DAI is a stablecoin on the Ethereum blockchain. It’s an algorithmic stablecoin, and MakerDAO issued it. The idea is that DAI pegs to the US Dollar 1:1. They do this by backing it with other cryptocurrencies as collateral.
But, to hold DAI, you need a compatible wallet. So, that’s what we will do, looking into the best DAI compatible wallets.
Real-world asset status of MakerDAO.
Currently, ~668 million is the total amount of outstanding DAI generated through real-world asset collateral to fund legacy finance projects.
~500 million DAI (~74%) are allocated to treasury bonds.
— Maker (@MakerDAO) January 20, 2023
1) Trust Wallet
The DAI token is an ERC-20 token. So, to store DAI in a wallet, the wallet needs to be ERC-20 token compatible. One of the best wallets to hold Ethereum tokens, is Trust Wallet. To clarify, DAI is also available on other blockchains.
Until recently, Trust Wallet was a mobile wallet only. However, there’s now also a Chrome browser desktop app available. You may want to check this desktop version out. Already well over 25 million users have installed Trust Wallet. This shows how popular this wallet is.
Furthermore, Trust Wallet claims to have Bank-Grade security standards. Stablecoins form a big part of the crypto space. In moments of volatility, stablecoins offer a safe haven. That’s why Trust Wallet caters to many stablecoins, besides DAI.
New week = new dApp integrations #TrustWalletDapps!💙
Which ones should we add next time?🤔🧵 pic.twitter.com/Q2jQwUDfCk
— Trust – Crypto Wallet (@TrustWallet) January 23, 2023
Another advantage that Trust Wallet offers is a built-in exchange. In other words, you don’t need to leave the wallet. You can buy DAI with other cryptocurrencies or even with fiat by using a credit card. You can also use your stored stablecoins to pay with. Not only that, but you can spend it on anything you want.
Besides being a top choice for storing your DAI, Trust Wallet also stores NFTs. You can stake tokens in Trust Wallet, and they accommodate other chains as well. Currently, they offer access to over 70 chains. These include, for instance, Solana, Aptos, or Cosmos.
MetaMask is the most popular non-custodial wallet. They see over 30 million active users per month. Although they recently caused some controversy, they are still top of the list. The controversy was about sharing IP information.
Nonetheless, MetaMask offers a home to all ERC-20 tokens, including the DAI stablecoin. However, you can add DAI on at least six different blockchains to MetaMask! For example,
- BSC Chain
- Harmony ONE
This gives you a lot of flexibility. Whenever a token shows a lot of volatility, you can swap it quickly into DAI. MetaMask has a built-in swap, so you don’t even need to leave the wallet.
We are extremely happy to announce that you can now stake ETH with Lido or Rocket Pool through the Portfolio Dapp🎉
— MetaMask 🦊💙 (@MetaMask) January 13, 2023
MetaMask is easy to set up and install, There’s no need to prove your identification. Another great feature is that MetaMask supports many blockchains and NFTs. This includes a variety of test nets. Here you can test new dApps. However, there are also a few downsides. I already touched on them sharing your IP information. MetaMask also doesn’t support native Bitcoin. If you lose your private keys, you may not be able to recover your assets!
3) Alpha Wallet
Alpha Wallet calls themselves the best wallet for this stable coin. They are an open source Web3 wallet. They offer a few options for DAI in their wallet. For example:
- Buy DAI through their Web3 browser.
- Earn interest straight from the wallet.
- Use DAI as collateral and borrow ETH.
Their interest rates on DAI are some of the best for wallets. You can send this stablecoin with MagicLink. You can also use your ENS address. Furthermore, the wallet, uses Secure Enclaves. These are security related sets of instruction code. This way they protect any data in use, including your DAI. As with a non-custodial wallet is common, there’s no need for KYC.
So, Alpha Wallet is a great alternative to more established wallets. Thinks of Trust Wallet or MetaMask.
Many major services for @MakerDAO are supported in AlphaWallet, convert your DAI into cheaper/faster xDAI, earn interest from many different DeFi services at competitive interest rates and discover with Ethereum has to offer! pic.twitter.com/hSZiRoQt9b
— AlphaWallet by Smart Token Labs (@AlphaWallet) September 24, 2019
We discussed the three best wallets for the DAI stablecoin. This included the two most popular wallets, Trust Wallet and MetaMask. However, we also included a 100% open-source option with Alpha Wallet. Pick the wallet that suits you best!
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