Ethereum's most popular browser-based crypto wallet, Metamask, has built-in token-adding and swapping features that are very easy to use and understand. Learning how to use Ethereum applications can be a headache-inducing experience for Web2 users, let alone understanding how on-chain trading works. Fortunately, Metamask simplifies everything and does all the heavy lifting behind the scenes.
Creating a Metamask crypto wallet is pretty simple. While using a crypto wallet isn't hard to figure out, a learning curve is involved, the worst penalty being the permanent loss of assets sent to the wrong address. Blockchain and Web3 are still new technologies, and like all new technologies, they are not user-friendly. Until the creation of Uniswap, the first decentralized exchange (DEX) to achieve popularity, swapping cryptocurrencies on Ethereum was an expensive pain, often relying on primitive DEXes that were not suitable for Ethereum's unusual conditions, forcing users to stick with centralized exchanges like Coinbase.
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Today, Metamask provides this ability on its main interface under the Swap function and even has helpful instructions for using it on its website. However, it charges a 0.743 percent convenience fee. Behind the scenes, Metamask compares rates between all DEXes on the same blockchain to locate the best possible deal for its user while providing the most straightforward possible interface. Adding a new token to the interface does not cost anything, but swapping tokens does, and users need to keep enough ETH for the blockchain's gas fee (if they're using Ethereum) to pay for the transaction.
Swapping And Adding Tokens Is Very Simple
Swapping tokens is the same for all Ethereum-compatible blockchains (like Polygon), the only difference being the cryptocurrency needed to pay the gas fee. Under the 'Swap' tab, select the two tokens to swap, with the outbound token in the top bar and the inbound token in the bottom bar. If the token does not appear when its ticker symbol is entered, then its address will need to be copy-pasted instead. Next, enter the amount to swap out or the amount to swap in, and click 'Swap.' The confirmation page will show the tokens being exchanged, the amount that will be received, and the gas fee charged for the swap. If everything looks correct, then click 'Swap.' After several seconds, Metamask will pop up with a 'Transaction Success' notification, and the swap is complete.
To add a token, users only need to visit a cryptocurrency listing site like Coingecko or CoinMarketCap and search for the token's ticker symbol (i.e., ETH for Ethereum's ether) in the search bar. If a token isn't listed on either site, it should be avoided, as it may be a scam. When found, look for the token's address (denoted by a '0x' followed by a series of numbers and letters) and click the Metamask logo. Metamask will then pop up with a confirmation to add the token, after which the token will appear under the 'Assets' list.
Adding and swapping tokens is not tricky, but it differs from buying/selling on Coinbase. Metamask keeps its own list of cryptocurrencies in its database, so most tokens won't need to be added, but smaller projects will. Understanding how to swap tokens on-chain is helpful for people who want to trade cryptocurrency outside an exchange or acquire potentially lucrative (and risky) tokens, but users need to be careful not to get wrecked by crypto scams along the way.
Next: How Robinhood's New Crypto Wallet Could Bring 1,000,000 Users To Web3
Source: Metamask, Coingecko, CoinMarketCap
