6
Dec
2021

How to choose a secure DeFi wallet, explained

Picking the right DeFi wallet comes down to selecting a solution that supports the right assets and products while offering user’s a minimum level of security, simplicity, guidance and convenience.

The number of DeFi wallets continues to increase, making it more difficult for users to determine which one is the best for them. Therefore, it becomes crucial for users to carefully weigh their options before making a selection. Among the most important considerations is the assets that the wallet supports, as naturally, not every wallet will support the asset a user is looking to hold.

The secondary consideration comes down to a reputation for security. Does the provider take the necessary steps to ensure the safety of its user? Furthermore, users will want to consider the types of products they would like access to; as mentioned earlier, while some solutions provide accessibility to staking and yield farming, others may not. After answering some of these preliminary concerns, questions of usability must be considered.

The way the market for DeFi stands, users are still met with a lack of knowledge on the industry, how to get started, and more intricate details, including how to use a multi-asset LP token, manage transactions on a decentralized exchange (DEX) or navigate new solutions and techniques. 

For this reason, new users will especially want to consider the question of simplicity, namely, if the process set up by the wallet provider is streamlined to help users with concerns about the time, energy and cost to use these solutions. Finally, the question comes down to convenience and the ease at which users can access the necessary tools they need to be successful.