Top DeFi Wallets are top wallets that can store DeFi tokens which includes ERC20 tokens and other DeFi based tokens.
The DeFi boom spearheads the era of Web 3.0 adoption. These comes with the need for the availability of tools and materials that will speed up adoption.
It is important that the gateways for interacting with Web 3.0 are user-friendly, easy to navigate, secure and generally accessible with no barrier, maintaining the aim of “decentralization”.
Overview of DeFi Wallets
We have seen improvements in Ethereum network, in the development of ETH tokens, eg; ERC 721 etc and Ethereum wallets in the area of Dapp, (Decentralized applications) browser extensions.
Earlier before now, there was a time when MyEtherWallet was the top ethereum wallet, until we came down to Metamask, from there we saw the era of user-friendly mobile Ethereum wallets like Trust Wallet, Coinbase with Dapp browser extensions.
We will compare various wallets for DeFi alongside the characteristics and top features of top DeFi wallets in use this time around.
What is DeFi
DeFi simply means ‘Decentralized Finance.’ It is a short way for writing Decentralized Finance or Open Finance. DeFi creators recreate the traditional financial instruments in a decentralized style.
Read Also: Understanding What is DeFi and How It Works
Features of DeFi Wallet
These are the core features of DeFi wallets and they include:
- Non-Custodial – There is no third party access to users’ personal funds. Funds send and transfer is only accessible to the user.
- Interoperability: DeFi allows communication between Dapps and smart contracts which makes it easier for adoption. Also there is possibility for communication between networks in the form of swaps.
- Compatible – DeFi wallets are generally compatible both on mobile and desktop. On desktop we have Metamask etc and on mobile, we have Trust Wallet.
Lets look at the very two top wallets from desktop and mobile respectively before listing others.
MetaMask is more of a desktop based DeFi wallet as a web browser extension. MetaMask is the most interactive web based app for running a number of roles across different applications. MetaMask serves as the fastest gateway to easily access DeFi through any internet browser.
MetaMask can as well be used to streamline the ease in the building of Dapps on the Ethereum blockchain. MetaMask is currently the most feature filled and secured web app wallet for DeFi
This is a mobile based wallet application that stores private keys directly on your device. Trust Wallet can be used to buy and sell cryptos via the Binance DEX integration.
Accessing Non-Fungible tokens—NFTs are possible through Trust Wallet. Aside NFTs, the mobile based wallet allows users to access the DeFi pool via the in-app Dapp browser access without losing the custody of all assets stored through the wallet.
Moreover, Trust Wallet is widely used here in Nigeria with an increased growing interest in the Ethereum cryptocurrency.
There are things you must consider before using any DeFi Wallet and they include:
Seed Phrase: Non-custodial wallets usually store your private keys or Seed Phrase on your mobile device. These keys are only accessible to you. They are not stored on your provider’s server.
You must make sure that your the wallet providers doesn’t store your keys and have to access to your funds.
Reviews: Check on google playstore or chrome web store to confirm that the said application has a good review. Make sure to browse and conduct a thorough check online/offline to confirm that there is really a good review by real people using the app.
Community: You have to be sure that the wallet you are using has a strong community behind it. Cross-check and make sure real people are actually using this wallet and dropping good reviews.
Access Point: This is a good point to consider. Any wallet to decide to access or use must be styled to your need. You have to conduct a thorough check and be sure that it meets your objectives.
Now let’s take a look at other wallets in the list in 2020:
- Mist Wallet
- Opera Browser Crypto Wallet
Coinomi wallet is a famous multi-currency wallet and popularly known for its security. There is a high level of security that it offers which has mitigated it from hack since it will created.
Coinomi is a mobile and desktop wallet that supports ERC 20 tokens and many other cryptocurrencies. Coinomi also allows you to buy and sell cryptocurrency instantly with Simplex integration. It is SegWit enabled
This is the world’s foremost famous online wallet for storing Ethereum and all ethereum based tokens. There is support for DeFi token and Dapps in it.
It has been hacked before now. But the online wallet is still accessible and open for DeFi tokens and adoption.
Infinito Wallet is another good pick that allows the storing of all the ERC-20 tokens, NEP-5 and EOS tokens. The wallet is available in different languages, an edge it has over other wallets.
Aside support for multiple languages, there is support for a large list of virtual assets with an easy to navigate user interface.
Trezor is a good hardware wallet that supports Ethereum and all ERC-20 tokens. It is a lightweight pocket wallet that is available on Windows, macOS, and Linux.
The good advantage it has over others is that, it is a hand-held pocket wallet for offline safety of funds.
Here comes the official Ethereum desktop wallet designed to store ETH and all ERC-20, ERC 721 and other Ethereum network based tokens securely. It is easy to download, install, and set up.
The desktop wallet supports smart contract creation and is easy to navigate and use in programming smart contracts for DeFi and Dapp creation.
Opera Browser Crypto Wallet
Here comes another unique DeFi Wallet owned by the popular web 2.0 browser app, Opera Browser. This is a multi-cryptocurrency mobile wallet with a user-friendly interface.
The most interesting part of it, is that you can easily switch from Web 2.0 to Web 3.0 right on your phone. The wallet supports all ERC 20 and ERC 721 (NFTs) tokens. Collectibles can easily be acessed too.
Possible Cons of DeFi Wallet:
These wallets and other upcoming DeFi tools will serve as a building block for the ease in asset management by users leading to a more friendly adoption of Decentralised Finance/Open Finance.
There is still a need for account recovery on incidents of a user losing his or her private keys.
Some technologies like “zero-knowledge technology proofs” – a new concept in the cryptographic world which was introduced first in the 1980s proves that the recovery of private key is still possible without compromising security.
This technology allows wallet owners to recover access to wallets with no private keys through what I will call “see and confirm strategy ”. Someone who is blind of your keys can’t confirm and won’t know your keys. It’s only you that can practically identify your keys when it shown to you in parts.
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