Just like fund transfer is a normal process that occurs in the financial world with our paper currency, the cryptocurrency world has also expanded to incorporate a system that allows crypto holders to move their tokens or funds from one exchange to another or even from one chain to another. This article will be examining how to execute the exchange process such that crypto assets are properly secured even as transfers are being made.
Metamask allows users to link up with DeFi ecosystems on Ethereum and other blockchain networks like Polygon, Avalanche, and Binance Smart chain. However, for users to connect Metamask and other blockchain networks, the right chain needs to be selected. For instance with the Avalanche network, the C-Chain wallet is the only compatible chain, and transferring Avalanche tokens known as AVAX to Metamask can only be done via this chain. Also, users can transfer their AVAX from an exchange that has incorporated C-Chain to Metamask, and a good example of such an exchange is Binance.
Binance Smart chain is essentially a fork of Ethereum blockchain which signifies that every dApp that operates on Ethereum can work on Binance Smart chain thus making it possible to use Metamask wallet. To transfer tokens from Binance to Metamask, Binance smart chain needs to be added to Metamask and the process of doing this will be discussed. With Binance smart chain, users are assigned corresponding tokens for the amount of crypto funds transferred into it. Also, it is becoming popular as an alternative to Ethereum due to its transaction fees being cheaper while user experience is mostly the same as with Ethereum chain.
There are certain factors to consider when considering the transfer of tokens from Binance to Metamask which are:
- The amount of funds which will determine the number of tokens the user will have
- Ownership of a Binance smart chain wallet
- Ownership of a Metamask wallet
- Choosing the right chain that is compatible with Metamask wallet.
Setting up a Metamask wallet is quite straightforward as it needs to be downloaded and installed as an extension on Chrome, Android, or iOS via the official website of Metamask, and the necessary process to complete the installation will be displayed. Simply follow the instructions and you will have the wallet installed on your device.
As mentioned earlier, transferring tokens from Binance to Metamask requires adding Binance Smart chain to Metamask but the user must already have a Binance wallet in place before it can be added to Metamask. The process is shown below:
1. The first step involves opening Metamask and following the instructions highlighted in the picture below:
2. The next step is to copy and paste main-net details as displayed in the picture below after which the user can click ‘save’.
3. With that, Binance smart chain network has been installed in Metamask and the setup is ready for the transfer of funds or tokens.
Sending funds from Binance chain wallet to Metamask involves the following process:
1. Open Metamask and ensure that you are on Binance smart chain as displayed in the picture below. Then copy the address and even though the wallet will display the logo for Ethereum, do not be worried.
2. Go to the Binance extension wallet and click ‘send’. The next window that appears will look like the one in the picture below. Paste the address that was initially copied in the address field, enter the amount to be sent and click ‘send’.
3. Click ‘send’ again to confirm the transaction
4. The transaction will then be displayed in Metamask.
Now that the tokens have been transferred, the Metamask wallet can now be used for trading on Pancake swap and also for exploring dApps on Binance Smart Chain.
Risks of transferring tokens from Binance to Metamask
- Hot wallet: since Metamask is a crypto wallet with a direct connection to the internet, it makes it susceptible to online hazards such as phishing, theft, and hacking. However, there are yet to be significant cases of hacking on Metamask.
- Limited choices of crypto coins: due to the design of Metamask wallet, only Ethereum and ERC-20 tokens are supported thus limiting the kind of tokens that can be used for transactions on this wallet.
- Access to private information on browser: since Metamask is a wallet installed through a browser, it means the browser can collect information on users which could be discouraging for potential users of this wallet.
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