Looking for the best DeFi wallets?
If you answered yes!
Then, keep reading…
Decentralized finance is turning out to be one of the biggest use cases of smart contracts and blockchain. It is solving the real problem of “banking the unbanked”.
However, as the ecosystem of the DeFi world is growing, it is also becoming complex to pick the best crypto wallet for DeFi.
A perfect DeFi wallet will let you do the following:
- Access the DeFi applications: You can easily access the DeFi protocol like InstaDApp, Compound finance, Makerdao, and many others.
- Lend your assets: You can lend your assets to start earning interest with the comfort of your wallet.
- Borrow money: You should be able to use your existing assets as collateral and borrow money such as DAI, USDC or any other.
- Non-custodial: The wallet has to be Non-custodial. That means you should be controlling your private key.
- Access to De-fi assets: The wallet should support all popular DeFi assets such as DAI, USDC, ETH, BAT, and others.
A wallet could have some of these or all of these features.
As the ecosystem of decentralized finance grows, I’m expecting more features and use cases of these DeFi wallets.
So which are such DeFi wallets that you should be using?
Let’s have a look:
Best Decentralize finance (DeFi) wallets:
1. Ledger Nano Wallet:
Ledger Nano comes in two variants: Ledger Nano S and Ledger Nano X.
This is a hardware wallet which is the best way to keep your assets secure. Ledger wallets can be used as a DeFi-wallet via DeFisaver.
You can also use a combination of Ledger wallet + Metamask to access and use all these DeFi applications. This is one smart way to use this combo to make the most secure DeFi wallet.
The Ledger wallet can be purchased online from their official website (Shipping is free) and it usually is delivered to your doorstep in 7 days.
Many of you might not be knowing, Ledger wallet has been supporting the whole cryptocurrency ecosystem from the past many years and they have set a high standard for wallet security.
For further reading:
Metamask is a browser extension and it works as a bridge to access Ethereum dApps in your browser. It works as a wallet which also supports all ERC20 tokens. You can further secure the wallet by using a hardware wallet like Ledger as a login for accessing Metamask.
Metamask is perhaps the most used DeFi wallets for small and fast transactions. This wallet is idle for many, but not for those who are storing the huge value of assets in DeFi.
You can interact with Instadapp, Compound finance and others using Metamask.
Argent is a mobile wallet that is available for iOS and Android. The beauty of this wallet is, it does not require you to save the private key. It uses a concept called Guardian to secure your wallet.
For anyone with no technical background, this is perhaps the most usable DeFi wallet.
With Argent wallet you could:
- Store ETH and other DeFi assets
- You can access the compound protocol to lend your assets and earn interest.
- You can exchange between two currencies
This wallet is in great demand and you need to get on the waitlist to request access to this popular mobile DeFi wallet.
Note: I have about 10 Argent gold pass to skip the waitlist. You can share this guide on Twitter, Facebook and telegram to request access to Gold pass. After sharing, send me a DM @CoinSutra on Twitter to request the invite link.
4. Wallet by CoinBase:
- Maker CDP portal
- Compound finance
- NUO Network
- Compound finance
to name a few.
You can also connect Coinbase wallet to your CoinBase account and transfer funds to your wallet.
5. Trezor Wallet:
Trezor wallet is another popular hardware wallet that is being used by DeFi users to access the DeFi protocol. A majority of the users uses a combination of
- Hardware wallet + Meta mask
- Hardware Wallet + DeFisaver
to access the DeFi applications.
More Wallets that supports DeFi:
Conclusion: Which is the best DeFi wallet for you?
Undoubtedly, a hardware DeFi wallet like Ledger or Trezor is the idlest wallet for anyone looking to interact with Decentralized finance applications. This is because, a hardware wallet never reveals your seed word or private key on the screen.
Whereas any other wallet including Metamask or Wallet by CoinBase, both shows the seed word or private key on the screen.
The problem with this approach is if a hacker already have access to your phone or laptop at the time of setting up the wallet, you are putting your funds in a bigger risk environment.
At the same time, a combination of Hardware wallet + Meta mask makes a secure DeFi wallet and gives you access to all the DeFi applications without any restriction. If you need a tutorial on the same, let me know in the comment section below.
Another interesting wallet is the Argent wallet which is turning out to be popular with their non-custodial and no Seed word approach. If your purpose is just to lend money and earn interest, Argent can do the job really well.
Now it’s your turn:
Now, it is your turn to let us know which DeFi wallet are you using and why? Let me know in the comment section below.
Let’s make it the best guide on DeFi wallets for the newer users to come.
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