Decentralized finance or DeFi swept the crypto realm in 2020 and going forward it is one of the hottest crypto projects espousing the use of smart contracts and blockchain. However, as the DeFi ecosystem grows steadily, it is becoming increasingly difficult to choose a decent DeFi wallet. If you are looking for the best DeFi wallets, then you are at the right place.
DeFi is touted to solve the multi-pronged problems of the current financial banking sector. There are primarily two types of DeFi wallets: Hardware and app based. Read on…
Features of Defi Wallets
Here’s a brief lowdown on some of the salient features of DeFi wallets that make them suitable. Before choosing a DeFi wallet, make sure it can do the following things:
- With the use of DeFi wallets, you can access DeFi protocols such as Makerdao, InstaDApp, Compound finance, among others.
- Most DeFi wallets are non-custodial meaning users control their own private key.
- Users can lend their digital crypto assets to start earning interest via a DeFi wallet.
- DeFi wallets enable using your existing assets as collateral and facilitate borrowing money in currencies such as ETH, DAI, USDC, etc.
- If you want to access DeFi assets such as USDC, ETH, DAI, and BAT, your DeFi wallet should be able to do so instantly.
Now that you are apprised of the usability of DeFi wallets, let’s have a look at some of the best DeFi wallets on the market. Without further ado, let’s get started.
5 of the Best DeFi Wallets in 2021
A nifty browser extension that also doubles as a wallet, Metamask bridges access to Ethereum DApps (decentralized applications) in your browser. Metamask also offers support for all ERC20 tokens. It is one of the most popular and widely used DeFi wallets for small and quick transactions.
What’s more, you can add another layer of safety to Metamask by using a hardware wallet such as Ledger Nano S as a login for accessing Metamask.
The popular Ledger Nano wallet comes in two variants: Ledger Nano S (which is the latest version) and Ledger Nano X. Ledger Nano wallets are one of the best DeFi wallets in hardware form for keeping your assets safe and secure. You can use Ledger wallets as a DeFi-wallet via DeFisaver. What’s more, you can also use a Ledger wallet in conjunction with Metamask to further boost its safety and access/use many other DeFi applications.
Ledger wallets (both Nano S and Nano X) can be purchased online from their official website (with free Shipping) and Amazon.
One of the biggest cryptocurrency exchanges in the world, Coinbase also offers a stand-alone DeFi wallet enabling access to numerous DAPPs and and support for many DeFi protocols such as Compound finance, Uniswap, NUO Network, and Airswap to name a few.
For ease of use while transferring funds, you can connect your Coinbase DeFi wallet to your Coinbase account.
If you are looking for an alternative to Ledger then, Trezor is one of the best DeFi wallet for hardware wallet fiends. In fact, many DeFi users prefer Trezoe to access the DeFi protocol. A majority of DeFi users use a combination of one of these to get access to DeFi applications:
- Trezor + Meta mask
- Trezor + DeFisaver
Rounding off our list of the best DeFi wallets is Argent which is a mobile wallet available for both iOS and Android platforms. What makes it unique is that Argent does not require you to save the private key(s). Rather, it relies on a feature called Guardian to secure your wallet against misuse, thus, helping those DeFi investors who are not too savvy.
Argent lets users store ETH and other DeFi assets. It also comes in handy for lending your assets and earning interest via Compound Protocol. What’s more, you can also exchange between two currencies inside the wallet
However, due to the rising popularity of this mobile-only DeFi wallet, you need to get on the waitlist to request access to Argent.
Best Defi Wallets: Summary
So which wallet would we reckon? Ideally, a hardware DeFi wallet such as Ledger or Trezor is the best solution for anyone looking to interact with Decentralized finance applications courtesy their reliance and safety since hardware wallets never reveal your private keys or seed words on the screen.
However, that doesn’t take away from the usability of other great wallets such as Metamask, Argent, or Coinbase that are all great in their own right.
SEE ALSO: 7+ Best DeFi Lending Platforms in 2021