How to Add Bitcoin Network to MetaMask Wallet

by Harry Williams Blogger

The bitcoin network cannot be unified into a Metamask wallet due to its inconsistency with the Ethereum virtual machine required for supporting smart contracts. Metamask exclusively supports Blockchain utilizing EVM-adaptable programming languages, such as BNB chain, Polygon, Optimism, avalanche, and Arbitrum.

Nonetheless, Wrapped Bitcoin ( WBTC ) can be held and purchased on a Metamask wallet. Wrapped bitcoin is an Ethereum token that represents bitcoin and has 1:1 backing. Also, it enables trading, DeFi applications, and other cases, enabling Bitcoin utilization in the Ethereum web 3.0 ecosystem.

How to Add Bitcoin Network to MetaMask Wallet

Unfortunately, users cannot add the Bitcoin Network to their MetaMask Wallet because the BTC Blockchain does not support smart contracts and the Ethereum Virtual Machine (EVM) chain. If BTC holders are looking for a secure web wallet alternative to hold their assets, we recommend Wallet of Satoshi that supports the Lightning Network.

Is it possible to hold bitcoin on a Metamask wallet?

It is possible to wrap a bitcoin version, called WBTC, on a Metamask wallet. A token represents this bitcoin version on the Ethereum Blockchain and also has a 1:1 peg to bitcoin. The tokens are redeemable for Bitcoin. The song of adding WBTC to your Metamask wallet is that it is an ERC-20 token, like USDC, USDT, ETH, and other assets that the wallet supports.

Also Read: How to Install MetaMask Wallet: A Step by Step Guide

The best way to purchase WBTC with your Metamask wallet is through trustworthy decentralized exchanges such as UniSwap. With this method, you can swap ETH, USDC, or any token for WBTC that can be held in your wallet.

Things we can do with WBTC on-chain

One of the best advantages of wrapped bitcoin over BTC is that it provides a load of DeFi yield farming opportunities across major networks such as Ethereum avalanche, polygon, and more. Using largely decentralized finance protocols, users can easily earn 10% APY interest from DeFi money market deposits and liquidity provisions.

Is wrapped bitcoin safe?

Wrapped Bitcoin (WBTC) is the largest and most liquid BTC collateralized token on Ethereum and layer 1 or layer 2 Blockchain. It is considered safe because it is held in a safe multi-signature wallet that wants 3 signatures in order for funds to be moved. The tokens are also 100% redeemable and backed 1:1 with Bitcoin so that users can exchange their wrapped bitcoin for BTC anytime. Risks are always involved with the WBTC whitepaper and researching third-party audits before making decisions.

Final Thought

Although you can't add a bitcoin network to your Metamask wallet, you can use the WBTC token to take advantage of DeFi yield farming opportunities across some major networks like avalanche, polygon, and Ethereum. Wrapped bitcoin is 100% backed 1:1 to bitcoin, so users can redeem their tokens for bitcoin at any time.

Source: https://hariguide.com/how-to-add-bitcoin-network-to-metamask-wallet/