How to store Bitcoin in MetaMask?

MetaMask is a well-known wallet for distributed applications (dApps) supporting Ethereum. But can MetaMask store Bitcoin (BTC)?

For many cryptocurrency investors, Bitcoin is an important part of their portfolio. Besides being an investment asset, Bitcoin can also be used as a payment method. Thanks to wallets like MetaMask, paying via blockchain technology has become a lot easier. This Ethereum crypto wallet enables millions of investors to participate in everything the crypto market has to offer. Most people buy Bitcoin even though Ethereum (ETH) is a very popular payment method.

However, Bitcoin is not the cryptocurrency you think of when you talk about buying non-fungible tokens (NFTs) or investing in decentralized finance (DeFi). In some cases, though, you might want to use Bitcoin for these operations. So, in this article, you will learn how to store Bitcoin with MetaMask!

MetaMask cryptocurrency wallet

MetaMask is an Ethereum wallet that provides an app and can also be used as an extension in a web browser. In other words, MetaMask allows users to store their private keys and then securely use applications and websites through Ethereum-based dapps and smart contracts. MetaMask is one of the most popular crypto wallets, whose users recently passed the 30 million mark in March 2022. Thanks in part to the rise of decentralized finance (DeFi) and non-fungible tokens (NFTs).

Does MetaMask only support Ethereum?

MetaMask is only available for tokens using the Ethereum blockchain, so-called ERC-20 tokens. If you want to use other tokens (i.e. tokens that are not ERC-20 tokens), you must exchange them for ERC-20 tokens. This makes it possible to store these tokens in MetaMask.

Such as Zcash, a cryptocurrency suitable for anonymous transactions. This cryptocurrency is not based on the Ethereum network and therefore is not an ERC-20 token. But by wrapping Zcash tokens, you can still spend zero Zcash on MetaMask.

MetaMask hardware wallet

When people first start looking into cryptocurrencies, they often think about how to secure them. This is very important, so a reliable wallet is essential. A hardware wallet is usually recommended as it can be used to store cryptocurrencies offline. Is MetaMask also a hardware wallet?

MetaMask is not a hardware wallet. It is a software wallet. These wallets require an internet connection and are also known as hot wallets. Even so, you can still connect MetaMask to a hardware wallet. This way, you can use MetaMask with Ledger, the most well-known hardware wallet.

To do this, open the ETH app and select "Connect Hardware Wallet" to integrate your Ledger hardware wallet into MetaMask. You'll then see a popup prompting you to select your device and hit "Connect."

When you connect the MetaMask browser extension with your Ledger wallet, the software wallet only acts as a portal and not a wallet. Your private keys do not leave Ledger, so they are not stored on MetaMask.

Does MetaMask support Bitcoin?

MetaMask can support Bitcoin indirectly, but not in the same way that exchange wallets accept cryptocurrencies. Bitcoin is not an ERC-20 token, so MetaMask does not accept Bitcoin directly. However, there is a roundabout way you can deposit BTC into your MetaMask.

That said, don't try to send bitcoins directly to your MetaMask. If you try to do this, MetaMask will not be able to receive bitcoins, which could have serious consequences - you could lose all the bitcoins you sent immediately!

How to correctly send bitcoins to MetaMask?

As mentioned above, it is not possible to send BTC directly to MetaMask. But that doesn't mean it's impossible for Bitcoin to get into your MetaMask wallet. BTC runs on its own blockchain. On this Bitcoin blockchain, transactions can only be sent to Bitcoin addresses. This applies not only to Bitcoin, but also to other blockchains such as Ethereum.

On the Ethereum blockchain, only Ethereum-related tokens can be sent. Sending bitcoins over the Ethereum network is equivalent to paying in euros in the United States. Euros are not accepted as payment currency in the US, but you can use your Euros in a roundabout way. By exchanging these euros, you can get an equivalent value in dollars and use them as a form of payment.

Still, if you don't want to exchange your Bitcoins for Ethereum, there are other solutions. This means you need to lock your bitcoins in one place, then bring them to the Ethereum blockchain as new tokens, which represent the bitcoins locked on the bitcoin blockchain. This is also known as Wrapped Bitcoin (wBTC), which presents Bitcoin as an ERC-20 token.

How to wrap bitcoins?

There are several ways to wrap your bitcoins. Take Binance as an example. On Binance, BTC and wBTC are two different tokens, so you can trade them. Click on “Classic” in the Binance trading section and you will be taken to the exchange’s trading platform. Here you can find trading pairs for both Bitcoin coins. Here, you can enter how much WBTC you want to buy and confirm by clicking "Buy WBTC".

What if you don't see wBTC in MetaMask? You can easily solve it by adding wBTC tokens, the steps are as follows:

MetaMask wallet address

Your MetaMask wallet address is critical for your wBTC to function properly. The address is easy to find. Go to the main MetaMask page by opening the app and logging in. Under your account name you will find your address to receive cryptocurrencies.

You can share this address with others, but do not share other codes with anyone. Your login and recovery data is there to protect your assets. If someone else obtained these codes, they could misuse them and cause you to lose your crypto holdings.

Alternatives to MetaMask

MetaMask is a popular software wallet, but there are other options as well. Since there are many kinds of blockchains, some wallets are only suitable for certain blockchains. Examples include Cardano’s Yoroi wallet and Solana’s Phantom wallet.

There are various software wallets for ERC-20 tokens on the Ethereum blockchain. The advantage of MetaMask is that you can use it through websites and applications. This is what sets MetaMask apart from the competition.

Trust Wallet is a popular software wallet that is available as a mobile app as an alternative to MetaMask. MyEtherWallet and Mist Wallet, two website wallets that accept ERC-20 tokens, are also popular MetaMask alternatives.

While MetaMask is the most popular all-around software wallet, it doesn’t hurt to use more than one. Using different wallets is a risk management strategy. By using multiple wallets, you won't lose all your crypto assets when only one wallet gets hacked.