Income Artist

How Can Crypto DeFi Wallets Influence The Future Of Digital Assets Ownership?

Author: Jimmy Barron
3 mins 44 secs

Traditionally, pre-crypto DeFi wallets, copyrights that truly protected digital arts were almost non-existing. Luckily, Xdefi’s DeFi Wallet, a non-custodial wallet, made it easier to own digital assets by providing secured, anonymous ways of minting and storing digital assets such as NFTs and crypto tokens. 

Crypto DeFi wallet holders can also easily swap and transact digital assets on decentralized exchanges, preventing another (Sam Bankmanfried) SBF and Do Kwon-effect.

Discover the various ways in which a crypto DeFi wallet is tied with a digital assets ownership future.

Personalizes And Securely Stores Diverse Digital Assets

Crypto DeFi wallets have diversified functions and unique compatibilities. However, they’re all versatile and key-based. That is, they are secured with cryptographically generated keys.

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As a rule, each wallet is compatible with specific blockchains and you can store that blockchain’s respective digital assets on the Wallet. Unlike centralised or custodial wallets, you control your crypto DeFi wallet’s private keys.

They also support NFTs storage in varying degrees of configurable NFTs galleries. While some DeFi wallets let you directly view the NFTs in your wallet. You must first connect to the appropriate NFT marketplace, platform, or game to view your NFT on others. 

Your stored NFTs can range from in-game assets of Axie Infinity, Sandbox, God’s Unchained, etc. to digital arts and tokenised legal documentation.

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Boosts DeFi And DEX Protocols Investment Opportunities

FTX and LUNA 2022 crashes might have deepened the crypto’s winter. However, one good recoil is the increased adoption of decentralized exchanges.

Though, UST losing its $1 peg and the FTX exchange’s gross mismanagement of customers’ funds shadowed the Binance and Ronin hacks that occurred earlier in 2022. Thankfully, Binance and Ronin forestalled any further crashes with effective incentives and compensations. 

Unfortunately, FTX’s image and liquidity were drawn too tight to pull itself out of the deep and dark bankruptcy waters. Combined with its failed Binance bailout deal and reported hack, millions of people lost billions of dollars to this ruinous event.

It is of little wonder why crypto folks escaping from the looming custodial wallets’ anxiety took refuge in SushiSwap, PancakeSwap and other DEXs (Decentralized Exchanges). 

To trade, swap, or transact in any decentralized exchange, simply connect your crypto DeFi wallet to the respective decentralized exchange and sign the transaction. You can also directly stake and lend on some crypto DeFi wallets without having to first connect with the individual financial protocol.

Crypto lending protocols specify their loan-to-value ratio and conditions with smart contracts and automated market makers. You can easily build up a nice passive income in flash loans and other incentives that DeFi wallets bleached off digital assets ownership.

Some DeFi wallets also display real-time gas fee updates for effective NFTs and crypto trading.

Minting Digital Assets As NFTs On NFT MarketPlaces And Minting Sites

Crypto DeFi wallets aid in minting digital assets, especially NFTs. To mint NFTs, connect your DeFi wallet to the NFT marketplace or the specific NFT minting site. And pay the transaction fees (Gas Fee).

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In addition, DeFi wallet owners can snag themselves NFTs by purchasing NFTs that have already been minted and listed on OpenSea.io, Solanat and other NFT marketplaces.

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 Also, should you create a Crypto token, kick it off with a Crypto DeFi Wallet than a custodial wallet. 

Better Digital Assets’ Protection

 Since blockchain technology and smart contracts decentralize and control crypto DeFi wallets, your digital assets are 100% yours at all times. Irrespective of the economic collapse of a particular country, or the Governments’ decree.

 Besides this, digital assets’ permanent record on the blockchain’s distributed, and decentralised network provides an extra layer plagiarism-proof layer that is indispensable to formerly susceptible digital assets like digital arts.

Wading The Digital Assets Ownership Waters

 Digital asset ownership had rapidly progressed from the era of centralised enforced verification and expensive security options to practically free and more inclusive ownership opportunities.

 But wading the digital assets ownership waters can be tricky without a creative crypto DeFi wallets scouting technique. It’s tough to choose the crypto DeFi wallet that best satisfies your personal or business goals—based on the DeFi wallet’s speciation. 

 So, instead of laboring expensive research hours—only to end up having to open multiple crypto DeFi wallets, each for a specific purpose—, you could choose a DeFi wallet with multiple functionalities which support staking, multiple blockchains, security and NFTs viewing all within the wallet. However, don’t forget to always do your own research.