Saving crypto can be through decentralized finance (DeFi). However, you need to choose the right DeFi Wallet to get definite benefits.
What is DeFi?
Decentralized Finance (DeFi) is a new ecosystem in the blockchain and crypto world. DeFi is a decentralized financial system that allows people to pledge crypto to other cryptos and earn profits.
Investors don’t have to deal with one server or one center like we borrow money from a bank or fintech. Because decentralized DeFi has a smart contract feature.
That is, DeFi is a form of crypto guarantee to get other crypto with interest. This is similar to the method of depositing in a bank or pledging goods at a pawnshop. It’s just that with fixed interest and with crypto and also using smart contracts.
What is a DeFi Wallet? Is it Different from Other Crypto Wallets?
For transactions in crypto, you must use a wallet. Usually, every exchange already presents a wallet or wallet. Likewise for the DeFi platform. You need a DeFi wallet to invest in DeFi.
DeFi wallets are different from the custodial wallets that traders usually use on one of the exchanges.
Here are the differences and why DeFi wallets are important to know:
1. Non-custodian
Users can send and transfer funds securely because they are the only ones who have access to the funds.
2. Key-based
All DeFi wallets have a unique keypair. Of course, this key feature is different from wallet exchanges or centralized wallets. Here, users are responsible for storing their private keys in the form of seed phrases.
Seed phrases are a collection of words taken from a dictionary, and each word is related to a specific number. So, make sure your crypto wallet uses the seed phrases method.
3. Easy Access
Although more secure, DeFi Wallet is usually more accessible.
4. DApps
Almost all DeFi wallets are accessed by connecting a web3 wallet. Wallets in the app are starting to integrate various browser dApps (decentralized apps) for easy connection with DeFi apps.
Tips for Saving DeFi by Choosing the Right Wallet
Access Point: Your wallet or wallet is an access point to the DeFi ecosystem. You just need to know how strong the access point is before joining the DeFi program provided by the DeFi platform.
Note Supported Crypto Assets: Different wallets can be used to store different crypto assets. Make sure you do your due diligence to see if your wallet is compatible with the crypto assets you will be storing in it. For example, in MetaMask you cannot store Bitcoins.
Testimonials of Wallet Users on Social Networks: The next DeFi saving tip is to ensure that the wallet is connected to social networks. You can monitor on the wallet’s social media, whether enough users show their trust in using the wallet.
Make sure the DeFi Program is Appropriate: Speaking of DeFi, you need to know how good the program is and whether it’s appropriate or not with the level of risk and benefit you want.
Closing
One of the DeFi Wallets in Indonesia and Asia is Coinomo. There are several DeFi programs with maximum profit and minimal risk.
Download the application for Android users at this link.
Download the app for Apple users at this link.