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

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 and Cons of Hardware Wallets

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.