A cryptocurrency wallet is used to store cryptocurrencies. Every wallet has its own address to receive cryptocurrency. There are different types of cryptocurrency wallets. There are Hardware, Software, and Paper wallets.
Hardware wallets are physical electronic devices that are not connected to the internet. These kinds of wallets completely eliminate the risk of a hack. These are often referred to as Cold wallets or Cold Storage.
Coming to Software wallets, they are connected to the internet all the time. Software wallets are some kind of application. There are different types of software wallets like a Desktop wallet, where you can download a wallet on your PC, a mobile wallet which is a kind of a mobile application, and a Web wallet which is a browser extension.
Ethereum is an open-sourced decentralized network where we can build and deploy decentralized applications(dapps). These dapps have their own ecosystem and most times their own token to operate on their platform. These tokens can be transferred across the Ethereum network.
What is an Ethereum Wallet?
An Ethereum wallet is used to store Ethereum's native token, Ether. An Ethereum wallet should be capable to store not only Ether but also tokens like ERC-20 and ERC-721 tokens that were built on Ethereum.
Metamask is a web-based Ethereum wallet. Metamask is available as a Chrome extension. We can store all kinds of Ethereum-based tokens on Metamask.
Being a web-based wallet, we can use Metamask to interact with all the dapps present on the Ethereum network. We can also add custom networks like Binance Smart Chain(BSC) and interact with the dapps on BSC.
How to Create an Ethereum wallet using Metamask?
- Go to the Metamask Chrome extension here.
- Click on the 'Add to Chrome' button and add the extension.
- You will land on a screen similar to the one below, click on 'Get Started'
- Next, if you have already created a Metamask wallet, click on Import wallet, otherwise, if you want to create a new wallet, click on 'Create a Wallet'
- Read the agreement, there are two options, 'No Thanks' and 'I Agree', clicking on any of them, will you take you to the same place.
- Set a password, tick the box, and click 'Create'
- There is a video on how to secure your wallet, it is about the Recovery Phrase. The recovery phrase is a set of words that is used to access your wallet, when you lose your device or when you want to login through another device. The recovery phrase should be kept secret and should be stored safely. If anyone gets to know your recovery phrase, you don't need to think about your funds again. Write it down somewhere, store it and remember where you store it.
- After you click the 'Next' button, you will get your Secret Backup Phrase, click there to reveal the magic words, save them somewhere and click 'Next' to proceed.
- Now you have to confirm your backup phrase, it is to test if you are really serious about your funds. Enter the phrase in the same order and click 'Confirm'.
- Well done, you have created an Ethereum wallet in 10 steps. Read the tips given there and click 'All Done'.
You have now created an Ethereum wallet on Metamask and a dashboard is displayed. To start using your Metamask wallet, copy your wallet address which is present on the top, just hover your mouse on it and you will be able to copy it to the clipboard.
Now that you have your Ethereum address, you can receive Ether and any Ethereum-based tokens like ERC-20, ERC-223, ERC-721, etc. Most tokens on Ethereum are ERC-20 tokens and most dapps are built using ERC-20. You can just deposit any ERC-20 tokens.
To add custom tokens i.e., any ERC-20 token which is not shown in your wallet, click on 'Add Token', go to Custom token tab and enter Token Contract Address. It simply defines or identifies a token. No token can have more than one contract address on a single network.
Buy any tokens on the exchange it is available and transfer them to Metamask, you have to pay some fee though. Tada, you can now use Metamask as your Ethereum wallet.
Metamask is available not only on Google Chrome but also other browsers like Brave, Vivaldi, etc
Learn how to connect other chains to Metamask:
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