How to Store Bitcoin on MetaMask [2023]

by Aug 20, 2023DEX/CEX0 comments

There are different types of Crypto wallets and MetaMask is one of the most popular and widely used crypto wallets in the world. It allows users to interact with various Ethereum-based decentralized applications (DApps) and smart contracts, as well as store and manage their ERC-20 tokens. But what if you want to store Bitcoin, the most dominant and valuable cryptocurrency, on MetaMask? Is it possible, and if so, how can you do it?

In this article, we will answer these questions and show you how to store Bitcoin on MetaMask using two different methods: wrapped Bitcoin (WBTC) and Binance-PEG Bitcoin (BTCB). We will also explain the advantages and disadvantages of each method, as well as some tips and precautions to keep in mind when using them.

What is MetaMask?

MetaMask

MetaMask is a software wallet that can be installed as a browser extension or a mobile app. It enables users to access and use various Ethereum-based DApps and smart contracts, such as decentralized exchanges (DEXs), decentralized finance (DeFi) platforms, non-fungible tokens (NFTs), and more. MetaMask also allows users to store and manage their ERC-20 tokens, which are tokens that follow the Ethereum standard for creating and transferring tokens on the Ethereum network.

MetaMask acts as a bridge between the user’s browser or device and the Ethereum blockchain. It generates and stores the user’s private keys, which are used to sign transactions and access their funds. It also provides a user-friendly interface for sending and receiving tokens, viewing transaction history, adding custom tokens, switching between different Ethereum networks, and more.

Why Store Bitcoin on MetaMask?

Bitcoin is the first and most popular cryptocurrency in the world. It is widely used as a store of value, a medium of exchange, and an investment asset. Many people buy and hold Bitcoin for its potential long-term appreciation, as well as for its security and decentralization. Bitcoin also has a limited supply of 21 million coins, which makes it scarce and valuable. (If you want to If you want to get valuable insights and information about the current trends, price movements, and market sentiment surrounding Bitcoin, we invite you to read our Weekly Bitcoin Analysis)

However, Bitcoin also has some limitations, such as its low scalability, high transaction fees, slow confirmation times, and lack of interoperability with other blockchains. These factors make it difficult to use Bitcoin for some purposes, such as participating in DApps and smart contracts, which require fast and cheap transactions and cross-chain compatibility.

This is where MetaMask comes in handy. By storing Bitcoin on MetaMask, users can enjoy the benefits of both Bitcoin and Ethereum. They can use their Bitcoin to access various Ethereum-based DApps and smart contracts, such as trading on DEXs, lending and borrowing on DeFi platforms, minting and collecting NFTs, and more. They can also take advantage of the lower fees, faster speeds, and higher scalability of the Ethereum network.

How to Store Bitcoin on MetaMask

When it comes to storing Bitcoin on the MetaMask wallet, you have two main options: wrapped Bitcoin (WBTC) and Binance-PEG Bitcoin (BTCB). In this guide, we’ll explore both methods, providing step-by-step instructions on how to store Bitcoin on MetaMask using each approach.

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Store Bitcoin on MetaMask

1. Storing Bitcoin on MetaMask using wrapped Bitcoin (WBTC)?

One way to store Bitcoin on MetaMask is to use wrapped Bitcoin (WBTC), which is an ERC-20 token that represents Bitcoin on the Ethereum network. WBTC is created by locking Bitcoin in a custodial service (such as BitGo) and issuing an equivalent amount of WBTC on Ethereum. WBTC can then be used like any other ERC-20 token on MetaMask or any other Ethereum wallet.

Here are the advantages and disadvantages of storing Bitcoin on MetaMask using wrapped Bitcoin (WBTC):

AdvantageDisadvantage
Maintains a 1:1 peg with BitcoinRequires trust in the custodial service
Preserves scarcity and value proposition of BitcoinReliance on third-party audits and verifications
No loss or gain in value when converting between BTC and WBTCAdditional fees for minting and redeeming WBTC

As seen above, the main advantage of using WBTC is that it maintains a 1:1 peg with Bitcoin, meaning that one WBTC is always equal to one BTC in value. This ensures that users do not lose or gain any value when converting between BTC and WBTC. WBTC also follows the same supply cap as BTC, which preserves its scarcity and value proposition.

And the main disadvantage of using WBTC is that it requires trust in the custodial service that holds the BTC reserves. Users have to rely on third-party audits and verifications to ensure that there is enough BTC backing the WBTC supply. WBTC also introduces some additional fees for minting and redeeming WBTC, which may reduce the profitability of using it.

The step-by-step guide to store Bitcoin on MetaMask using WBTC:

Store Bitcoin on MetaMask

Step 1: Buy or obtain some BTC from an exchange or another source.

Step 2: Go to WBTC, which is the official website for wrapped Bitcoin.

Step 3: Click on [Mint/Redeem] at the top right corner of the page.

Step 4: Choose a merchant from the list of approved partners that can facilitate the conversion between BTC and WBTC.

Step 5: Follow the instructions provided by the merchant to send your BTC to their address and receive WBTC in return.

Step 6: Add WBTC as a custom token on your MetaMask wallet by following these steps:

  • Open your MetaMask wallet and make sure you are connected to the Ethereum mainnet.
  • Click on [Add Token] at the bottom of the page.
  • Click on [Custom Token] and paste the WBTC contract address, which is 0x2260fac5e5542a773aa44fbcfedf7c193bc2c599.
  • Click on [Next] and confirm the addition of WBTC to your wallet.

Step 7: You can now use your WBTC on MetaMask or any other Ethereum wallet or DApp.

2. Storing Bitcoin on MetaMask Using Binance-PEG Bitcoin (BTCB)?

Another way to store Bitcoin on MetaMask is to use Binance-PEG Bitcoin (BTCB), which is a BEP-20 token that represents Bitcoin on the Binance Smart Chain (BSC) network. BTCB is created by locking Bitcoin in a reserve address controlled by Binance and issuing an equivalent amount of BTCB on BSC. BTCB can then be used like any other BEP-20 token on MetaMask or any other BSC wallet.

Here are the advantages and disadvantages of storing Bitcoin on MetaMask using Binance-PEG Bitcoin (BTCB):

AdvantageDisadvantage
Lower fees, faster speeds, and higher scalabilityRequires trust in Binance
Access to BSC-based DApps and smart contractsReliance on Binance’s transparency and security
Price fluctuations between BTC and BTCB

As seen above, the main advantage of using BTCB is that it offers lower fees, faster speeds, and higher scalability than Bitcoin, as it leverages the performance and efficiency of the BSC network. BTCB also allows users to access various BSC-based DApps and smart contracts, such as PancakeSwap, Venus, BakerySwap, and more.

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And the main disadvantage of using BTCB is that it requires trust in Binance, which is the centralized entity that controls the BTC reserve address and the BTCB supply. Users have to rely on Binance’s transparency and security to ensure that there is enough BTC backing the BTCB supply. BTCB also introduces some price fluctuations between BTC and BTCB, as they are not always exactly equal in value.

The step-by-step guide to store Bitcoin on MetaMask using BTCB:

Store Bitcoin on MetaMask

Step 1: Buy or obtain some BTC from an exchange or another source.

Step 2: Go to Binance, which is the world’s largest cryptocurrency exchange by trading volume.

Step 3: Create an account or log in to your existing account on Binance.

Step 4: Deposit your BTC to your Binance wallet by following these steps:

  • Click on [Wallet] at the top right corner of the page.
  • Click on [Overview] and then on [Deposit].
  • Select [BTC] from the list of cryptocurrencies and copy the deposit address.
  • Send your BTC to the deposit address from your external wallet or exchange.

Step 5: Convert your BTC to BTCB by following these steps:

  • Click on [Trade] at the top left corner of the page.
  • Click on [Convert] and select [BTC] as the input currency and [BTCB] as the output currency.
  • Enter the amount of BTC you want to convert and click on [Preview Conversion].
  • Confirm the conversion and wait for it to be processed.

Step 6: Withdraw your BTCB to your MetaMask wallet by following these steps:

  • Click on [Wallet] at the top right corner of the page.
  • Click on [Withdraw] and select [BTCB] from the list of cryptocurrencies.
  • Enter your MetaMask wallet address and select [BEP20 (BSC)] as the transfer network.
  • Enter the amount of BTCB you want to withdraw and click on [Submit].
  • Confirm the withdrawal and wait for it to be processed.

Step 7: Add BTCB as a custom token on your MetaMask wallet by following these steps:

  • Open your MetaMask wallet and make sure you are connected to the Binance Smart Chain network. If not, you can add it by following these steps:
  • Click on the network dropdown menu at the top of the page and select [Custom RPC].
  • Enter the following information for the BSC network:
  • Network Name: Smart Chain
  • New RPC URL: https://bsc-dataseed.binance.org/
  • Chain ID: 56
  • Symbol: BNB
  • Block Explorer URL: https://bscscan.com
  • Click on [Save] and switch to the Smart Chain network.
  • Click on [Add Token] at the bottom of the page.
  • Click on [Custom Token] and paste the BTCB contract address, which is 0x7130d2a12b9bcbfae4f2634d864a1ee1ce3ead9c.
  • Click on [Next] and confirm the addition of BTCB to your wallet.

Step 8: You can now use your BTCB on MetaMask or any other BSC wallet or DApp.

What are the tips and precautions for storing Bitcoin on MetaMask using WBTC or BTCB?

Storing Bitcoin on MetaMask using wrapped Bitcoin (WBTC) or Binance-PEG Bitcoin (BTCB) can be a convenient and beneficial way to use your Bitcoin for various purposes. However, there are some tips and precautions to keep in mind when storing Bitcoin on MetaMask:

1. Always backup your MetaMask seed phrase 

Your MetaMask seed phrase is a 12-word phrase that is used to generate and restore your MetaMask wallet. It is the only way to access your funds if you lose your device, forget your password, or uninstall the extension or app. Therefore, you should always backup your seed phrase and store it in a safe and secure place. You should also never share your seed phrase with anyone or enter it on any website or app that is not MetaMask.

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2. Always check the network and the address before sending or receiving tokens: 

When using MetaMask, you should always make sure that you are connected to the correct network and that you are sending or receiving tokens to or from the correct address. For example, if you want to send or receive WBTC, you should be connected to the Ethereum mainnet and use the WBTC contract address. If you want to send or receive BTCB, you should be connected to the Binance Smart Chain network and use the BTCB contract address. You should also double-check the address before confirming any transaction, as transactions on blockchain networks are irreversible and any mistake can result in permanent loss of funds.

3. Always monitor the exchange rate and the fees before converting between BTC and WBTC or BTCB: 

When converting between BTC and WBTC or BTCB, you should always monitor the exchange rate and the fees involved in the process. The exchange rate may vary depending on the supply and demand of each token, as well as the market conditions. The fees may include network fees, conversion fees, withdrawal fees, and gas fees. You should always compare the exchange rate and the fees across different platforms and methods, and choose the one that offers the best value for your money.

4. Always do your own research and due diligence before using any DApp or smart contract: 

When using your Bitcoin on MetaMask to access various Ethereum-based or BSC-based DApps and smart contracts, you should always do your own research and due diligence before using them. You should check the reputation, legitimacy, security, and functionality of each DApp or smart contract, as well as the risks and rewards involved in using them. Also read the terms and conditions, privacy policies, and user agreements of each DApp or smart contract, and understand your rights and responsibilities as a user. You should also be aware of the potential scams, hacks, exploits, or bugs that may affect each DApp or smart contract, and take appropriate measures to protect yourself and your funds.

Conclusion

MetaMask is a software wallet that allows users to interact with various Ethereum-based DApps and smart contracts, as well as store and manage their ERC-20 tokens. However, MetaMask can also be used to store Bitcoin, the most dominant and valuable cryptocurrency, using two different methods: wrapped Bitcoin (WBTC) and Binance-PEG Bitcoin (BTCB). These methods enable users to enjoy the benefits of both Bitcoin and Ethereum, such as participating in DApps and smart contracts, taking advantage of lower fees, faster speeds, and higher scalability, and having fun and expressing their creativity. However, these methods also involve some trade-offs, such as trusting third-party custodians, paying additional fees, facing price fluctuations, and exposing oneself to potential risks. Therefore, users should always follow some tips and precautions when storing Bitcoin on MetaMask, such as backing up their seed phrase, checking the network and the address, monitoring the exchange rate and the fees,

and doing their own research and due diligence.

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FAQ

Why store Bitcoin on MetaMask?

Storing Bitcoin on MetaMask can offer users the benefits of both Bitcoin and Ethereum. They can use their Bitcoin to access various Ethereum-based DApps and smart contracts, such as trading on DEXs, lending and borrowing on DeFi platforms, minting and collecting NFTs, and more. They can also take advantage of the lower fees, faster speeds, and higher scalability of the Ethereum network.

How can I back up my MetaMask seed phrase?

Open your MetaMask wallet and click on the account icon at the top right corner of the page. > Click on [Settings] and then on [Security & Privacy]. > Click on [Reveal Seed Phrase] and enter your password. > Copy your seed phrase and store it in a paper notebook, a hardware wallet, or an encrypted file. > Never share your seed phrase with anyone or enter it on any website or app that is not MetaMask.

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