Security in MetaMask: How secure is it and how to protect your assets.
MetaMask is one of the most popular and widely used cryptocurrency wallets in the cryptocurrency and decentralized finance (DeFi) space. It allows users to store and manage their crypto assets, as well as interact with decentralized applications (dApps) on the Ethereum blockchain and other compatible networks. Given its importance, it is crucial to understand how secure MetaMask is and how we can protect our assets stored in it. In this article, we will explore the security of MetaMask and provide tips to keep your crypto assets safe.
How secure is MetaMask?
MetaMask is generally considered a secure option for storing and managing cryptocurrencies and tokens. Some of the security features of MetaMask include:
- Local storage of private keys: MetaMask stores your private keys on your own device, encrypted with your personal password. This means that they are not sent or stored on external servers, reducing the risk of an attacker gaining access to your private keys.
- User full control: MetaMask gives the user full control over their private keys and asset management, meaning that you are solely responsible for the security of your funds.
- Secure interface with dApps: MetaMask provides a secure interface for interacting with decentralized applications, allowing users to review and approve transactions before they are executed on the blockchain.
Despite these security features, it is important to note that no system is completely infallible, and the security of your assets in MetaMask largely depends on your own security practices.
Privacy in MetaMask
One of the main concerns for cryptocurrency users is privacy, but Consensys, the parent company of MetaMask, announced in a November 2022 review of its Privacy Policy that the popular wallet would start collecting IP addresses of its users when making on-chain transactions.
The difficulty of avoiding this (since Consensys also provides Infura, the most widely used RPC for wallets to communicate with blockchains) and the lack of certainty that other wallets are doing the same thing has led many users to use VPN services.
These services allow you to mask your IP and use your computer as if you were in another country, which provides an extra layer to protect both your anonymity and the security of your cryptocurrencies.
Since free VPN services often pose more of a security risk than help, many of us have chosen to subscribe to a premium service. Among them, NordVPN offers the best value for money.
They often offer discounts of up to 40% if you go through the following link and subscribe to their annual plan.
If you don't have money to subscribe to a VPN service, it is advisable to use a freemium service instead of a free and dubious security service. In other words, a free service that offers advanced options if a small fee is paid. Among them, it is better to rely on a high-quality service where you know that your privacy and security will not be compromised, and the most outstanding of these may be AtlasVPN, the smaller brother of NordVPN.
How to protect your assets in MetaMask
Here are some tips to keep your assets safe in MetaMask:
Create a backup of your seed phrase
When you create a new wallet in MetaMask, you are provided with a 12-word seed phrase. This seed phrase is essential for accessing your funds and restoring your wallet in case you lose access to it. It is crucial that you backup your seed phrase in a safe place and not share this information with anyone.
One of the most fundamental points for saving the seed phrase is to write it down on paper. Any device connected to the internet is vulnerable to hacking, so never copy and paste it or take a photo and save it on a computer or a mobile device.
Using a hardware wallet
A hardware wallet is a cold storage device that keeps your private keys secure by keeping them offline and protected against computer attacks. MetaMask is compatible with hardware wallets such as Ledger and Trezor, allowing you to interact with dApps and make transactions without exposing your private keys. Using a hardware wallet is an excellent way to enhance the security of your funds in MetaMask.
It is very important to purchase these hardware wallets from official websites. Never from resellers or Amazon, as in the past, these resellers would copy the seed phrases and steal the assets when users activated their wallets and deposited their cryptocurrencies.
The official websites of the two most secure and widely used hardware wallets are as follows:
Protect your devices and connections
Make sure that the devices you use MetaMask on are protected with up-to-date antivirus software and firewalls. Also, avoid connecting to public or unsecure Wi-Fi networks when using MetaMask, as hackers can exploit these connections to try to access your wallet. This is particularly important if you use the MetaMask mobile app.
Verify URLs and connection requests
MetaMask phishing is a common tactic used by attackers to steal confidential information, such as passwords or seed phrases. Always make sure to verify the URLs of websites and dApps before connecting your MetaMask wallet, and be wary of unsolicited connection requests. You can also use the whitelist feature in MetaMask to limit connections to specific websites.
Verify the address of the tokens
If you want to buy a non-common token, make sure to verify the address of the token. The best way is to copy it from the official documentation of the project or token and paste it directly into MetaMask and the decentralized exchange where you want to buy it.
It is very common for tokens to be created with the names of others that are currently popular. Therefore, never copy the address of the tokens from block explorers, but only from the official documentation.
Setting up a strong password
Although MetaMask uses your seed phrase to encrypt your private keys, it is essential to set up a strong and unique password to further protect your wallet. This password will be used to unlock MetaMask in your browser or mobile device. Make sure your password is long and complex enough, combining uppercase and lowercase letters, numbers, and symbols. Avoid using passwords that you have used on other sites or services.
Keep your software up to date
It is important to keep both MetaMask and your browser and operating system up to date with the latest versions and security patches. Software updates often include fixes for security vulnerabilities that can be exploited by attackers. Periodically check for available updates and apply them as soon as possible to protect your devices and MetaMask wallet.
Monitor your transactions and activities
Regularly review the transaction history and activities in your MetaMask wallet to detect any suspicious or unauthorized activity. If you notice anything unusual, take immediate action to protect your funds, such as transferring them to a secure address or disconnecting your hardware wallet.
Don't copy wallets from your MetaMask transaction history
There are many users who usually always send their cryptocurrencies to the same address. To save time when searching for the destination wallet, some copy this frequent address from their transaction history.
There is a new scam called Address Poisoning Scam in which they create empty transfers (that don't send anything) to your wallet towards an address that looks very similar to the one you usually use frequently, but is actually different: Only the first and last characters coincide.
People who usually use their transaction history to send cryptocurrencies can copy these addresses from history and not be surprised, since they start and end the same as the one they usually use and make a transaction. But the transaction will go to the scammers' wallet.
You don't lose any time checking the wallet in the original source and it can save you a lot of trouble.
If you want to know more about this scam, we recommend you watch the following video:
Conclusion
The security of your MetaMask wallet is crucial to protect your cryptocurrencies and digital assets. By following the recommended practices mentioned in this article, such as backing up your seed phrase, using a hardware wallet, securing your devices and connections, verifying URLs and connection requests, setting up a strong password, and keeping your software updated, you can significantly improve the security of your wallet and reduce the risk of fund loss due to attacks or security vulnerabilities.