The term web3 has been tagged as the future version of the internet, poised to disrupt several industries the same way web2 disrupted web1 or the same way Netflix impeded Blockbuster movies. This new wave of technology has been firmly rooted in decentralized applications making extensive use of blockchain technology, as well as machine learning and artificial intelligence (AI), to help improve smart and adaptive applications.
Hence, with the massive adoption, many DApps, DeFi, wallets, and other innovations are being developed to ease the mode of entry. Web3 wallets essentially grease the wheels of web3; helping individuals, as well as companies, manage their digital assets conveniently. It provides accessibility and scalability. This article will highlight the top 5 wallets you can harness to manage your assets and find your way into the web3 space.
In this guide:
What is a web3 wallet?
In simple words, web3 wallets are digital platforms that give access to the web3 space. They are similar to regular crypto wallets, allowing users to store, send, and receive cryptocurrencies. Moreover, through these wallets, users can interact with smart contracts, transact NFTs, develop blockchain platforms, and connect with communities. Web3 wallets create a wide range of valuable applications beyond the normal existing digital wallets out there. Usually, these wallets have in-built browsers.
Overall, they are non-custodial wallets, meaning you can transact in a more secure way without worrying about middlemen such as banks. Also, you have full control over your funds, and you don’t have to go through the series of KYC/AML steps while creating one.
Here are some of the major terms associated with web3 wallets:
- Public Key: This is an alphanumeric string that allows you to deposit and receive crypto transactions.
- Private Key: Similar to passwords, it is a large number used to confirm transactions. Everyone has access to web3 wallet public keys, but a private key allows you to claim ownership to access your funds.
- Seed Phrase: It is a list of 12–24 random words used to retrieve a crypto wallet.
You can use your web3 wallet from anywhere in the world. Let’s explore its major benefits.
Benefits of using web3 wallets
Web3 wallets offer various scopes of control and more flexibility in managing transactions. Below are a few advantages of using these wallets.
Since you have full control over your asset, web3 wallets are typically easy to use. You can easily manage different assets since you have direct access to many details about each of them. Furthermore, most web3 wallets are simple to set up, which is a great advantage for users who are new to the crypto space.
The set up process only takes a few minutes. Once you have created an account, you can start transacting, as well as have easy access to several web3 products. This is very easy to use compared to other traditional digital wallets.
Privacy and anonymity
Protection of users’ privacy is one of the best features web3 wallets brought. Using these wallets, your personal data is safe and protected. This means that while you transact with another address, it is almost impossible to know the recipient.
The safety of your funds is another important benefit you get from using web3 wallets. They ensure your investment is safe and secure while transacting. In addition, your information, identification, and accessibility to your funds are secure. Most of the wallets use an encrypted sign-up/sign-in procedure, requiring you to input your details. This ensures there’s no breach and others can’t access your wallets.
Let’s examine the top 5 web3 wallets making waves in the crypto space.
Top 5 web3 wallets
Here are the most popular and reliable web3 wallets to pick from.
MetaMask is a non-custodial wallet that allows you to buy, store, send and swap tokens. It’s available as a browser extension on Chrome and other popular web browsers. MetaMask is available on both Android and iOS.
It’s essentially built for the Ethereum Blockchain, where users get to save Ethereum and other ERC-20 tokens. Through MetaMask, users also get to explore many decentralized apps by providing a secure way of integrating projects and interacting with on-chain applications.
For more advanced users, MetaMask allows you to interact with DApp in a permissionless approach. This means that there’s no need to link your private keys to DApps, making the whole process much safer.
While the wallet is mainly for the Ethereum Blockchain, it offers seamless access to other EVM-compatible networks, including Binance Smart Chain, Polygon, HECO, and more. You also get to create many wallets, all with one app.
MetaMask gives you absolute control when transacting. You get to choose what to put out as well as what to keep private. It secures your login details, and private keys are encrypted. You only need to keep your seed phrase safe, so you don’t lose access to your account.
As stated on its website, Rainbow is a non-custodial, fun, easy-to-use, and secure wallet that allows users to create an Ethereum wallet, collect NFTs and explore the new world of web3.
The wallet comes with a series of innovative features, such as NFT support, WalletConnect integration, and much more.
Rainbow wallet offers an easy-to-use platform that provides users an inbuilt swap functionality. This allows you to transact between multiple ERC-20 tokens without an external exchange. This wallet also ensures you don’t fall victim to scam projects, so it has an approved list of verified tokens safe to swap.
Rainbow wallet prioritizes security, as it allows users to store their encrypted private key onto iCloud for seamless account recovery. If you have a problem keeping your seed phrase secure, Rainbow wallet allows you to back it up, so you don’t lose access to it.
3. Trust Wallet
Trust Wallet is a web3 wallet that provides diverse access to millions of cryptocurrencies and NFTs hosted on different blockchains, including Ethereum, and Binance Chain. You can fund your wallet directly via third-party providers, including Mercuryo, MoonPay, Ramp Network, Simplex, Transak, and Wyre.
It works well on mobile devices, and it is effortless to find your way around the app. It only requires a few minutes to set up. Trust Wallet also allows users with other wallets like MetaMask or MyEtherWallet to import their details using their secret phrase or private key.
Trust Wallet also provides an inbuilt browser for DApps, so you have direct access to your favorite DeFi products and discover new ones, all within one/two dashboards.
In terms of security, the wallet is secured by a 12-word recovery phrase and accessible on both Android and iOS using PIN or biometrics. Perhaps one setback to this wallet is that it doesn’t support 2FA, meaning if someone intrudes on your account, you can’t entirely stop their access as you can’t set up a confirmation code to email or text message.
This is another self-custody wallet that offers access to thousands of tokens and DApps, allowing you to store your NFTs (ERC-721 tokens) all in one place.
The wallet offers seamless access to decentralized finance (DeFi), and you can link your Ethereum tokens to many DeFi projects. In addition, users can partake in legitimate online airdrops, which increases their chances of getting free crypto coins.
You can also use DeFi liquidity pools to lend or borrow and swap assets on the available decentralized exchanges. Notably, the wallet supports ICOs, which helps users explore new coins at the best possible prices. Furthermore, you can harness the decentralized web on your phone or browser and explore the available crypto-friendly stores.
With Coinbase wallet, you can also become a DAO member and participate in big web3 projects.
The wallet is keen on securing users’ details as it stores the private keys locally and employs 2FA to maintain the access. In addition, Coinbase wallet uses a four-digit security PIN, which can unlock the wallet and help in confirming transactions.
This wallet allows you to buy, earn, stake, and trade on Ethereum Layer 2 with low fees. Ultimately, Argent wallet is developed to integrate Ethereum DApps into a single application with a comprehensive interface. It goes all-in for Ethereum, supporting only all Ethereum-based tokens and NFTs.
Users only need their phone number and then create a username. This username can be used to send and receive cryptos similar to the traditional payment platforms like Cashapp.
Argent wallet offers “Bulletproof security,” meaning users can easily recover their wallet without a seed phrase. Instead, it uses a “social recovery” method, which revolves around nominating close relatives “Guardians” to help confirm a user’s account in case of a lost or new device.
The wallet integrates many of Ethereum’s platforms, such as Compound and Kyber, letting you earn by staking tokens within the app, with no in-app browser. Argent combines them into its mobile app, easing the whole process of investing. It also supports WalletConnect, for tokens that are not directly integrated into the Argent wallet.
Why do I need a web3 wallet?
One of the most essential factors to consider before getting involved in the web3 space is that you must have a suitable web3 wallet in place. They store your private keys securely, allowing you to send and receive crypto assets like ethereum, bitcoin, solana, and much more.
There are hundreds of them out there, but the above ones are the most popular and reliable platforms to start with. They offer various tools to help you manage and store your assets securely.
In order to invest in web3, you’re going to need a web3 wallet — as well as the latest info on web3 itself. Hear from the community and stay on top of the latest developments through the BeInCrypto Telegram group.
Frequently asked questions
What is a web3 wallet?
A web3 wallet is a digital platform that offers access to the web3 space. Basically, these wallets are similar to regular crypto wallets that allow users to store, send and receive cryptocurrencies.
What is the best web3 wallet?
A number of popular and widely used web3 wallets include MetaMask, with roughly 21 million monthly active users, and Trustwallet, known for versatility and supporting millions of cryptocurrencies. Another one is Coinbase that offers easy access to shop crypto stores.
Is Coinbase a web3 wallet?
Yes. Coinbase Wallet is a non-custodial wallet that grants access to several web3 features, allowing users to discover and use Ethereum-based DApps directly via its in-app browser.
Is MetaMask a web3 wallet?
Absolutely yes. MetaMask is a widely known web3 wallet built to work with all Ethereum-compatible blockchains.