What is a DeFi wallet, why and how should I use it?

What Is a DeFi wallet

A DeFi/non-custodial wallet, puts you in complete control of your crypto because they don’t rely on a third party — or a “Middleman” — to keep your crypto safe.

While they provide the software necessary to store your crypto, the responsibility of remembering and safeguarding your password falls entirely on you.

If you lose or forget your password — often referred to as a “private key” or “seed phrase” — there’s no way to access your crypto.

And if someone else discovers your private key, they’ll get full access to your assets. 

Why use a DeFi/Non-custodial wallet?

In addition to being in full control of the security of your crypto, you can also access more advanced crypto activities like yield farming, staking, lending, borrowing, and more.

But if all you want to do is buy, sell, send, and receive crypto, a hosted wallet is the easiest solution.

How to set up your DeFi wallet

  • Download a wallet app. Popular options are Dlisted HERE.
  • Create your account. Unlike a hosted wallet, you don’t need to share any personal info to create a DeFi wallet. Not even an email address.
  • Be sure to write down your private key. It’s presented as a random 12-word phrase. Keep it in a secure location. If you lose or forget this 12-word phrase you won’t be able to access your crypto.
  • Transfer crypto to your wallet. It’s not always possible to buy crypto using traditional currencies (like US dollars or Nigerian Naira) with a non-custodial wallet, so you’ll need to transfer crypto into your non-custodial wallet from elsewhere. 

Brief features of a DeFi wallet

  • Own your data a DeFi wallet generates passwords and keys on your device, so only you have access to your accounts and data. You always choose what to share and what to keep private.
  • Buy, store, send and swap tokens everything you need to manage your digital assets are available.

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