Did you recently decide to buy into digital currency? Given the turbulent markets following the FTX fiasco, many new crypto holders want to explore securing their funds in DeFi. One of the most popular options is depositing funds into a hot wallet.
Cryptocurrency wallets are digital storage platforms allowing users to transfer and store their crypto assets securely. You may select between a cold or hot wallet based on your investment plans and needs. A cold wallet is designed to hold funds away from any centralized power. Conversely, a hot wallet is linked to the cloud network and offers numerous capabilities not provided in hardware (cold) wallets.
Finding the right hot wallet for you can take time and effort, as many offer unique features. To help simplify your search, listed below are the top 3 hot wallets for crypto users turning to DeFi. By reading through the list and comparing each one's characteristics, we’re sure you’ll find an option to suit your investment goals.
Trust Wallet is an open-source mobile crypto pocketbook that operates independently of centralization and provides access to more than 160,000 assets and blockchains. By staking their coins, traders can begin collecting interest. Initially, it was made for only ERC20 and ERC223 tokens but has now been updated to incorporate various other major cryptocurrencies, such as the industry-leading currency, Bitcoin.
The Trust Wallet contains a Web3 browser that permits users to acquire cryptocurrencies with the help of Kyber Network's localized DEX (decentralized exchange). For mobile customers, the Trust Wallet app enables users to interact with various other Ethereum-based DApps. Both iOS and Android users can obtain the free Trust Wallet app. Its code was initially written in Swift and Java, based on the two platforms' original languages.
The collaboration between Trust Wallet and Binance Smart Chain has captivated crypto lovers from every corner of the globe, thus prompting the implementation of advanced and creative characteristics for mobile users. The Trust Wallet platform enables users to stake coins such as Tron (TRX), VeChain (VET), and Cosmos (ATOM), among many other major networks.
MetaMask was designed in 2016 to assist cryptocurrency traders in managing their holdings. It is a digital wallet that allows users to manage, receive, and send Ethereum and ERC-20 tokens. You can manually input the Binance Smart Chain network on Metamask to store and exchange BEP-20 tokens. MetaMask links to the Ethereum blockchain with browsers like Firefox or Google Chrome.
Sometimes MetaMask has been known to have incredibly high price quotes for proposed gas fees (even when recognizing that certain tokens demand more gas to deliver). Data gathered from Etherscan.io suggests that MetaMask has become one of the leading hot wallets registered on the Ethereum network.
Initially starting as a free stock trading platform, Robinhood has grown into a comprehensive platform offering access to digital currencies, commodities, forex, and other asset classes. Through Robinhood, people can access a wallet service and a crypto exchange, all built into one platform. It’s worth noting you are unable to move or withdraw coins from Robinhood using another wallet.
The popular Robinhood crypto wallet supports all prominent cryptocurrencies, making it a desirable option for those entering the realm of crypto who have yet to invest in the most revered projects.
After your details have been verified, you'll be able to move your cryptocurrency to a different wallet or change them for fiat currency on the Robinhood platform. When it comes to taxes, cryptocurrencies are categorized as capital assets. When the tax season is in swing, Robinhood sends out the user's required paperwork. Robinhood has already set up a specialized tax center to simplify this process. This is a great feature, especially considering the global demand for state governments' declaration of crypto holdings is on the rise.