Non-Custodial Crypto Wallets and DEXs
As we mentioned in the previous post, someone can trade, exchange, borrow or lend in DEFI space. There are multiple tools applications or protocols to make it possible. In this post, we will talk about the most essential tools for taking a step inside the DEFI space, especially Non-Custodial Crypto Wallets and DEXs.
First of all, you must have a crypto wallet that enables access to these networks. In our former post, we gave information about hosted, non-custodial and hardware wallets. Because of that, we will mention only about Non-Custodial Crypto Wallets which are most preferred.
Non-Custodial Crypto Wallets
- Metamask: A Crypto Wallet & Gateway To Blockchain Apps
Metamask is used for HODL Cryptocurrency or Crypto Coins in the crypto space. Users can trade, send, or receive these coins to other Metamask wallet users.
Another useful side of Metamask wallet is enabling you to register and play NFT games on major Crypto networks such as Ethereum and BSC chain.
Metamask can interact with the Ethereum system through numerous decentralized applications (dApps). Besides the mobile application, it also offers compatibility with browsers like Brave, Chrome, Microsoft Edge, and Firefox.
It has open-source nature and an in-built coin purchasing mechanism. All the code of Metamask is available for access. Hence it offers wide scope for continuous improvement. More than 10 million people actively use Metamask today and it is aggressively increasing now.
- Coinbase Wallet: The Secure App To Store Crypto Yourself
Coinbase is one of the popular platforms for trading and managing cryptocurrency. You can store all your crypto and NFTs in one place and trade on DEXs (Decentralized Exchange) and earn interest.
It offers secure storage. Besides control of the dApp stay with the user. Private keys of your wallet do not be stored in a centralized exchange. Your keys are protected with a secure enclave, biometric authentication & optional cloud backups.
Likewise, in Metamask and Coinbase wallet there are some tools, so we will mention them briefly.
- Trust Wallet: You Deserve Easy Access to Cryptocurrencies
One of the most used crypto wallets is Trust Wallet. More than 10 million people have a Trust Wallet account. It offers easy and fast trade. Moreover, you can easily earn interest, see your collectibles, keep arts and NFTs, Exchange your crypto. You can track charts and prices within the app.
Other Crypto Wallets
GNOSIS SAFE is a multigeniture wallet. It is a smart contract wallet that requires the approval of a specific number of users for approving a transaction.
ARGENT is also a wallet that offers a simple user experience. It is a non-custodial wallet featuring a distinct recovery mechanism.
ZAPPER allows easy tracking and visualization of all DEFI assets through a simple interface. Zapper allows you to interact with the most preferred DEFI protocols in Ethereum and other blockchains and manage your positions through a single interface. At the same time, instead of switching between multiple protocols and performing a large number of transactions, Zapper allows you to do everything at once with a system they call Zapping, which saves you transaction fees and time.
MOONLITH is a decentralized banking solution based on Ethereum. You can exchange the tokens for fiat currency and using your Monolith Visa debit card you can spend them easily. Presently, it is available across thirty-one countries in Europe.
Eidoo, Trezor, Zerion are also top tools for managing your assets in the DEFI space.
Decentralized exchanges (DEXs) are cryptocurrency exchanges that allow for direct peer-to-peer cryptocurrency transactions. They are online, secure non-intermediary exchanges. In contrast to centralized exchanges (CEXs), DEXs are non-custodial. That is the absence of a central authority but the presence of smart contracts that self-executes under preset conditions and record each transaction to the blockchain. Interference from the outside is not possible, contrarily it is a trustless, secure, fast process.
There are especially three big and totally more than one hundred DEXs run on DEFI space. We will mention about big three.
dYdX is a decentralized exchange that currently supports perpetual, margin trading, and spot trading, as well as lending, and borrowing. dYdX runs on smart contracts on the Ethereum blockchain and allows users to trade with no intermediaries. dYdX runs on audited smart contracts on Ethereum. Traders can go long or short with 25x leverage on BTC-USD, ETH-USD, LINK-USD, UNI-USD, AAVE-USD, etc.
Uniswap, founded in 2018, is the biggest automated token exchange on the Ethereum blockchain. This project automated transactions between cryptocurrencies through smart contracts. Swapping tokens, adding liquidity, and removing liquidity are three essential functions of Uniswap. Uniswap describes itself as a simple smart contract interface for swapping ERC20 tokens. More than 1.5 million users made 67 million transactions in UNISWAP.
PancakeSwap is a decentralized exchange for swapping BEP20 tokens on Binance Smart Chain. It uses an automated market maker (AMM) model where users trade against a liquidity pool. PancakeSwap lets people swap tokens, invest in yield farms and liquidity pools, and buy and sell collectibles. According to PancakeSwap project owners’, 2.8 million users made 31 million transactions in the last 30 days. (As of November 2021)
They are the three big DEXs according to market volume. Today dYdX has a %19 market share, second is Uniswap (%12) and Pancake Swap has a third-place (%11).
To summarize when finishing the article, today we mentioned crypto wallets and exchange platforms in the DEFI space. In the next post, we will continue to the most popular defi applications, tools, and platforms especially lending platforms, assets management, prediction markets, initial coin offerings (ICOs,) nonfungible tokens (NFTs). It should be noted that each of these requires a separate column, but we will briefly touch on these.