Importance of DeFi Wallets

Asset management tools are critical to the long-term success of any Decentralized Finance (DeFi) investor. DeFi wallets are non-custodial, allowing users to safely store funds without relying on third parties to hold their assets. Users pick a wallet to store funds conveniently, enabling them to interact with DeFi and the web 3.0 ecosystem. 

These digital wallets are the tools users choose to manage their assets. DeFi wallets are some of the safest and most accessible options to the world of DeFi.  Users invest their trust, not only their investments, when choosing a wallet. 

In 2018, Binance’s CZ told CoinDesk, “wallets are the most fundamental interface to the crypto economy, and a secure and easy-to-use wallet is key to proliferate the adoption of cryptocurrencies.”

Two Ethereum Based Wallets

Two popular digital wallets to store, buy, send, and receive cryptocurrency and Non-Fungible Tokens (NFTs) are MetaMask and Trust Wallet. Each is a type of hot wallet that gives users easy access to crypto assets. Both are compatible with Ethereum Naming Services and allow for the holding of NFTs and collectibles. 

Below we will detail the differences between the two wallets and help users make an educated choice to decide where to begin their crypto journey.  It is important to note that both wallets can be used together to access the same crypto address. 

MetaMask: Pros and Cons

Metamask works mainly with the Ethereum blockchain but allows customization for its users - allowing for use of BSC. Although available on both mobile and web-browsers, it is primarily used as a browser extension. It is currently available for Chrome, Brave, and Mozilla and has around 5 million active monthly users.

MetaMask’s attraction comes from its ease of use and availability as both a browser and mobile-based wallet. It provides a low entry barrier for those interested in Ethereum, the largest blockchain in DeFi. As an open-source protocol, different plugins can be built directly into MetaMask, enabling quick and easy connection to the various dApps and DeFi protocols. Users can also synchronize a human-readable address like defirate.eth to their address. 

Apart from that, MetaMask allows users to add a custom RPC. Several blockchain projects have changed over from the Ethereum Mainnet Network to their own blockchain network. The Custom RPC feature enables users to switch between the leading Ethereum network and a compatible test network. Chains like Binance and Polygon (Matic) are compatible blockchain networks that can be added using Custom RPC networks. Essentially this allows Metamask users to manage multiple wallets from a single ledger.

The customization does not stop there. It affords users the ability to speed up their transactions during times of congestion including flexibility with slippage fees and transactions too. The app currently supports 11 languages.

Metamask is a great way to increase security as a storage place for crypto private keys. On MetaMask, the user’s private keys have password encryption and remain stored on your machine to export whenever necessary.  It does not hold the data of users, but MetaMask has had security issues. Users were critical when personal browsing data was inadvertently shared with their browsers. Like many cryptos, many users have been victims of phishing exploits too. 

What makes Trust Wallet Different?

Trust Wallet is the world’s leading multi-asset digital wallet to store bitcoins and altcoins. Trust Wallet supports more than just Ethereum. The protocol allows users to access a huge selection of digital currencies, including ETH, Bitcoin (BTC), Litecoin (LTC), and Ripple (XRP).

TrustWallet has gained significant popularity since it began in 2017. Trust Wallet has over 10million active users. Binance, the world’s largest cryptocurrency exchange, even acquired TrustWallet back in 2018. This institutional backing is critical to success in the crypto world. 

One of the main differences from MetaMask is the ability to purchase with fiat. It is an HD wallet where users can synchronize a Visa or MasterCard. This allows new to crypto ease of entry. They pride themselves on this integration and the security it brings.

As mobile-only app, it is currently only available on Android and iOS. The mobile app is noticeably better than MetaMask. It does not require any email or usernames/passwords to onboard. Nor does TrustWallet collect or proliferate personal data— transactions are entirely anonymous. The app is configured with about 12 languages in the mobile software.

The app allows users to export private keys and import bitcoins or altcoins from paper wallets. It also has a seed backup key feature. The seed key helps users recover damaged or lost crypto assets. This provides an added layer of insurance for users.

Final Conclusions: MetaMask vs. TrustWallet

MetaMask, in short, is very customizable for users. It is preferable for users looking to access a wide range of supported tokens. With these custom features, MetaMask opens users to the larger world of DeFi. MetaMask has ease of use with good functionality for both mobile and web browsers. Users looking to bounce between the two will find a versatile app in MetaMask. A more veteran crypto investor might lean to MetaMask for its versatility.

TrustWallet, founded in 2017, is the official wallet of Binance. The institutional backing by Binance and its link with fiat affords TrustWallet the recognition as the leader in its field. It is the ideal choice for multi-cryptocurrency users who want a seamless, frictionless, and simple user interface for mobile. 

Ultimately, neither is as secure as a cold wallet, like a hardware wallet like NanoLedger or an offline paper wallet. A lost seed phrase or rug pull can leave users in dire straits. If you lose your seed phrase, there is likely no customer support to “reset” your password. It is important never to share your private key with anyone. When it comes to crypto wallets, user can control their destiny.