Best DeFi Wallets 2022

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Sep 23, 2022
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6 min read
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This blog post will cover:

  • How does a DeFi wallet work
  • Best DeFi wallets to choose
  • MetaMask
  • Trezor
  • ZenGo
  • Conclusion

DeFi in crypto is kind of like Tesla in the automotive industry. It’s brand new, it’s fancy, it has a lot of fans and if you are an investor, it supposedly helps you make a lot of money. However, it takes a lot of effort to truly understand the underlying technologies and be aware of potential disadvantages. DeFi is probably one of the most complex areas of the whole crypto industry.

How does a DeFi wallet work

DeFi wallet is a non-custodial service that keeps your crypto assets. This type of wallets can’t be tied to any centralized exchange and may be tied to the decentralized one. DeFi wallets are quite safe — solely those who know the seed phrase or own a private key can access funds. 

Most DeFi wallets are located on the Ethereum blockchain, but other alternative blockchains, such as Solana (SOL) and Cardano (ADA) are also becoming more and more popular. When you are transferring tokens between two DeFi wallets, the transfer happens using special complex algorithms that enable the transfer to take place directly between the two wallets, without any third-party involvement. These complex algorithms are called smart contracts. The advantage of using such wallets can be lower transaction fees, faster transaction speed and greater flexibility.

Best DeFi wallets to choose

Choosing a DeFi wallet and a DeFi platform can be quite hard, especially if you are new to crypto. Mostly it all depends on what you are planning to use your DeFi wallet for. Some decentralized exchanges (DEXes) may offer you the possibility to do high-return yield farming, while others may be more secure or allow for more flexible or faster transactions. Yield farming is the act of lending out your crypto tokens and collecting interest in return. It is comparable to owning bonds, but usually with a lot better returns and much more flexibility. Now let’s check out the most popular DeFi wallets:

MetaMask

MetaMask is the most well-known DeFi wallet, with more than 30 million active users. It can be used both via a web browser or through the dedicated smartphone app. MetaMask’s main focus is on providing the cheapest solutions to transfer, trade and exchange crypto tokens. The wallet gives direct access to the Ethereum(ETH), Polygon(MATIC), BSC, Avalanche(AVAX), Fantom(FTM) and Celo(CELO) blockchains and uses various algorithms to ensure user anonymity.

Trezor

Trezor is considered to be one of the most secure DeFi wallets in 2022. There are 2 hardware wallets to choose — Model One and Model T. These guys will keep your assets in cold storage, which decreases the chances to get attacked by hackers. The Trezor wallets maintain over a thousand coins. One of the most interesting features of this wallet is Trezor Suite which is a desktop and browser application linking to your hardware wallet. With this app, you are able to purchase, swap and spend with no need to partner with other exchanges. 

ZenGo

ZenGo is a smartphone focused DeFi wallet application that is accessible for both Android and iOS users. It already has more than half a million users from literally every country around the world. The platform can be used for yield farming and to access various independent DeFi applications. The ZenGo wallet can also be integrated with Uniswap, giving users access to one of the biggest crypto DEX platforms in existence. The developers’ main focus appears to be on integration with as many different DeFi applications as possible, hence if you are someone who is constantly on the lookout for new crypto technologies, this smart contract wallet is for you.

Conclusion

DeFi wallets and DEX platforms can offer access to high-return yield farming and low fee crypto transactions and crypto trading, however, unlocking all their advantages usually requires a more solid understanding of the crypto industry. DeFi wallets can also be used to access various DeFi apps and NFTs alike. 

Depending on your preferences, and your level of familiarity with crypto technologies, there are numerous more simple and more advanced DeFi wallets to choose from. For example, you can start from a user-friendly and convenient SimpleHold wallet. It does not require any special knowledge or crypto experience because of the intuitive and easy use. Stay with us to learn more about the Crypto World!  

SimpleSwap reminds you that this article is provided for informational purposes only and does not provide investment advice. All purchases and cryptocurrency investments are your own responsibility.

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