Decentralized finance aims to revolutionize financial services like nothing before it ever has. It will make financial services available to anyone that wishes to have them and has been denied access due to many reasons ranging from lack of access to being denied by the institutions. Using DeFi, anyone with an internet connection can get their hands on the best DeFi services in the crypto world. The services can range from DeFi loans, lending, flash loans, prediction market, decentralized exchanges, yield farming, NFTs, margin trading, etc. All one needs to access these services is a device connected to the internet and DeFi wallets that supports the storage of all your digital assets securely. The safety and security of your digital assets are important because if your crypto assets are lost due to some error or stolen by some hacker, it is nearly impossible to track them down and recover those funds. This is one of the reasons why centralized exchanges also store the majority of their funds on a cold wallet.
With the fast pace of innovation in the crypto world and the DeFi ecosystem, in particular, it is becoming increasingly impossible for everyone to keep up with them. Thus, this is what makes the need for DeFi wallets all the more paramount. And in this article, we bring you the best defi wallets that are available in the market right now. But before getting into the best defi wallets list, let us understand what decentralized finance(DeFi) really is and what is a DeFi wallet.
What Is DeFi
DeFi is an umbrella term for a host of financial services that are made available on the blockchain. Its aim is to remove intermediaries such as banks and financial services that act as middlemen and charge a fee from their customers. DeFi allows for the users to be connected with one another directly in a peer-to-peer network over the blockchain. The transactions such as trades, lending, borrowings, etc. occur almost instantaneously and are verified using smart contracts. A smart contract is a contract over the blockchain that has conditions required for the transaction to occur written into it. Once those conditions are agreed upon by the parties involved, and the conditions are met, the smart contract executes automatically and the transaction is processed. Thus, it removes the need for financial intermediaries such as banks and enables users to connect directly with each other. The DeFi world began on the Ethereum blockchain and has grown by leaps and bounds over it. But with time, other blockchains such as Solana, binance smart chain, etc. are also coming up with their own DeFi services. It's just a matter of time before DeFi becomes as commonplace as trading in cryptocurrencies has over the years and empowers people financially all across the globe.
What is a DeFi wallet
Before understanding a DeFi wallet, let us look at what a crypto wallet is. In simple words, a crypto wallet is something where you can store your crypto assets in. Most of the crypto wallets available in the world are of two types, namely, hardware wallet and software wallet. A hardware wallet is similar to a flash drive that can be used to store your crypto assets. It takes your assets offline thus reducing the risk of theft or cyber attack. These hardware wallets are secured using private keys and it is important for the users to remember their private key, because if it is lost once, then it can never be recovered again. A software wallet is one that is available as an app called a mobile wallet or in the form of a web browser extension as well. Assets stored in a software wallet are always connected to the internet if the device is connected to the internet. This increases the risk of the tokens being lost or stolen away by cyber attacks etc. Thus, a software wallet also uses private keys to secure the tokens stored in them.
Thus a DeFi wallet is a crypto wallet that is used to store tokens of the DeFi ecosystem. It gives people complete control over their assets without the fear of them being stolen or hacked. The main features of DeFi wallets are as follows:
By non-custodial wallet, it means that only you have control over the assets in the wallet. A non-custodial wallet is secured by a private key that is supposed to be stored by you offline or by writing it down and storing it. Without the private key, no one can access the wallet.
Private key based
The key in a DeFi wallet is usually a 12-word seed phrase that the user needs to remember and store in order to use their wallets and the assets stored in them.
The DeFi wallets allow for a host of tokens to be stored together, thereby making accessing those tokens pretty easy. Thus, users can store Ethereum, stablecoins such as USDT, DAI, and other ERC-20 tokens.
Top DeFi wallets
Now that we are aware of what DeFi is and how it is the financial system of the future, and have understood what DeFi wallets are. Let us take a look at our list of the best DeFi wallets available in the market.
Metamask is the most used DeFi wallet in the world and is primarily available as a web browser extension. On top of that, it is also available as a mobile app but is not one of the popular mobile wallets. Another reason that makes Metamask so popular is the fact that it supports ERC20 tokens as well as tokens on the Binance Smart Chain, Polygon, etc. Thus, Metamask can be used to store all your DeFi assets in one place and that makes it one of the best DeFi wallets out there. On top of that, Metamask is easy to use and that is what makes it our first pick for the best defi wallet that is available in the market.
One of the best-centralized wallets available in the world is the CoinStats Wallet. The reason why it is so is because of the features it offers. CoinStats wallet allows its users to swap between BSC, Ethereum, or Polygon without having to switch between different exchanges. On top of that, CoinStats wallet enables users to buy cryptocurrencies directly through bank cards and a bank transfer. The wallet comes with its biometric security along with the 12-word seed phrase for the wallet. Thereby giving its user's assets an extra layer of security for their assets.
It is one of the best non-custodial DeFi wallets available in the market and it supports more than 1000 cryptocurrencies. One of the most significant features of the Eidoo wallet is that the wallet supports liquidity and yield farming. On top of that, the wallet supports buying, storing, trading NFTs as well. It also allows its users to participate in or launch token sales on it. The wallet enables the user to act as their own bank and navigate almost all sorts of DeFi applications.
Coinbase is one of the leading cryptocurrency exchanges and its wallet is no exception. The coinbase wallet allows the users to store a large number of cryptocurrency tokens and interact with a large number of DeFi apps and decentralized exchanges. One of the most salient features of the wallet is that it allows users to transfer their crypto assets to the coinbase wallet directly from their coinbase account. The wallet also provides the users with additional security measures such as biometric security or 6-digit security PIN. These features make it one of the most secure defi wallets on the list.
Trezor is one of the most secure defi wallets as it is a cold storage wallet and stores the assets offline. It is available in 2 different models and can be used to store more than 1000 cryptocurrency tokens. The Trezor wallet has a very user-friendly client-side interface.
The Argent wallet is the wallet that is designed to enhance the user experience when it comes to navigating the DeFi space using a mobile phone. Transactions performed using the Argent wallet are free from any transaction fee, and therefore the user is not required to deposit any Ethereum into their wallets to use them. One more feature of the wallet that makes it distinct from others is that the wallet does not have any seed phrase to access it, lock, unlock it.
As more and more people migrate from centralized exchanges and move towards decentralized exchange and finance options, DeFi wallets are going to become a mainstay in the crypto space. All the wallets mentioned above are among the best in their class and picking any of these as your go-to wallet would be a wise decision.