains to be seen whether MetaMask can be rolled out to other blockchains and cryptocurrencies in the future. However, as more and more people open Metamask accounts every week, the future looks brighter as an open-source cryptocurrency wallet.
Comment by Hans
April 24, 2024
as I am trading here various assets, for me it's the most important feature. i mean, flexibility in tradable markets. i alternate trading styles, meaning that sometimes I trad...