Centralized Exchanges have their own decentralized asset holding services that allow for interaction between dApps, smart contracts, and even NFT transactions
As the field of decentralized finance has evolved, cryptocurrency wallets no longer perform all the functions that users need. For example, access to decentralized applications (dApps) or non-fungible tokens (NFTs). The logical way to develop the sphere was the emergence of Web3-wallets.
Most of these services provide users with full control over their assets, support multiple networks and allow transactions without revealing personal data. They also come in hardware, mobile, desktop and web wallets, and there are other less popular variants.
The key advantage of Web3 is considered decentralization and the associated higher security. Because users don't need to trust a third party. At the same time, the holders themselves are responsible for the safety of cryptocurrency, because in case of loss of Seed phrase, it will not be possible to regain access to their assets.
There are a number of recommendations for interacting with Web3-wallets:
- You should make a backup copy of the Seed phrase or private key - this is the only way to access the assets;
- Create a strong password for the wallet and keep it in a safe place. The password will be impossible to recover if lost;
- Carefully respond to unfamiliar approval requests, it could be a scam or phishing attempt;
- Be careful when clicking on unknown links and when downloading software.
Some of the largest cryptocurrency exchanges have their own Web3 wallets
For example, Binance, the largest exchange by trading volume, has such a service. The wallet has a special protection system that divides the private key into three parts: one is stored in the wallet, the second in cloud storage, and the third - on the user's device. The wallet is also protected by an additional recovery password known only to the owner.
Also available on OKX, they offer a decentralized multichain wallet that provides access to over 1000 protocols and DApp features such as multichain and crosschain-DEX, cryptofarming, NFT marketplaces. It allows you to interact with Ethereum, Arbitrum, OKC, BSC, Aptos and other blockchains. The wallet was recently officially launched as a mini-app on Telegram.
Web3 wallet is also available at the American cryptocurrency exchange Coinbase. Among other features, it notably offers the ability to exchange assets using a built-in feature that selects the most profitable options on 75 decentralized exchanges. Among the networks available are Ethereum, Base, Optimism, Polygon, BNB and Avalanche.
