According to our research, the best decentralized crypto wallet for 2025 is Best Wallet, taking the #1 spot for its balance of security, ease of use, and multi-chain support.

Instead of relying on seed phrases, it uses biometric authentication and supports 50+ blockchains without KYC, making it both secure and hassle-free. Behind Best Wallet are ZenGo Wallet and the Ledger Nano X, which both offer some of the strongest security measures in the market without making them clunky to use.

We tested over 50 decentralized wallets for security, features, and usability, using our methodology, to identify the top 10 picks, ranging from budget-friendly hardware options starting at $49 to advanced software solutions with institutional-grade encryption.

Key Takeaways on Decentralized Crypto Wallets

• Best Wallet tops our 2025 rankings by removing seed phrase vulnerabilities through biometric authentication across 50+ blockchains with zero KYC requirements

• Ledger Nano X offers premium hardware security with CC EAL5+ certification supporting 5,500+ cryptocurrencies, while Trezor Model One provides budget protection at $49

• MetaMask dominates Web3 with 100+ million users and supports 500,000+ tokens, making it the gateway for Ethereum-based DeFi and NFT interactions

• Cryptocurrency wallet drainer attacks stole $494 million in 2024, affecting over 300,000 wallet addresses

• Over 80% of crypto theft in 2025‘s first half occurred through infrastructure exploits targeting seed phrases and front-end compromises, totaling $2.1 billion in losses

Best Decentralized Wallets to Use in September 2025

We tried out dozens of popular crypto wallets of all types, including software wallets, hardware wallets, Bitcoin wallets, and everything in between. Based on our testing, we think these are the 10 best decentralized wallets to use today:

• Best Wallet — Overall best decentralized wallet with tons of Web3 features

• Ledger Nano X — Best cold storage wallet for maximum token security

• Binance Wallet — All-in-one wallet for trading, staking, and more

• Trezor Model One — Most affordable hardware wallet

• OKX Wallet — Hot wallet with multi-chain support and security

• Margex — User-friendly platform with no-KYC signup

• Cypherock — Seedless cold wallet with advanced security

• Tangem — Tap-to-use wallet with multi-card security

• Zengo Wallet — Secure and user-friendly MPC cryptography wallet

• Ellipal — Secure hardware wallet with AIR gapped protection

Reviewing the Best Decentralized Crypto Wallets

Want to find out more about the top platforms in our list of decentralized wallets? We’ll explain what stood out about each of these wallets and why we think they’re great choices for you.

1. Best Wallet — Top Decentralized Wallet with a Range of Web3 Features

Best Wallet is our top-ranked choice for 2025 because it solves two major issues with crypto wallets: complex security setups and limited functionality. It replaces seed phrases with biometric and multi-factor security, supports 50+ blockchains, and lets you buy crypto with only an email. No KYC is required.

Built-in cross-chain swaps use Rubic’s tech to access 330 DEXs and 30 bridges, ensuring competitive rates without high exchange fees.

Best Wallet Main Page. Photo: Best Wallet

Best Wallet provides seamless Web3 integration, letting you stake tokens in-app, access early-stage projects through Upcoming Tokens, use the iGaming hub for crypto gambling, and earn up to 8% cashback with the Best Card when holding BEST tokens.

Best Wallet is suitable for you if:

• You want privacy with no KYC or prefer biometric security over seed phrases.

• You want early access to projects via Upcoming Tokens.

• You like an all-in-one app with staking, swaps, gambling, and a debit card.

• You trade often and want lower fees with BEST tokens.

Best Wallet is not suitable for you if:

• You need desktop access as it’s mobile-only for now.

• You prefer long-established wallets like MetaMask.

• You don’t want benefits tied to holding BEST tokens.

2. Ledger Nano X — Best Cold Storage Wallet for Maximum Security

The Ledger Nano X is one of the most popular hardware wallets in the crypto market, combining bulletproof cold storage security with mobile convenience through Bluetooth connectivity. It uses a CC EAL5+ certified Secure Element chip to keep private keys offline and safe from both online and offline attacks.

Ledger Nano X. Photo: Ledger

The device supports 5,500+ coins and tokens, supports up to 100 apps, and connects through Bluetooth or USB-C. Transactions are approved directly on its screen, and you can restore funds on a new device using a recovery phrase if lost. With the app Ledger Live, users can buy, sell, swap, and stake assets. Its built-in battery enables hours of cable-free mobile use, making it secure and portable.

Ledger Nano X offers robust offline security with Bluetooth convenience, but its higher price and past firmware vulnerabilities may concern some users.

Ledger Nano X is suitable for you if you:

• You prioritize maximum security with offline storage and a CC EAL5+ certified chip.

• You want mobile access via Bluetooth on iOS and Android.

• You hold diverse assets, with support for 5,500+ tokens and 100 apps.

• You want long-term cold storage with proven reliability since 2014.

• You don’t mind a manual setup process.

Ledger Nano X is not suitable for you if:

• You want a single wallet with rapid, frequent trading access.

• You’re budget-conscious, as it costs $149.

• You prefer touchscreens over physical buttons.

• You want instant connectivity without device pairing.

3. Binance Wallet — All-in-One Wallet for Trading, Staking, and More

Founded in 2017 by billionaire entrepreneur Changpeng Zhao, Binance is by far the largest cryptocurrency exchange globally. As of June 2025, CoinMarketCap reports that in terms of both user and trading volume, Binance has over $217 billion in daily transactions across spot and futures markets.

Binance Wallet Home Page. Photo: Binance Wallet

The platform has grown over the years,

Trezor Model One. Photo: Trezor

The Trezor Suite app supports 1,200+ cryptocurrencies with buy, sell, trade, and portfolio tracking, while the device connects via USB and requires button confirmation. Security includes PIN protection up to 50 digits, optional passphrase encryption, tamper-evident packaging, and a 12-24 word recovery seed. However, Trezor Model One lacks support for some popular coins and NFTs, requires physical connection for transactions, and carries an unpatchable hardware vulnerability.

Trezor Model One is suitable for you if:

• You want affordable hardware wallet security at $49.

• You want a diverse range of cryptos (1,200+ supported).

• You value open-source transparency with no hidden vulnerabilities.

• You’re new to hardware wallets, with a simple interface and clear documentation.

• You need reliable long-term storage with a 10+ year track record.

Trezor Model One is not suitable for you if:

• You hold newer altcoins like XRP, Solana, or Monero. (upgrade to Safe 5 for more coins).

• You prefer touchscreen interfaces over physical buttons.

• You need mobile-first access (desktop-focused, USB-OTG for Android).

• You want the latest features and broader coin support.

5. OKX Wallet — Hot Wallet with Multi-Chain Support and Security

Headquartered in Malta, OKX is a popular crypto exchange that was established in 2017 and changed its name from OKEx in 2021. Later in 2025, OKX introduced an independent OKX Wallet app that was solely aimed at Web3 and self-custody use cases, hence increasing accessibility.

OKX Wallet Home Page. Photo: OKX Wallet

Named as one of the top crypto exchanges by many experts, it allows users to exchange tokens between blockchains, manage cryptocurrency assets, and communicate with decentralized apps (dApps) – all without requiring an OKX exchange account.

The exchange provides a wide range of services, such as DeFi, staking, futures and options trading, margin, and spot trading. It supports over 400 digital assets and has more than 20 million registered users across 180 nations and regions. However, desktop users may find its app functionality less accommodating compared to mobile, and it is less secure than cold wallets.

OKX Wallet is suitable for you if:

• You want built-in DeFi, NFT, staking, and cross-chain access across 130+ blockchains.

• You prefer full control of your private keys and recovery phrases.

• You value a modern, user-friendly interface for managing crypto.

• You need one wallet to manage multiple coins, tokens, and assets.

OKX Wallet is not suitable for you if:

• You need fast, hands-on customer support, as response times are reportedly slow.

• You want to trade in the US, since the OKX exchange isn’t available there (but the wallet is).

• You require direct crypto-to-fiat conversion or bank withdrawals.

6. Margex — User-Friendly Platform with No-KYC Signup

As a cryptocurrency trading platform, Margex was established in 2019, in order to offer a safe and convenient trading environment for its users. Since then, the wallet has grown internationally and currently serves over 500,000 registered users in 153 countries.

Margex Home Page. Photo: Margex

With Margex’s extensive perpetual futures offerings, users can speculate on cryptocurrencies easily without owning them directly. You can trade pairs of Bitcoin, Binance Coin, Tron, and Ethereum at Margex with leverage up to 100x, while other crypto pairs allow positions from 15x to 50x. The exchange also offers staking pools with up to 7% APY and a useful copy trading feature that is popular with beginners.

Margex’s user-friendly, privacy-focused platform attracts anonymous users, but its custodial, unregulated setup with limited features exposes them to security, control, and flexibility risks.

Margex is suitable for you if:

• You want fast, no-KYC signup to start trading immediately.

• You prefer trading on a mobile app across multiple devices.

• You want up to 100x leverage on crypto derivatives.

• You value strong security, including 2FA and cold storage.

Margex is not suitable for you if:

• You’re concerned about variable withdrawal fees tied to blockchain costs.

• You rely on more advanced trading tools for complex strategies.

• You prefer trading on a regulated exchange for added peace of mind.

7. Cypherock — Seedless Cold Wallet with Advanced Security

Cypherock X1 is a relatively new wallet in the crypto market, but it is already becoming a popular choice with traders. The X1 model includes four NFC-compatible smart cards, each the size of a regular credit card, as well as a vault (the device) with a screen and a joystick. Since the wallet is made to function “without a seed phrase,” it provides an alternative method to safeguard cryptocurrency and avoids some of the vulnerabilities associated with seed phrases.

Cypherock Home Page. Photo: Cypherock

According to Cypherock, your data is safe for at least 20 years and the setup is suitable for at least 500,000 NFC taps.

While Cypherock uses multi-signature technology to enhance security, making it attractive for users wanting strong protection, the setup complexity and reliance on multiple devices may discourage less tech-savvy individuals from adopting it.

Cypherock is suitable for you if:

• You want a seedless wallet that removes the need for seed phrases.

• You want to customize your wallet cards with NFTs or logos.

• You value multi-sig level security with private key sharding across the vault and cards.

• You prefer managing various portfolios in a single wallet.

Cypherock is not suitable for you if:

• You prefer direct storage and management of NFTs on the Solana network.

• You find small screens difficult to navigate (the display is just 0.96 inches).

• You want extensive token support beyond 10,000+ assets.

8. Tangem — Tap-to-Use Wallet with Multi-Card Security

Like the Cypherock X1, Tangem harnesses NFC technology to validate cryptocurrency transactions on your smartphone. Instead of employing a conventional seed phrase, which is susceptible to loss or improper handling, Tangem makes use of several identical backup cards, typically two or three, each of which holds the same private key.

Tangem Home Page. Photo: Tangem

You can also

Zengo Wallet Homepage. Photo: Zengo

ZenGo supports 380+ cryptocurrencies and NFTs across multiple blockchains. You can buy, sell, swap, stake, and manage assets in-app, with automatic inheritance transfers if your wallet becomes inactive.

It offers 3FA recovery, including email, 3D facial biometrics, and an encrypted cloud file, which ensures access even if your phone is lost. The wallet’s built-in Web3 firewall (ClearSign) protects against malicious dApps by rating transaction risks as green, yellow, or red.

Zengo Wallet is suitable for you if:

• You’re worried about losing seed phrases, and MPC removes that risk.

• You want institutional-grade security, used by billion-dollar crypto firms.

• You need simple recovery, with 3FA, facial recognition, and cloud backup.

• You value user experience and want consistent ratings as the best UI/UX in crypto.

• You want built-in scam protection as ClearSign warns about risky transactions.

Zengo Wallet is not suitable for you if:

• You prefer fully open-source wallets, but the app isn’t fully transparent.

• You want the lowest trading fees, as some exchanges charge up to 4%.

• You need broad blockchain support, but Zengo has fewer chains despite 380+ assets.

• You prefer desktop access (it’s currently mobile-only).

10. Ellipal- Secure Hardware Wallet with AIR gapped Protection

Ellipal is an air-gapped wallet, which means it is always kept offline, with transactions sent and received via QR codes. It supports over 10,000 tokens across 40 blockchains, including NFTs on Ethereum and Polygon. Through WalletConnect and MetaMask, you can access 200+ decentralized apps, including DeFi platforms, NFT marketplaces, and staking services.

Ellipal Home Page. Photo: Ellipal

Unlike many hardware wallets, you can buy, sell, trade, and stake cryptocurrencies within the app. You can also manage several accounts, track rewards, and find staking opportunities. However, its bulkier design and lack of extensive dApp integration might reduce appeal for users seeking seamless connectivity and portability.

Ellipal Wallet is suitable for you if:

• You want a wallet that stays offline and uses QR codes for transactions.

• You value tamper-proof hardware for maximum security.

• You want support for a wide range of crypto assets.

Ellipal Wallet is not suitable for you if:

• You want a small, sleek hardware wallet.

• You prefer a simple firmware update without formatting a microSD card.

• You want to use your wallet on a desktop computer.

Top Decentralized Crypto Wallets Compared

After reviewing the best decentralized wallets, it is now time to collect and summarize the information. We created a table of comparison that will help you see their characteristics more clearly:

How We Ranked the Best Decentralized Crypto Wallets

Our selection process for the best decentralized crypto wallets combines testing with analysis across multiple critical factors. We evaluated over 50 wallets through hands-on testing and research, using a weighted scoring system that prioritizes user safety, functionality, and real-world usability.

Security Architecture and Audit History (20%)

We evaluated each wallet’s security implementation, including encryption methods, private key management, and authentication systems. Wallets underwent assessment based on third-party security audits, open-source code availability, and track record of security incidents.

We prioritized wallets using advanced security like MPC cryptography (Zengo), hardware-grade security chips (Ledger), or biometric authentication without seed phrases (Best Wallet). Our research included reviewing security audit reports from firms like Kudelski Security and analyzing historical vulnerability disclosures.

Asset Support and Blockchain Compatibility (20%)

We assessed the breadth and depth of cryptocurrency support across different blockchain networks. This evaluation considered both the total number of supported assets and the quality of integration with major blockchains like Bitcoin, Ethereum, Solana, and emerging networks.

Wallets supporting 50+ blockchains with native integration received higher scores than those requiring manual network additions. We tested cross-chain functionality and swap capabilities to verify advertised compatibility.

User Experience and Interface Design (20%)

We conducted extensive usability testing across mobile apps, browser extensions, and desktop applications. This included evaluating setup processes, transaction flows, portfolio management features, and overall interface intuitiveness.

We tested wallets with both crypto beginners and experienced users to assess learning curves and feature accessibility. Special consideration was given to innovative UX approaches like passkey authentication and gasless transactions.

Web3 Integration and dApp Compatibility (20%)

We tested connectivity with popular decentralized applications across DeFi, NFT marketplaces, and gaming platforms. This evaluation included measuring connection speed, transaction approval processes, and compatibility with emerging Web3 protocols.

Wallets with built-in dApp browsers, integrated DEX functionality, and comprehensive NFT support scored higher. We verified compatibility with major platforms like Uniswap, OpenSea, and chain-specific applications.

Fee Structure and Cost Analysis (20%)

We analyzed transaction fees, swap costs, and any premium features to assess the overall value proposition. This included testing built-in exchange rates against direct DEX usage and evaluating hidden costs or premium tiers. Our analysis considered both network gas fees and wallet-specific charges to provide transparent cost comparisons for different user types.

What is a Decentralized Crypto Wallet?

A decentralized crypto wallet is a type of software that enables you to store cryptocurrency on your own devices without relying on a third party or centralized company for security or other services. They are also known as full self-custody wallets or non-custodial wallets, as they provide you with full control over your cryptocurrency.

What defines a decentralized wallet — as opposed to a centralized wallet — is who owns the wallet’s private keys. This is important because private keys are critical to accessing a wallet’s tokens.

With a decentralized wallet, you (the wallet owner) are in control of the wallet’s private keys. With a centralized wallet, on the other hand, you have access to the wallet, but a third party, such as a crypto exchange or broker, manages the private keys.

Centralized wallets are potentially problematic because if the exchange goes bankrupt or suffers a hack, you could potentially lose your cryptocurrency. There’s a common saying in the crypto world: “Not your keys, not your coins.”

This is what happened to account holders at FTX, the major crypto exchange that went bankrupt in 2022. Token holders had centralized crypto wallets managed by the exchange, and  their funds were lost when the exchange went bankrupt.

Decentralized wallets eliminate this risk, but they do come with trade-offs. Taking responsibility for your wallet’s private keys means there’s no one to ask for help if you lose your keys. You can also send and receive crypto without oversight by a third party, which can allow you to do more in Web3 but also makes you more vulnerable to scams.

Benefits of Decentralized Bitcoin Wallets

Decentralized cryptocurrency wallets offer several benefits compared to centralized wallets, which is why they’re the most popular choice for crypto owners. Let’s dive into the benefits and explain how they work.

Total Control over Your Cryptocurrency

The biggest benefit of a decentralized crypto wallet is that you have complete control over your tokens and other digital assets, like NFTs. You can do whatever you like with your tokens — send and receive from any dApp, swap them through an exchange, stake them with a decentralized finance (DeFi) platform, and more. There’s no third-party custodian that can impose limitations on how you use your crypto.

This is especially important for making your tokens resistant to financial censorship. Not only can an exchange or similar crypto-related entity block your transactions, but neither can governments. Your tokens exist completely outside the traditional financial system.

Access to a Wider Range of Tokens

Most decentralized crypto wallets store a much wider range of tokens — from more blockchains — than most centralized wallets. That’s because centralized wallets typically only work with approved digital assets, such as the specific tokens that a crypto exchange offers for trading.

Decentralized wallets, on the other hand, support as many networks as possible to give you the greatest flexibility to explore Web3. For example, Best Wallet supports over 60 blockchains, while Trust Wallet supports more than 100.

Connectivity to Web3 and dApps

Another major benefit of decentralized wallets is that they enable you to connect to dApps across Web3. Because of this, decentralized wallets are also called DeFi wallets.

Many decentralized wallets have built-in marketplaces where users can explore dApps to connect to. Some of the most popular dApps include the decentralized crypto exchange Uniswap, the NFT marketplace OpenSea, and the DeFi platform Yearn.finance.

Decentralized apps can also connect to crypto presales, which gives investors the ability to buy emerging tokens before they launch on exchanges.

Full Anonymity

Whereas most centralized crypto wallets require KYC checks — which include ID verification and providing proof of address — most decentralized wallets do not. To sign up, you only need an email address or a username. You can buy and sell crypto completely anonymously without sharing any sensitive personal details.

No Custodian Risk

As we discussed above, decentralized wallets also eliminate risks that stem from putting someone else in charge of your wallet’s private keys. For example, your tokens aren’t at risk of a custodian going bankrupt or suffering a hack. You must still be mindful to keep your token safe, but the risk doesn’t stem from your wallet’s custodian.

Risks of Using a Decentralized Wallet

While decentralized wallets offer significant advantages, they also come with some risks that you should understand and manage. Unlike traditional banking, crypto transactions are irreversible, and there’s no customer service department to call if something goes wrong.

Seed Phrase Vulnerabilities

Your seed phrase is both your wallet’s greatest strength and its biggest weakness. According to Investopedia, 20% of all Bitcoin is permanently inaccessible due to lost private keys and mismanaged seed phrases. This 12-24 word recovery phrase serves as the master key to your entire wallet, meaning anyone who gains access to it can completely drain your funds.

The most common seed phrase risks start with physical theft or loss. If someone finds your written seed phrase, they can steal everything in your wallet instantly. Digital exposure creates even bigger problems, as saving your seed phrase on your phone or in cloud storage increases vulnerability to hacking. Social engineering attacks are particularly dangerous because scammers often pose as customer support to trick users into sharing their seed phrases.

Phishing and Wallet Drainer Attacks

In 2024, cryptocurrency wallet drainer attacks resulted in the theft of $494 million, affecting over 300,000 wallet addresses.

Modern phishing tactics have become incredibly advanced. Fake wallet websites use wallet drainers that create browser pop-ups, shady web addresses, or login screens that look identical to legitimate apps.

SEO manipulation has reached alarming scales, with over 38,000 distinct FreeDrain sub-domains hosting lure pages. These pages are hosted on cloud infrastructure, such as Amazon S3 and Azure Web Apps, and they closely mimic legitimate cryptocurrency wallet interfaces.

Malware and Device Security Risks

Software wallets are particularly vulnerable to malware attacks since they’re connected to the internet. Some malware runs quietly in the background of a user’s device, searching for wallet addresses that may be copied to the clipboard, altering them to the hacker’s wallet address when a transaction is made.

Device-related risks come from multiple attack vectors. Clipboard hijacking involves malware that changes wallet addresses when you copy and paste them, sending your funds to scammers instead of intended recipients. Keyloggers are software programs that record your keystrokes to steal passwords and seed phrases without your knowledge. Screen recording malware captures your screen during wallet operations, potentially exposing sensitive information. Fake mobile apps pose significant risks since these counterfeit apps are often distributed through non-official app stores and deceive users into submitting private keys and sensitive data, granting scammers access to their digital assets.

Human Error and User Mistakes

Unlike traditional banking, crypto transactions can’t be reversed or canceled once confirmed. This makes user errors particularly costly and permanent.

Common user mistakes can lead to permanent loss of funds. Sending to the wrong addresses is particularly dangerous since one typo in a wallet address can result in permanent loss of funds with no way to recover them. Lost passwords or PINs become catastrophic without proper recovery methods, as forgotten credentials can lock you out forever.

Accidental deletion of wallet apps or files without proper backups means losing access to your crypto permanently. Poor backup practices create vulnerabilities since even a written backup is at risk if left in an easily accessible or unsafe location. Approval of malicious transactions happens when users blindly approve smart contract interactions without understanding what they’re actually signing.

Smart Contract and dApp Vulnerabilities

Smart contract risks expose users to various financial dangers. Unlimited token approvals are particularly risky since they give dApps permission to access all your tokens, not just what’s needed for one transaction.

Rug pulls are a growing threat where developers launch seemingly legitimate projects, build hype, and then suddenly vanish after collecting significant investments. Flash loan attacks are sophisticated exploits that manipulate DeFi protocols to drain liquidity pools in seconds.

No Customer Support or Recovery Options

The decentralized nature that makes these wallets appealing also means there’s no company to call when things go wrong. Unlike traditional finance, there’s usually no way to recover stolen crypto.

Support limitations make decentralized wallets particularly challenging for newcomers. Password recovery doesn’t exist, as it’s not possible to reset your password if you forget it, unlike centralized services. Transaction reversals are impossible, meaning sending funds to the wrong address or falling for a scam results in permanent loss.

Regulatory and Compliance Risks

As governments worldwide develop crypto regulations, using decentralized wallets may expose you to compliance risks, especially for large holdings or business use.

Regulatory concerns continue to evolve as governments develop new policies for cryptocurrencies. Tax reporting requirements create difficulties since tracking transactions across multiple wallets and protocols can be extremely complex. KYC and AML compliance may be required in some jurisdictions for large transactions, even with decentralized wallets.

Asset freezing becomes possible when regulatory pressure on exchanges could affect your ability to convert crypto to traditional currency. Changing legal status poses ongoing risks since future regulations might impact the legality of certain wallet features or cryptocurrencies entirely.

Understanding these risks doesn’t mean you should avoid decentralized wallets — it means you should use them responsibly. The key is implementing proper security practices, starting with small amounts, and never risking more than you can afford to lose while you’re learning.

Are Decentralized Crypto Wallets Safe?

The first and most important thing we need to understand is that the safety of decentralized wallets depends entirely on implementation and user behavior, not the technology itself.

Decentralized wallets are simultaneously the most secure and most dangerous way to store crypto. They’re secure because no central authority can freeze your funds, and when properly implemented, the cryptography is virtually unbreakable. They’re dangerous because every security decision falls on you, and a single mistake can result in permanent loss.

Not all decentralized wallets are created equal. For example, no Zengo or other wallets that we mentioned above have been hacked or stolen, while some popular wallets have suffered multiple breaches. Open-source wallets aren’t automatically safer than closed-source ones since transparency gives attackers a blueprint to find vulnerabilities. What matters more is whether the wallet has undergone rigorous security audits and has a clean track record.

Traditional seed phrases are the biggest single point of failure in crypto security. Over 80% of crypto stolen across 75 hacks so far this year was taken through infrastructure exploits, which include attacks such as hijacking a crypto wallet’s private seed phrase. The industry is moving away from seed phrases for good reason, with modern solutions like multi-party computation (MPC) and biometric authentication eliminating this vulnerability entirely.

Decentralized wallets transfer all responsibility from institutions to individuals, but most people aren’t equipped for this responsibility. Unlike traditional banking, there’s no fraud department to call when something goes wrong. Every transaction is final, every approval is permanent, and every mistake is costly.

Decentralized wallets are safe when used correctly, but “correctly” requires a level of security awareness that most users haven’t developed yet. The technology itself isn’t the problem — human behavior is.

Tips for Improving Security When Using DeFi Wallets

It’s essential to adopt a security-first approach when using a decentralized crypto wallet. Otherwise, you could fall prey to a scam or hack that results in a significant loss of tokens.

To help, we have five tips for how you can maximize your wallet’s security.

1. Activate Multi-factor Authentication

If your crypto wallet offers multi-factor authentication — such as SMS authentication, an authentication code from an app, fingerprint unlock, or facial recognition — be sure to activate those security measures when setting up your wallet. These measures can make it much more difficult for an attacker to get into your wallet, even if they are able to steal your password.

2. Store Your Seed Phrase Offline

Many, but not all, DeFi crypto wallets use a seed phrase that represents your private key. You need the seed phrase to restore your wallet to another device if you lose your device or lose your wallet’s password.

When setting up your wallet, write down your seed phrase on a piece of paper and store it somewhere secure. Never store your seed phrase on your computer or in the cloud, where it could potentially be stolen. Don’t tell anyone where your seed phrase is located or show it to anyone.

If your wallet doesn’t use a seed phrase — Best Walle and Zengo Wallet do not — then your wallet’s recovery process typically involves your email address and a recovery file. So, be sure to keep your email secure as well.

3. Keep Your Tokens Offline

If possible, it’s a good idea to store your tokens offline in a hardware or cold storage wallet rather than a software or hot storage wallet. Hardware wallets are designed to keep your tokens disconnected from the internet, and they require physical access to your wallet to approve any transactions. This makes it much more difficult for remote attackers to steal your cryptocurrency through a hack, even if they have your wallet’s password.

We’ll dive into more detail about hardware wallets and how they work later in the guide.

4. Spread Your Tokens Across Multiple Wallets

Another good security practice, especially if you have a large amount of cryptocurrency, is to split your tokens up among several different wallets. This can include a mix of software and hardware wallets.

The advantage of this approach is that in the event your wallet is hacked and tokens are stolen, you only stand to lose some of your total cryptocurrency holdings. It’s extremely unlikely that any attacker could steal coins from multiple different wallets with different passwords and different security configurations.

5. Do Your Research Before Connecting to dApps

One of the most common ways that people lose tokens when using decentralized wallets is by connecting to malicious dApps. These could be outright scams in which you send tokens to another wallet for a service that doesn’t exist, while other malicious dApps are designed to take tokens from your wallet.

The solution in either case is to carefully research any dApps before you connect to them. Make sure the dApp is legitimate, and make sure you are connecting to the correct wallet or contract address. It’s also important to only click trusted links and to double-check URLs since lookalike links are a common technique used by scammers.

How to Pick a Decentralized Bitcoin Wallet

There’s a lot to consider when choosing the best decentralized crypto wallet. We’ll break down the things you need to look for and highlight factors that help the top wallets stand out.

Security Measures

If a decentralized wallet isn’t 100% secure, you should never use it. That said, many wallets achieve security in different ways, so it’s important to know what to look for.

To start, consider whether you want a wallet with a seed phrase or not. Seed phrases can include 12 to 24 randomly generated words, and they are commonly used because they’re effective. However, you have to store your seed phrase somewhere safe, or else you could potentially lose access to your wallet forever if you lose your device.

Wallets that don’t use seed phrases are just as secure, and they offer easier ways to restore access to your wallet. For example, with Best Wallet, you just need access to your email and your PIN code to restore your wallet.

We recommend only using wallets that support multi-factor authentication. Biometric authentication is best because it’s.  considered by experts to be highly secure. If biometric authentication isn’t available, look for wallets that are compatible with an authenticator app rather than those that rely on SMS authentication.

You should also consider additional features like multi-signature support. This requires you to use multiple devices to sign off on transactions, making it more difficult for an attacker to steal your tokens.

Finally, make sure that the code underlying a decentralized Bitcoin wallet is fully secure. We recommend sticking to decentralized wallets that are open-source, like MetaMask, or that have undergone third-party security audits.

Supported Cryptocurrencies and Assets

Another important thing to consider when choosing a crypto wallet is what types of digital assets it can actually store. Some decentralized Bitcoin wallets only store Bitcoin, but most support a wide range of altcoins as well.

Generally, we recommend using a wallet that supports at least 50+ blockchains, including all of the largest ones. Some wallets don’t support chains like Ripple, which has a different architecture than most Ethereum Virtual Machine-compatible networks. Think carefully about what tokens you plan to use before choosing a wallet that has limited support.

It’s also worth thinking about whether you plan to buy and sell NFTs since many decentralized wallets support these digital collectibles. Compatibility for different NFT standards varies widely among wallets.

Apps and User Experience

Nearly all major DeFi wallets offer mobile apps for iOS and Android, making it easy to check your token balances and deploy your crypto assets on the go. Most also offer a web interface, and some offer browser extensions for Chrome and other major browsers. Desktop apps are less common but can be a nice feature for crypto users who want to manage their portfolios from a computer.

Be sure to explore the user experience when choosing a wallet. Most wallets are designed to be user-friendly, but some can feel clunky while others overwhelm the user with different options and features. Ideally, it should be extremely easy to monitor your token balances, buy, sell, or swap cryptocurrencies, and connect to popular dApps. More complex security settings should be available but stored in an out-of-the-way menu for access only when needed.

Web3 Features

Innovative Web3 features can take a crypto wallet from good to great. At a minimum, decentralized wallets should make it easy to stake your tokens to earn interest and offer a dApp library where you can connect to popular DeFi and other platforms. An integrated NFT marketplace is also a plus.

Some wallets are starting to take Web3 integration much further. For example, Best Wallet has a built-in iGaming hub that lets users connect to popular crypto-gambling sites with just a tap. It also has an integrated crypto launchpad, Upcoming Tokens, where users can easily invest in emerging crypto projects.

Ideally, wallets should vet the dApps they include in their libraries and offer some form of contract risk analysis. This significantly reduces the chances of connecting to a malicious dApp that could try to steal your tokens.

Swap Fees

A final thing to consider when choosing the best decentralized wallet app is how much the wallet’s built-in exchange charges to swap tokens. Fees can vary widely among different wallets, and they can add up quickly for active investors and crypto traders.

Be sure to also look for gas fee controls. Many wallets let you set maximum gas fees for your transactions, and some offer algorithms and alerts to help you minimize fees when trading cryptocurrencies.

Types of Decentralized Crypto Wallets

There are two main types of decentralized crypto wallets to be aware of: software wallets and hardware wallets.

Software wallets, also known as hot wallets, are solely pieces of software on your device that enable you to manage your cryptocurrencies. They are designed to be secure, but are always connected to the internet. This makes software wallets potentially more vulnerable to attack since someone with access to your wallet’s password could access your tokens at any time. (Multi-factor authentication is critical to ensure they also need physical access to your device.)

Hardware wallets, also known as cold wallets, use a combination of hardware and software to store your cryptocurrencies. Your tokens live on a physical device that is not connected to the internet. When you want to use your tokens for a transaction, the device can be connected (usually via USB or Bluetooth) to a mobile or desktop app, which in turn is connected to the internet.

The advantage of a hardware wallet is that it’s extremely secure. When your device isn’t connected to the internet, there’s no way for anyone to steal your tokens, even if they had everything needed to break into the partner app. In addition, when the device is connected to the partner app, you must press a button or tap a screen on the physical wallet device in order to approve any transactions.

The partner app can be used to buy, sell, and swap cryptocurrencies, as well as to stake tokens to earn interest. However, there may be more limited options for connecting to dApps than with a software wallet.

Not everyone uses hardware wallets because they have some additional drawbacks. First, it can be a hassle to connect your wallet every time you want to complete a transaction. In addition, hardware wallets cost money and may have limited storage capacity, whereas software wallets are free and have unlimited storage.

The solution many crypto investors adopt is to use both a software wallet and a hardware wallet in combination. The security of a hardware wallet is ideal for storing tokens that are long-term investments and don’t need to be swapped or traded frequently. The connectedness of a software wallet is ideal for tokens that might be transferred to a dApp or swapped in the near future. Just remember to keep your positions balanced across your wallets as they change over time.

How to Get a Decentralized Crypto Wallet

Ready to start using a decentralized wallet? We’ll walk through the steps for how you can download a wallet today and get started storing your crypto safely.

Step 1: Download a Wallet App

To get started, head to the website for the wallet you want to use. Download the wallet for your mobile device or browser.

Step 2: Create an Account

Open the wallet app and follow the prompts to create an account. Usually, you’ll need to provide an email address, username, and password.

Step 3: Write Down Your Seed Phrase

If your wallet provides a seed phrase, it’s important to write it down on a piece of paper and store it somewhere secure. You will need this seed phrase to restore your wallet on another device if you ever lose your device or your wallet password.

Step 4: Activate Multi-factor Authentication

Next, turn on multi-factor authentication. Different wallets offer different options, but fingerprint or facial recognition is best. Be sure to activate SMS authentication at a minimum.

Step 5: Buy, Sell, or Trade Crypto

Now your wallet is set up, and you’re ready to start buying, selling, or trading cryptocurrency. If you already have crypto in another wallet, you can easily import your tokens to your new decentralized wallet.

Conclusion

Choosing the best decentralized crypto wallet is essential. While these wallets offer control and Web3 access, they also require you to take full responsibility for security. The risks are real — from phishing attacks to lost seed phrases — but they’re manageable with proper precautions.

Based on our testing, Best Wallet stands out as the top choice for 2025, combining advanced security without seed phrases, comprehensive Web3 features, and user-friendly design. For maximum security, consider pairing it with a hardware wallet like the Ledger Nano X for long-term storage.