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What are DeFi Wallets (Web3 Wallets)?

Decentralized Finance (DeFi) has taken the crypto world by storm. DeFi has enabled the development of a completely new breed of financial products which simplify and ensure access to financial services for everyone. However, one of the most important requirements for using DeFi protocols is DeFi wallets (web3 wallets).

Web3 wallets are self-custodial wallets that enable access to the 3rd generation of the web. They are essential for providing secure, accessible and intuitive interfaces for interacting with DeFi products. Apart from being a secure location to store DeFi tokens, most of these web3 wallets also have integrated DApp browsers to allow users to access Decentralized Apps (DApps) including DeFi applications.

One important aspect of web3 wallets is that users are responsible for the safekeeping of their private key which ensures that they have complete control over their assets. Furthermore, almost all web3 wallets can handle multiple assets including cryptocurrencies, NFTs and DeFi tokens.

Best DeFi Wallets (Web3 Wallets)

Defi Wallets (Web3 Wallets) are a fantastic improvement when it comes to accessibility for DeFi users. The entire DeFi ecosystem is still in its early development stage. But these wallets act as a much-needed foundation for building an open financial system.    

1. MetaMask

MetaMask is an online web3 wallet for managing, transferring and receiving ETH, and ERC-20 tokens. They also support Binance Smart Chain BEP-20 tokens and even allows trading on layer 2 solutions like Polygon, making it highly versatile. MetaMask’s seamless integration with most DeFi DApps makes it the most widely used wallet. MetaMask is available as a mobile app on Android and iOS. It also operates as an extension on different desktop browsers like Chrome, Firefox and Brave. The installation of MetaMask helps in bridging the gap between a normal browser and the blockchain platform. It is a easy-to-use web3 wallet and DApp browser that allows crypto newbies to take their first in the world of DeFi.

2. Coinbase Wallet

Coinbase Wallet is a non-custodial web3 wallet offered by the centralized exchange giant Coinbase.com. The wallet gives users the opportunity to experience DeFi DApps independent from Coinbase’s centralized control. The Coinbase Wallet supports a broad range of assets with users having the option to trade in over 500 tokens. It also serves as a safe place for digital collectibles like NFTs. One interesting feature of the wallet is that the users can receive and send digital assets with a username instead of a traditional public wallet address as these addresses can be highly confusing and hard to type. In addition to the browser extension for desktop browsers, Coinbase Wallet also has apps on Android and iOS.

3. Argent

Argent is a mobile-only web3 wallet that also functions as a DApp browser. DeFi DApps are a major focus for Argent. The wallet has a unique security mechanism that has helped in eliminating transaction fees, seed phrases and private keys. These features have made Argent a great option for both new and experienced wallet users. DeFi DApps can be accessed using Argent’s Android or iOS apps. Though Argent does not have a browser extension for desktop, WalletConnect can be used to connect its mobile app to any desktop. However, a big downside at the moment is the fact that this wallet only supports Ethereum assets.   

4. Trust Wallet

Trust Wallet is a multi-asset mobile wallet that supports a wide range of assets. Being a blockchain agnostic, this web3 wallet can store and trade about any digital asset from just about any blockchain. The design for this platform is focused on simplicity and aims to provide a straightforward, easy-to-use solution. The wallet has essential security features such as a backup facility for simple recovery that ensures that the user does not lose their funds due to a mistake. Since Trust Wallet can be used with a range of different digital assets, it’s a really powerful tool for taking advantage of everything DeFi has to offer.

5. Coinomi

Coinomi is a multi-chain web3 wallet that lets users seamlessly access DApps. Its DApp browser and web3 support allow for easy access to various DApps and DeFi protocols. Coinomi has a quite extensive coin coverage with support for more than 125 blockchains and thousands of tokens. It is a well-known and popular DeFi wallet and DApp browser that is available on both Android and iOS. It is also one of the oldest cryptocurrency wallets.  

6. Guarda Wallet

Guarda is a multi-platform web3 wallet. With support to over 50 blockchains and 10k+ tokens, the wallet is ideal to explore DApps and access DeFi. With the wide range of features offered Guarda is a wallet for experienced users. Guarda is also different from other wallets as it has actual customer support in addition to a helpful community. WalletConnect is used to connect the wallet to DeFi DApps on a desktop. Guarda wallet is available on both Android and iOS.

7. Crypto.com DeFi Wallet

Crypto.com DeFi Wallet is a non-custodial wallet that gives users access to a full suite of DeFi services in one place. Crypto.com is a popular name in the crypto world offering various services including a custodial wallet, exchange, Visa card and Decentralized Exchange (DEX).  The wallet can be protected by a passcode, biometric authentication or 2-factor authentication which provides an extra layer of security. Like all other web3 wallets, Crypto.com DeFi Wallet also has private keys to keep it secure. The wallet is integrated with WalletConnect to allow users to connect to DeFi DApps by scanning a QR code. The wallet is available for both Android and iOS.

8. Trezor

Unlike all the wallets discussed above, Trezor is a hardware wallet. It currently produces two models of its wallet: Trezor One and Trezor Model T. Both wallets offer top-of-the-line security features for storing crypto and DeFi tokens offline. A PIN is required to gain access to the assets in the wallet. In addition, the order of the keypad constantly changes with each use to defeat keyloggers. Trezor Model T offers better ease of use as it has a touch screen to input the PIN. Model T is also compatible with newer cryptocurrencies and is better suited to store DeFi tokens.

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