What is Blockchain Wallet?
Blockchain.com DeFi Wallet (also known as Blockchain Wallet) is the name of the decentralized financial wallet service provided by Blockchain.com, a cryptocurrency exchange founded by Peter Smith and Nicolas Cary. Its DeFi Wallet allows you to manage, trade, exchange, and use cryptocurrencies through Blockchain.com DEX (decentralized exchange).
The DeFi wallet also allows you to perform cross-chain swaps using Squid, a cross-chain service provided by Axelar. At the time of writing, Squid enabled cross-chain swaps on 37 Ethereum Virtual Machine-compatible blockchains, including Ethereum, Polygon, and Arbitrum.
Key takeaways
- Blockchain Wallet is the name of a specific wallet service provided by the cryptocurrency exchange Blockchain.com.
- DeFi Wallet users can manage their balances of Bitcoin, Ether, and other crypto assets.
- Blockchain.com’s DeFi wallet has several security features that help prevent theft, including two-factor authentication, IP whitelisting, and password stretching.
Create a DeFi Blockchain Wallet
To create a DeFi wallet, you need to open an account on Blockchain.com. Once the account is created, you can download the wallet from your device’s app store and log in using the same credentials. You can also use the wallet from your web browser.
When you create a wallet, you are limited to using the decentralized exchange unless you go through the exchange’s Know Your Customer (KYC) process to gain full access to its custody account and exchange services.
Blockchain.com’s decentralized exchange lets you trade any crypto with anyone else anywhere you have an internet connection.
The DeFi Blockchain Wallet interface displays your current balance for crypto assets and the most recent transactions. You can also access price charts and see the value of funds in your local currency. If you have any questions, there is a Help Center section with topics and frequently asked questions.
If you have chosen Blockchain.com’s custody account, you will see an account tab in your app next to the DeFi Wallet tab, where you can access the custody account features.
Using DeFi Blockchain Wallet
You can buy, sell, or trade cryptocurrencies or other supported crypto assets on the DEX. Click “Send” or “Receive” and search for the cryptocurrency you want to use. “Receive” allows the system to generate a unique address that can be sent to a third party or converted into a quick response code (QR code). A QR code is similar to a barcode, which stores information and can be read by a digital device. When you click “Send,” you choose the cryptocurrency you want to send, enter the recipient’s address, choose the amount, and send it, much like sending money through PayPal.
You can also exchange cryptocurrencies from different blockchains, which is called swapping. DeFi Wallet’s swapping feature supports 16 cryptocurrencies. This practice is an easy way to exchange cryptocurrencies without leaving the security of Blockchain Wallet. You will see a quote showing the amount you will receive based on the current exchange rate, with the rate varying depending on the time it takes to complete the transaction. Swaps can take a few hours, depending on the blockchain of each currency.
Blockchain.com DEX is not available via DeFi wallet in Russia, Ukraine, Canada, Cuba, Congo, Iran, Japan, North Korea, Yemen, Syria, Crimea, Myanmar, South Sudan, Zimbabwe, and Mali.
DeFi Blockchain Wallet Fees
It is important to note that the Blockchain DeFi wallet does not charge any additional fees on top of the network fees to pay miners and validators. If you are doing a cross-chain swap, you will need to pay the required blockchain fees (usually both networks will charge transaction fees).
The size of the transaction and the network conditions at the time of the transaction can have a significant impact on the amount of the fee. Only a limited number of transactions can be processed within a block by miners or validators, and most blockchains prioritize transactions with higher fee bids.
DeFi Blockchain Wallet Security
Wallet security is an important consideration for users as a compromised account can result in losing control of their assets. Blockchain DeFi Wallet has multiple layers of security that help protect users’ funds from any potential attackers.
Passwords
Blockchain.com wallets and accounts require passwords for user protection. You can also log in using your 12-word mnemonic phrase, but the exchange does not store it for you.
Mnemonic seeds
A mnemonic seed is a random string of English words that works similarly to a password. If you lose access to your phone or device, the seed can be used to restore the wallet, including cryptocurrencies.
Optional Security Methods
There are several optional security measures that are not mandatory but can help secure wallets from outside attacks. To reduce the risk of phishing, the DeFi blockchain wallet can use two-factor authentication or IP whitelists to prevent logins from unknown devices. It is also possible to block access via the Tor network, preventing potential Tor network users from attempting to access your wallet via the network.
Another technique you can choose is Password Based Key Derivation Function 2 (PBKDF2), commonly known as password stretching. This cryptographic technique hashes passwords, making them very difficult to brute force, guess, or manipulate.
Can I withdraw money from the Blockchain wallet?
You cannot use the DeFi Blockchain Wallet to withdraw money, but you can switch to the Account tab and select “More” to choose the method you want to use to withdraw money.
Is it safe to use Blockchain wallet?
Blockchain.com’s DeFi wallet is one of the most secure wallets available, but it is still vulnerable to malware, viruses, Trojans, or programming errors. For optimal security, cryptocurrency keys should be stored offline in a cold wallet.
How do I access my Blockchain wallet?
Blockchain.com’s DeFi wallet can be accessed by logging into its website or mobile app.
The essentials
Blockchain.com is a cryptocurrency exchange that provides a wallet for cryptocurrency users. The company calls it DeFi Wallet (some also call it Blockchain Wallet). This wallet can store your crypto keys and give you access to Blockchain.com’s decentralized exchange. If you’re looking for a regulated exchange to trade on in addition to a free decentralized exchange experience, Blockchain.com’s account gives you access after providing proof of your identity.
