DAI is a stablecoin created by MakerDAO and it serves as a decentralized alternative to the US dollar. The token is used to stabilize the value of Dai and is pegged to the US dollar at $1:1. Dai works as a cryptocurrency but it is different from other cryptocurrencies in that it is designed to be less volatile than other coins and tokens. It achieves this stability through its unique smart contract technology, the DAI token, and the MKR token. As such, Dai (DAI) wallets need to be used with these elements in mind. Let’s take a look at some of the options available.
Key talking points:
Dai wallet is a crypto wallet to store and manage DAI tokens. It is part of the Ethereum wallet. The users can interact with the Ethereum blockchain and they can send and receive DAI tokens. The tokens on the wallet can be used for cross-border transactions, trading, and etc. There are also several types of DAI wallets such as mobile DAI wallets and desktop DAI wallets.
Dai wallet is a program that stores stablecoins and enables users to send and receive Dai tokens. Every user gets a unique address using public or private keys. Users need to take out a loan on MakerDAO's platform by depositing some assets into a smart contract. After it deposits user assets, users can receive borrowed DAI tokens which are equivalent to USD value. They can do anything to their token like other cryptocurrencies.
When researching your Dai wallet, make sure it comes with the following features:
The short answer here is “yes.” If you buy DAI on a crypto exchange, then that exchange will have a built-in DAI wallet for you to hold DAI until you decide to trade it or withdraw it. Even if you manage to buy DAI with cash from your friend, you still need a wallet to store Dai.
Unfortunately not. Some wallets are built by criminals. These wallets have backdoors for hackers to easily steal your private keys and take off with your money. Other wallets are just built by bad developers who leave vulnerabilities in the wallet unbeknownst to them. Then, you have perfectly well-made wallets that just happen to lack high-quality security features like 2FA, security audits, etc. That being said, there are plenty of secure DAI wallets out there so don’t be afraid. Some wallets even come with insurance to protect your funds in the event of a bad event (e.g. like YouHodler wallets for example).
Any good Dai wallet should be free. If someone is trying to sell you a Dai wallet, be careful. All the best wallets out there are 100% free. It doesn’t cost anything to use a Dai wallet aside from the blockchain fees associated with every transaction. Some wallets choose to cover those fees for you while others let you choose the fee (higher fees result in faster transaction time).
The crypto industry has come a long way over the years. Nowadays, Dai wallet apps are so user-friendly, anyone can figure it out. To deposit or withdraw Dai using your wallet, just open up your app and find Dai in the wallet section. You should then see buttons to deposit or withdraw Dai. Simply choose an option and follow the instructions. If you want to deposit, a deposit address will be provided. Just copy and paste that address so the person sending your Dai can do so. If you are withdrawing DAI, then you need to copy and paste the address from the wallet on the receiving end of the transaction so you can send Dai there.
Dai wallets come in all sorts of lovely shapes and sizes. So finding the best one for you should be a relatively easy task. Here are a few different types you can explore.
As its name suggests, a desktop DAI wallet is one that’s installed on a desktop computer or a laptop. Users get complete control over the wallet just as they would with a mobile wallet, just in a desktop environment. The main difference is that some desktop wallets have more advanced functionality like the ability to operate a complete node or full crypto exchange integration.
More or less, a mobile DAI wallet performs the same functions as a desktop wallet but on a mobile device such as a smartphone. Mobile DAI wallets are often more convenient due to their portable nature and the ability to scan QR codes for quick crypto transactions in stores or between peers. There are DAI wallets for all types of operating systems like Android or iOS.
Web DAI wallets are wallets that exist on a website or online service that allow users to send and receive cryptocurrency in addition to storing it. These wallets can be accessed anytime, and anywhere as long as there is the internet. Some of the most popular crypto services in the world are web wallets such as Coinbase, Kraken, Binance, and YouHodler. Security is a concern for web wallets but that can be managed with due diligence to make sure the web wallet you choose has a good history of high-level security and insurance. It’s also wise to use web wallets in tandem with the more secure hardware wallets.
There are countless articles out there dissecting different crypto wallets, trying to decide what is the “best Dai wallet.” To be honest, there is no “best DAI wallet” for us as a collective whole. However, there is a Dai wallet that is best for you and that depends on your wants and needs. At YouHodler, we tried our best to create a diverse, multi-faceted wallet that appeals to all sectors of the crypto industry. Is our wallet the best Dai wallet? Well, that’s for you to decide.
When asking what the best Dai wallet for beginners is, it’s important to first dissect what a beginner demands from a Dai wallet. Most importantly, is a user-friendly interface. Beginners who are new to crypto are taking in tons of information every day and they don’t need a complicated app on top of that to learn. Clean, simple interfaces are best for beginners with minimal navigation required. That’s why we designed YouHodler’s interface to appease beginner users with simple designs, clear buttons, and plenty of information databases to dig into.
Advanced Dai users and investors also appreciate clean simple interfaces on their Dai wallet; however, they also want something flexible enough that meets their high demands. Advanced crypto traders want a wallet with low transaction fees, built-in crypto exchange capabilities, advanced security, staking features, and advanced financial services like loans and crypto trading. Advanced users are busy people and they can’t be bothered using multiple apps for different activities. That’s why we designed YouHodler to be the true one-stop-shop solution for advanced users with a wide array of FinTech services to fit their every need.
Data suggests there will be over 18 billion mobile devices in use around the world by the year 2025. Suffice to say, we live in a mobile world and that’s only going to increase. Hence, mobile Dai wallets are perhaps the most important wallets in development. There are thousands to choose from and the key is to find one with maximum efficiency and security. YouHodler’s mobile wallet has 2FA, 3FA, and the ability to lock your funds from withdrawal--requiring ID verification to unlock it. On top of that, the team runs regular security audits to ensure all wallets are secure from malicious actors. For people ``on the go” in a mobile economy, want to make sure their digital wallets are present, protected, and easy to use. Not all Dai wallets match this quality but YouHodler tries its best to.
As mentioned earlier, it’s a smart idea to buy a Dai hardware wallet to use in cooperation with your mobile or web wallets. Dai hardware wallets are ideal for the long-term storage of crypto assets. Ideally, you want to keep some on a mobile or web wallet for payments, trading, and staking while keeping the rest safely in a secure hardware wallet. The Ledger series of hardware wallets are extremely popular and recommended by most advanced crypto users. Trezor is another brand worth mentioning.
Once again, this comes down to the idea of “not your keys, not your crypto.” The best Dai wallet for long-term software storage are wallets where you fully own the private keys. It’s best to use this in combination with more diverse web wallets to enjoy the benefits of both worlds.
The best Dai wallets for security are the ones that prioritize security. Stay away from wallets that don’t have PIN options, 2FA, or basic security features. YouHodler has a PIN or thumbprint required to enter the app in addition to 2FA and 3FA upon request. We also run regular security audits to ensure our walls are strong and impenetrable. Lastly, we are backed by Ledger Vault and Fireblocks for insurance and secure crypto transaction management solutions.
While the battle between iPhones and Android phones wages on, it’s nice to know that crypto doesn’t pick sides. Most--if not all--of the most popular Dai wallets can be found on both Android and iOS operating systems.
Click here to download YouHodler for Android.
We’re also at the Apple store too! Click here to download YouHodler for iOS and ready all about our Dai wallet functionalities for your iPhone.