Stay Ahead of the Curve: Blockchain News and Insights Delivered by On-Chain Media
DEFI
 Nov 25, 2024    |    2 weeks ago

How To Find The Most Secure DeFi Wallets for Your Digital Assets

profile

Foluke Faranpojo

65
0   comments

One of the biggest questions on the minds of every crypto user is: “What is the best defi wallet for me to store my assets?” 

 

Look no further as we have curated a comprehensive guide to help you find the best crypto wallet.

 

What is a Defi wallet? 

 

A defi wallet is a private-owned digital tool where one can store, swap, stake and buy cryptocurrency tokens.

 

Types of DeFi Wallets

 

Defi wallets are also generally known as non-custodial or self-custody wallets. They are called non-custodial because they offer you total control of your assets, as compared to a custodial wallet where a third party has control of your funds.

 

You are in sole possession of the private key that grants access to your tokens and funds. This private key, in its raw form, is a string of alphanumeric characters, and the loss of this private key results in the permanent loss of your assets. 

 

Software vs. Hardware Wallet

 

Defi wallets come in the form of applications and websites that can be operated on your mobile device or PC.

 

Your private key is stored on the application and can be accessed conveniently. This is referred to as a software wallet or hot wallet. 

 

On the other hand, hardware wallets (aka cold wallets) are tangible devices that store your private key offline. Every transaction carried out on your crypto account must first be approved by your hardware wallet.

 

Why does the wallet you choose matter?

 

While software wallets offer a great deal of convenience, it is incredibly risky saving your private key online as a security breach can result in a defi wallet scam and loss of resources. 

It is considered crypto best practice to store your private key and seed phrase offline, and that is why a hardware wallet is of greater advantage as it offers increased security. 

Pros and Cons of Software Wallets

Pros

Cons

  • Convenience: You can easily gain access to your private key on your mobile device and perform transactions with ease.
  • Risk of a security breach due to hacks.
  • Accessibility: Many people own mobile devices and thus are able to download and operate a software wallet. 
  • Loss or theft of device could lead to loss of assets as well. 

 

Pros and Cons of Hardware Wallets

Pros

Cons

  • Increased security: Hardware wallets store your private key offline, which greatly reduces the risk of your wallet being compromised.
  • Low ease of mobility: Moving about with an extra gadget might be a hassle or inconvenience for some individuals.
  • Better control of crypto assets. 
  • Risk of loss or theft of wallet.

 

Top 3 Software Defi Wallets 

 

Below is a list of the top 3 software defi wallets:

 

Trust wallet

 

Trust wallet is a self-custody defi wallet that allows you buy, stake and swap multiple cryptocurrencies such as Ethereum and Bitcoin, and also store NFTs.

Pros

  • Access to over 100 blockchains.
  • Allows staking of multiple cryptocurrencies.

 

Cons

  • General risk of wallet scams common to all hot wallets. 

 

Phantom wallet

 

Phantom wallet is a multi-chain, decentralized wallet. When you create an account you are automatically given a Solana, Ethereum and Polygon wallet; all on the same account. Each wallet has its own unique private key, making it extra secure. 

Pros

  • Multi-chain integration.
  • Convenient token staking and swapping.
  • Easy-to-use interface.

Cons

  • Risk of your wallet getting drained due to a wallet scam.
  • The mobile app’s incompatibility with the Ledger hardware wallet. You can only connect your ledger hardware wallet through the browser extension (except Firefox).

 

Metamask

 

Metamask is unarguably one of the leading EVM non-custodial defi wallets, available as a browser extension and mobile app. Metamask stores sensitive user information securely and allows users access to multiple test networks.

Pros

  • Great security measures.
  • Support for ERC-20 and ERC-721 tokens (fungible and non-fungible tokens).
  • User-friendly UI.
  • Offers Smart Transactions.

 

Cons 

  • Metamask’s primary drawback is its relatively high gas fees due to congestion on the Ethereum network.

 

Top 3 Hardware Defi Wallets

 

Here’s a list of the top three hardware crypto wallets: 

 

Trezor Safe 3 

 

Possessing a 0.96" monochromatic OLED screen, the Trevor Safe 3 is a bitcoin-exclusive, high security hardware wallet that allows you carry out transactions with ease.

Pros

• Solid security: The Trezor Safe 3 wallet is EAL6+ certified.

• Access to over 1000 tokens.

• Wallet backup.

• Sleek, portable design.

Cons

• A major drawback is its lack of compatibility with iOS devices. The Trezor hardware wallet is unfortunately not MFi certified, which implies that users with apple devices will encounter issues while attempting to make use of the wallet. 

 

Tangem wallet

 

Priding itself in being slim as a credit card, the Tangem hardware wallet allows you purchase, store and swap cryptocurrency with extra security.

 

The Tangem wallet set comes with three identical cards that provide access to a single wallet.

Pros

  • Sleek, card-like design allows for easy mobility.
  • Offers support to 6000+ assets.
  • Beginner friendly.
  • EAL6+ certified.
  • Seed phrase not required.
  • High durability.

 

Cons

  • Can only be used on your mobile device (either iPhone or Android) and not on your desktop or tablet. 
  • Lack of NFT support.

 

Ledger Nano S Plus

 

The Ledger Nano S Plus hardware wallet allows you to securely store and transact cryptocurrency and NFTs. The wallet gives you access to manage over 5000 tokens including XRP, BTC and ETH.

Pros

  • Securely stores your private key.
  • ELA5+ certified.
  • Can be integrated with over 50 wallets.
  • Access to over 5000 tokens.
  • User friendly.
  • Offers NFT support.

Cons

  • Its primary downside is its cost: Compared to other hardware wallets in the market, Ledger hardware wallets are considered to be on the high side as regards price.

 

Conclusion 

 

Choosing the best defi wallet comes with a great deal of research and experimentation. 

 

You should choose a wallet that is most compatible with your lifestyle, while also prioritizing security.

 

Rest assured, with time and experience, you will find the wallet that works best for you. 

 


 

 

 

DISCLAIMER

On-Chain Media articles are for educational purposes only. We strive to provide accurate and timely information. This information should not be construed as financial advice or an endorsement of any particular cryptocurrency, project, or service. The cryptocurrency market is highly volatile and unpredictable.Before making any investment decisions, you are strongly encouraged to conduct your own independent research and due diligence

Tags :

Trending
Web 3
Crypto
Latest

ad

0   Comments

Recommended For You

Show More

...
Kenrodgers Muthomi    |  Dec 06, 2024
Bitcoin Nears $100K, Will It Break Through or Face a Sharp Correction?

Bitcoin's price tests $100K resistance, reflecting bullish momentum and volatility. Key levels could define the next phase of this upward cycle.

...
Foluke Faranpojo    |  Dec 06, 2024
The Ultimate Guide to Understanding the Fibonacci Retracement

Cryptocurrency traders make use of multiple technical analysis tools to discern what investment decisions to make. This article is a deep dive into one of the most popular tools— the Fibonacci retracement.

...
Paul Osadchuk    |  Dec 06, 2024
December Is Packed With Events That Could Define Crypto's 2025

This article breaks down the events, which shed the light on crypto’s perspectives for 2025, and discloses what to expect from the following year’s end. Let’s dive in!

Got A Story? Submit Your Article & Get Access To Free Editorial Support!