How to choose a wallet for Ethereum and DeFi. Ethereum continues to dominate decentralized finance — according to DeFi Llama, 62% of the sector’s total value locked (TVL) sits in the second-largest crypto’s ecosystem: $92,383b out of $160,241b overall.
Security in DeFi doesn’t start with choosing a protocol — it begins with the wallet you use to interact with it. According to our crypto wallet ratings, users can compare different options by security, usability, and functionality before deciding which tool best fits their needs.
Here’s how to pick the right setup for long-term storage, daily DeFi activity, and experimenting with new protocols.
Wallet types: from exchange to hardware
All crypto wallets fall into two key categories based on who controls the keys:
- Custodial — apps where a third party (custodian) controls users’ private keys. This includes accounts on centralized exchanges like Binance. You get a login and password, but no access to private keys.
- Non-custodial — apps or devices where you alone control the private keys. No one but the owner can access funds. Examples: MetaMask, Gem Wallet, Ledger.
By key storage method, wallets are either hot (private keys on an internet-connected device) or cold (keys stored offline).
Custodial wallets: convenience at the cost of control
Most people first meet crypto via a CEX. To get a deposit address, you register and pass KYC.
This approach offers:
- Ease of use. No need to write down and safely store a seed phrase — a familiar login/password is enough. Account recovery via support.
- Built-in trading. Instant swaps between assets without on-chain gas. Spot and futures in one interface.
- Fiat on/off ramps. Buy crypto with cards and bank transfers.
- Passive yield. Many exchanges act as intermediaries to DeFi. For example, OKX Earn routes deposits to Aave at ~5% APY.
These benefits come with the risks of centralized custody. Crypto’s history is full of exchange failures — from Mt.Gox to FTX. In 2025, security on CEXs hasn’t clearly improved — the $1.5B Bybit hack was telling.
The community’s golden rule: “Not your keys — not your coins.” If funds sit on an exchange, you’re trusting a third party.
MetaMask: the browser-wallet standard
MetaMask has become the de facto gateway to DeFi. Per ConsenSys, it has over 110M active users.
Key features:
- Broad network support. Beyond Ethereum, it supports major L2s (Arbitrum, Optimism, Base). Any EVM chain can be added in settings.
- Deep DeFi integration. Nearly every protocol supports MetaMask; new projects integrate it first.
- Built-in swaps. A liquidity aggregator finds the best route across multiple DEXs.
- Hardware support. Works with Ledger, Trezor, and others.
For safer DeFi use, maintain multiple accounts for distinct tasks. For example, keep a primary account strictly for storage and separate “burner” addresses for experiments with new or high-risk dapps.
Routinely revoke old approvals granted to dapps. Tools like Revoke.cash let you remove token allowances in a few clicks.
Phantom: a multichain wallet focused on UX
Phantom started on Solana and evolved into a multichain wallet supporting Bitcoin, Ethereum, Base, Polygon, and Sui. The team reports 15M+ users.
Compared to MetaMask, Phantom’s UI is more minimal and intuitive across both browser extension and mobile app.
Ethereum support is narrower: only mainnet and the Base L2 are available. Among hardware wallets, Ledger works at the time of writing.
Choose Phantom if you:
- work across Ethereum and Solana,
- value a polished, simple interface,
- use mobile more than a browser extension.
Trust Wallet: a universal choice for DeFi
Trust Wallet is one of the most widely used non-custodial wallets for Ethereum and DeFi. It works as a mobile app for iOS and Android and supports thousands of tokens across Ethereum, Binance Smart Chain, and other major blockchains. The wallet gives users full control over their private keys and integrates directly with dapps through WalletConnect.
Key features:
- Ethereum & DeFi access. Built-in browser for connecting to protocols like Uniswap, Aave, or Curve.
- Multi-chain support. Beyond Ethereum, Trust Wallet handles Bitcoin, BNB, Solana, and many other assets.
- Staking & earning. Users can stake popular coins (BNB, ETH, ATOM, SOL) and earn passive income.
- Security. Non-custodial storage — only you control your keys and assets.
Trust Wallet combines simplicity with broad functionality, making it a good starting point for beginners who want to explore Ethereum and DeFi without compromising on flexibility.
Uniswap Wallet: built for active DEX traders
Active traders should consider the dedicated wallet from Uniswap’s developers, optimized for DEX trading.
Features:
- Auto-routing to the best price across Uniswap pools,
- MEV protection via private transactions,
- Real-time tracking of swaps, transfers, and bridges.
Limitation: it focuses on Ethereum/L2 and EVM-compatible chains; other ecosystems aren’t supported.
Hardware wallets
Dedicated devices have long been the gold standard for long-term storage. Private keys never leave the device; transactions are signed inside a secure chip.
Two brands dominate, each with its own strengths:
- Ledger. The French maker offers Nano S Plus (replacement for the old Nano S) and Nano X with Bluetooth and a built-in battery. In 2022 it unveiled Ledger Stax (NFC, E-Ink touchscreen). In 2024 it released a budget alternative — Ledger Flex.
- Trezor. Satoshi Labs (Czech Republic) created the first hardware wallet, Trezor Model One (2014, open-source firmware). Later came the touch-screen Trezor Model T. The 2023 lineup introduced Trezor Safe 3 (successor to Model One), and in 2024 — Trezor Safe 5 (successor to Model T).
Main downside: unlike software wallets, you pay for extra security — from about $60 (Ledger Nano S Plus) or $79 (Trezor Safe 3).
There’s no “perfect” wallet — nor should there be. The optimal setup is a combination tailored to your needs.
Examples:
- Conservative investors. Core storage (80%) on a Ledger or Trezor. The remaining 20% for trading sits on a CEX or in a cross-chain wallet like Gem Wallet.
- Active DeFi users. Hardware wallet (50%) for long-term positions; MetaMask or Gem Wallet (40%) for vetted protocols (Aave, Uniswap) and cross-chain swaps; burner accounts (10%) in MetaMask or Phantom for new protocols.
Takeaways
Choosing a wallet is always a trade-off between security, convenience, and features. Beginners can start with MetaMask, Phantom, or Gem Wallet to explore DeFi, adding a hardware wallet as their portfolio grows.
Key principles:
- Diversify risk — use multiple wallets for different purposes.
- Match the task — hot wallets for short-term operations and dapp interaction; cold storage strictly for long-term holdings.
DeFi brings freedom — and responsibility. Start small, experiment with modest amounts, and scale up as your skills and needs evolve.
Of course, the choice of wallets for Ethereum and DeFi is not limited to MetaMask, Trust Wallet, or hardware devices. The market also offers other options: Coinbase Wallet with seamless exchange integration, Exodus with a user-friendly interface, SafePal and Rabby focusing on DeFi and security, Tangem in a card format, and the Crypto.com DeFi Wallet with an emphasis on staking. Each of these solutions meets user needs in its own way, so the best choice always depends on what matters most to you — simplicity, functionality, or maximum security.
