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Ultimate Guide to Decentralized Wallets: Top 10 Secure Picks

Decentralized wallets are important in 2024 as digital assets start to become more widespread. Securely storing and managing crypto assets is of great importance for users. In this context, decentralized crypto wallets offer an important solution that allows users to keep their assets safe. In this article, we will examine the 10 most trusted decentralized wallets in 2024 and discuss their features, benefits and drawbacks. If you are looking for an answer to the question "What is a decentralized wallet?", read on.

What Are Decentralized Crypto Wallets? 

Decentralized crypto wallets are types of cryptocurrency wallets that enable users to keep control of their private keys, allowing for complete autonomy in managing their assets. This defi wallet meaning is significant as it provides a platform for person-to-person (P2P) transactions without any third-party interference. Holding your cryptocurrency in a crypto defi wallet is akin to carrying cash in your pocket without the involvement of banks, ensuring your transactions remain private and fully autonomous.

Decentralized Wallets vs. Centralized Wallets

The differences between decentralized wallets and centralized wallets, which are important in terms of digital currencies, are as follows:

Decentralized Wallets:

  • Wallet Management: Users manage their own private keys.
  • Asset Control: Users maintain complete control over their digital assets.
  • Transaction Privacy: Transactions are more private, with no third-party interference.
  • Security: Users' security is under their control and management.
  • Convenience and Popularity: Less popular and sometimes more complex.
  • Third Party Requirement: No interference from third-party companies.
  • Potential Threats: Fewer potential threats, in users' control.

Centralized Wallets:

  • Wallet Management: Third party companies control private keys.
  • Asset Control: Third party companies retain control of assets.
  • Transaction Privacy: Transactions can be monitored by third parties.
  • Security: Security depends on the level provided by third-party companies.
  • Convenience and Popularity: More pervasive and user-friendly.
  • Third Party Requirement: Intervention by third-party companies is necessary.
  • Potential Threats: More potential threats open to third-party intervention.

How Do Decentralized Crypto Wallets Work? 

Decentralised crypto wallets work by enabling users to generate their own private keys and securely store them. Connected to the internet, DeFi wallets facilitate users to view, manage, and transact with their assets. Essentially, these wallets do not store crypto assets themselves; instead, they provide an interface for users to monitor and use their assets, enhancing user security and control while offering an intermediary-free and decentralized structure.

The Benefits of Decentralized Wallets 

Decentralized wallets benefits are as follows:

  • Decentralized wallets grant users complete autonomy over their crypto assets, effectively minimizing the threats associated with third-party intrusions and cyber attacks.
  • To sustain a high security standard, it is essential for users to securely manage their private keys.
  • Decentralized wallets are exclusively capable of interacting with decentralized exchanges (DEXs) and other decentralized applications (dApps), which unlocks the door to DeFi opportunities and Web3 services.
  • Users can access DeFi and Web3 through decentralized wallets without undergoing KYC processes or sharing personal information.
  • Decentralized wallets provide users with greater independence and facilitate peer-to-peer (P2P) transactions without dependency on any other assets.
  • Offering the highest levels of anonymity and independence, legal decentralized wallets also provide strong security measures.

The Drawbacks of Decentralized Wallets

Decentralized wallets drawbacks are as follows:

  • The security of crypto assets rests entirely on the users.
  • In critical situations, users are required to handle issues independently.
  • Losing your private key or forgetting your seed phrase means that restoring access to your wallet is unattainable.
  • Low optimization and frequent bugs often stem from the early stages of system development.
  • Most DeFi applications may run slowly because blockchain networks do not operate as quickly as their centralized counterparts due to their complex nature.
  • Continuous improvements are being made to scale the system effectively.
  • Changes made on the blockchain are irreversible.
  • Despite blockchain codes being open to all users, careful consideration is needed as any small vulnerability can be exploited by a savvy hacker.
  • Network users are responsible for every mistake they make.

How to Choose the Best Decentralized Wallet?

The best decentralized crypto wallet is chosen by examining factors such as security, supported networks, and device type. Here are details on these aspects:

Security

Best decentralized wallets provide users with their private keys, allowing them to create and secure their wealth without third-party involvement. So, when picking the best decentralized wallet, users should look at what security features it offers. For example:

  • Mobile wallets like Trust Wallet and MetaMask are secured with a PIN code.
  • Desktop and browser-based wallets are secured with a password.
  • Hardware wallets utilize cold storage for security, requiring users to input a PIN on the device before they can move funds.
  • In contrast, centralized wallets provide extra security measures such as device whitelisting, two-factor authentication, and sometimes even insurance.

Supported Networks

The variety and quantity of blockchain networks that best decentralized crypto wallets support can differ greatly. For instance, Trust Wallet accommodates more than 70 networks, covering major cryptocurrencies such as Bitcoin, Litecoin, Cardano, Solana, and various meme coins. In contrast, Electrum supports only one cryptocurrency - Bitcoin. Users should check which networks and cryptocurrencies are supported by a decentralized wallet.

Device Type

Choosing the right and most secure device type for storing a best decentralized crypto wallet is crucial. Options include desktop software, mobile app and browser extension. Considering a hardware or paper wallet for offline storage is crucial.

The Top 10 Most Reliable Decentralized Wallets in 2024

In 2024, the value and prevalence of digital assets is growing rapidly. However, with this growing popularity, security concerns are also increasing. Securely storing and managing crypto assets is of paramount importance for users. Decentralized wallets offer an important solution to meet this need. Reliability is a key factor in keeping users' assets safe and protected from manipulation. Here are the 10 most reliable decentralized wallets in 2024:

Zengo

Zengo is a mobile app crypto wallet that supports over 120 cryptocurrencies and offers multi-chain support for NFTs. It also features a built-in dApp store using WalletConnect to facilitate seamless interactions with top Web3 apps.

Through Zengo's mobile app, users can buy, sell, and trade cryptocurrencies and NFTs with just a few taps. However, the most   impressive aspects of Zengo are its security track record and customer reviews.

On Trustpilot, over 600 customers have given Zengo an average rating of 4.2, while thousands of customers on the Apple App Store and Google Play Store have collectively rated it 4.78 out of 5. Serving over one million customers, Zengo has never had a wallet compromised by hackers. Additionally, it offers 24/7 support to all its customers.

In terms of security, Zengo protects users' private keys with a solution called Multi-Party Computation (MPC) cryptography, a solution previously unavailable to the general consumer.

Furthermore, all these security features are available in Zengo's free version. There is also a Pro version that offers additional features including Legacy Transfer, Web3 Firewall, Priority Support, and Theft Protection.

Zengo Pro: The future of wallet security, today - Zengo

Best Wallet

Best Wallet is one of the best decentralized crypto wallets with self-custody features and multi-chain functionality. This wallet offers unique features and includes a native token named $BEST, transforming it from merely a crypto wallet into a Web3 platform.

 New users can create a Best Wallet account using just an active email and a four-digit password. They do not need to enter any KYC information such as an address or date of birth, making it one of the best anonymous crypto wallets for those seeking to maintain complete privacy.

The $BEST token provides features that transform the wallet into a full-fledged Web3 platform. Owners can earn staking rewards, benefit from reduced fees, and gain early access to new crypto launches. 

Binance

Binance offers a DeFi wallet called 'Binance Web3 Wallet' featuring self-custody capabilities. Users who download the Binance Web3 Wallet can perform traditional crypto operations such as storing, sending, and receiving cryptocurrencies, in addition to accessing a range of other activities like staking, lending, and borrowing. Additionally, users of the Binance Web3 Wallet can explore and interact with various decentralized applications (dApps) built on different blockchains.

Security is top-notch as expected, and advanced technology ensures that users do not have to worry about managing their seed phrases. This makes the wallet extremely user-friendly and an attractive option for those looking to explore decentralized finance while benefiting from the familiar and trusted structure of the Binance platform.

Ngrave

Ngrave's ZERO wallet ranks among the top-tier decentralized wallets due to its state-of-the-art security protocols. This wallet holds the highest security certification in blockchain and financial sectors, the EAL7 certificate.

Entirely offline and decentralized, the ZERO wallet allows users full control over their assets and enables trading even without internet access. The wallet employs biometric sensors for an additional layer of security and requires an eight-digit PIN while using your fingerprint to create the 'Perfect Key' to unlock the device.

 For transaction verification, Ngrave uses methods such as biometric authentication, light sensors, and QR scanning. Once access to the wallet is secured, it can connect with Ngrave's LIQUID mobile app, which uses verifiable QR scan codes to complete transactions.

The wallet operates on the 'Ngrave ZERO Operating System,' specially developed by Ngrave's security team, providing protection against physical attacks.

The hardware wallet is managed through a touchscreen interface, and with the Ngrave ZERO wallet, over 3,700 cryptocurrencies can be bought and sold. Priced at $398, the wallet is somewhat pricier compared to other products in the market.

Safepal S1

SafePal is a wallet featuring a compact design and robust security protocols. The S1 model boasts a decentralized structure and high-quality security measures. This wallet offers users an independent security element capable of securely storing their data. It also enhances security by generating private keys using random numbers.

SafePal S1 protects the device against potential threats using security mechanisms such as anti-tampering and automatic destruction, offering fully offline storage with an air-gapped signing mechanism. The wallet is physically compact, allowing users to carry it without compromising security. Its 1.4-inch full-color display provides users with a seamless transaction experience.

SafePal S1 can connect to over 100 blockchains and provides access to thousands of cryptocurrencies. The wallet can be integrated with the SafePal S1 app, which is compatible with iOS, Android, Chrome, and Firefox. Despite these features, SafePal S1 stands out for its affordability, priced at only $49.99.

SafePal | The Best Crypto Wallet for Bitcoin, Ethereum, Solana and more

MetaMask

MetaMask is a cryptocurrency wallet that is extremely popular among dApp and NFT users and focuses on Ethereum-based tokens. It is particularly favored by crypto investors interested in ERC-20 tokens and cryptocurrencies based on the Ethereum blockchain.

 Our choice for the best decentralized crypto wallet overall is due to how well MetaMask is optimized across all main areas. Additionally, as long as you are interested in more ERC-20 tokens and coins based on the Ethereum blockchain, MetaMask excels in the number and diversity of cryptocurrencies it covers, making it one of the best Ethereum wallets. Consequently, you can store cryptocurrencies like Ethereum, Polygon, and Avalanche, but you cannot store Bitcoin, Litecoin, or Bitcoin Cash.

MetaMask offers top-tier security. It is a decentralized wallet that does not ask for your personal information or store information on its servers. The private keys, and thus the crypto assets within the wallet, are entirely yours. 

MetaMask allows you to buy, sell, exchange, and stake various cryptocurrencies. It operates as a mobile app and a browser extension but is not a desktop wallet because it does not have software that can be installed on a computer or laptop. However, the browser extension and site are generally sufficient for most desktop users.

Coinbase

Coinbase Wallet is part of the expansive world of Coinbase, which hosts one of the largest crypto exchanges globally and is particularly popular in the USA. However, the wallet itself remains decentralized as it is non-custodial and gives you full control over your assets.

 You can link your Coinbase exchange account for additional functionality like finding the latest and most promising Coinbase listings, but the wallet itself is quite robust in features. It allows you to store hundreds of thousands of cryptocurrencies and tokens, manage your NFTs and other wallets, and explore the dApp space. Coinbase Wallet operates as a Chrome extension and as an iOS or Android mobile app. 

Besides providing control over your money, Coinbase does not collect any personal information or share it with Coinbase CEX. Private keys are encrypted and delivered with a backup passphrase, so the exchange cannot access them. You can use the wallet for staking specific cryptocurrencies, but you will need to do this through dApps like Uniswap. The wallet itself does not have this function, but it can effectively connect with various decentralized applications that do.

Gate.io

Gate.io is renowned as one of the top ten global exchanges, distinguished by its advanced trading features and broad array of  cryptocurrencies. Additionally, Gate.io offers a comprehensive Gate.io Web3 wallet that provides decentralized access to the Gate.io ecosystem and the Web3 world.

The wallet supports over 1,000 cryptocurrencies and provides access to more than 10,000 dApps via an integrated dApp browser. It also supports leverage up to 100x for future transactions and various options for earning interest. Security features include cloud backup for multiple accounts, encryption, and multi-factor authentication.

Users can trade via DEX, swap tokens across different blockchains, and trade NFTs. Gate.io wallet users also have access to the Gate Web3 Startup, a launchpad for new Web3 projects and pool drops at Gate.io. Additionally, the wallet supports inscriptions, an innovative concept in blockchain technology. Inscriptions allow you to create NFTs by directly writing data into the blockchain within transactions.

Gate.io Review UK - Features, Fees, Pros & Cons Revealed

Trezor

Trezor is a self-custody hardware wallet designed for long-term crypto investors. Simply put, this means that Trezor remains disconnected from live servers.

As a result, stored cryptocurrencies are always kept safe from remote hackers. However, Trezor may not be suitable for those actively trading or moving their cryptocurrencies, as tokens need to be physically removed from the Trezor device by accessing it.

Transactions are authorized after entering a PIN on the Trezor device. Additionally, Trezor connects to its own application for iOS and Android. This allows users to view their cryptocurrency balances in real-time.

Uniswap

The Uniswap Wallet is a highly secure decentralized wallet that provides seamless integration with one of the world’s best decentralized crypto exchanges, Uniswap. Despite being relatively new, the brand name alone was sufficient for us. Both the wallet  and the exchange are provided by Uniswap Labs.

It made our list ultimately because of its extreme security, open-source software, and simple design. Naturally, it shares a fully decentralized structure like its sister exchange. The wallet also ensures that private keys and seed phrases are stored locally on your device.

Speaking of devices, the Uniswap Wallet is currently only available on iOS devices. Like all its self-custody, it comes with manual backups. However, Uniswap goes a step further by offering you two recovery methods: iCloud and manual seed phrase backup.

In terms of privacy, the Uniswap Wallet continues to perform excellently. Uniswap Labs does not collect personal information or store your data. They only keep information necessary for troubleshooting needs, such as your browser version and device type. It supports a multitude of cryptocurrencies and allows for easy swapping with its unique Uniswap swap feature. The wallet also connects to NFT dApps and enables the storage of NFTs.

The Future of Decentralized Crypto Wallets

Towards 2024, developments on crypto wallets mark an exciting period for the future of the crypto world. In this process, increasing security measures and improving the user experience becomes a priority. However, with the addition of social interaction features, wallets are not only storing crypto assets but also connecting communities. In the future, crypto wallets that offer more user-friendly and diverse services will contribute significantly to the growth and adoption of the crypto world. In the process, addressing challenges within the industry and adapting to new trends will enable decentralized crypto wallets to reach a wider audience and increase the use of cryptocurrencies.