What is DeFi Wallet?

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DeFi Wallet

Summary

  • DeFi wallets are decentralized
  • DeFi wallets give users full control and ownership of private keys
  • All DeFi wallet transactions take place on-chain

A DeFi wallet or decentralized wallet is a user-custodied digital wallet where the user is the custodian. This means that the user has full access and control of their private keys.

Once digital currencies are stored in the wallet, the user gains complete control and ownership, which is the main difference between a DeFi wallet and a Centralized finance wallet.

Since DeFi wallets are highly decentralized, all transactions are made on-chain and accrue network fees for incentivizing transaction confirmation on the blockchain network in correspondence. The network fees vary from one blockchain network to another, with some networks charging zero fees.

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