Your personal bank account and login provider to connect you to the DeFi world. Your wallet is your master key. - Most of DeFi is built on Ethereum. - If an app is built on Ethereum = only Ethereum tokens are compatible. - An Ethereum wallet is not compatible with non Ethereum tokens (like Bitcoin) - Cold storage can be more secure, but if you lose your physical device, you lose your crypto. - Browser wallets like MetaMask are great for quickly and securely interacting with DeFi apps. ### Purpose - Store, Send, Receive crypto - Take out instant, permissionless loans (if you have collateral) - Deposit crypto currencies into apps that give great interest (Permissionless Savings Account) - Buy / Sell / store NFT art on marketplaces ### Why Ethereum based Wallets? Ethereum is the home for DeFi apps, so Bitcoin is not compatible within these applications unless its in the form of an ethereum token (Wrapped Bitcoin) ### Some Wallet Buzzwords: - **Cold Storage** = an offline wallet, not connected to internet (Ledger) - **Hot Storage** = online wallet, such as MetaMask. - **Hardware wallet** = physical crypto wallet device, like a ledger nano. - **Ethereum Wallet** = Any wallet that is compatible for Ethereum tokens only. - ** Browser Wallet** = A wallet in the form of a browser extension. (i.e MetaMask) - KYC = Real world verification required to use. - **Custodial** = The wallet providers holds your secret key. (if they get hacked, so do you) - ** Non-Custodial **= Your wallet is as safe as you not losing your password / seedphrase. ### Physical / Hardware Wallets: - There are **USB looking physical devices** that are made for storing your crypto offline. - You can still interact with apps using hardware wallet, by plugging it into your computer while using the app. - You are responsible for not loosing your seed phrase / password. Be careful. - Yes, they are deemed "**more secure" because an offline device can't be hacked.**