DeFi, an acronym of decentralized finance, is a financial service that doesn’t rely on intermediaries like banks and other traditional financial institutions. In short, DeFi allows you to process payment transfers and withdrawals without worrying about intermediaries that may impose high interest rates or monitor your financial activities.
How to get started in the DeFi world
In the DeFi world, users are allowed to maximize on the use of wallets to access a wide array of financial products. If you’re new to how the blockchain market operates, you may find it daunting navigating DeFi features. Think of it like operating a conventional banking transaction. It’s more like entering your personal information, funding your account and monitoring your activities remotely.
What’s a DeFi wallet?
A DeFi wallet is a financial solution that offers you total ownership over your asset, without intermediaries monitoring your activities. For example, if you own a house, a DeFi wallet allows you to pay mortgage or any home improvement transaction at your own discretion.
When you place your asset with a traditional bank or transact there, the bank oversees everything you do. Since the last thing you need is a third-party meddling in your business, it would be best if you had a deFi wallet to ensure everything you do remains top secret.
Currently, DeFi wallets operate under the Web 3.0 technology. That means you can use cryptocurrencies like Ethereum to fund or withdraw funds from your blockchain account. When you open an account with DeFi, you will get a private key allowing you to access your funds. Upon extensive investigation, it is no surprise that DeFi wallets are safer solutions in the market. The only thing you need to worry about is keeping your login information safe.
How to ensure your DeFi wallet remains safe
Like banking solutions, owning DeFi wallets also come with risks of safety. To ensure your wallet doesn’t get compromised by third-party interference, consider the following:
1. Weigh the pros and cons of each DeFi wallet provider
As DeFi wallets keep getting popular, so do the security risks. Therefore, it’s vital to know the advantages and disadvantages of each wallet provider before deciding which one is right for you. For example, a DeFi wallet provider who doesn’t have customer support is a red flag.
2. Check out the reputation of the wallet provider for security
Injecting funds in a secure e-wallet solution gives you the peace of mind knowing you won’t have to deal with unexpected financial risks. A secure e-wallet solution should have top security solutions to ensure your funds are safe from third-party interference. Before signing up with a DeFi wallet provider, check out their user/client review section to determine if any person has recently raised complaints about their reputation for security.
The best asset wallet to go for
A good e-wallet solution should be convenient and safe to use, which is why we recommend SafePal wallet. Not only does it operate as a totally non-custodial decentralized crypto asset, but also has software that supports DeFi technology.
As a first-time user, you likely wonder if SafePal has an easy-to-navigate website. Its interface has a simplified dashboard with few DApps, allowing you to locate the features you find worthy of your time. Moreover, SafePal’s features staking solutions motivate users to save money and earn passively compared to other cryptocurrency assets.
With a SafePal wallet, you won’t have to worry about intermediaries meddling in your exchange activities or go through the rigorous process of registration. All you need to do is to use its cross-chain swap feature to transfer your assets for staking. Moreover, it has an LP marker that produces earnings for staking pools.
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