Top Wallets for Storing/Hodling DeFi Tokens

Handy Tips / 20.06.2021

Decentralized Finance Tokens are gradually becoming one of the significant use cases of smart contracts. It has helped solve the fundamental issue of providing banking services to people who do not use banks. However, as the DeFi ecosystem grows, it has proven daunting to select the best wallets to safely store or hold DeFi tokens. That brings us to our guide today, which will help make choosing DeFi wallets straightforward.

The Best DeFi Wallet should:

  • Allow access to DeFi Assets: A good wallet should include all popular DeFi assets, including but not limited to USDC, DAI, BAT, ETH, and more.
  • Lend your assets: wallet owners can comfortably lend their assets to start gaining interest.
  • Access DeFi Apps: one can easily use and access DeFi protocol such as Compound finance, Makerdao
  • Borrow money: Like traditional financial systems, good DeFi wallets lend money while using your existing assets as security.
  • Non-custodial: this means that you should be able to control your private key for security

A wallet can have most or all of these. So which are such great wallets you can use? Let’s dive right in:

  • Ledger Nano Wallet

The Ledger Nano wallet is found in two alternatives: Ledger Nano S and Nano X. Ledger Nano presents itself as the safest method of transacting and storing DeFi tokens. It is one of the top cutting-edge hardware wallets. You may not be aware that the Ledger wallet has been used to support the entire cryptocurrency ecosystem for many years now.

Ledger Nano S, popularly referred to as a ledger wallet, allows users to send, receive and safely store all cryptos. What’s more, it is a multicurrency wallet supporting over 1,500 tokens and forty different cryptocurrencies. Up to date, cases of Ledger Nano S being remotely hacked are futile.

Ledger Nano X features like a hidden wallet function and a combination of a security pin and a 24-word recovery phrase are one of the safest in the market. It is also durable despite its small stature and lightweight design. The wallet is also easy to operate, which is one of its most popular attractions.

It can buy the Ledger wallet online, and they offer free shipping on their official website. It typically gets delivered to your home in 7 days.

  • Coinbase Wallet

Coinbase wallet is also a non-custodial platform manufactured to make more efficient day-to-day crypto user’s needs. They are made subtly, making them attractive even to novice traders who may not have the technical knowledge required in other wallets.

However, you should note that the coinbase exchange wallet is distinct from the coinbase wallet: the same crypto giant designs both, but they target different users with various services. For instance, the Coinbase wallet is non-custodial, whereas the Coinbase exchange wallet is custodial. A common phrase in the blockchain community is: “Not Your Keys, Not Your Crypto.” Coinbase wallet does not store your private keys.

The coin-base wallet has top-of-the-table security features at competitive rates. It can download the software wallet on both iOS and Android devices. It is free to register and use the Coinbase wallets, and there are neither geographical nor KYC restrictions.

  • MetaMask

MetaMask is one of the most popular DeFi wallets in the entire DeFi world. Owners of the wallet mainly use it as a borrower extension; thus, users can access DeFi via their internet browsers. Moreover, MetaMask already launched its mobile app, and it equips users with a secure login, key vault, token exchange, and a token wallet – all you require to manage your virtual assets.

MetaMask provides a straightforward yet safe way to link to any blockchain-based applications. However, since it is built on the Ethereum blockchain, it can only support Ethereum-based assets. With that said, MetaMask has over one million registered users, and it is also ranked as one of the best non-custodial DeFi wallets in the market.

  • Argent

Argent has a mobile-first approach, and it is amicable for non-tech savvy users and newbies in the DeFi Space. Its principal focus on user experience can be interpreted to mean that the app offers a Venmo-like experience that is straightforward and effective. Also, there are no fees, and one does not have to deposit ETH to begin using the wallet.

Another unique feature of the Argent wallet is the ability to recover your wallet without any centralization nor a seed phrase. Instead, Argent Guardians allow users to include trusted people or devices that can help them recover their wallets. However, guardians have limited permissions, can withdraw them at any time, and smart contracts predetermine their duties. This is a futuristic approach for wallet recovery.

  • Trezor Wallet

Trezor wallet is another trendy wallet with multi-signature security and a magnetic dock for convenience. It is a hardware DeFi wallet that enables users to safely send, receive, and store various cryptocurrencies. Trezor being a hardware wallet makes it much safer than the typical software wallets.

The device needs a connection to a computer device to operate. It can also use it with 3rd party desktop wallets like Exodus wallet, Electrum or Magnum wallets, or Trezor Suite. The wallet supports over 1,600 tokens, and it is the only entirely open-source hardware wallet that has permitted different users to build their own devices.

Conclusion 

As you have seen, DeFi tokens’ wallets are vast and uniquely different, and this ecosystem is persistently developing. Eventually, this will only benefit users because there will always be something for everyone, whether novices or experts at DeFi. As the DeFi world continues to advance, we can only predict that DeFi wallets will become better.

DeFi wallets are a crucial part of the long-term success of DeFi. Wallets allow users not only to manage their digital assets but also to interact with other DeFi applications. Non-custodial wallets are the much-needed alternative to a centralized finance and traditional banking. DeFi has made tremendous progress, and without a doubt, DeFi is here to stay.

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Wayne is a Blockchain enthusiast and expert in crypto trading. Currently, he covers trendy issues on digital currencies.