DeFi wallets allow users to safely store, access, and transact digital currencies and tokens. The first decision is whether you want a custodial or non-custodial wallet.
- Custodial wallets are provided by a third party that secures users’ private keys. They offer conveniences like beginner-friendly interfaces, backup recovery, and payment features. However, you are ultimately trusting the wallet provider with asset security.
- Non-custodial wallets give users full control over their private keys for maximum security. You alone are responsible for asset protection and backups.
For most DeFi users, non-custodial wallets are recommended for holding significant crypto savings since you retain complete control. Custodial wallets may be suitable for smaller amounts or just accessing DeFi apps.
Device compatibility
The retik finance platforms you want to access your wallet from are another key consideration.
- Mobile wallet – For Android and iOS mobile devices only. Convenient for use on the go.
- Desktop wallet – PC/Mac-based wallet typically accessed via a browser plugin or app. Useful for regular DeFi interactions.
- Hardware wallet – Wallet stored on a dedicated external hardware device for maximum security. The costliest option.
- Web wallet – Accessed fully online via a browser. Easy to use across devices but less secure than local wallets.
Consider which device types suit your needs. Many wallets are also available across multiple platforms for flexibility.
Supported assets
DeFi offers a diverse array of digital currencies and tokens beyond just Bitcoin and Ethereum. Review which specific assets a wallet supports:
- Major cryptocurrencies – Bitcoin, Ethereum, and stablecoins are widely supported.
- Altcoins – Coins may have selective support.
- ERC-20 tokens – Tokens on Ethereum are common. Ensure support for any tokens you need.
- NFTs – Wallets oriented for tokens may not support NFTs. Validate before purchasing any.
Having a wallet that natively supports the DeFi assets you transact in avoids manual importing or swapping across multiple wallets.
Security features
Security is the paramount factor for a DeFi wallet dealing with significant capital. Core features to evaluate include:
- Private keys – Wallets should provide encrypted private key backups rather than just seed phrases. Avoid custodial retention.
- Multi-signature – Allows jointly sharing wallet access across multiple devices for verification.
- Cold storage – Offline storage on devices not connected to the internet boosts protection.
- Insurance – Custodial wallets may offer asset insurance against losses.
- Whitelisting – Restricts wallet withdrawals only to trusted addresses to prevent unauthorized transfers.
Prioritize wallets with robust security architectures, protocols, and track records.
Transaction fees
Moving assets on DeFi can get expensive with gas fees, especially on Ethereum. Compare transaction fee structures across wallets:
- Gas fees – Native fees charged by the blockchain to process transactions.
- Network rates – Some wallets may overcharge on gas. Look for ones that pass through base rates.
- Withdrawal/deposit fees – Additional fees are charged by the wallet provider for transfers.
- Exchange spreads – Built-in swaps may carry wider spreads than decentralized exchanges.
- Layer 2 support – Reduces gas fees by bundling transfers for periodic mainchain settlement.
Minimizing fees keeps more of your capital active for DeFi yield opportunities rather than disappearing through overhead. The right choice depends on your specific priorities and needs around assets, fees, and functionality. Spend time reviewing options to ensure the wallet you pick offers the ideal fit.
