Daedalus Wallet Review 2022

Pros Explained

• Customizable user-interface themes: Daedalus wallet has six different themes, allowing users to personalize how the wallet looks and feels. 
• Extra security: Daedalus wallet provides an extra layer of security given that it is a decentralized, non-custodial, and full node wallet.
• Avenue for passive income: Daedalus wallet users can stake their ADA tokens and earn passive income in the form of interest.

Cons Explained

• Not available on mobile: Daedalus wallet does not have a mobile version, making it a deal-breaker for users who want to access their crypto assets remotely via their smartphones. 
• Supports only one cryptocurrency: Because the Daedalus wallet only supports the ADA token, it is unsuitable for investors who would like to manage a wide variety of crypto assets on a single platform.
• Fiat funding is unavailable: Daedalus wallet can only be funded via peer-to-peer methods because it lacks third parties that facilitate funding through fiat or bank cards.

Key Takeaways

• Daedalus is a software-based decentralized wallet that supports ADA, Cardano’s main native token, as well as other Cardano native assets.
• It does not have a mobile version, making it impossible to access funds via smartphones.
• Allows users to stake ADA tokens and earn rewards.
• Daedalus is a full node wallet as it downloads the entire Cardano blockchain to validate each transaction.

Features

Daedalus is an open-source software wallet that is compatible with multiple platforms such as Windows, MacOS, and Linux. It also allows users to manage multiple wallets through its hierarchical deterministic (HD) wallet implementation. This lets users control their funds in an organized manner.

Although there are no restrictions in creating accounts, users may be turned off by the inability to fund the wallet through fiat methods, as well as support for ADA tokens only. 

Security

Since its launch in 2015, Daedalus has had a reputation of not witnessing any security breaches. Users can use their private keys or passwords created when setting up the wallet to access their accounts. If a user’s device gets damaged or lost, the wallet can be retrieved using the 24-word backup phrase that is randomly generated when the wallet is being installed and set up.

While the wallet is open-source, it is also permissioned. This means when a transaction is made, a separate ADA network is created, and the full Cardano blockchain is downloaded and independently validated. Moreover, Daedalus is a non-custodial wallet that gives users complete control over their private keys.

Privacy and Anonymity

Daedalus wallet is a non-custodial wallet that provides users with a high level of privacy and anonymity. Users often take comfort in the fact that transactions are completely anonymous and they do not have to provide any form of information to verify their identities through Know Your Client (KYC) standards.

Daedalus wallet does not support Coinjoin transactions. Coinjoin is a strategy used to enhance the privacy of users, enabling them to transact without knowing the origin or destination of the transaction. The major aim is that those involved get an equal amount of tokens.

Setup

The three major steps required to set up the Daedalus wallet include:

• Downloading and installing the wallet
• Backing it up with the randomly generated 24-word seed phrase
• Creating a password to secure it

Since the Daedalus wallet has only a desktop version, we will discuss how to set it up on such devices.

Desktop

To download the Daedalus wallet for desktop, visit daedaluswallet.io and navigate to the “Download” section where you would see the options to download for MacOS, Windows, and Linux operating systems. Download the software compatible with the device you are using and install it.

Next, open the wallet, fill in some basic information such as preferred language, send logs to the server, and read and agree to the terms and conditions. It is important to note that since Daedalus is a full node wallet, you must allow it to synchronize with the Cardano blockchain.

Then, select “create new wallet,” enter a wallet name, and activate it by entering the randomly generated 24-word feed phrase and setting up a password for extra security.

Remember to keep the 24-word backup phrase and password safe because they will come in handy if your device gets lost or damaged.

Finally, you can fund your wallet with ADA and start trading.

Usability

Desktop

With Daedalus wallet, users cannot choose what platform to manage their ADA portfolio from, as only a desktop option is available. The wallet has a user-friendly user interface, and users can access their funds via a MacOS, Windows, or Linux operating system.

Even though the Daedalus wallet is a software wallet, users will like that they are able to integrate with both Ledger and Trezor hardware wallets for greater security.

Customer Services

Daedalus wallet has 24/7 customer support that can be accessed via the frequently asked questions (FAQ) section of the help page or through a ticket system.

Cost and Fees

Downloading the Daedalus wallet software is free. However, transaction fees are paid when tokens are sent to a recipient. 

The Daedalus wallet fees can be calculated according to the number of bytes per transaction. The standard ADA fee is pegged at approximately 0.18 ADA. 

The unpaid transaction amount (UTxO) model determines the number of tokens to be paid as fees. Imagine receiving “physical change” after paying for groceries at the supermarket. That is how the UTxO works. They represent the unspent transaction amount after another transaction is completed. The extra fees are stored in a database.

The information on the size of the UTxO transaction and the size of ADA transaction determine the transaction fees. For instance, a transaction of nine ADA that requires an exact UTxO of 10 ADA will require roughly 0.18 ADA as a transaction fee. This means a new UTxO of 0.82 ADA will be created.

However, in some cases, this new UTxO output is also included in a transaction fee, which means the transaction cited above will require a transaction fee of 1 ADA (that is, 0.18 + 0.82) as transaction fees.

Final Verdict

Though Daedalus wallet ranks well when it comes to security, it supports only the ADA cryptocurrency.

The wallet comes with the full node feature which allows for the entire Cardano blockchain to be downloaded for independent validation of transactions. This, in addition to being a non-custodial and hierarchical deterministic wallet, makes it ideal for users who desire software wallets with extra security.

Since the wallet has only the desktop version and supports only one cryptocurrency, it is not ideal for crypto investors who will either want to have access to their funds via their smartphones or manage diverse crypto portfolios on a single platform.

Methodology

One of the most important things to consider before you transact in and store cryptocurrencies is that you have a suitable crypto wallet in place. To help determine the wallet that works best for you, we conducted a comprehensive review process of the top cryptocurrency software wallets. 

Our review process is built around a quantitative ratings model that weighs key factors like security, costs, privacy, usability, customer support, and features according to their importance. Our team of researchers gathered over 40 data points and conducted extensive research for each of the 19 companies we reviewed. Our team of writers, who are experts in this field, then test drove each wallet to lend their qualitative point of view.

Our model gave preference to companies with the strongest security measures and reputations. Companies with rich features, such as supporting a large number crypto assets, giving users the ability to sync with hardware wallets, and allowing for fee customization, also ranked highly.

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