Gen Zs were born into a wholly digitized, hyper-connected era, one where financial freedom is not considered an illusory concept by the vast majority. This age group is much more comfortable with the idea of investing, whether it is in cryptocurrencies, NFTs, stocks, or other such commodities. According to a report conducted in the US, Gen Zs have nearly $360 billion of disposable income. Web3 digital wallets offer these generations an opportunity for financial management in an easy, frictionless manner over the youth’s preferred medium–the Internet.
What Are Web3 Wallets?
When diving into the world of cryptocurrency, Web3 wallets are a basic necessity.
A Web3 wallet is a digital wallet used for storing virtual commodities such as Non-Fungible Tokens (NFTs) and cryptocurrencies while providing access to the decentralized ecosystem of DApps. The need for middlemen ceases to exist and external parties cannot access the commodities directly.
Beyond storing commodities, these digital wallets can be used to conduct transactions with other users in a financial system that ensures maximum security and privacy.
Let’s look at how these wallets work and what features they offer.
Non-custodial
Web3 wallets do not rely on external parties to safely and securely store digital assets, so you have complete control over them. While this gives you the option of anonymity, it also means that you are fully responsible for managing and protecting your assets and commodities.
Recovery seed
Web3 wallets generally use the concept of a recovery seed to help recover assets in case a user has lost direct access to the account tied to the wallet. During the wallet’s setup, a seed phrase, which is a series of 12–24 randomized words, is generated in the process. You can recover your wallet account with the seed phrase even if you no longer have access to your device.
Direct access to DEX
Instead of shuttling between various Decentralized Exchanges (DEXs) for the best deals when trading assets, some wallets offer the feature to compare prices across DEXs directly from the wallet’s platform.
How Can Gen Z Benefit from Web3 Wallets?
A recent survey revealed that nearly 59% of Gen Z respondents believe that cryptocurrencies will make them rich, which makes them eager to invest in them.
Web3 wallets offer a large scope of control and flexibility, perfect for Gen Z youths who have just started investing in cryptocurrencies.
Some of the advantages of using a Web3 wallet include:
- Simple to use and simple to set up. Web3 wallets are typically very user-friendly. Once an account has been set up, you can conduct transactions immediately as well as gain access to several Web3 products and features. You can also manage various assets simultaneously and easily, as you would have direct access to each commodity’s details.
- Private. Web3 wallets ensure that all personal details are protected safely so other users will never have access to your data.
- Secure. The safety of the assets stored is another advantage of using Web3 wallets. Most wallets use encrypted procedures for signing up and signing into accounts. The access to funds, the information given, and the commodities stored in the wallet are very secure.
There are two types of wallets that can be used in the Web3 space. They are:
- Hot wallets, also known as software wallets, are connected to the internet via the web, desktop, or mobile. These wallets are more vulnerable to online attacks and are thus not very secure. However, they are easier to use when trading and spending cryptocurrencies. Hot wallets are used by many users because of their speed, convenience, and the fact that they’re usually free.
- Cold wallets are typically physical devices that store cryptocurrencies completely offline. Examples include hardware wallets and paper wallets. Both are generally secure and less susceptible to attacks. However, paper wallets can easily be damaged whereas hardware wallets are built to withstand high temperatures.
What Are the Top Web3 Wallets Gen Z Can Use?
Metamask
This Web3 wallet allows you to trade, store and buy tokens freely. With Metamask, you can explore dApps without having to link private data and keys to the dApps, making the process much safer. While the wallet is built specifically for the Ethereum blockchain, it offers access to other EVM-compatible networks such as Binance Smart Chain, Polygon, etc. You have absolute control while transacting, get to choose what details to put out, and have your private keys secured automatically by the wallet.
Trust Wallet
Trust Wallet acts as a bridge that connects to individual blockchains integrated into it. It supports a huge number of cryptocurrencies including Bitcoin, Ethereum, Binance Coin, Litecoin, USDT, and XRP. Apart from the regular use of cryptocurrencies, you can also stake cryptocurrencies and earn rewards on Trust Wallet.
Coinbase Wallet
This Web3 wallet offers access to thousands of dApps and tokens. You can store all of your NFTs and digital assets in one place. It also offers smooth access to DeFi, where tokens can be linked to DeFi projects. In addition, the wallet comprises a varied list of verified online NFT and crypto airdrops, which gives users opportunities to procure free assets. DeFi liquidity pools to lend and borrow commodities are also available on the platform’s DEXs, and they can be accessed from a phone or browser, according to the user’s convenience. The wallet uses “social recovery” methods for security, so you can have the option to appoint “guardians” to help confirm your account if it has been lost or a new device needs to be set up.
Sahal Wallet
The Sahal Wallet is the world’s first self-custodial wallet curated specifically for halal tokens. While still in its infancy, you can already browse, buy and sell halal crypto. It is a cross-chain mobile wallet that is the community gateway into the entire halal MRHB DeFi ecosystem. The wallet will automatically screen out the coins, tokens and protocols that include interest-based returns or are linked to gambling, pornography and other activities deemed unethical or non-halal. Sahal Version 2 will integrate a commodity DEX feature (called ‘TijarX’), which is a decentralized exchange for commodity-backed tokens such as gold and silver. Sahal Wallet was built with the vision of an ethical ecosystem, where every token, product, and service on its platform goes through a rigorous halal vetting process to ensure that ethical business practices are followed throughout.
Jump Into Web3 the Halal Way with MRHB DeFi
For any beginner interested in exploring the decentralized world of Web3, a wallet is essential. You would need a secure and easy-to-use wallet like the Sahal Wallet to navigate through procuring and trading virtual assets. Furthermore, the opportunity to access DApps will allow you to grow in the cryptocurrency sector. Investing in a suitable Web3 wallet will give you the right tools to manage and store your assets in a hassle-free manner.