MetaMask is a popular cryptocurrency wallet that supports a broad range of Ethereum-based tokens and non-fungible tokens (NFTs) on supported blockchains. While experienced crypto investors may appreciate the speed and simplicity of the wallet, new investors may find it difficult to navigate. In addition, the wallet does not support Bitcoin, making it a turn-off for investors whose primary investment is Bitcoin.
FeaturesSecurity, anonymity, and decentralization are some of the most attractive features in the crypto industry and MetaMask does not fail to exhibit these traits. Users can download the wallet software or add it as a browser extension and install it without disclosing identifying data such as name, email, social security number, and address.
Decentralization is a valuable feature that ensures transactions on the blockchain are visible to connected nodes. It also prevents a single entity from having access to the entire wallet system. This is another feature that is quite different from that of the bankrupt FTX protocol, where a particular entity gained unauthorized access to the central system, stealing around $600 million in crypto from the protocol.
Besides supporting cryptocurrencies, MetaMask is a versatile product in the marketplace, supporting tokens on the ERC-20 protocol, and storing non-fungible tokens (NFTs) which can be connected with marketplaces such as OpenSea.2 The wallet also supports multiple blockchains including the Build and Build (BNB) chain, Polygon, Avalanche, and more.Despite having over 30 million active monthly users, there are some downsides.4 The wallet does not support Bitcoin, the largest digital asset based on market capitalization. Being technical, with no live customer support, the wallet may not be suitable for new crypto investors.
Security MetaMask's approach to security is through anonymity and entrusting private keys to users. Since the wallet does not keep users' personal information, accounts are protected by a user-generated password during installation and setup, or biometric data on mobile devices.
The wallet can be recovered via a mnemonic phrase as the wallet doesn't keep custody of private keys. It is, therefore, necessary to keep this seed phrase safe as it will be essential if the device gets damaged or stolen.
MetaMask has just one way of recovering a single wallet across multiple devices. This makes the wallet susceptible to hacks and malware. Notable among these are Banker Trojan, social engineering attacks, and other crypto scams. MetaMask wallet users can be attacked with phishing scams that prompt them to reveal their seed phrases on suspicious websites, or by downloading and installing a fake version of the wallet extension which hackers can leverage to steal users' assets after gaining control of the wallet.
Privacy and Anonymity
One of MetaMask's priorities is anonymity. Unlike centralized crypto exchanges that require users to meet Know Your Client (KYC) requirements, this wallet doesn’t require users to submit personal information. However, the wallet warns that transactions are not solely anonymous, but classifies exchanges as pseudonymous. Since transactions are recorded on the public blockchain, the wallet ID acts as a pseudonym for the user.Given that MetaMask does not support Bitcoin, CoinJoin transactions are not enabled. A CoinJoin is a process in which different users mix their coins together before sending them to recipients, ensuring that the senders and recipients remain anonymous.