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Non-Fungible token (NFT) collecting and trading is becoming a daily routine for many users and collectors. There is nothing as satisfying as getting a rare NFT or an NFT that gives you an enhanced level of utility for a particular game or metaverse platform.
However, not all cryptocurrency wallets are built equally; some lack features that others have, and some DeFi wallets out there will have some of the most significant quality-of-life improvements.
Today, we will go over the top 5 benefits you can get when using NFT wallets instead of just using any average wallet for storing your NFTs. Let’s dive in.
What is an NFT Wallet?
Any cryptocurrency wallet can be an NFT wallet, assuming that it supports the blockchain’s protocol, on top of which the original NFT was minted.
For example, Ethereum (ETH), Solana (SOL), and Cardano (ADA) all have their own token standard through which NFTs get minted. Many other blockchains support minting and creating NFTs.
However, a DeFi wallet that was only built with the storage of NFTs will have multiple benefits and advantages compared to a wallet that was not. This can include selling, trading, and swapping tokens alongside support for many assets and blockchain networks.
How Does an NFT Wallet Differentiate Itself From Other Wallets?
A DeFi wallet that was custom-built from the ground up to support NFT trading, swapping, buying, and selling will have different features that will allow it to differentiate itself from standard wallet options.
NFT-specific DeFi wallets are virtual wallets that enable any user to store NFTs and traditional cryptocurrencies in a single location. Some even go the extra distance of allowing users to gain new assets and purchase collectibles with assets they already have.
As previously mentioned, several blockchains that support NFT minting, including Solana, Ethereum, Avalanche, Fantom, Cardano, Arbitrum, Polygon, the BNB Chain, and many others, have their own token standards.
Traditionally, when using basic wallets, you would need to create a separate cryptocurrency wallet for every token standard and blockchain you wanted to buy NFTs out of.
However, these options are built in with an NFT-enabled DeFi wallet, so you can buy NFTs minted on different blockchains and store them from a single wallet. Let’s now go over the benefits found within NFT wallets.
The Top 5 Benefits of Using NFT Wallets
There are many benefits to using wallets that are exclusively built for storing NFTs. However, we will now go over the five main ones you need to know about.
1. NFT Wallets Feature a Simple User Interface
One of the key reasons many people were initially turned off from trading cryptocurrencies and NFTs is because the crypto space seemed complex.
However, many of these wallets have a more straightforward user interface that allows just about anyone, no matter their experience within the crypto space, to access and utilize all of the features available within the wallet. This means nobody needs to be a crypto expert to fill their DeFi wallets with their desired NFTs.
2. NFT Wallets Share Support for Different Blockchain Networks
As we previously discussed, many NFTs get minted on top of various blockchain networks. Each blockchain will feature its own token standard that needs to be followed by the NFTs that get minted on top of them.
NFT wallets will typically support a wide range of blockchains, so users will no longer need to make separate, individual wallets for every blockchain they want to buy or mint NFTs on. This streamlines things tremendously. The Ethereum NFT token standards are ERC-721 and ERC-1155, and other blockchains have their own standards.
3. NFT Wallets Can Be Accessed From Many Devices
Many of the DeFi wallets that are purpose-built for NFTs are also built for convenience and will feature a separate mobile application or desktop client and browser extension, so anyone can access them, no matter what device they are using.
4. NFT Wallets Can Feature Advanced Security
Many NFT wallets typically go extra distances and include multiple security measurements. These can include two-factor authentication (2FA), biometric verification, and security audits alongside a custom security architecture.
5. NFT Wallet Can Support Many Payment Options
Most people just getting started with NFTs will typically not have a cryptocurrency balance through which they can begin their purchase process. Think of it this way: if a user has used Ethereum (ETH) as a blockchain in the past, meaning that they bought only Ethereum-based NFTs, they might only have ERC-20-based tokens.
However, most NFT wallets will allow them to utilize ERC-20 tokens and swap them directly on the app or buy non-Ethereum minted NFTs directly.