What Is the Crypto.com DeFi Wallet?
Crypto.com (CRO $ 0.051146) DeFi Wallet is a new comprehensive DeFi wallet app for investors and users to utilize decentralized applications on Ethereum virtual machine compatible smart contract blockchains such as Cronos and Ethereum. It has made the process of transitioning from it’s Crypto.com exchange to DeFi very easy, including a bridge, and generally provided many quality-of-life enhancements that make using DeFi in 2022 a breeze.
First of all, It is exciting that you decided to become more crypto native by embracing decentralization. This approach is the ultimate road ahead for the emergence of more efficient, open, and fair finance all around the globe.
To use the open global finance crypto offers, you need to get Crypto.com DeFi Wallet where you decouple your funds from Crypto.com App & Exchange. This way, you will enable your ability to capitalize on a full array of crypto applications.
What Makes It Different From Crypto.com?
Crypto.com DeFi Wallet is a wallet where the individual is the custodian. This means the individual has full access and control of their funds and crypto private keys. Unlike centralized custodians such as Crypto.com App & Exchange, there is no account or KYC needed to store your funds. It is inherently what cryptocurrencies are about and opens up a varying world of applications for users to utilize.
Crypto.com DeFi Wallet is a way to simply use your crypto private keys with an easier interface. No amount of funds shown on the application is stored in any type of private server as Crypto.com App & Exchange and private keys are not accessible by any cloud nor they are in any of Crypto.com servers. They are stored and encrypted locally on the device they are being used.
Since individuals are in full control of their funds, there is some responsibility to learn what it is about and how to use it.
What Is a Private Key?
The private key is a string of characters that enables users to use the underlying blockchain technology of cryptocurrencies. It is also the absolute master key of given funds stored in it. It should be carefully recorded somewhere safe offline like writing it on a piece of paper instead of taking a screenshot or writing to an online document because a digital print of the ultimate master key of your funds could be reached by a hacker.
Since private keys are not too practical for humans to make use of, they are utilized in form of recovery phrases. A recovery phrase is essentially a human-readable form of your crypto wallets’ private keys and is usually displayed as a 12-word phrase.
How to Setup the Crypto.com DeFi Wallet
Creating a New Wallet:
After the Crypto.com DeFi Wallet is downloaded from either App Store or Google Play there should be a new wallet created for those who are starting to use the app for the first time.
If you already have your wallet, you can click on Import an existing wallet and enter your secret recovery phrase.
1. Click on Create a new wallet
This is where you are at the start of the process of your self custody wallet. You will be in full control of your funds and transactions.
2. Accept the Terms of Service and press Continue
3. In this section called Protect your wallet, you need to create a passcode which you should remember to use your funds in your DeFi wallet every time. If you lose it, you can only recover your funds by your Secret Recovery Phrase which we will see on the next page.
You can also enable biometrics after you create a passcode. It enables the reach of your funds easier just by using your fingerprint. It is recommended to enable.
Enabling 2-Factor Authentication is not ideally useful so it is optional to use.
4. Just before you get to the page where you record your secret recovery phrase, you can get more info about what it is where you can reassure your memory and your understanding of it. Slight pages to left to get to next part.
5. Click on Reveal my recovery phrase and write each word on a paper in order. Don’t store it on your computer or phone because of the security risks. Your phone and computer are susceptible to anonymous hacker attacks that if they can reach your recovery phase they would have full control of your funds. There is no way of retrieving your funds back as bank practice of chargeback.
This is your master password for reaching your funds. Don’t share it. Don’t lose it. If you lose it, there is no one in the world can recover it for you because it is the only way to reach your funds as blockchain technology enables.
6. Confirm your recovery phrase by entering the words that are asked on the app and pressing Continue.
7. Pick an avatar of your liking and press on Select an Avatar.
8. You are ready to use the application.
Here you go. You have your own self-custodied wallet now. You are one step closer to becoming a part of the wild west of decentralized applications. In our next tutorial, we are going to learn about how to use the Cryptocom DeFi wallet for NFTs, Dapps, Bridges, and more.