What is DeFi wallet?
25 january 2022 by Catherine Woods
Reading time 4 min
Let's consider DeFi before examining the concept of a DeFi wallet. The concise form of decentralized finance is DeFi. This industry attempts to minimize the participation of any intermediaries or abandon all third-party agents altogether. Technology based on the blockchain has changed the world of finance. In the last few years, there have appeared many lending platforms where users can take loans and decentralized exchanges that allow effective investment of assets. Thus, the world of DeFi is getting more varied, more open every day.
For each transaction or realization of an investment solution in the DeFi ecosystem, a user needs a wallet where he will store his funds. This place is the access to a variety of platforms in decentralized finance. An investor without a wallet can never participate in pools, staking, or farming. In other words, the Defi wallet is a gate or a key to cryptocurrency space.
Looking at DeFi wallets in total, all of them have various features and supported platforms (web browser, mobile iOS, Android). Most DeFi wallets are native to Ethereum blockchain and can store assets such as ETH. However, there are wallets, such as MetaMask, that can support many blockchains and switch between them as required. This allows you to store a variety of tokens like BTC, BNB, USDC, ADA, DOGE, MATIC, DAI, and many many more.
The Defi Watch allows users to connect their wallet to track assets and get advanced analytics on their investments.
The proprietor of a DeFi wallet, a non-custodial wallet, owns his assets without any intermediaries. A user gets an address or a public key and a password phrase or a private key with a DeFi wallet.
Investors' funds are always available if the user has an Internet connection and a device to view them. The only important thing — the user must ensure the safety of the private key, not to lose access to his funds.
Thus, the DeFi wallet is a compatible and accessible non-custodial wallet where the private key belongs to the owner. In addition, the user can connect the DeFi wallet to various DeFi applications. For example, he desires to receive more information about his assets to maximize returns.
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The DeFi sector is constantly evolving, including DeFi wallets. Choosing the right one can be a challenge. In this case, it is necessary to pay attention to answers to these questions: "How will the wallet be used?" and "What assets will be in the wallet?". Besides, the product's reputation is as critical as the convenience of use. A reliable wallet provides full safekeeping of the user's funds.
What about the DeFi Watch platform? At the time of writing, you can connect your MetaMask wallet. This browser wallet and app is one of the most popular DeFi wallets. Moreover, the DeFi Watch platform has a demo wallet that demonstrates data of investments and assets with detailed analysis for many tokens and pools. In plain English, it shows what you will get after connecting your personal wallet to the platform.
The DeFi Watch also supports the WalletConnect to bind a wallet to a DeFi application. Available options to connect the wallet may shift in the future because the platform is still evolving, and the team always keeps its nose to the wind.