DeFi is arguably the hottest space in the entire cryptocurrency and blockchain ecosystem right now. It has gained quite a significant amount of traction in the last year, so much that an increasing number of institutional investors (already dabbling in crypto) are looking to up their risk appetite by entering the DeFi market.
However, this uptick in the adoption of DeFi platforms has made it difficult to choose a wallet for interacting securely and intuitively with Web3 applications.
Which one helps with efficient crypto asset management? Which wallet provides the most unfettered access to this swiftly growing space? We will take a look at that in a bit.
But first things first. A Web3-facing wallet needs to uphold the ethos of financial inclusion and let users actually “be their own bank.” Not sure what this means? Continue reading.
DeFi wallets ideally have in-built Web3 compatibility for seamless connectivity with a variety of dApps, and exchanges.
At their very core, DeFi crypto wallets are non-custodial. This means crypto-asset holders have complete control of their private keys and can store their holdings and transact in a truly peer-to-peer fashion without intermediary interference.
There are absolutely no restrictions on depositing funds. Any amount of capital can be transacted through DeFi wallets throughout the day.
Also, investors can engage in yield farming, liquidity mining, staking, and other DeFi activities while accessing major tokens and assets such as USDC, DAI, and all ERC-20 tokens (for Ethereum-specific DeFi wallets which constitute the majority).
As it happens, there are a few DeFi wallets that fit the description above and are worth looking into. So, let’s dive right in!
MetaMask is essentially a browser extension that doubles up as a DeFi wallet. It supports access to various Ethereum-based DeFi applications, supports all native ERC-20 tokens, and can be configured to be used with Layer 2 solutions like Polygon (previously Matic) and EVM compatible blockchains like Binance Smart Chain (BSC).
Ethereum and Defi developers can use MetaMask to test transactions with Rinkeby, Ropsten, Kovan, Goerli Ethereum Test networks. Different plugins can be built directly into MetaMask, allowing it to take on several roles across various applications.
The Ethereum ecosystem supporting wallet also allows users to choose the speed of their transactions while giving them options of fees to be paid for a particular transaction.
MetaMask is also available for use on smartphones in the form of a beta version. A full-fledged version is in the pipeline and will be released soon.
If there is a multifunctional non-custodial cryptocurrency wallet that provides the perfect gateway to the world of numerous DeFi Platforms, it’s Eidoo.
Apart from ether, ERC-20, and ERC-721 tokens, Eidoo also lets users store bitcoin and litecoin. It is a multicurrency wallet that supports over 1000 tokens.
Moreover, one of the ideal characteristics of a DeFi crypto wallet is its ability to let users multiply their ROI by implementing yield farming and liquidity strategies. Eidoo lets crypto traders/investors do exactly that, and that’s not all.
- Has access to a decentralized exchange — This is where Eidoo stands out from the competition. The wallet lets users utilize an in-built decentralized exchange (DEX) for swapping tokens effortlessly.
- Lets users spend crypto through the eidooCARD — eidooCARD is a VISA-backed debit card that lets users spend their cryptocurrency holdings in stores worldwide or online. One can even withdraw fiat currency with the eidooCARD and make up to 10% cashback for qualifying purchases.
- Allows cross-chain DeFi access through pNetwork — The Eidoo DeFi crypto wallet is integrated with pNetwork, with PNT at the heart of this integration. It enables users to store, stake, and vote in the pNetwork DAO and it is necessary for running a pNetwork node, and earn rewards in liquidity mining initiatives.
- Hosts an in-built NFT Manager — Perhaps the most striking feature of the Eidoo DeFi wallet is its in-app NFT manager. It lets users buy, hold, and trade non-fungible tokens. Apart from this, it is really easy to view & manage all crypto-collectibles and digital artwork.
The cryptocurrency exchange Coinbase’s native wallet allows users to HODL or trade all popular ERC-20 tokens and interact with DeFi applications seamlessly.
Users can quickly transfer their crypto funds to and from their respective Coinbase accounts in just a few clicks. Also available is the option for leveraging popular DeFi lending protocols like Compound and Maker via an in-app dApp browser.
Argent reduces the DeFi entry barrier by eliminating the need to store or remember private keys through a feature called “Guardians.” The wallet is designed for ordinary individuals who aren’t technically sound and intends to onboard literally everyone and help them access the decentralized web.
Also, Argent doesn’t require users to pay hefty transaction fees for every transaction. This is possible due to something called “meta transactions.” Users don’t need to deposit ETH to use Argent. The wallet supports Compound and Maker and has plans to support several other DeFi applications in the coming year.
MyCrypto is an open-source Ethereum-based wallet that’s a fork of MyEtherWallet. It supports all major ERC-20 tokens and enables users to swap them on ShapeShift. However, this particular feature has to be paid for. Otherwise, it is a free-to-use wallet.
MyCrypto requires users to pay gas fees (in ETH) to perform transactions successfully. The transaction fee varies and is a function of the number of crypto tokens involved in the transaction.
Although the wallet had some upgrades from MEW, it is still easy to use. There is a desktop version as well. Beginners will find it user-friendly and secure. The MyCrypto team has designed the wallet to safeguard private keys, mnemonic phrases, and Keystore files.
These are the best DeFi crypto wallets available in the market right now. Of course, there are more, but it isn’t easy to cover all of them in this article’s scope. Since the primary objective of DeFi wallets is to ease access to the DeFi ecosystem, these wallets pull that off pretty efficiently, which is why they have been showcased here.