Home How to store Bitcoin on MetaMask? (Tutorial)

How to store Bitcoin on MetaMask? (Tutorial)

Bitcoin

6 min read

As Bitcoin becomes increasingly integrated into decentralized finance , many people are looking to use BTC in various applications. Using Bitcoin in DeFi is attracting growing interest. It presents an opportunity to use BTC in decentralized protocols. To do so, the first thing to understand is how to store Bitcoin on a decentralized wallet such as MetaMask.

It is indeed the most used wallet (and the oldest as well) when it comes to interacting with decentralized applications. However, it is entirely possible to use other decentralized wallets to follow this tutorial.

Here we will see how to store bitcoin on Metamask, so that you can use your bitcoins in decentralized finance, previously intended only for altcoins.

The MetaMask wallet: What exactly is it?

Regardless of the type of financial asset you choose to store (stocks, bonds, mutual funds, ETFs, etc.), every investor needs a safe place to keep their money. This could be a safe deposit box, vault, brokerage firm, vault, piggy bank, or any other suitable device. The same applies to cryptocurrencies.

However, to store cryptocurrencies, you need a specific tool that allows users to have complete control over their funds . MetaMask is one such tool.

It belongs to the category of " hot wallets ." This type of wallet is presented as an application or browser accessible on computers, tablets, or smartphones. It allows users to store cryptocurrencies and private keys, which are necessary for signing transactions.

MetaMask is available as a mobile app (Android and iOS) and as a browser extension (Chrome, Firefox, Edge). It allows interaction with EMV (Ethereum Machin Virtual) compatible blockchains .

Created in 2016, it quickly gained traction and became the most downloaded wallet to date. Today, more than 30 million users worldwide use it to store and trade tokens. Additionally, it is possible to access non-fungible tokens (NFTs) and interact with decentralized finance applications.

Is MetaMask for Ethereum only?

Many people think it is appropriate to use Metamask only for ERC-20 tokens. However, Metamask is interoperable with all blockchains that are compatible with the Ethereum Virtual Machine (EVM).

Besides Ethereum, MetaMask manages many other networks, including Fantom, Polygon , Binance Smart Chain, Avalanche, Cronos, Arbitrum, Harmonie, etc. We would like to emphasize that MetaMask does not currently manage networks such as Solana, Algorand, Cosmos, or Tron.

Therefore, there is no direct way to store cryptocurrencies issued by these blockchains on MetaMask. However, it is possible to store or exchange these types of cryptocurrencies using an alternative method.

This is the method we want to show you here.

How to store Bitcoin on MetaMask?

As previously stated, MetaMask is linked to the Ethereum blockchain and custom networks. Therefore, it is not possible to send or store bitcoins directly using this wallet.

Transactions on the Bitcoin blockchain can only be sent to Bitcoin addresses. The same is true for all other blockchains. With the exception of interoperable networks using bridges, of course, each address can only accommodate compatible token standards.

? So, for a Bitcoin to be sent to the Ethereum network, it must be "wrapped" and locked in a single location. In other words, it must be locked on the Ethereum blockchain, in exchange for a new token that represents that locked Bitcoin in a 1:1 ratio.

This is what's called Wrapped BTC (wBTC) . This Bitcoin has the same characteristics as an ERC-20 token and can be used throughout the Ethereum ecosystem. This also means that 1 wBTC = 1 BTC in terms of value.

In fact, for a bitcoin to be stored on Metamask, it must be in the form of Wrapped BTC (WBTC). This facilitates interaction between different blockchains. Which adds the value and stability of bitcoin to the decentralized application ecosystem based on the Ethereum blockchain.

–> Read the article on Wrapped BTC (wBTC)

How to get wrapped BTC (wBTC)?

As you can see, sending bitcoins directly through MetaMask is difficult due to the lack of interoperability between the Bitcoin network and the Ethereum blockchain. It is for this reason that Wrapped BTC (wBTC) has been proposed as a way to connect the two infrastructures.

In fact, in most cases, to wrap Bitcoin, you need to send BTC to receive WBTC in return . As a reminder, wBTC is an ERC-20 token pegged to the value of BTC. This transaction requires a custodian whose role is to lock this amount of BTC against the number of wrapped tokens. This custodian can be a decentralized autonomous organization ( DAO) using a smart contract.

However, you can get your hands on WBTC in no time using one of the many exchanges that now offer it. It's indeed a simple way to acquire WBTC.

The other method is to obtain them directly from a DEX if you already have tokens in your Metamask wallet.

? How to buy wBTC on an exchange?

Most exchange platforms will allow you to buy WBTC quickly and easily. Let's take the market leader, Binance , as an example to illustrate this point:

Click on " Classic » in the Trade section of Binance.
Find the BTC/WBTC pair
Specify the quantity of WBTC you wish to acquire,
Confirm your purchase by clicking on the Buy WBTC button.

The final step after acquiring wBTC is to deposit them to your MetaMask wallet address directly.

? How to exchange tokens for wBTC?

It's also possible, if you're already familiar with DEXs, to simply acquire WBTC on a platform like Uniswap, for example. To do this, you'll need to have tokens in your account so you can exchange them for WBTC.

What are the risks of storing bitcoin on MetaMask?

Now that you know how to store bitcoin on Metamask using the wrapped bitcoin method, you now need to discover the decentralized applications that interest you.

This is precisely why many people use wBTC. The idea and objective is to make it work with specific protocols. Bitcoin in DeFi offers ever more opportunities, and its applications continue to expand.

However, this isn't necessarily recommended if you're looking to securely store your bitcoins long-term . On MetaMask, for example, you run the risk of being hacked. Storing your bitcoins on a connected wallet inevitably increases your vulnerability. You could also interact with a dangerous, unaudited, or even fraudulent protocol. In that case, you risk losing your cryptocurrencies (and even your wBTC). You need to be aware of the risks.

Some people simply want to own wBTC and keep it in their wallets. However, for Bitcoin holding, it might be better to simply buy some and store it in a highly secure wallet like a Ledger , for example.

See also:

Note: This is not investment advice. Always do your own research (DYOR) . Only invest money you are prepared to lose. Trading is an activity that carries the risk of losing capital.

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