With decentralised finance continuing to grow in popularity in 2022, trusted DeFi wallets are essential for users who are looking to tap on these financial instruments. Here are some popular Defi wallets in the crypto space.
It’s 2022, and the decentralised finance industry continues to go strong with new projects popping up every day to solve financial issues. Also known as DeFi, this section of the cryptocurrency industry aims to disrupt the financial economy by replacing the centralised services of banks and financial institutions with automated smart contracts. This removes the biases and cost associated with intermediaries and creates an open and flexible financial economy.
To start interacting with these decentralised services, what you’ll need is a DeFi wallet to interact with them What is a DeFi wallet? They are digital solutions that allow you to have complete control over your cryptocurrencies and non-fungible token assets. Most of these solutions operate as Web 3.0 wallets that can interact or disengage from DeFi protocols, and comes in the form of mobile applications or desktop website extensions.
What makes a great DeFi wallet
When choosing a DeFi wallet, you should consider the following factors:
A DeFi wallet should ensure that you are the only one able to access your funds at any point, including any third parties such as companies or institutions. While there are also custodian wallets hosted by centralised cryptocurrency exchanges, a non-custodian wallet gives you complete control of your digital assets.
The DeFi wallet should ideally be able to hold a variety of tokens from different blockchains. For example, the wallet should be able to hold Ethereum-based and Terra-based tokens without any issue. This gives users the flexibility to interact with any blockchain without having to switch to a different wallet every time.
A good DeFi wallet should also implement adequate security measures. Most wallets implement a 12-word or mnemonic phrase recovery system that can retrieve its asset holdings, as long as the owner of the wallet can recall the phrase. This feature removes the need for companies to maintain the wallet and ensures that only the holder has access to the wallet contents.
Plus, most wallets should also have the standard password entry and a two-factor authentication as an added form of measure. Mobile-based wallets also allows biometric recognition as an added safety measure as well.
Able to interact with DeFi protocols
The wallet should be able to interact with any Web 3.0 platforms. While we often think of websites as static and not being able to interact with any applications outside of its browser application, a DeFi wallet can easily link with the website thanks to the idea of Web 3.0 that aims to improve the ability of applications to interact with one another instead of being isolated.
With that said, what are some of the trusted DeFi wallets that you can use?
Metamask is arguably one of the most popular Defi wallets out there. It is a free web extension that you can download on any web browser and is commonly used to hold Ethereum and other ERC-20 tokens.
Getting started with Metamask is easy. Simply download the chrome extension, record down your 12-word seed phrase backup, and create your own password to create your own wallet. Don’t forget to look out for our upcoming Metamask guide on CoinPasar.
You can easily transfer tokens in and out of the wallet by scanning the wallet’s QR code or copying the address, and the wallet also supports a whole range of different blockchain networks like Binance Smart chain, Avalanche, Fantom, and Polygon to name a few. All you need is to add the appropriate network name and Chain ID, and you are good to go.
Don’t forget to store some Ethereum (ETH) to pay for transaction fees, also known as gas fees, when using the wallet. You can purchase ETH tokens from exchanges and transfer it to the wallet, or you can buy ETH directly from its built-in services with Wyre or Transak payments. Plus, Metamask has a nifty swap feature to directly swap tokens without having to link it to any swap exchanges.
Coinbase Wallet is another non-custodial application that allows you to store your cryptocurrencies. It may share the same name with the Coinbase centralised exchange and you can link your existing account, the wallet is not managed by Coinbase in general.
Both Metamask and Coinbase Wallet function in a similar manner, but the Coinbase Wallet is able to store any NFTs you may hold easily on the app while Metamask only enables NFT storage on its mobile app version.
To get started, you can download the Coinbase Wallet web extension or mobile app and create a new wallet account. Pick a username and its privacy preference and choose a security feature of either Face ID or setting up a passcode. Don’t forget to record down your 12-word recovery phrase, and you are good to go.
Much like Metamask, Coinbase Wallet is able to store up to 4,000+ cryptocurrencies but without needing to add any new networks before transferring. One feature we like about the wallet is the fact that users can use the username of others and send funds to them without having to type a long address code.
Worried about losing your 12-word recovery phrase? Then the Argent wallet is better suited for your cryptocurrency needs.
The wallet does away with the idea of burdening users with recovery phrases, and uses a ‘Guardian’ security concept, which is allowing people or devices you trust to keep your wallet secure. Guardians can come in the form of a hardware wallet or mobile device, a trusted person, or a third-party service that uses two-factor authentication.
Asides from its unique security feature, Argent also allows its user to access decentralised apps and purchase crypto directly within the wallet as well.
Trust Wallet is another popular decentralised mobile wallet with an impressive number of supported coins. The wallet currently supports over 53 different blockchain networks and over 1 million different kinds of assets.
Despite its large number of supported assets, the mobile interface is surprisingly clean and uncluttered and users can buy, deposit, stake, or add new tokens with a few taps on the phone. The app also lets you interact with a large number of dApps easily without having to exit the programme. This includes DeFi protocols, NFT marketplaces, decentralised exchanges, and even play-to-earn games as well.
If you are an avid NFT collector, Trust Wallet also provides storage support for ERC-721 and ERC-1155 NFTs on Ethereum, and BEP-721 and BEP-1155 for NFTs minted on the Binance Smart Chain. Overall Trust Wallet gets a thumbs up from us for its relative ease of use and large number of supported assets.
The Coin98 wallet is part of the Coin98 decentralised finance protocol which aims to aggregate decentralised finance, cross-chain swaps, staking, earning, and yield farming in one place. To create a multi-chain DeFi gateway, the protocol supports over 40 different blockchains and their respective assets.
By using the Coin98 non-custodial wallet, users can tap into the Coin98 ecosystem and swap tokens on decentralised exchanges such as Pancakeswap, Pangolin, and Uniswap without leaving the Coin98 app. Plus, the app also supports storage of NFT assets and moving assets across different chains with their SpaceGate feature.
While it’s not as popular as the other wallets out there, its support for various blockchains plus recent investment by Binance means we can expect more features on the wallet application soon.
Do I use DeFi wallets? Yes Eidoo. Puns aside, Eidoo is another wallet that makes the list for top DeFi wallets. The multi-currency wallet allow users to store both NFT and coins on the wallet, and provides easy access to other DeFi applications.
While it mainly supports the Ethereum network, it makes up for it by supporting over 1,000+ known Ethereum-based assets. The wallet is also ideal for investors who wants to jump on new coin projects, as the wallet allows users to participate in Initial Coin Offerings (ICO) via its ICO engine. Plus, you can also execute swaps on the crypto wallet quickly and securely with their built-in decentralised exchange too.
With a wide number of crypto wallets to choose from, it may be tough to pick one out from the crowd. But whether it’s fast swaps, secure storage, or being able to interact with different chains, always pick a trusted wallet that best suits your own crypto needs.