What Is DeFi Wallet? How To Scrap Market Risks

December 28, 2022

Story: Mohd Javed

A Decentralized Finance (DeFi) wallet is a non-custodial wallet that stores your cryptocurrency assets.

The DeFi wallets offer investors the opportunity to participate in novel and diverse markets, like non-fungible token (NFT) art and exotic derivatives

Certain DeFi protocols can sometimes be supported by specific crypto wallet services

The crypto-asset market is volatile, and exposure to the underlying currency risk and derivative assets, such as protocols built on top of blockchains, comes with significant risk.

Cryptocurrencies can crash overnight due to panic selling. Crypto asset hodlers can also suddenly wake up to a green market.

Market volatility can devalue your collateral, raising the risk of liquidation and making it more difficult to repay a loan

Crypto holders hold their private keys unlike with crypto exchanges

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