The web3 wallet is the newest iteration of the web that has brought so much comfort to crypto traders. It has provided them better control of their digital assets and maximum privacy. It is also non-custodial, thus, users wouldn’t require third parties to secure their assets. What can beat this?!
Subsequently, the arrival of the web3 wallet has sparked a lot of questions that this article seeks to answer. So, if you’re here for the frequently asked questions about web3 wallet, you’re exactly where you should be. Let’s delve right into it!
What is the web3 wallet?
This is one of the most asked questions especially from beginners in the crypto space. Just as aforementioned, the web3 wallet has recently started making waves in the online space. It creates new ways for its users to own and at the very same time, monetize their identity, content and assets. Learn more about what is Web3 all about?
Web 3 wallets are simply the easiest ways to use both software and hardware to interact with apps that are dcentralized, collect NFT’s, collaborate with communities, help with bankless financial services and access funds.
Why is a web 3 wallet needed?
The first use for a web3 wallet is to store and manage crypto assets. To clearly explain this, let’s use metamask as an example. Metamask is actually one of the widely used web3 wallet on the market. If you have a metamask account, you should be already familiar with how it works.
It has two tabs, one specifically for assets and the other for activity. The activity tab displays your transaction history while you are able to view all your assets under the asset tab. There are also three action bottons – buy, send and swap. All to properly manage your funds and transact.
This is just proving to you that you with the web3 wallet, you have the ability to easily manage your funds yourself.
Another vital reason why a web3 wallet is needed is for accessibility. As we already know, crypto wallets serve as gateways to a variety of blockchains. Thus, web3 wallets gives users access to dApps as crypto assets mostly interact with apps. As such, users would be able to effortlessly authenticate themselves via their wallets, giving them a means to pay for any transaction.
What is referred to as a DAO?
Also known as Decentralized Autonomous Organization, the DAO is one of the prominent topic that comes up when dealing with a web3 wallet. It simply refers to communities that are developed with shared objectives concerning the use of web3 technologies.
These communities take complete control of the DAO’s and use various models of governance for specific operations. DAO’s explains specifically, the possible design for web3’s future. Some prominent examples of DAO’s are- charitable DAO’s, service DAO’s, grant DAO’s, DeFi DAO’s and so many more.
Is Coinbase a web3 wallet?
Yes! Coinbase is one of the most prominent web 3 wallets on the market today. It is one of the largest crypto exchanges that is non-custodial and enables users to store over 44,000 digital assets, manage Ethereum-based NFT’s and interact with decentralized applications.
As it stands, coinbase wallet supports binance smart chain, litecoin, polygon, stellar, dogecoin, ripple network, Bitcoin, Ethereum and so many others. Users are able to swap easily polygon and Ethereum based assets directly just within the decentralized exchange feature of the application. Non polygon and Ethereum assets can also be bought via the in-app option for crypto buying.
Interestingly, coinbase gives custody technology to institutional clients that seek to partake in the rising DeFi market.
How safe is the web3 wallet?
Web3 wallet emphasizes security a whole lot. It is a very crucial part of the buildup process of the web3 wallet. Nobody wants to painstakingly build up their financial portfolio and have it completely wiped out by hackers. This is what gives web3 wallets an edge over other kinds of crypto wallets.
Your web3 wallet requires your private keys or seed phrase to access your crypto assests. Without them, it can’t grant any form of access.
So, if you love your funds/assets, you’ll do all you can to protect your private keys or seed phrase from falling into the wrong hands.
They are several traders that still use paper wallets due to how secure they are. However, a well-made software provides easy navigation and a secure storage.
How exactly do web3 wallets work?
There are several web3 wallets on the market and although, they have their little differences, they still all have similar essential function.
The first thing users are being led to do after downloading them is to create and account before receiving a seed phrase or private key. Their account can only be accessed via the seed phrase which can’t even be changed. In some cases, if forgotten, users would be unable to retrieve their private keys so it is advised to write it somewhere safe so you don’t risk losing your assets.
As soon as a user gets signed into their wallet, all their assets become visible and they can safely receive and send digital assets from several wallet addresses. There are some wallets that let users connect directly to a trading platform or blockchain, making it possible to easily purchase cryptocurrency or other valuable assets.
It is also important to keep in mind wallets value self-custody a whole lot. This means you get to handle all your assets without any form of restriction. There are several platforms that would have certain limitations but this is not the case for web3 wallets.
What are the good web3 wallet alternatives?
As the days go by, the number of web3 wallets keeps increasing. It is not surprising since a lot of businesses leverage on them to grow speedily in an emerging market.
Picking one from most web3 wallets will be quite tasking since they are all so good. Thus, we would be listing the top 5 web3 wallets that have been on high demand in recent times.
They are-
- Trust wallet
- Metamask wallet
- Coinbase wallet
- Argent wallet
- Rainbow wallet
Any of these should do just fine.
FINAL THOUGHTS
The above questions are the most frequently asked ones about the web3 wallet. They could serve as a guide to newbies in the crypto space.
