Best DeFi Wallets 2024

What is a DeFi crypto wallet?

First, it is important to fully understand what is defi wallet? Decentralized cryptocurrency wallets are applications and devices that allow users to independently store the private and public keys of their digital coins without relying on third-party companies. Currently, web3 wallets are also popular — services that enable users to connect to decentralized applications running on the blockchain and conduct transactions directly without intermediaries.

How to choose a DeFi wallet?

DeFi projects vary widely, including credit protocols, decentralized exchanges (DEX), payment networks, and more.
To choose the best decentralized wallet, it is necessary to first determine its purpose:

• ​transfers;
• ​trading;
• ​investments;
• ​risk diversification;
• ​fiat money settlements.

Based on your needs, examine the wallet conditions. Key factors considered in analytics include:

• ​number of active users;
• ​token platform capitalization;
• ​total value locked in the protocol;
• ​open-source availability;
• ​security of audited smart contracts;
• ​financial risks (whether assets are secured or their value is algorithmically supported).

To find truly promising platforms, you can analyze them independently or, more wisely, rely on the opinions of experts.
When choosing a defi wallet, users are increasingly focusing on the security of their funds.

How to use a DeFi wallet?

Promising DeFi projects offer various ways to earn additional income. The most sought-after include:

• ​Yield Farming. Earning tokens by providing liquidity to a protocol. This concept gained popularity through the COMP project, which distributed governance tokens, incentivizing users to engage in credit protocols.
• ​Liquidity Provision. Decentralized exchanges operate on liquidity pool mechanisms, requiring contributors to invest their assets. Rewards effectively stimulate participants.
• ​Staking. Users lock their funds in the best defi crypto, supporting network functionality and receiving rewards over a specified period.
• ​Lending (P2P Lending). Cryptocurrency owners can lend their unused funds and earn interest from the transaction. Cryptocurrency is used to issue secured loans to other users.
• ​Leverage Trading. DEX exchanges supporting margin trading require lenders to provide leverage to traders, earning interest for this action.

Different methods have their advantages and disadvantages, so choosing the optimal option or their combination may take some time.

Popular DeFi Wallets

Here are some of the most promising and best decentralized crypto wallet.

Ledger

Ledger is a wallet for cryptocurrency assets within a blockchain system. The device does not record parts of the code but securely stores private keys for virtual currencies. Currently, the official Ledger website offers three device models for purchase – Stax, Nano X, and Nano S Plus. There is also an older version, Nano S, but it can only be obtained from intermediaries.

Similar to a flash drive, Ledger easily connects to a PC or smartphone via cable or wireless methods. Using special software, it synchronizes saved information with blockchain data servers and displays the user’s cryptocurrency balance. The internal storage of the Ledger cold defi wallet crypto allows users to operate approximately 20-25 accounts for different coins simultaneously. When conducting cryptocurrency operations, the system sends a request to the device, which the owner must confirm using a PIN code.

Bitget Wallet

Bitget Wallet is a multi-chain wallet supporting over 80 networks, including Bitcoin, Ethereum, Binance Smart Chain, Polygon, and others. The platform’s ecosystem also includes an NFT marketplace, a service for copy trading, the decentralized exchange Bitget Swap, and other centralized (CeFi) and decentralized (DeFi) products. Earlier, Bitget announced the release of a Visa-dollar credit card, which will be accepted in 180 countries.

MetaMask

MetaMask is a non-custodial hot wallet for storing cryptocurrency assets. Despite the need to connect to the internet to work with savings, typical of hot wallets, all access keys are stored on the user’s device – either a computer or a phone with the application installed. Some key facts about the MetaMask Wallet:

• year of creation: 2016;
• development company: ConsenSys;
• purpose of creation: Support for coins on the Ethereum network;
• ​software type: Browser extension and application for Android and iOS smartphones.​

The wallet works with all networks created based on Ethereum, including BNB Smart Chain (BSC), Polygon, Harmony, or HECO. The wallet is available only in English and Spanish. It can be downloaded independently of the user’s country of residence, and it is entirely free. Registration on MetaMask takes only a short time and involves creating a personal wallet in the application or extension. To access it, users enter a password and a secret phrase.

Trust Wallet

Trust Wallet is an open-source hot wallet. It employs non-custodial technology, making it entirely autonomous. This means that only the user can access it, with all keys stored directly on the device where the wallet is installed, ensuring they are not shared with third parties. While this provides full control over assets and transactions, it places the responsibility for data security squarely on the user.

Throughout its existence, Trust Wallet has not experienced any breaches, maintaining an impeccable reputation. The security of user assets is ensured through:

• ​individual access keys for each user;
• ​setting a PIN code to enter the application;
• ​fingerprint identification.

However, the wallet lacks two-factor authentication. According to the creators, it is deemed unnecessary, but its implementation would serve as an additional guarantee of data security.

Argent Wallet

Argent Wallet is an Ethereum wallet not tied to custody, designed to simplify cryptocurrency usage, breaking down access barriers for users to control their funds and trade them easily in a decentralized manner. Argent Wallet provides access to popular DeFi tools such as Maker and Compound, allowing users to borrow or earn interest on cryptocurrencies, ensuring a high level of security and user-friendliness.

The application operates based on the Kyber network to facilitate token exchange between ERC20 tokens (DAI, USDC, BAT, etc.) and ETH. Through a partnership with Moonpay, users can buy cryptocurrencies using a credit or debit card or traditional bank transfer without leaving the application, and KYC is not required in this case.

Transactions made with DeFi protocols integrated into the application are free, although the team anticipates future monetization by introducing small fees for using other Ethereum protocols, easily accessible to users through WalletConnect integration. This innovation opens up the possibility of using the best decentralized wallets even for people unfamiliar with blockchain technology, aiming to facilitate access for new users.

Summary

Today, we can witness the emergence of an entirely new global, flexible, and transparent financial structure in real-time. New DeFi projects appear almost every day, but the most promising ones in terms of security and utility will become successful. Before investing in an unfamiliar project, it is crucial to thoroughly research it.