What is DEFI Wallet? and 5 Points of DeFI Wallet

Are you looking for the best DeFi wallets? If your answer, YES!. Then read this article!. This article is our attempt at explaining DeFi wallets. So!. What are the best DeFi-friendly wallets?. What is the characteristic or features of the DeFi wallet?. And, what kind of DeFi wallets have in the market?. 

A perfect DeFi wallet will let you make these five points:

First, Access the DeFi Application: 

You can easily access the DeFi protocol like InstaDApp, Compound finance, Makerdao, and many others. 

Second, Land Your Assets: 

You can lend your assets to start earning interest with the comfort of your wallet. 

Third, Borrow Money:

You should be able to use your existing assets as collateral and borrow money such as DAI, USDC or any other. 

Forth, Non-Custodial: 

The Wallet has to be non-custodial. That means you should be controlling your private key. 

Fifth, Access to DeFi assets: 

The Wallet should support all popular DeFi assets such as DAI, USDC, ETH, BAT, etc. Wallets, in essence, allow for sending, receiving and storing cryptocurrency. 

They come in many different shapes and forms, but the most popular options are: A browser extension or a web wallet, a hardware wallet, a mobile app. DeFi-friendly wallets facilitate managing your digital assets and interacting with DeFi applications such as decentralized exchanges (DEX) or landing and borrowing protocols. Let's start with the wallet that most DeFi users are very familiar with. 

Metamask is essentially a browser extension that doubles up as a DeFi wallet. It supports access various Ethereum based DeFi applications. Supports all native ERC-20 tokens and can be configured to be used with layer 2 solutions like Polygon and EVM compatible blockchain like Binance Smart Chain (BSC).

Metamask is perhaps the most used DeFi wallet for small and fast transactions. Apart from Metamask, several other wallet brands are also used, such as WalletConnect, Coinbase Wallet, Fortmatic and Portis. Our next DeFi-friendly wallet is a hardware device that most cryptocurrency users have already heard of: Ledger and Trezzor wallet. Both the hardware wallet similarly to Metamask requires users to write down their recovery phrase when setting up the device. 

Hardware wallets provide complete isolation between private keys online devices such as computers or smartphone that can be more vulnerable to hacks. This makes it an excellent option for users that have a significant amount of digital assets. When it comes to DeFi-friendly wallets available on your phone, Argent, Trust Wallet, Coinbase Wallet is one of the best choices. And soon, Coinbox Finance also will be launched its non-custodial wallet. The mobile Wallets, similarly to the other already mentioned wallet, it is non-custodial. 

Choosing between a non-custodial wallet that has in the market is a crucial decision when it comes to securing your cryptocurrency holdings. Regardless of your choice, be sure always to follow the best security practices. 

Reference: https://youtu.be/89Y4O8jgffs 

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