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Those who hold cryptocurrencies often prefer to store them in hardware wallets to enhance security.
However, hardware wallets are physical devices that are not easy to use in DeFi.
However, there is a solution: import them into wallets like MetaMask so they can also be used on DeFi dApps.
In fact, to interact with decentralized applications on blockchain, it is often necessary to use software wallets, such as MetaMask or Rabby. However, by importing your hardware wallet into those software wallets, it is also possible to use it on DeFi dApps.
It should be noted that MetaMask is by far one of the most widely used wallets for Ethereum and compatible networks, whereas Rabby is an emerging alternative known for its user-friendly interface and multi-chain support.
Summary
Preparations
Before proceeding with the import, it is necessary to perform some preliminary steps.
First, ensure that you have installed the necessary software for the hardware wallet to manage the firmware and apps on the device.
Secondly, ensure you have a browser compatible with MetaMask or Rabby, and install the respective extension from the official website.
It is also advisable to ensure you have a secure backup of the wallet’s seed phrase, as this will always allow you to regain access.
Finally, you will need to physically connect the hardware wallet to your physical device, either via USB or Bluetooth, which will be used for the import.
How to Import a Hardware Wallet into MetaMask
MetaMask makes integration with hardware wallets simple and intuitive.
First of all, you obviously need to launch the relevant extension within your browser.
Once opened, log in and click on the profile icon at the top right, then select the option “Settings > Hardware Wallet” or, in recent versions, “Connect Hardware Wallet” from the main menu.
Since the hardware wallet is already connected to the device, as described above, at this point on MetaMask you can select the type of hardware: MetaMask natively supports Ledger and Trezor. At this point, MetaMask should detect the connected device, although it may be necessary to unlock the device with the PIN and open the Ethereum app.
Once detected, MetaMask should display a list of accounts derived from the hardware wallet’s seed. You need to select the accounts you wish to import (each account has a unique Ethereum address).
To complete the import at this point, it will be sufficient to confirm the import on the device. For every future transaction, MetaMask will send the signing request to the hardware wallet.
Once imported, you can use MetaMask to interact with dApps, but by using the funds on the hardware wallet, which MetaMask will use to sign transactions (the hardware wallet must remain connected).
If MetaMask does not detect the device, you should check the USB drivers, temporarily disable the antivirus if necessary, or use a different cable. It might also be necessary to enable permissions.
How to Import a Hardware Wallet on Rabby
Rabby offers a similar experience but with some optimizations, such as improved management of multiple chains and security alerts.
First, you obviously need to install and launch Rabby. Upon the first launch, you will need to create a new wallet or import an existing one. However, for importing hardware wallets, you go directly to the connection by clicking on the wallet icon at the top and selecting “Connect Hardware Wallet” (or by going to “Settings > Hardware”).
At this point, choose the device, select it, and follow the instructions to connect it.
Rabby might also require the installation of specific apps on the hardware wallet software.
Once connected, Rabby will scan the device and display the available accounts. You can also select multiple accounts and assign them to different chains.
Once imported, Rabby will display the connected addresses, and for transactions, it will send the signature to the hardware, requiring manual confirmation.
Compared to MetaMask, Rabby is faster in switching between chains and offers a more modern UI. Additionally, it excels in detecting potential scams, alerting if a dApp appears suspicious.
How to Interact with DeFi Using Hardware Wallets?
By using a hardware wallet to interact with DeFi dApps, the private keys remain effectively offline, securely stored on the hardware device, while the software wallet is used as a “bridge” interface to connect them to the dApps. In fact, every critical transaction carried out in this manner requires physical confirmation on the device, thus blocking the majority of remote attacks.
After connecting the hardware wallet to MetaMask or Rabby, simply navigate to the DeFi dApps you wish to use. When the dApp prompts you to connect the wallet, choose MetaMask or Rabby and select the newly imported hardware account.
When a dApp generates a signature request on the hardware wallet, it is crucial to carefully read the contract address on the display, the value of the funds you wish to transfer, the function being called (transferFrom, approve, deposit, multicall, etc.), and the estimated gas amount.
Only after verifying these things should you confirm the transaction by authorizing the signature.
Additionally, it is also recommended to periodically revoke approvals, use simulators to see exactly what should happen after signing, verify the URLs of dApps, and keep the firmware of the hardware wallet updated.
Perhaps the first few times you engage in such operations, it’s advisable to do so with small amounts, and in any case, it’s never wise to store or leave large sums on software wallets.
By following these precautions, one can be fairly confident in using these tools appropriately and with minimal risk, even though hardware wallets do not completely eliminate all risks. What is achieved is a reduction of risk, not its elimination.