What is a DeFi wallet?

The main purpose of a DeFi wallet is to allow users to store their own funds with no reliance on a third party to hold their assets. Essentially, it leaves you in charge of your funds with the full freedom to do as you please. The only person in charge of your funds is you, which is a pretty revolutionary concept when you consider that banks are ultimately in control of your money.

Unlike centralized wallets, DeFi users do not have to verify their identity or provide any background information. The anonymity of DeFi wallets is appealing to many and means that your identity is never at stake. However, does that mean DeFi wallets are not safe? The answer here might surprise you. DeFi wallets are arguably the safest options on the market. The only catch is that because you are in charge of your wallet, if you lose important login information there is typically no way to recover it.

The majority of DeFi wallets are Ethereum-native, which means that they support Ether, ERC20 tokens and ERC721 tokens. Additionally, most DeFi tokens are supported since they are also built on the Ethereum blockchain.