Author: Jessica Alameda

Almost most of the traders have heard of the word leverage trading. But a much smaller portion of them actually knows what leverage trading is, how it works and even if it’s a good idea to start trading with leverage. In this article, we will be covering this very exact topic: what is leverage trading? How can one use it? and whether it suits you and your financial plans or not. So sit tight and enjoy the article.

Leverage Trading

Leverage trading is the reason why most traders choose to trade in the cryptocurrency market and forex. Rather than trading in stock markets which has lower leverage rates. The amount of allowed leverage is much higher in the crypto market and forex. But is that a good thing? That’s another story which we will also talk about in this article.

What is Leverage Trading?

Leverage trading is the act of borrowing money to enter a position, which can be helpful and destructive. The idea of borrowing money to put into your business is not a new thing. In the financial world, this act is called leverage trading. In the crypto market, leverage trading is done in centralized exchanges. 

Exchanges borrow money from traders so they can invest it in their positions. So the rewards would be much higher than trading without the borrowed money. On the other hand, the money you lose when your trade goes wrong is also much higher.

The question that comes to mind is why would someone do leverage trading when it has a greater risk of losing money? 

The answer is simple. While leverage trading has a larger risk of losing money than trading with your original margin, the profit of leverage trading is also much greater. So if your trade goes right and you have entered the right position, leverage trading can be very helpful for you.

How does Leverage Trading work?

Leverage trading in the crypto market is a contract between the trader and the exchange offering leverage trading. Usually, leverage trading in the crypto market comes in two different forms: future trading and margin trading, but that’s another story. Forex leverage trading is done by brokers lending money to traders so they can trade with larger margins. So basically the same principle applies in all financial markets, the only difference is in the details and the names.

How is the leverage calculated?

One of the most important aspects of leverage trading is the amount of leverage applied to the trade. If you miscalculate or mistakenly choose higher leverage, the risk of your position will be greatly increased. 

Leverage trading is designed so traders could use their initial margin and in a relatively shorter time, increase their margin in size. So the principle here is that traders could make a lot of money with a few price changes. For example, in a non-leveraged trade, if the price drops 1%, you would lose 1% of the margin you put in the position. In a position with 10:1 leverage though, if the price drops 1% you would lose 10% of your margin. Imagine what would happen if you were trading with a 100:1 margin!

To calculate the total mountain of margin in your leveraged position, you have to multiply the amount of leverage by your initial margin. 

For example, if you are trading with a 10:1 leverage, and you are putting $1,000 in the position, your total margin would be $10,000. Your profit or loss in that position would be calculated according to your total margin which is $10,000. So if the asset you’re trading goes up %10, you would gain 10 percent of $10,000 which is $1000. On the other hand, if the asset drops %5 you would lose half of your margin, and if it drops %10 all your margin is gone now!

Although leverage trading in the crypto market (through exchanges) is almost the same as leverage trading in Forex, the result can be different. You’ll find out why in the next section.

Is Bitcoin Leverage Trading safe?

This is true that leverage trading in forex works the same way as it does in the crypto market. But the outcome and the risk is the difference between leverage trading in these two financial markets.

For example, if you are trading with leverage on a crypto asset like Bitcoin (BTC), the risk of you losing your money can be higher than, say, leverage trading on gold (XAU) in Forex.

The reason why leverage trading on Bitcoin carries more risk than gold in Forex is that the crypto market is you and the prices are extremely volatile. Volatility is a reason why Bitcoin leverage trading is riskier than gold leverage trading (or any other asset in Forex for that matter).

Another reason why Bitcoin leverage trading has more risks is market manipulation. Because it doesn’t usually happen in Forex as it’s a felony. On the other hand, market manipulation is very common in the crypto market. Whales (traders who own a lot of Bitcoins), exchanges, and banks can easily manipulate the market. And they usually will, and make a ton of money doing so.

That’s why leverage trading in the crypto market is riskier than leverage trading in Forex or other stock markets.

Conclusion

Leverage trading is a way in which traders borrow money from exchanges or brokers. So traders gain more money when they profit from their position. It also opens the door to more risks. As traders will lose more money if the trade goes wrong as well. 

So leverage trading is a double-edged sword. It can help you gain financial security and it can also destroy your portfolio. But you don’t need to worry, if you know what you are doing, how leverage trading works, and how to manage risks, you won’t be having much trouble.

Q&A

Is trading with leverage a good idea?

If you know how leverage trading works, Yes. It allows traders to have more buying power than their original portfolio, so they will profit much more than trading without leverage. But it goes both ways as they will lose money more than trading without leverage too.

Do you pay back leverage?

Yes. By leverage trading, you are borrowing money from the exchange to enter a larger position than you could with your initial margin. When you close the position, you have to pay back the leveraged margin plus some interest. 

Can you lose more than you invest with leverage?

The short answer is, Yes. Even if the position you opened goes horribly wrong and it closes with a %100 loss, you will only lose the initial margin you put in to open the trade. You should pay attention to your futures contract as it can differ from exchange to exchange. 

In this article, we’re going to learn about Bullish Harami and find out what it is. Traders have been using candlestick charts since the 18th century. Candlestick charts were first invented in Japan’s rice market by Munehisa Homma, a Japanese rice trader. Since then candlestick charts have been a great tool for traders and market analysts to gain information about the market. 

Whether you are an investor or trader you would find candlestick charts very useful. There are many ways in which you could use candlestick charts to extract data from the market. One popular way is to find candlestick patterns or candlestick chart indicators. Bullish Harami is another candlestick chart indicator which signals specific messages that could be helpful for you. 

Continue reading this article to find out: what is a bullish harami, how can you find this pattern on a candlestick chart, and how should you trade it, or in other words what it tells you as a trader.

What is Bullish Harami?

Bullish harami is a candlestick chart pattern that signals the end of a bearish trend. It could signal the end of a bearish trend in a specific asset or the whole market. If you are an investor looking forward to buying a cryptocurrency and investing in it or you’re a trader waiting for a sign that says “a bullish trend may begin” so you could enter your long position, the Bullish Harami candlestick chart pattern could be that sign for you.

Before we start with the bullish harami candlestick chart indicator, we must first introduce the candlestick charts to you for those of you who may not be familiar with them. If you already know what a candlestick chart is, you may want to skip to the next section and start learning about the bullish harami candlestick pattern.

What is a candlestick chart?

Candlestick charts are a type of chart which traders use to track the price of an asset. Traders call it candlestick charts because they show rectangular red and green things called candles to show the performance of the said asset. Each candle represents a period of time, for example, in Bitcoin’s weekly candlestick chart each candle shows the changes in Bitcoin’s (BTC) price during that week. 

Each candle gives us 4 important data: open, close, highest and lowest prices. 

By being able to extract these data, fully understand them and also know how to read those data and what they’re trying to say to us, you can become a profitable trader. Now that we have covered the basics of candlestick charts, we can continue learning about the bullish harami candlestick pattern.

What is the Bullish Harami pattern?

Bullish harami is a candlestick chart indicator. Which signals the investors and traders that the bearish trend may be coming to an end. 

How could that be useful to you?

It signals that the bearish trend is ending, so a bullish market may be starting, so if you can get ready to invest and buy more of the coin you were looking forward to buying or even get ready to open your long position on that asset.

Now, in this section we want to look at how a bullish harami candlestick pattern takes place, what a bullish harami candlestick pattern looks like, and what does the word harami even mean? The word harami is an old Japanese word that means “pregnant”. The reason traders named this pattern in such a way is because of the pattern’s odd shape that to some people with a good imagination, looks like a pregnant lady.

On a daily candlestick chart where a candle represents a day, the bullish harami needs 2 to 3 days to fully emerge, as the bullish harami is a two to three candles long candlestick pattern. 

The first, or the first candles in a bullish harami candlestick pattern are bearish red candles. The first one or two candles (depending on the length of the pattern) of bullish harami should be red downward candles signalling traders that “the bearish trend may not end soon, in fact, it’s going to push the price lower and the price will drop”. The third candle in this candlestick pattern should be a small green doji candle fully contained by the previous candle’s body. 

The first candlesticks in the bullish harami should be candles with long bodies which are facing downwards. Meaning both of the first candles should be red bearish candles, showing that the bearish trend is going to continue. The last candle is a green doji candle which is slightly moving upwards. 

The last bullish harami candle is a doji which slightly moves the price higher, meaning it’s a green doji. This candle should fit perfectly in the previous candle’s body (a candle body is the coloured rectangular part which is the difference between the open and close prices). The doji candle indicates that the bearish trend could very possibly have come to an end. And that it’s time for the bullish trend to begin.

What is the Bullish Harami Cross?

The bullish harami cross is another name for the bullish harami pattern. It’s consistent with a large downward candle usually coloured red or black, followed by a doji candle. The previous candle should fully contain the doji candle. This means the doji shouldn’t be contained by the previous candle’s shadow or wick. 

The first candle in the Bullish harami cross indicates that the trend is being controlled by bears (the sellers). The doji candle, on the other hand, indicates that maybe the plan is changed. That sellers aren’t willing to sell anymore, which is confirmed by the following candles.

Confirmation

Bullish Harami candlestick confirmation comes to a few candlesticks after the bullish harami’s doji candle. After the doji closes, you should be waiting to observe bullish green candles starting to rise in price. 

Your first confirmation comes after the doji candle. When the bullish candles have taken the price higher than the first harami candle (the big red candle). In other words, if you take the first candle’s open price as a resistance level, your first confirmation comes when that resistance level is broken.

Q&A

How do you trade bullish harami?

The bullish harami candlestick pattern indicates that the current bearish trend may have come to an end. To trade the bullish harami pattern you must wait for the confirmation. Then buy the asset you want to or open your long position.

Is harami bearish or bullish?

Harami or Harami cross is the name of a reversal candlestick pattern consistent with 2 to 3 candles. This pattern can be both bullish and bearish depending on where it appears. If in a bullish trend you see a harami pattern this means a reversal in trend.

Whether you are working as an investor in the New York stock market, or either that you’re working as a trader in Forex, or you’re a crypto enthusiast and want to calculate crypto gains and losses in the market. Learning how to calculate crypto gains in the market is an essential trick.

This article is about How to calculate crypto gains in crypto. There are different reasons for one to calculate their gains and losses in the market. Here we will explain those reasons to find out why it’s a necessary step of the way. Then we will cover some methods from which you can calculate crypto gains.

How to calculate crypto gains?

Calculating your gains can be very definitive in the course of your trading. It can play a major role in many different ways. Before we go over the methods you can use to calculate crypto gains, let’s find out what are the reasons for you to calculate crypto gains in the first place. 

Why would you want to calculate crypto gains?

To find out if you are profitable:

There are many different reasons why you might want to calculate crypto gains. One of them is if you are a trader you might want to get insights on “how well you’re doing”. It means that you might want to know whether or not your trading is profitable. Whether or not your trading strategy is working for you. And if your investments are paying off.

For example, If after calculating your profits you found out that in the last month you have lost 200$ trading on Bitcoin, you may want to change your strategy from price action to a volume-based strategy. Or to just make some changes in your price action based strategy. So, as you can see, calculating your profits helps you figure out if you are a profitable trader or not.

To calculate crypto taxes:

There are some countries in which the government hasn’t yet started charging individuals taxes for their activities in the crypto market. But if you aren’t living in those countries then you may want to calculate crypto gains. So you’ll know how much you have to pay for crypto taxes.

Whether or not you are a newbie in the crypto industry, or you have been working in the market for months or years, calculating your crypto taxes can be difficult and even overwhelming at times. 

There are other ways in which you can know how much you have to pay for crypto taxes. Such as getting help from an accountant to calculate crypto gains. As a matter of fact, when you’re filing your yearly tax returns, an accountant can help you figure out how much are your crypto gains. Nevertheless, knowing how to calculate crypto gains can still be very helpful as you would have an idea of exactly how much you owe to the government. 

To keep track of your income:

Another reason that you might want to know how to calculate crypto gains is to keep track of your income and expenses. That’s right! 

If you are the type of person who would calculate and keep the records of their expenses, and their incomes so they would have an idea of how much they have to save or how much they need to save for them to reach their financial goals, you need to know how to calculate crypto gains.

To avoid losing your assets:

By calculating crypto gains and keeping records of them and keeping them in check now and then, you’ll make sure that you exactly know where you’re going. 

If you have gained a lot in the past month, maybe it’s time to move those profits out of the trading wallet or exchange them for stable coins to make sure you won’t lose your profits. 

Or if you have lost money in the past month you should stop trading. Maybe start figuring out where you’ve gone wrong and what steps you need to take to make it right. From that, you can become profitable in the next few months.

Now that we have learned the reasons why someone would want to learn how to calculate their gains in crypto, it’s time we move on and cover some ways in which you could calculate crypto gains.

How can I calculate crypto gains?

Calculating your capital gains in the crypto market is a relatively easy process if you know what you’re doing. In the first method, we’ll teach you how to calculate crypto gains manually. Which takes more time but still, this is the method we recommend you to learn. As it can come in handy in the future. The second method is quite easy and you almost don’t need to do anything. It’s more of a method which can help you calculate if you’re in a hurry.

So, let’s begin.

The first method consists of 3 easy steps. By the fourth step, you would know how much you have gained or lost in the crypto market.

But first, let’s explain capital gain. The capital gain or loss is the difference between the amount of money you paid to buy an asset and the amount of money you gained when selling the asset.

1. find out the cost basis:

The first step is to find out exactly how much money you have paid to acquire the tokens you want to calculate the gains of. If the tokens were gifts and you didn’t pay any money to get them, then you should use the market price of the cryptocurrency on the day you received them. This is called cost basis. 

Now that you know the cost basis, we should continue with the next step.

2. calculate the difference:

Now that you know your cost basis, you should go ahead and subtract it from the price of the crypto when you sell it or dispose of it in any other way. Whether you have gained or lost capital, doesn’t affect this process in any way.

3. figure out how much your tax is:

If you have gained capital, you need to pay tax for the amount of capital that you have gained. Even if it was lost capital, you might still want to keep track of them too. 

You can use the capital losses to offset capital losses against capital gains to reduce the amount of money you need to pay for crypto taxes. 

The second method is much easier. You simply can use any of the gains calculators online to figure out your gains in crypto. 

This is what a crypto gains calculator looks like. You simply enter the amount that you paid to acquire the tokens, then define the token itself and press calculate. The results will be shown to you in no time.

We recommend you go over the first method and learn how to calculate crypto gains. This will come as helpful in many situations. 

Q&A

How much CGT will I pay on cryptocurrency?

You do not need to pay any taxes for your crypto when you acquire the tokens. Only when you are disposing of your crypto do you need to calculate crypto gains. To know how much you have to pay as your Crypto Gains Taxes.

Do I pay taxes on crypto if I don’t sell?

Purchasing crypto tokens isn’t a taxable event. There must be a taxable event for you to need to pay taxes for your cryptocurrency. If you want to sell them for example, you need to calculate crypto gains and pay taxes if you’ve made a profit.

Is Coinbase earn taxable?

If you’re working with an exchange in a way that they pay you 600$ or more they need to report these payments to the IRS as an “other income”. So whether or not Coinbase earn is taxable depends on how much you make off of it.

Traders and investors have been using candlestick charts for many years now. The first time they started using candlesticks to track the price of an asset goes back to the rice market in Japan. They were first made to track the increase and decrease in the price of rice. By doing so and analyzing the changes in the price of rice for the past few days and weeks, they were able to forecast the price of the rice for tomorrow and future weeks. By reading this article, you will learn about a specific part of a candle’s anatomy, its wick.  This article will teach you what candle wicks are and how to read them.

Candle Wicks

Since then candlesticks have been a very useful tool for investors and traders. So if you’re a trader or an investor you should definitely learn how to read candlesticks. Whether you work in the crypto market, the New York stock market or Forex.

What are candle wicks made of?

Before explaining what candle wicks are made of and how a candle wick is made, this article will teach beginners about candlesticks anatomy. 

What are candle wicks?

A candle wick is a line attached to the top or the bottom of a candle in a candlestick chart. Traders and investors know candle wick is also the candle’s shadow. By looking at candle wicks traders can gain a lot of information. 

To have a better understanding of candle wicks you should know more about candlesticks anatomy, for example, you should know what a candle’s opening and closing prices are. A candle consists of 4 inputs which differ from candle to candle, opening, closing, highest and lowest prices.

In candlestick charts, the difference between the opening and closing price is the candle’s body.

The shadow or candle wicks are the lines sticking out of the candle’s full body. The upper wick shows us what was the highest price the candle could reach, and the lower wick shows us what was the lowest price the candle could reach before closing at the close price. So, to put it simply, the wicks on a candle show us what was the highest and lowest price a certain asset could reach during the duration of that candle.

Now that you know what parts of a candle are called candle wicks, we can move on to find out and analyse how candle wicks are made.

How candle wicks are made?

This section covers how traders make candle wicks. Candle wicks or candle shadows are located at the top or the bottom of a candlestick. By knowing how market sentiment makes shadows, you are more likely to understand them. Then you’ll read them more easily and extract the information they are dying to give you.

The candle wick shows us the highest and the lowest price the candle could reach during its period. For example in a candlestick chart of an asset, a candle opens at 100$, during the day it reaches $120, but before the market closes the price sellers reject that level and the candle closes at 80$. Now, this would be a red candle with an upper shadow which is the size of the candle’s full body.

How to read candle wicks?

Take a look at this image which shows a Bitcoin candlestick 1 Day chart. If you aren’t familiar with the term, 1 Day means each one of the candlesticks shows the change of price in Bitcoin during the period of a day.

Take a look at the candlesticks located in the black circle. During the two candle wicks in the black circle, Bitcoin has tried to surpass 45,000. But sellers rejected it both times, so the price dropped in the next 2 weeks. Now take a look at the candle wicks located in the area marked by the big red circle. There the price tried once again to break out of 45,000 but wasn’t able to reach as much as it did the time before, so it dropped again.

Now let’s take a look at those candles in more detail. At both of those times, the black circle and the red circle, Bitcoin (BTC) tried to break out of 45,000. The candles opened at a price lower than 45,000. During the day buyers increased the price, so it surpassed 45,000, then the bears (sellers) decided that it was a good time to sell. That caused the price to drop. 

The candle wicks are actually made when traders decide that this price is what it is. If they decide the price should be lower than what it is, the candle will have an upper shadow, and if the traders decide the price should be higher than what it is, the candle will have a lower shadow.

Conclusion

Knowing candlestick anatomy plays a major role in your ability to analyse the market. Candle wicks or candle shadows are the lines at the top or the bottom of a candle which show the price’s extremes. To put it simply, it shows the highest and the lowest price reached during that candle. 

FAQ

What is the wick of a candle in stocks? 

Wick or Shadow is the line coming out of the top or the bottom of a candle’s body. It shows the highest and lowest price reached during the period of that candle.

What do long wicks mean in trading? 

Long wicks or long shadows show that the market isn’t ready to move in a certain way. If the long shadow is an upper shadow it means the market isn’t ready to go up and vice versa.

What does a candle with no wicks mean?

A candle with no wicks or no shadows is a strong signal. It shows the certainty of the market to move in a certain direction. If it’s a big green candle with no wicks it’s a strong bullish sign and vice versa.

Meta:

Candle Wicks or Candle Shadows, are lines that come out of the top or the bottom of a candle. which shows the highest and lowest price that asset could reach…

The problem with creating new accounts on applications, websites, or platforms is that we may lose our passwords. This can happen for many reasons. Maybe you entered a password just so you could enter the app as quickly as possible. So you entered a password that you never memorized in the first place. Or maybe you just forgot your password like every human being does at one point or another. This article will teach you how to change metamask password. After that, we’ll give you a step-by-step guide on how to change your metamask password. So let’s continue. 

Metamask, like most applications and platforms, requires a password when you’re creating the account. If you’re one of us who might forget your password from time to time, you might have forgotten your password to your account. You don’t need to be afraid, it’s not the end of the world! 

There are ways in which you can change the metamask account password. It’s not completely necessary for you to remember or save your metamask account password. But it’s definitely VITAL that you save your metamask secret recovery phrases (wallet seed codes). Now let’s find out how to change metamask password?

How to change metamask password?

First, you should know why you should never lose secret recovery phrases. When you’re creating your account on metamask you’re agreeing with the terms and services. This means you’re agreeing that if you lose your password or your metamask application gets removed or anything, and you don’t have or have access to your secret recovery phrases, your assets are gone!

So that’s why it’s very important that you write down and save the secret recovery phrases. Somewhere that isn’t in your phone of course, because then there’s also the risk of you losing your assets when your phone gets hacked. Recently a hacker stole hundreds of dollars worth of cryptocurrency by accessing someone’s iCloud and finding the secret phrase codes there. So be sure not to save them on your phone either. 

So if I’m locked out of metamask, don’t know my password, and lost secret recovery phrases, does it mean I lost my assets?

Well, the harsh truth is, Yes. If you don’t have your recovery seed codes, you can not change metamask password. If you are locked out of metamask and you don’t have your seed phrases stored somewhere, your assets are good as gone. And it’s not just about metamask. Most of the crypto applications you use nowadays have this policy. So you better get used to it, and find a secure way to keep your recovery seed phrases all the time. 

How to change metamask password: a step-by-step guide

This section of the article will give you a step-by-step guide on how to change metamask password. To finish this process you need to be logged in to your metamask account and also have your secret recovery phrases. If you do have them, let’s begin to change your metamask account password. 

1. Open metamask:

In the first step, you must log in to your metamask account. Whether it’s an application installed on your smartphone or it’s the browser extension you’re using. 

When you’re logged into your metamask account, you need to click on the menu icon located on the left side of the screen (depending on your device this may be different). 

In the browser extension, for example, you must click on your account icon in the right corner of the screen.

2. Import your wallet using seed phrases:

If you’re using the browser extension, you should select “Import using Secret Recovery Phrases”. On the mobile app versions though you should first log out of your metamask wallet.

If you’re using the mobile app version, log out of your account. Then, choose “Import using Secret Recovery Phrases”. And let’s move on to the next step. 

3. Enter your secret recovery phrases:

In this step, you must enter your recovery seed phrases to import your metamask wallet. Note that you must enter them in the correct order. The order that was first shown to you. 

So make sure you store your recovery seed phrases in someplace safe and that you write them down in the right order. 

Now enter the new password for your metamask account password. Make sure you choose your password strong enough. And that you store it somewhere safe, so you wouldn’t lose it again. 

Click on Import, and Done!

That’s how you change metamask password. It’s not that hard or time-consuming if you have your recovery seed phrases. If you don’t, it simply isn’t possible to change metamask password. 

Q&A

What do you need to change metamask password?

To change metamask password, the only thing you need is recovery seed phrases. If you don’t have them, it’s simply impossible to change the password of your metamask wallet.

What can I do if I forgot my metamask password?

If you forgot your metamask password, you need to import your secret recovery phrases. After you import your secret recovery phrases, you need to enter your passwords. If you don’t have your secret recovery phrases, you can’t do anything to recover your account.

Why is my metamask password not working?

This may be happening for two reasons. Maybe your browser or the app on your phone is experiencing a lag. Or maybe its feedback is an invalid password. If that’s the case you’re entering the password wrong.

Whether you are new to the crypto market, you have been investing in various cryptocurrencies since very long ago, or you are a day trader who makes money in a heartbeat, you probably have heard of one of the most famous cryptocurrency wallets, MetaMask. In this article, we will be teaching you a method in which you could connect MetaMask by WalletConnect to other dApps. WalletConnect is an open-source tool that acts as a bridge between your crypto wallet and the platform you want to connect your wallet too.

In this article, we will first take a look at both the MetaMask wallet, and WalletConnect. First, we have to learn about them, then we move on to the next part in which you would learn how to connect MetaMask by WalletConnect to decentralized applications (dApp).

Connect MetaMask by WalletConnect

Before we start the tutorial and learn how to connect MetaMask by WalletConnect to desktop dApps, we should first find out what they are. If you are a veteran in the crypto market and also you already know what WalletConnect and MetaMask are, you can skip to the tutorial. But either way, you could gain useful information by fully reading the article.

What is MetaMask?

MetaMask is a software cryptocurrency wallet which is installed as a browser extension on PCs and also as an individual software on mobile phones. MetaMask is connected to the Ethereum main net by default. So it acts as an Ethereum wallet. Meaning it will allow users to deposit Ethereum tokens. Such as tokens that are running on the Ethereum network. Such as ERC-20 and also other networks. 

But it also allows custom networks, users can use this option to connect MetaMask to other networks such as Polygon. 

What is WalletConnect?

It is a tool which allows users to use wallets other than MetaMask to connect to desktop decentralised applications (dApps), before WalletConnect, MetaMask was the only crypto wallet capable of doing such a thing. 

WalletConnect is an open-source tool. It’s an open protocol which connects mobile wallets to desktop dApps. Also, it’s safe as it uses an end-to-end encryption method. 

Users can securely connect their crypto wallets to a certain desktop dApp by simply scanning a QR code. You should feel safe using WalletConnect. As it won’t reveal your wallet’s private keys, also it won’t store them.

Now that we have covered the basics, and learned about MetaMask and WalletConnect, we can continue to the next section. In the next section, we’ll learn to connect MetaMask by WalletConnect to a decentralised application. 

How to connect MetaMask by WalletConnect to a dApp (decentralized application)?

WalletConnect allows you to connect your software crypto wallet to any desktop dApp you need to connect to. If you are using any other wallet than MetaMask, that should also work. Then you can continue these steps by connecting your wallet to a desktop dApp. 

1. Install the wallet:

If you want to connect your software wallet to a desktop dApp, you need a software wallet. If you haven’t installed MetaMask on your device yet, go ahead and visit MetaMask to download the latest version of MetaMask wallet on your device. Do you already have one? Let’s learn how to connect MetaMask by WalletConnect to a dApp. 

2. Visit the desktop decentralised application (dApp):

Now that you have a software crypto wallet on your phone, you should go ahead and open a desktop decentralised application (dApp) to connect MetaMask by WalletConnect to it. For this tutorial, we are going to connect our MetaMask wallet to the 1inch decentralised exchange (DEX). You can also choose any other desktop dApp you want to if it also has the option to connect using WalletConnect. 

So, visit the dApp and move on to the next step.

3. Click on connect wallet:

In this step, we will connect MetaMask by WalletConnect to 1inch (the desktop dApp we’re using as an example). You can see two buttons saying “connect wallet” in the picture. One is in the center, and the other is located in the top right part of the screen. Choose one, then click on the “connect wallet” button.

4. Choose WalletConnect:

Then a window opens up, showing you the different methods you can use to connect your wallet to this platform. Also, accept the terms of services and privacy policy to connect MetaMask by WalletConnect to the dApp. Then choose your network and choose WalletConnect to continue. 

5. Scan the QR code:

Then, By your software app scan the QR code showing in the dApp. Then it will connect MetaMask by WalletConnect to the dApp. 

6. Done

Now, your wallet will be connected to the dApp. And that’s how you connect MetaMask by WalletConnect to other dApps. WalletConnect has established a secure end-to-end connection between your mobile wallet and the desktop decentralised application (dApp). 

Also, you do not need to worry about the safety of your wallet as WalletConnect won’t be storing your wallet’s private keys or revealing them to the dApp. 

Q&A

Does WalletConnect work with MetaMask?

WalletConnect works as a bridge, connecting a mobile software wallet to a desktop decentralised application (dApp). MetaMask is one of many wallets that can be connected to a dApp using WalletConnect. 

Is Ledger WalletConnect compatible?

Yes. WalletConnect is a tool which enables mobile crypto wallets to connect to dApps on desktop. Ledger is one of many WalletConnect compatible wallets. By using Wallet Connect you can link Ledger Live to a large number of dApps. 

Does Coinbase use WalletConnect?

WalletConnect is a secure bridge which connects your Coinbase wallet to the desktop dApp you want to use. All you have to do is to scan the QR code showing on the dApp using your Coinbase wallet, and you’re connected.