Daedalus wallet review 2024: everything about the cryptocurrency wallet

The Daedalus Wallet is an cryptocurrency wallet created specifically for the Cardano blockchain. It is a secure, non-custodial wallet that offers advanced features such as staking, delegation, hardware wallet support, and transaction history. The wallet is designed to be easily managed, where every action is protected by high-tech security features.

The Daedalus wallet gained popularity thanks to its wide range of features offered to the user, even though it is compatible with only one cryptocurrency, Cardano (ADA). The wallet is open source and runs on desktop software. This means that users can download the wallet to their computers and keep it there without having to worry about the security of their assets on the web.

In this article, a complete review of the Daedalus wallet for Cardano (ADA) cryptocurrency will be given. The article will cover the wallet's features and fees, as well as its security, ease of use, and hardware wallet support. The goal is to provide users with a complete overview of the Daedalus wallet so they can make an informed decision about whether this is the right wallet for them.

Company Overview

Daedalus Wallet is an open-source cryptocurrency storage solution designed specifically for the ADA cryptocurrency. Launched in 2015, this wallet is the preferred method for storing the company's native token. blockchain Cardano, a smart contract platform also created in the same year. Cardano stands out for using a Proof of Stake (PoS) consensus mechanism, ensuring network security.

As a notable feature, Daedalus Wallet is a non-custodial wallet, which means users have full control over their ADA at all times. This aspect gains relevance given the security challenges faced by centralized exchanges, such as FTX. The decentralized nature of Daedalus Wallet ensures that its users are not subject to the same risks that have affected participants on platforms such as FTX, Celsius and Three Arrows Capital.

Functioning as a full node wallet, Daedalus Wallet downloads a complete copy of the Cardano blockchain after each transaction, ensuring that all transactions are independently verified. This process provides an extra layer of security for users.

However, one point to consider is the absence of a mobile version of Daedalus Wallet. Although it is compatible with various desktop platforms such as Windows and Linux, it is not available for mobile devices.

What is Daedalus cryptocurrency wallet?

Daedalus is a software cryptocurrency wallet that allows users to store, manage and send their digital currencies. The wallet is designed specifically for the Cardano (ADA) cryptocurrency and is a full-node desktop wallet for storing ADA. The wallet is free and open source, which means anyone can download and use it.

Daedalus is an cross-platform wallet, available for download on Windows, Mac and Linux. The wallet interface is easy to use and can be installed in just one click. The wallet is also known for its security as it is a hierarchical deterministic wallet that allows you to generate an infinite number of keys from a single seed.

The Daedalus wallet is developed by IOHK, a blockchain technology company that is one of the main developers of the Cardano protocol. The wallet is the official Cardano wallet and can be downloaded directly from the official Cardano website.

In terms of usability, Daedalus is a very easy to use wallet and is a great option for users who want to store their digital currencies securely. The wallet also supports several digital currencies, including ADA.

Daedalus Wallet Staking Rewards

The Daedalus wallet is one of the few wallets that supports the staking from ADA. Staking is the process of holding funds in a specific wallet to help secure the network and, in return, receive rewards. Daedalus offers several staking pool options, allowing users to choose the pool that best suits their needs.

When choosing a staking pool on Daedalus, users can see information such as pool size, reward rate, performance rate, and more. This information can help users make an informed decision about which pool to choose.

Daedalus also offers an auto-staking option, which allows users to automatically receive their staking rewards. This eliminates the need for users to manually claim their rewards.

Additionally, Daedalus offers an automatic redemption option, which eliminates all transaction fees when money is sent. This can be a significant advantage for users who make a lot of transactions.

How to use Daedalus Cryptocurrency Wallet?

The Daedalus wallet is a full-node cryptocurrency wallet, which means it downloads a complete copy of the Cardano blockchain and validates all transactions independently. It is used to store, send and receive the ADA cryptocurrency. Here is a step-by-step guide on how to use the Daedalus wallet:

1. Download and install the Daedalus wallet on your computer.
2. Create a new wallet and set a strong password. Make sure you keep your password in a safe place.
3. Write down the 24-word recovery phrase and keep it in a safe place. This phrase is the only way to recover your wallet if your device is lost or stolen.
4. After creating your wallet, you can send and receive ADA. To send ADA, simply click the “Send” button and enter the destination wallet address and the amount of ADA you wish to send. To receive ADA, simply click the “Receive” button and copy your wallet address.
5. The Daedalus wallet also allows you to stake your ADA. This means you can help secure the Cardano network and earn ADA rewards. To stake, simply click on the “Stake Pools” button and choose a staking pool to delegate your ADA.

Remember to always keep your Daedalus wallet updated to the latest version to ensure proper security and functionality.

Pros and Cons Explained

Pros explained

• Income Generation via Staking: Daedalus Wallet users can earn additional income by staking Cardano, generating earnings through staking the asset.
• Compatibility with Multiple Desktop Platforms: Working on multiple platforms, including Linux, Windows and macOS, Daedalus Wallet offers versatility of use.
• High Level of Security: Operating as a full node and decentralized wallet, Daedalus Wallet ensures non-centralized custody and high security, keeping users away from the risks associated with centralized entities, as occurred with certain platforms in 2022.

Cons explained

• Limited to Cardano: As a single-asset wallet, Daedalus does not support cryptocurrencies such as Bitcoin or Ether, requiring additional options for these assets.
• Lack of Mobile Version: Without a mobile version, Daedalus restricts users to desktop use, limiting the flexibility of transacting across different devices.
• Restriction on the Purchase of Assets: Daedalus does not allow direct purchase of Cardano through traditional financing methods, limiting users to peer-to-peer transactions to fuel the wallet.

Features

Daedalus Wallet is an open-source cryptocurrency storage solution especially aimed at Cardano (ADA) holders. This wallet, operating as a full node, downloads the entire blockchain with each transaction, which significantly increases user security.

In addition to storing assets, Daedalus allows its users to increase their capital through ADA staking, thus offering a dual function: custody and income generation. This aspect makes it a valuable tool for both storing and growing assets.

Another highlight of Daedalus is its ability to provide up-to-date information through an integrated news feed application. Available on multiple desktop platforms, the wallet also offers customization options with six distinct themes, allowing users to adapt the interface to their personal taste and preferences.

Is the Daedalus wallet safe?

In the current scenario, marked by incidents of loss of funds on centralized cryptocurrency platforms, Daedalus Wallet users can feel secure with its non-custodial approach. At all times, Cardano holders maintain full control and custody over their assets. As a full node wallet, Daedalus downloads the entire blockchain with each transaction, a procedure that reinforces security for its users.

To date, no records of security breaches have been identified on Daedalus Wallet. However, given the non-custodial nature of the wallet, it is up to users to ensure the security of their accounts, including protecting their passwords and recovery phrases.

Privacy and anonymity

Daedalus Wallet provides its users with a high level of privacy and anonymity when transacting with cryptocurrencies. Unlike many other platforms, it does not require its customers to comply with Know Your Customer (KYC) requirements, allowing them to maintain anonymity and not reveal their identities to centralized entities.

As a non-custodial wallet, Daedalus allows users to maintain full control over their assets at all times. This aspect significantly differentiates it from centralized entities like Celsius, BlockFi, and FTX, which had custody of client funds and faced issues of losing those funds.

Daedalus Wallet: How to configure

Setting up Daedalus Wallet, a desktop-only wallet, begins with the user choosing the operating system. To do this, you must access the official Daedalus website, Daedalus.io. There, when selecting the download option, you will be presented with the choice between versions for macOS, Linux or Windows.

It is recommended that users' desktops have a minimum of 16 GB of RAM, between 100 and 200 GB of available disk space and 64-bit dual core processors to ensure adequate performance.

During the download process, users are provided with a randomly generated initial 24-word seed phrase. It is crucial that this seed phrase is stored securely as it acts as a backup mechanism for the wallet. Users are then instructed to create a personal password.

Once these steps are completed, users will be able to add Cardano funds to their Daedalus wallet.

Usability

Workspace

For investors who prefer to manage their cryptocurrency investments exclusively via desktop, Daedalus Wallet is a suitable option as it is designed solely for this medium.

The wallet's user interface offers an enriched browsing experience, including a recurring news feed that can be viewed both in a sidebar and full screen. Additionally, Daedalus allows users to customize their workspace by choosing from six distinct user interface themes.

mobile app

Regarding mobility, it is important to highlight that, currently, there is no mobile version of Daedalus Wallet, limiting users' access to desktop devices.

Customer Service

Daedalus Wallet provides continuous assistance to its users by providing 24/7 customer service through its official website. Although it offers an efficient ticket system to respond to requests and queries, it is important to highlight that Daedalus does not provide support via email or telephone.

Costs and Fees Daedalus wallet

Daedalus Wallet offers its software completely free of charge, with no costs associated with downloading it. Furthermore, there are no fees involved in the wallet funding process or receiving cryptocurrencies.

However, it is important to note that there are fees applied to sending cryptocurrencies. This is because individual transactions on the Cardano network naturally incur costs. For Daedalus Wallet users, each transaction incurs a fee of approximately 0,18 ADA.

Additionally, users interested in staking Cardano should be aware that a refundable deposit of 2 ADA is required to register a staking address. This deposit is returned to the user if they decide to un-stake their wallet in the future.

Conclusion

Daedalus Wallet presents itself as a robust choice for users who prioritize security in their cryptocurrency operations. As a non-custodial wallet, it does not exert control over the user's assets, a significant advantage especially considering the recent issues with centralized entities in the cryptocurrency field.

However, one aspect that may be an obstacle for some is the exclusive support for Cardano. So far, there are no indications that Daedalus will expand its support to other cryptocurrencies. This may be a point of reflection for users who have a diversified portfolio, given that Cardano, despite being one of the main cryptocurrencies in terms of market capitalization, occupies ninth position.

Another important consideration for potential Daedalus users is its limitation to desktop use, which may present a challenge for those who prefer or require mobile access to manage their digital assets.

FAQ

How to update Daedalus wallet?

The Daedalus wallet is automatically updated whenever a new version is released. However, if you want to update it manually, just download the latest version from the official Cardano website and install the new version. Make sure to backup your private keys before updating the wallet.

What is the best wallet type for Cardano?

The Daedalus wallet is the official Cardano wallet and is highly recommended by Cardano developers. It is a software wallet that can be downloaded and installed on your computer. The Daedalus wallet offers a wide range of security features and is one of the most secure wallets available for storing ADA.

How does the Daedalus wallet work?

Daedalus wallet is a software wallet that allows you to store, send and receive ADA. It is a non-custodial wallet, which means you are solely responsible for your private keys and the security of your funds. The Daedalus wallet also allows you to participate in the Cardano staking process.

Is it safe to hold ADA in the Daedalus wallet?

Yes, it is safe to hold ADA in the Daedalus wallet. The Daedalus wallet is one of the most secure wallets available for storing ADA. The wallet offers advanced security features such as two-factor authentication and private key encryption. However, it is important to remember that the security of your funds depends on you keeping your private keys safe.

What is the Cardano staking APY on the Daedalus wallet?

The Cardano staking APY in the Daedalus wallet varies depending on the network participation rate. However, Cardano's average annual staking return rate is currently around 5,5%. It is important to remember that staking is a long-term process and returns may vary.

Why is the Daedalus wallet so slow?

Daedalus wallet may be slow due to Cardano blockchain synchronization. Blockchain synchronization is a resource-intensive process that can take time. However, the Daedalus development team is working on performance improvements to make the wallet faster and more responsive.