When Satoshi Nakamoto came up with the paper for Bitcoin in the year 2008, no one would have imagined that it would take the world by a storm in the way that it has already. While Bitcoin has become one of the most valuable and fastest-growing assets to invest in, blockchain technology has given rise to many innovations. One of those innovations is Decenreatlized Finance or DeFi, as commonly known.Â
DeFi aims to revolutionize the financial world and give financial freedom to people in ways they have never known before. And in that regard, anyone that wishes to use DeFi to their advantage needs to have access to DeFi Wallets. This article will give you all the information and knowledge you need to pick the perfect wallet for you amongst the long list of DeFi wallets available in the market.Â
What are DeFi Wallets?
Decentralized Finance aims to democratize the traditional financial world and give control to people over their finances by removing the need for intermediaries such as banks and other financial institutions. And to achieve that, it is important to have a wallet that will store your assets/tokens. This wallet is known as a Decentralized Wallet or a DeFi Wallet.Â
What separates DeFi wallets from normal crypto wallets on exchanges, etc., is that the assets stored on crypto wallets on exchanges are never totally under your control. While the assets stored in DeFi wallets are totally under your control and, as a result, are nearly impregnable.Â
Features of a DeFi Wallet
There are a few distinguishing features of DeFi wallets that make them unique, and one should always look for these functionalities while selecting a DeFi wallet.Â
Key Based: The most salient feature of decentralized wallets is that they are secured using a 12-word seed phrase, most commonly known as the wallet key. To log in and gain access to the wallet, the user must remember their private keys, and without them, there is no other way to access the wallet.
Non-Custodial Wallet: A…
