Chainlink is making significant contributions to the blockchain industry by enabling smart contracts to get access to real-world data. This feature is valuable across different sectors, including DeFi, gaming and insurance industries.
The platform uses its native token, LINK, for transactions within its network. While Chainlink doesn’t directly handle the transfer of various tokens between different blockchain networks, it supports such interactions through its oracle services. There are many wallets available that can hold LINK and other ERC-20 tokens, aiding users in managing their assets.
In this article, we'll delve into the various wallets that support Chainlink's LINK token and other cryptocurrencies. We'll explore their features, security aspects, and ease of use, providing you with a comprehensive understanding to make an informed choice. Let’s get started.
What’s Chainlink?
Chainlink is a decentralized oracle network — a platform that enables non-blockchain enterprises to securely connect with blockchain platforms. It connects blockchain-based smart contracts with external data, such as cryptocurrency exchange rates or stock prices, through a network of nodes known as Chainlink oracles. These oracles fetch and validate data from diverse sources, ensuring accuracy for smart contract execution.
Widely adopted in industries such as DeFi, insurance, and gaming, Chainlink also has its native cryptocurrency, LINK, which fuels the ecosystem. LINK rewards node operators who fetch and provide external data to smart contracts, acts as payment for transaction fees, and can be staked for governance participation.
Staking in Chainlink
Staking in Chainlink involves contributing LINK tokens to support the network's oracle services. To begin, obtain LINK tokens from cryptocurrency exchanges like Binance or Coinbase, and store them in a self-custodial Web3 wallet or a hardware wallet supported by Web3 wallets. You can either run your own node or delegate your tokens for staking. Once staked, you can earn rewards that contribute to Chainlink's security and the reliability of its oracle services.
Chainlink Staking Platform: v0.2 Upgrade
Building on the initial groundwork of Chainlink Staking v0.1, which allowed a limited pool of stakers to contribute up to 7,000 LINK each, Chainlink is set to roll out a new upgrade, Version 0.2, later in this quarter. This upgrade will expand the pool size to accommodate 45 million LINK tokens.
The release is structured in a phased manner: it begins with a special migration phase for existing users, followed by an access phase for some early users, and ultimately, it will be opened up to the entire community. Engaging in staking within this upgraded system not only provides the opportunity to earn rewards but also contributes to strengthening Chainlink’s security, ensuring its oracle services continue to operate at an optimal level.
Exploring Chainlink Wallet Options
Here are the types of Chainlink wallets for LINK enthusiasts. We can divide them into 4 groups:
1. Hardware Wallets
Hardware wallets are physical devices that provide a secure environment for storing cryptocurrency tokens offline. They are heralded for their high-security features as they are immune to online hacking attempts. These wallets require a connection to a computer or mobile device to initiate transactions but remain offline, which significantly enhances their security. Examples of hardware wallets suitable for Chainlink include Ledger Nano S/X and Trezor wallets.
2. Software Wallets
Software wallets are digital wallets available as applications or software that can be installed on computers or mobile devices. They are further categorized into desktop wallets and mobile wallets.
- Desktop wallets: These are installed on computers, and they store the cryptocurrency data on the device's hard drive. They are relatively secure and user-friendly but require robust antivirus software to mitigate risks posed by internet connectivity.
- Mobile wallets: Designed specifically for mobile phones, making them highly convenient for daily transactions. However, they might access some personal data on your phone, like location and contacts. Examples of software wallets include Bread Wallet, Trust Wallet, and Exodus.
3. Web Wallets:
Web wallets are accessible through internet browsers and are often considered the least secure type of wallets due to their susceptibility to online attacks. They are, however, convenient for making small transactions. The inherent risk with web wallets comes from their online nature, which exposes them to potential hacking attempts and other online threats.
4. Paper Wallets
Paper wallets are physical documents that contain both the public and private keys necessary to manage your Chainlink tokens. They are known for their high security as they are entirely offline, making them immune to online hacking attempts. However, they can be less convenient for active traders due to the process required to transfer tokens from a paper wallet to an online platform for trading.
Factors to Consider When Choosing a Chainlink Wallet
Security
Storing valuable assets like LINK tokens necessitates a robust security framework in your chosen wallet. Look for wallets that offer multi-factor authentication, biometric or face unlock features, and the capability to create strong, unique passwords. These security measures will significantly enhance the safety of your assets.
User Interface
An intuitive user interface is crucial for seamless transactions and management of your LINK assets. Ensure that the wallet facilitates easy transfers, receipt of funds, and provides straightforward access to essential features like viewing balances, copying addresses, and scanning QR codes. A user-friendly interface enhances your overall experience and simplifies asset management.
DeFi Compatibility
Given Chainlink's integral role in DeFi (Decentralized Finance) projects, selecting a wallet that supports seamless interaction with DeFi protocols is beneficial. Look for wallets with built-in DApp browsers or those that support direct integrations with popular DeFi platforms. This compatibility will enable easier engagement with DeFi platforms, allowing you to maximize the utility of your LINK tokens in various DeFi activities.
In-Depth Look At Popular Chainlink Wallets
MetaMask
MetaMask is a user-friendly wallet available as a mobile app or a browser extension, making it easy to manage Ethereum private keys and interact with decentralized applications (dApps). For Chainlink (LINK) support, users can simply add LINK tokens to their MetaMask wallet. This can be done directly on the Ethereum Mainnet or through a custom token addition on other supported networks.
Additionally, MetaMask aids in staking LINK tokens on the Chainlink network. With a tool called Chainlist, adding the Chainlink network to MetaMask is straightforward, showcasing a smooth interaction between MetaMask and Chainlink.
Pros:
Supports ERC-20 tokens, including LINK.
Compatible with Ethereum and related networks like Polygon and BEP20.
Available on both browser and mobile for LINK asset management.
Strong open-source community for support and development.
Private keys stored locally for added security.
Integrates with Ledger and Trezor hardware wallets.
Cons:
Only supports Ethereum-compatible networks.
Average user experience.
Hot wallet: less secure than cold storage.
Slow development progress.
Limited to EVM-compatible blockchains.
Trust Wallet
Trust Wallet supports not only the native ERC-20 version of Chainlink's LINK token but also a Binance-pegged BEP20 version. This means users can store, send, and receive both the ERC-20 and BEP20 versions of LINK within Trust Wallet. It's important to note that while using the BEP20 version, LINK tokens are operating on Binance Smart Chain, and when transferred back to Ethereum-based platforms or Binance, they would revert to their original ERC-20 format.
Pros:
Supports multiple crypto assets, including ERC-20/223 tokens like LINK.
User-friendly interface.
Mobile wallet for Android and iOS.
Built-in web3 browser for DApps interaction.
Interoperable with Binance.
Broad blockchain support: Ethereum, Solana, Bitcoin, and more.
Stores NFTs.
Cons:
No desktop version.
No 2-Factor Authentication.
Less secure than hardware wallets.
No easy conversion to offline storage.
Ledger
Ledger Wallet provides a secure avenue for managing over 5,500 coins and tokens, including Chainlink (LINK) via hardware wallets like Ledger Nano S and Ledger Nano X, coupled with its companion application, Ledger Live. It allows users to buy, exchange, grow, and manage their crypto assets. LINK, being an ERC-20 token, can be managed, sent, and received within the Ledger environment.
Users can view their LINK tokens in Ledger Live under their Ethereum account, receive LINK directly on an Ethereum account, and send LINK from their Ethereum account. Furthermore, users can buy LINK directly into their Ledger Chainlink account through Ledger Live. Adding Chainlink to the Ledger Wallet is a simplified process, requiring just a few clicks to set up and manage, making it a convenient and secure solution for handling LINK tokens alongside other cryptocurrencies.
Pros:
High security with offline private key storage.
Supports multiple cryptocurrencies, including Chainlink.
Manages ERC-20 tokens like LINK.
Easy setup, especially with Ledger Nano X.
Direct LINK purchase and storage on Ledger Live.
Mobile app with Bluetooth access.
Native staking and NFT management.
Cons:
Software isn't fully open source.
Trezor
Trezor Wallet is a hardware wallet that provides a secure method to manage a variety of cryptocurrencies, including Bitcoin and ERC-20 tokens like Chainlink (LINK). It supports the sending, receiving, and potentially exchanging of LINK tokens, similar to other ERC-20 tokens, through its interface. Users typically can manage LINK within the Trezor Wallet environment, using its security features to safeguard their assets.
The Trezor hardware wallet, especially its advanced model, the Trezor Model T, provides robust security for users' cryptocurrencies by storing sensitive data offline, protecting against online threats. With a Secure Element chip and durable, weather-resistant casing, it offers enhanced security features. Supporting over 8000 coins and tokens, it ensures flexible asset management.
Pros:
Secure offline storage.
Supports over 1,000 coins/tokens, including LINK.
User-friendly setup.
Touch screen on Trezor Model T for enhanced security.
Open-source software for transparency and verification.
Cons:
No native staking or NFT management.
Lacks Bluetooth and mobile app.
The Advanced model (Model T) is relatively pricey.
Doesn't support some cryptocurrencies.
Coinbase Wallet
Coinbase Wallet is a gateway to the decentralized web, providing a secure platform to store, manage, and interact with cryptocurrencies, NFTs, and decentralized applications (dApps). It supports hundreds of thousands of tokens, including ERC-20 tokens.
Users can manage their LINK tokens alongside other supported assets within the wallet, send and receive LINK, and exchange it for other cryptocurrencies using the wallet's 'Swap' feature, which integrates with Decentralized Exchanges (DEXs). The wallet's support for ERC-20 tokens ensures a user-friendly environment for managing various assets, including Chainlink, providing a unified and secure interface to interact with them.
Pros:
Simple asset transfer to/from Coinbase.
Supports multiple cryptocurrencies, including LINK.
Access to DApps, staking tools, and NFT marketplaces.
Convenient mobile wallet.
Highly regarded for safety.
Web3 functionality for DApp interactions.
Easy conversion to cold storage via Ledger partnership.
Cons:
No desktop application.
Not fully open source.
No two-factor authentication or multi-signature support.
Token Pocket
Token Pocket is a secure crypto wallet that facilitates buying, storing, sending, swapping tokens, and collecting NFTs, catering to over 20 million users worldwide. It supports various chains, including BTC, ETH, BSC, TRON, and others, and ensures security by storing keys and passwords solely on the user's device.
Being an ERC-20 token, LINK can be managed within TokenPocket like other supported tokens. Users may send, receive, and possibly exchange LINK tokens within this wallet environment.
TokenPocket secures digital assets by storing keys on the user's device and offers enhanced security options like hardware cold wallets. It has integrated exchange functionality for easy trading and crypto purchases with credit cards. The platform also features a DApp Store and Browser for easy discovery and interaction with decentralized applications.
Pros:
Supports multiple blockchains, including LINK.
Users control their private keys.
Open-sourced for transparency and verification.
Access to over 2200 pre-built DApps.
Features like flash swap and cross-chain transactions.
Cons:
Features may vary between chains.
Might be complex for new users.
iToken
iToken Wallet is a secure multi-chain DeFi crypto wallet offering an all-in-one app for digital asset management, including storing, sending, and exchanging cryptocurrencies. It emphasizes user asset security and supports a wide range of assets. Chainlink, being an ERC-20 token, is likely supported in a manner similar to other ERC-20 tokens, enabling users to manage, send, and receive LINK tokens within the wallet.
Pros:
Embraces Web3 and DeFi, with real-time DeFi tracking.
Supports multiple blockchains and assets, including Chainlink.
Users have full control of their private keys.
Strong security measures with audits and a $100 million security reserve.
User-friendly interface with a Red Dot Design Award.
Roadmap includes support for more blockchains.
Cons:
Relatively new platform.
Relies on Huobi Group, raising potential centralization concerns.
No evident desktop application.
Zengo
Zengo wallet stands out for its unique three-factor authentication (3FA) model, which enhances security by including email verification alongside facial recognition technology, offering a more robust authentication process compared to the common two-factor authentication (2FA) employed by many other wallets.
Although ZenGo recommends activating 2FA on the email and cloud accounts used with it, the wallet itself employs a 3FA model to provide an extra layer of security, which is a distinctive feature not commonly found in other wallet solutions.
Pros:
No KYC for easy onboarding.
Users maintain full asset control.
Intuitive user interface.
Supports buying, selling, trading, and staking.
Free for standard use.
High security suitable for both beginners and experts.
Cons:
Might lack some advanced features.
Mobile-focused, potentially limiting for desktop users.
Unclear support for multi-signature or two-factor authentication.
Getting Started with Your Chainlink Wallet
How to Obtain a Chainlink Wallet?
To secure a Chainlink wallet, consider purchasing hardware devices like Ledger or Trezor directly from their official stores. We've provided links within this article for your ease, and it's crucial to buy only from these official channels. Devices from third-party vendors can be compromised or tampered with during transit. Likewise, downloading wallets from unverified sources might expose you to malware or other security vulnerabilities.
For those interested in mobile or desktop wallets, download them directly from the official sites of the wallet providers. These wallets are straightforward to set up, allowing you to send or receive LINK tokens promptly.
How To Ensure the Safety of Your Coins?
Ensuring the safety of your LINK and other cryptocurrencies is paramount. Begin by obtaining your wallets solely from official and trusted sources, reducing the risk of malware or other vulnerabilities.
It's crucial to store backups of your private key or passphrase securely offline. Having at least two copies guarantees redundancy, which can be a lifesaver in the event of accidental loss. Public discussions about your crypto holdings, whether in person or on social media, can inadvertently make you a target. Thus, discretion is advisable to prevent unwanted attention from potential hackers or thieves.
Each time you initiate a transaction, take a moment to double-check and ensure you're using the correct recipient address. A common pitfall is mistakenly using a contract address, which can lead to irreversible losses. Lastly, for those holding significant amounts of cryptocurrency, a hardware wallet remains a gold standard. These wallets offer unparalleled security by keeping your assets securely offline, away from potential online threats.
Over To You
As Chainlink continues to gain traction in the blockchain sphere, the importance of choosing the right wallet has never been more crucial.
For those seeking security in long-term storage, the Ledger Nano X and Trezor Model T offer robust features. On the other hand, Metamask and Coinbase Wallet have proven to be popular choices for DeFi enthusiasts due to their seamless integration with decentralized applications. Trust Wallet provides a convenient mobile solution, while Binance offers the familiarity of an exchange platform.
It's worth noting, however, that the ideal wallet often varies based on personal preferences and needs. As with any investment decision, thorough research is essential before selecting a wallet to ensure the safety and accessibility of your LINK assets.
For further insights and to explore the possibilities of staking, visit ourLINK Staking Page. And if you have any questions, you can always get all answers from our LINK Blockchain Manager Inna onX.
