What is Metamask?
Metamask is a browser extension that serves as a cryptocurrency wallet used to interact with the Ethereum blockchain. Unlike a regular wallet, this wallet only supports ERC20 tokens, which are tokens based on the Ethereum blockchain. It recently started supporting BEP20 tokens as well, on Binance Smart Chain (BSC). If you are an absolute beginner, you should learn more about how to get started with Metamask.
You can easily set up a Metamask wallet by creating just a password. Then you can add Ethereum blockchain or BSC tokens to it.
What is really good about the wallet is that you can add unsupported tokens to it via the “add token” option. Being a web3 wallet, Metamask also supports web3 decentralized applications (Dapps) and non-fungible tokens (NFTs).
If you prefer to use your mobile device, you can also access the wallet by installing it from the Play Store or iOS Store. Metamask is used to store and manage your account keys. Like a regular wallet, it also broadcasts transactions, but also sends and receives ERC20 and BEP20 tokens. It is easy to exchange tokens within the wallet using the Metamask “Swap” feature. The wallet aggregates several DEXs to get the best exchange rates. Many people are not familiar with what DEXs are, but they are very easy to use.
What is Pancakeswap?
Pancakeswap is one of the best decentralized exchanges. This is not to be confused with the Pancakeswap token (CAKE), which is the original exchange token. Pancakeswap is designed specifically for trading BSC-based DeFi tokens. Besides trading DeFi tokens, you can also farm liquidity and invest CAKE token to get rewards on Pancakeswap. Unlike centralized exchanges, you can simply jump online and start using DEX without any registrations and no personal information required.
Why use Metamask?
Metamask was first launched in 2016 and now has millions of monthly users. This is because the wallet has become relevant, especially in the DeFi ecosystem. If you want to easily buy or trade DeFi tokens, using something like Metamask is inevitable. Also, as the world moves towards Web3, the wallet is also becoming more relevant, as only wallets like Metamask can communicate with decentralized exchanges, dapps and NFTs.
How to buy cryptocurrencies with Metamask?
Since the Pancakeswap DEX is designed to trade BSC-based tokens, this guide focuses only on BSC-supported tokens. There are tokens available on both BSC and Ethereum. You can also trade the BSC version of such tokens on Pancakeswap. So how to buy token on Pancakeswap using Metamask?
To get started, create a wallet
The first thing to do is to create a Metamask wallet. If you already have one, congratulations, you can move on to the next step. If not, it’s as simple as going to metamask.io and clicking the blue Download button. Supported browsers are: Google Chrome, Mozilla Firefox, Brave and Microsoft Edge.
You will then be prompted to create a strong password. After you create it, you will be prompted to copy and save.
The password consists of a maximum of 12 letters, which you can use to recover your wallet if anything happens to your device or if you forget your password. You should write them down and you will be asked to enter them in the correct order to show that you have actually written them down. A large number of users have lost a lot of money because they neglected this step.
How to add funds to Metamask?
Once your wallet is set up, you will need to fund it using BNB, which is the native token for BSC. One way to do this is to make a purchase by clicking the Buy button. Another way is to send assets from another wallet or exchange to Metamask by simply copying the address above and sending BNB to it. The default blockchain for the wallet is Ethereum, so you need to change it to BSC by clicking the down arrow next to Ethereum. Select Binance Smart Chain from the drop-down menu and you’re good to go.
Connecting Metamask to Pancakeswap
To connect your Metamask wallet to Pancakeswap, visit pancakeswap.finance. There you will see the Connect Wallet button in the upper right corner. Click on the button and select Metamask from the list of wallets and you will be connected. You should see a wallet icon where the connect button used to be, with the first two and last six characters of the wallet address.
Buying cryptocurrencies through Metamask
Finally, go shopping. Click on that option and select Swap from the drop-down menu. Assuming you want to buy CAKE, the native token for Pancakeswap, all you need to do is enter the amount of BNB you want to trade for CAKE. Click MAX if you want to use all your BNB, but this is not recommended as you need some BNB to pay fees in the future.
Slippage, or the extent of deviation from the expected rate, is set to 0.5% by default. You may need to increase this depending on the token of interest and how congested the network is at the time you want to trade.
If everything goes well, you will see a marked SWAP button below. Click on it and your trade is done. Congratulations, you have successfully purchased your first cryptocurrency on Pancakeswap using Metamask.
Is Metamask safe to use?
Metamask is designed with security as an inherent feature of this tool. This means that no user data is stored on it, so there is no chance for hackers to steal your data from it.
However, it is a wallet that is always connected to the internet, which means it is always at risk. Still, for someone interested in interacting with Ethereum, Metamask is a risk worth taking.
Is it worth using Metamask?
After going through this article and seeing how to buy cryptocurrencies using Metamask, you must be wondering, is it worth using Metamask? If you want to interact with DeFi tokens on Ethereum and BSC, yes. DeFi tokens, Dapps, smart contracts and NFTs are becoming the order of the day, and Metamask is one of the main gateways to the ecosystem, which means it’s worth using.
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