With over 30 million active users, Metamask is a behemoth in the cryptocurrency space. This popular application allows users to store their assets and interact with hundreds of applications across web 3.0.
But you may be wondering, what is Metamask, and is it safe?
Don’t worry. In this guide, I will be answering those questions and much more. So without further ado, let’s jump right in.
TL;DR
Launched in 2016 by Consensys, Metamask is a web-based application that allows the storage of cryptocurrencies while also facilitating interactions with decentralized applications.
What is Metamask?
Simply put, Metamask is a cryptocurrency wallet. With over 30 million active users it is one of the most popular applications in the space.
Essentially, it is a web-based browser extension that offers the storage of cryptocurrencies while also allowing users to interact with various Ethereum-based applications.
For instance, users can connect to decentralized finance applications and authorize transactions directly through the website. Moreover, there is a mobile app with a native browser that connects with crypto applications.
Metamask supports blockchains written in the Solidity programming language, this includes Binance Smart Chain, Avalanche, and Ethereum. Moreover, every ERC-20 token is supported as well as NFTs.
Lastly, it features an intuitive user interface that includes a help center, a message board, and a built-in exchange. This exchange allows users to trade without leaving the app with a trading fee of 0.875%.
How safe is Metamask?
Overall, Metamask is extremely safe. The platform uses state-of-the-art encryption techniques to protect users’ funds. Not to mention, it can be paired with hardware wallets for added security.
One of the main benefits of Metamask is its open-source nature. This allows the code to be verified while also highlighting any malicious activity and coding problems.
In addition, Metamask is non-custodial. Users control their funds therefore you are not relying on third parties for security. Moreover, anonymity is maintained which limits the potential attack vectors for hackers.
Since its launch in 2016, Metamask has not suffered from a single hack.
Risks of using Metamask
Data leaks – Although Metmask does not collect or store personal information the browser itself does. This information can then leak and in turn, be exploited by malicious actors.
Hacks – Like most cryptocurrency applications Metamask’s main risk is hacking. As it is connected to the internet it is at risk of hacking, phishing scams, and theft.
For instance, oftentimes illegitimate websites imitate the official Metamask application. When users authorize transactions on this website their wallets are compromised and their funds are stolen.
On a side note, this is why it is vital to use a hardware wallet. The one that I recommend is the Ledger Nano X. You can check out my review here.
FAQ
How much does it cost to use Metamask?
Metamask is a free-to-use application. All an individual needs is a computer and an internet connection. However, if you want to send cryptocurrencies then you will need funds to cover the transaction costs.
Is Metamask safer than Coinbase and Binance?
Due to the open-source nature of Metamask, it is considered safer than both Coinbase and Binance. Users can verify the development of the platform while also pairing it with a hardware wallet for added security.
Moreover, the sign-up process does not require the disclosure of personal or sensitive information.
Do NFT marketplaces support Metamask?
All of the major NFT marketplaces support Metamask. This includes OpenSea and Magic Eden. Users can buy, sell and mint NFTs directly on the website thanks to Metamask integration.
Does Metamask collect private information?
Metamask does not collect or store user information. The users have self-custody over the secret recovery phrase granting them full control of their assets.
If you want to view this article in video format then check out my video below:
Conclusion
As you can see, Metamask is an extremely useful application. Overall, it offers an intuitive platform for cryptocurrency storage. Not to mention, it is one of the safest wallets in the space.
This is evident by the lack of hacks. Moreover, it is open source and can be paired with a ledger for added security.
That being said, there is the potential for data leaks and as the user is responsible for their funds they are rarely compensated if something goes wrong.
I hope you found this article useful and thanks for reading it.
Want to learn about public and private keys? Click here to read my previous article.
