Cryptocurrency wallet
Explore the world of Web 3.0 with our comprehensive guide to the top web 3.0 wallets. Answering what web 3.0 wallets are, their uses, main features and how to create a wallet. Find out the future of internet trading today.
Web 3.0 or web3 promises to bring a new way of creating and consuming content on the internet and you must have seen this term used in some circles. The decentralized web, powered by blockchain technology and cryptocurrencies, offers greater transparency, privacy, security, and unique monetization opportunities. To enter the world of web3, start with a web3 wallet.
What is Web3 Wallet?
Web3 wallets are digital wallets - in hardware or software form, that allow you to store your digital assets in a non-custodial or self-custodial manner. The most important role of web3 wallets (especially offline hardware wallets) is to manage your private keys. Wallets hold your crypto assets in an account corresponding to a private key.
Web3 wallet, short for "web3 enabled wallet", is a digital wallet specifically designed to interact with web3 applications and decentralized applications (dApps) built on blockchain technology. Unlike traditional cryptocurrency wallets that mainly store cryptocurrencies such as Bitcoin or Ethereum, web3 wallets offer more functionality.
Just like your email address in the web2 space, the web3 wallet serves as your identity in the web3 space. In addition to managing private keys, you can use your web3 wallet to access web3 products and services.
Web3 Wallets operate in a non-custodial manner, meaning you have full control and ownership of the digital assets you store in them. You are responsible for the private keys of your non-custodial wallet. Losing them means you could lose access to all the digital assets stored in your web3 wallet.
The following are the essential concepts related to web3 wallets:
Public Key
Your wallet address is a long string of letters and numbers. You can share your public key with others to receive cryptocurrency payments or deposit funds to your web3 wallet.
Private Key
Think of the private key as a password. You need a private key to confirm all transactions from your web3 wallet. Additionally, your private key is essential to access the crypto assets in the wallet.
An encrypted private key establishes ownership of your digital assets. This is why you must store your private keys well and never share them with anyone else.
Seed Phrase or Mnemonic Phrase
If you lose your private key, the seed phrase (or mnemonic phrase) is a fallback option to help you regain access to your web3 wallet and its contents. This phrase is a random set of 12 or 24 words that you must write down and store carefully.
The seed phrase helps capture the words in the private key. Therefore, it provides the same level of security as your private key. If you lose your keys, your seed phrase can help you regain access to your web3 wallet.
Learn more about how to securely back up your cryptocurrency wallet's private keys.
What is Web3 Wallet used for?
Unlike cryptocurrency wallets which primarily serve as a secure space to store or hold crypto assets, web3 wallets have many additional functions. Here's a quick look at the top use cases of web3 wallets:
Store and manage cryptocurrencies
Web3 Wallet allows for custodial storage of digital assets, giving you full ownership of cryptocurrencies based on their private keys. This method provides enhanced security, but storing the private key and seed phrase is important to avoid losing access to your wallet.
Swap token
Web3 Wallet allows token swapping within the dApp interface, eliminating the need for an exchange intermediary. Some dApps such as MetaMask also allow you to buy tokens directly with fiat or cryptocurrency, simplifying the process of buying and holding cryptocurrency.
Earn passive income
Web3 Wallet can help you earn passive income through a variety of mechanisms, including staking and yield farming, NFT ownership, DeFi and participation in reward programs like Browse-and-Earn and Learn-and -Earn. It can also help you monetize and control your data in a decentralized and trustless way, and earn rewards by participating in the decentralized autonomous organization DAO.
Some PoS proof-of-stake blockchains allow you to stake the platform's native tokens directly through a web3 wallet, e.g. to participate in the consensus mechanism.
Keplr wallet offers an attractive way to earn passive income and supports users' preferred blockchain by making it more flexible
Buy, sell and store NFTs
One of the main differences between cryptocurrency wallets and web3 wallets is the ability to store and manage NFTs. In addition to storing and managing your cryptocurrency, the Web 3.0 wallet also supports NFTs. You can use your web3 wallet to buy or sell NFTs and store your NFTs and digital collectibles securely. You also need a web3 wallet to mint and sell NFTs as a creator.
Play blockchain games
To enter the lucrative world of Play-to-Earn (P2E), you are required to open a web3 wallet account first. You can spend your crypto to start playing games, buy in-game NFTs, level up, and more from your web3 wallet. The income you receive through the game will also be transferred and stored in the connected wallet.
Experience the Metaverse
Enjoy a truly immersive experience in the virtual world of the metaverse by connecting your web3 wallet to the metaverse platform of your choice. You can use the funds stored in your Web 3.0 wallet to register and participate in various virtual events, shop, play games, buy virtual land and develop it in the metaverse.
Create, manage, and join DAOs
Decentralized autonomous organizations (DAOs) are one of the most popular applications of web3 technology, harnessing the power of a collective community to make important decisions. DAOs can be established for a variety of purposes, bringing together like-minded people and empowering them with voting power to make decisions. You need a web3 wallet to start your journey in DAOs - be it creating a new DAO, joining an existing DAO, or participating in the DAO voting mechanism.
Blockchain project development
Web3 wallets are essential for executing smart contracts because they contain crypto assets used to pay gas or transaction fees on the blockchain network. Therefore, developing a blockchain-based project like a dApp requires a working web3 wallet loaded with cryptocurrency. You can earn revenue for your work in the web3 wallet while paying to execute smart contracts and operate your dApp or blockchain-based project.
Top best Web3 wallets
You now know all the applications of web3 wallets and it's time to choose the right wallet for you to start your journey into the world of web3. Here are some of the top web3 wallets you can consider:
MetaMask
Certainly the biggest name on the market, MetaMask stands out as one of the most popular Web3 wallets, renowned for its user-friendliness, wide applicability, and role as a bridge between users. and the Ethereum ecosystem. As of September 2023, it has over 30 million users globally and connects to thousands of dApps across the Ethereum, Optimism, BNB Chain, Polygon, Fantom, Arbitrum, and Avalanche platforms.
You can use your MetaMask wallet to swap ETH tokens and tokens that belong to the ERC token standard, access DeFi services on platforms like Uniswap and Aave, and buy, trade, and collect NFTs on NFT marketplaces top players like OpenSea, play blockchain games like Axie Infinity, etc. You can add an extra layer of security to your MetaMask hot wallet by connecting to a hardware wallet and storing your crypto offline.
MetaMask is accessible as a web app (browser extension) and mobile app. It is a software wallet and follows a zero-custody approach.
Halo Wallet
Halo Wallet, formerly KuCoin Wallet, is a secure and user-friendly cryptocurrency wallet that offers multi-chain support, making it a flexible choice for web3 users. This wallet was recently renamed Halo Wallet, aiming to provide a more efficient experience for cryptocurrency enthusiasts. As a gateway to the decentralized web, Halo Wallet is a secure and easy-to-use platform to store your cryptocurrency and NFTs.
Although it is new to the web3 space, it has seen its user base surpass 10 million users in the short time since its launch. Use your Halo Wallet to access dApps across the KCC and KuCoin ecosystem, Ethereum, Polygon, BNB Chain as well as leading blockchain networks. Halo wallet's user-friendly interface enables easy trading of crypto assets, playing blockchain games, publishing content on decentralized platforms, and trading NFTs. Its penetration testing has also been audited by Hacken, ensuring the security of digital assets stored in this wallet.
Halo Wallet is accessible as a mobile app and is available for download on platforms such as Google Play. This software wallet allows users to carry their cryptocurrency and access web3 features on the go. It follows a zero-custody approach that emphasizes user control and ownership of private keys and assets.
Trust Wallet
Trust Wallet is a highly rated cryptocurrency wallet known for its flexibility, security, and support for multiple cryptocurrencies and blockchains. It supports over 4.5 million crypto assets, including NFTs, across 65 different blockchains.
As of September 2023, more than 60 million users use Trust Wallet to manage their digital assets and access web3 services. It is available as a mobile app for iOS and Android devices and can also be downloaded as a web app on the Chrome browser.
Trust Wallet is a software wallet that operates as a mobile application that users can install on their smartphones. It follows a non-custodial wallet approach, where users have full control over their private keys and funds. The wallet also allows you to buy cryptocurrency directly with your credit card. Additionally, you can earn interest while holding crypto in Trust Wallet, helping your crypto portfolio grow without risk. Trust Wallet also supports NFTs on Ethereum and BNB Chain.
Phantom
Phantom is the leading web3 wallet for the Solana blockchain, facilitating the storage, trading, swapping of tokens and NFTs. Phantom is primarily designed specifically for the Solana blockchain and optimized for interaction with Solana-compatible decentralized applications (dApps). Although specifically designed for Solana, it can support Solana-based assets and tokens.
By April 2023, Phantom had more than 3 million registered users. Phantom Wallet expanded to the Ethereum and Polygon ecosystems in May 2023. It can be accessed via mobile apps for iOS and Android, and as a browser extension for Chrome, Brave and other popular web browsers.
Phantom is a software wallet and is a non-custodial wallet, meaning users have full control over their private keys and funds. Kudelski Security performed testing with Phantom, ensuring its strong security. Additionally, it runs a bug bounty program to detect and fix potential security vulnerabilities, providing an extra layer of protection for your crypto assets on Solana.
Money
Argent is a prominent web3 wallet that supports seamless interaction with Ethereum and its dApps. Argent mainly focuses on Ethereum and its ecosystem. It supports a variety of Ethereum-based assets, including cryptocurrencies, tokens, and NFTs. Ethereum layer 2 web3 wallet powered by zkSync, offers 100x lower transaction fees than Ethereum layer 1 and extremely high transaction processing speed.
Argent stands out for its user-friendly design and focus on security. It offers innovative features like social recovery, making it easy for you to recover your wallet using trusted contacts in case of loss. Argent places special emphasis on user security and offers biometric authentication and transaction confirmation features.
Argent is a software, non-custodial wallet, available as a mobile app, that helps users conveniently manage their Ethereum assets on the go. Its mobile-focused approach fits the growing mobile-first crypto regulatory landscape.
Ethereum Wallet has also partnered with leading DeFi protocols like Aave, Yearnt, Lido and Index Coop to offer up to 10% interest on your digital currencies. You can buy cryptocurrency directly on the Layer 2 infrastructure with a card, bank transfer, or with Apple Pay for low fees. Argent Wallet also allows you to trade cryptocurrency tokens with low fees. Outside of DeFi, you can play games, participate in staking, trade NFTs, and interact with decentralized social networks using your Argent web3 wallet address.
Coinbase Wallet
Coinbase Wallet is a popular cryptocurrency wallet with secure storage for over 5,500 digital assets, including cryptocurrencies, tokens, and NFTs. It is compatible with many blockchain networks such as Avalanche, Fantom, Polygon and Arbitrum.
As a software wallet, it enhances user experience in the cryptocurrency world by allowing secure storage, management, and exploration of various cryptocurrencies such as Bitcoin, Ethereum, and Litecoin. It also has a built-in dApp browser for exploring the decentralized web, allowing interaction with decentralized applications directly from the wallet.
The wallet is accessible as a mobile app for iOS and Android devices as well as a web app on desktop browsers, providing flexibility in managing crypto assets. This is a zero-custodial wallet, meaning users have full control over their private keys and store crypto assets directly on their device, providing secure storage and management in their own wallets. Surname.
Ledger Wallet
Ledger is a popular web3 wallet that offers many features for managing cryptocurrencies and NFTs. Available as a desktop, mobile and web app, it offers flexible access to over 5,500 crypto assets, including Bitcoin and Ethereum.
Ledger's main advantage is its hardware wallet integration, which provides enhanced security by keeping digital assets offline and safe from cyber threats. The Ledger Live app ensures user-controlled transactions and interactions with dApps when paired with a Ledger hardware wallet.
Beyond security, Ledger enhances user experience with real-time crypto price tracking, crypto trading, asset swaps, earning rewards, access to 500+ coins and tokens, collection NFT file and essential DeFi services through Ledger Live.
It also supports more than 15 Web3 applications, such as 1-inch, Paraswap, Lido, and Zerion, facilitating portfolio expansion and interaction with various decentralized platforms. Trusted by over 4 million users, Ledger provides a secure, user-friendly and comprehensive solution for digital asset management, making it the preferred choice for cryptocurrency enthusiasts.
Key features to consider when choosing a Web3 Wallet
We have briefly introduced the best web3 wallets above. Now it's time for you to make a decision. How to know which web3 wallet is right for you?
We have prepared a checklist that can help you choose the right option for your needs. Here are some important factors to consider when looking for a good web3 wallet:
Function
The first main feature you need to consider is the series of features or functions you need to provide for your web3 wallet. To do this, you must prioritize your areas of interest on web3, including trading and swapping crypto tokens, earning passive income, investing in NFTs, playing games, and more.
Choose a web3 wallet that integrates with the top dApps in the category you are most interested in and offers unbeatable features to enhance your experience. For example, if you are interested in DeFi non-banking financial services, choose a web3 wallet that supports low-fee token swaps, multiple blockchain networks, and integration with DeFi platforms.
Multi-thread support
Another essential criteria to consider is whether you want to explore the dApp ecosystem on just one blockchain network or you want to explore web3 services on multiple blockchains. If you want the second option, you must choose a good web3 wallet that supports multiple blockchain networks.
A web3 wallet with multi-chain support is a good idea, especially as blockchain interoperability will become the next big factor driving scalability in web3 technology. If you are comfortable just sticking with the Ethereum ecosystem, you have more options as most cryptocurrency wallets are designed to support Ethereum and its Layer 2 Network .
Privacy
When choosing a web3 wallet, prioritizing privacy is essential. Trusted web3 wallets use strong measures to protect users' confidential information. This includes protecting your private keys, which are critical for accessing and managing assets. Make sure your wallet offers advanced encryption and security protocols to protect your private keys from the risk of unauthorized access or theft.
Furthermore, choose a non-custodial wallet, which means you retain full control and ownership of your data and assets. This wallet does not store your private keys on centralized servers, reducing the risk of data breaches.
Security
Security is paramount when it comes to web3 wallets. For added security, consider wallets that have undergone third-party security testing by reputable organizations. Such testing provides assurance that your assets and data are protected from potential threats and malicious attacks.
Furthermore, some software wallets offer biometric security features, such as fingerprint or facial recognition, that add extra protection against unauthorized access. These biometric measures make it significantly more difficult for unauthorized individuals to access your wallet and assets.
Learn more about the safest way to store your cryptocurrency.
How to create a Web3 wallet
Creating a Web3 wallet is essential for accessing and managing cryptocurrencies and decentralized applications. Below are general instructions on how to create a Web3 wallet, specifically a MetaMask wallet:
Example: Create a MetaMask wallet
Download and configure your wallet: Start by visiting the MetaMask website and download the MetaMask extension for your web browser or smartphone app. Once installed, open the extension or app.
Create a new account and get a seed phrase (Seed Phrase): When you open MetaMask for the first time, the app will walk you through the setup process. Click "Get Started" and create a new account. You will be given a single seed phrase, which is a sequence of words. This seed phrase is important for recovering your wallet if you lose access to it. Make sure to store it securely and never share it with anyone.
Set up your wallet: During setup, you may have the option to enter your existing wallet address and seed phrase into MetaMask. Create a strong and unique password for your MetaMask account; This password should not be used elsewhere for security reasons. Accept the Terms of Use to continue.
Receive and store your seed phrase securely: Once setup is complete, you will receive your seed phrase back as a security measure. Rewrite this seed phrase and store it in a secure, offline location. Additionally, MetaMask allows you to create a secret backup phrase that can be used to restore accounts. Confirm your seed phrase in this step.
Deposit crypto to your wallet: With your MetaMask wallet now set up and secured, you can start depositing crypto. You can transfer existing cryptocurrencies to your MetaMask address or purchase them directly in the wallet if supported.
Your web3 wallet, in this case MetaMask, is now ready to use. You can explore dApps, manage your digital assets, and participate in the exciting world of blockchain technology.
Keep in mind that these steps may vary slightly depending on the web3 wallet you choose, but the general principles of securing your seed phrase and setting up a strong password are universally applicable in most cases. wallet type.
Conclude
The web3 wallet serves as an important gateway for anyone venturing into the decentralized world of web3. It allows you to interact with dApps, manage cryptocurrencies, and participate in various blockchain activities.
However, it's most important to realize that choosing a web3 wallet isn't just about features and privacy; Security is extremely important. Emphasizing security as more than just a preventative measure; it is essential in the web3 landscape, where threats can lurk in many different forms. Protecting your private key and seed phrase ensures that your journey into the innovative and transparent world of web3 remains smooth and free of risks from malicious actors. Remember, the true potential of web3 can only be fully realized when underpinned by strong security measures.
