A DeFi Wallet is a Non-Custodial Wallet that allows its users to store crypto tokens and interacts with DeFi protocols. Thanks to the non-custodial nature, users endure complete control of their digital assets because they hold the private keys to their wallets. In contrast, centralized crypto exchange platforms store the private keys of customer wallets, offering users less control over their funds. DeFi wallets are categorized as software or hardware wallets.
The hardware wallets are physical devices, and it makes sure that transaction signing using a seed phrase is done offline and keeps your digital assets safe from online attacks. On the other hand, software wallets are applications you can install on your computer or smartphone. In software wallets, private keys run the risk of being discovered because they are stored offline. The software can be accessed through browser extensions on some web browsers like chrome or brave. Software is free, and the hardware wallets are available via purchase.
How to Select a DeFi Wallet?
- The protocols of DeFi are based on different blockchains. Hence, examine the Blockchain of the DeFi protocol you wish to use when selecting a wallet.
- For instance, Ethereum-based DeFi protocols such as Uniswap, MakerDAO, and convex finance need a wallet like Metamask. On the other side, you also need a Solana wallet like Solflare, Phantom, or Sollet to use Solana-based DeFi protocols like Serum, SoLend, and Marinade finance.
- You can also select a wallet based on its capabilities. Few wallets only support one blockchain, while others support various chains.
- For example, Rainbow can only hold Ethereum-based tokens, and the trust wallet supports multiple currencies such as ERC20, BEP20, Bitcoin, and many others.
- Now, finally, you can look at the features of wallets to see if they will fulfil your needs.
Here Are Five Popular DeFi Wallets:
Now that you have a conclusion of what DeFi wallets are good and what to look for when choosing one, here are the five best DeFi wallets for your consideration.
Metamask is One of The Biggest and Most Popular DeFi Wallets that will have more than 21 million monthly active users in 2022. As a result, you will possibly find most, if not all, Ethereum-based DeFi protocols supporting Metamask. The Metamask platform supports Ethereum tokens such as ERC20 and ERC721 tokens but also a space for other blockchains such as BNB smart chain and RSK. Users can easily buy digital assets in their wallets and pay by using their credit or debit card, bank transfer, apple pay, google pay, and Samsung pay. In addition, you can also send, receive and swap all the supported tokens. Metamask also allows you to add custom tokens if your preferred token is not available in the token list. You just need a custom token address to import a token to Metamask. To start using this online wallet, download the mobile app of Metamask or get the chrome browser extension.
Guarda is a DeFi Wallet that provides similar features to Metamask with the ability to store bitcoin and a large range of blockchain assets. Guarda also supports NFTs built on the ERC721. The purchasing feature enables users to obtain digital assets and pay through debit/credit cards. You can also earn yield paid by staking your digital assets. Moreover, the wallet offers instant trading of over 50 coins, and you can connect your ledger wallet to Guarda. The Connect feature allows you to manage and store selected cryptocurrencies on the ledger through Guarda. Now, Guarda is available to Android and iOS users. Alternatively, you can also use the web wallet or add the Chrome Extension and access the desktop wallet by downloading its app to Windows, Linux, or Mac devices.
Trust Wallet is a Multi-Currency Wallet that supports more than 64 blockchains such as Ethereum, BNB Smart chain, bitcoin, and Solana. Users can easily send and receive digital assets, purchase crypto with their credit/debit card, and swap tokens and stake coins. It will also allow you to discover and interact with DeFi projects through DApp browsers, which is approachable within the trust wallet app. To start accessing, download the trust wallet on your Android or iOS devices.
Rainbow is a DeFi Wallet that is limited to Ethereum assets. It is applicable for investors that wish to explore DeFi DApps. It allows investors to swap tokens and purchase tokens like ETH and DAI using a credit/debit card or Apple pay. As the name suggests, the Rainbow wallet has a beautiful interface that makes web3 exciting. While the preceding wallets enable users to store NFTs, the Rainbow wallet allows you to buy and display NFT collectibles. Instead of receiving and sending tokens through a long address. Rainbow also permits its users to offer custom gas fees to speed up their transactions. You can get this wallet on the Apple App store. The Android version of this wallet is currently in Beta but available to use.
Argent is an Ethereum Wallet for NFT enthusiasts and DeFi. Users of this wallet can earn via staking, buy tokens with their card, apple pay, and swap tokens. You can easily earn up to 15% interest for staking and access faster transactions with lower fees thanks to the Argents implementation. Investors with assets worth over $50,000 can use argent, which provides multisig security, abstracting away the use of recovery phrases. To download this wallet, go to your google play store or Apple app store.
Conclusion
A DeFi Wallet allows users to store various types of cryptocurrency and interact with DeFi applications, while permissive users can retain full control over their funds. These five wallets, which we have mentioned in this blog, give users similar features while setting themselves apart in different ways. So now, you can easily choose the best caters according to your needs and make your DeFi experience peaceful.