2022-2023 has been a rollercoaster, going down in history the longest and arguably, the worst bear market in crypto. With the collapse of so many crypto businesses and exchanges, one lesson many people learned the hard way by losing their crypto is the importance of self-custody.
One of the beautiful things about cryptocurrencies and digital assets is that we all have the ability to be our own bank and hold our own crypto securely in crypto wallets, truly taking control and owning our assets. If more people practised this benefit, there wouldn’t have been so many tragic stories of people losing their savings on crypto platforms after the companies became insolvent and halted customer withdrawals.
One of the best wallets for Cardano fans interested in the responsible practice of self-custody is the Yoroi Wallet. This Yoroi wallet review will tell you everything you need to know about this secure crypto wallet.
What is Yoroi Wallet?
Yoroi wallet is a non-custodial wallet for the Cardano (ADA) ecosystem and its native tokens. It is a light wallet, similar to Adalite, and works as a web browser extension, unlike the popular Daedalus Cardano wallet, which is a full-node software wallet that needs to be installed on a desktop.
A “light wallet” means that it doesn’t run the entire blockchain in your browser or on your computing device like Daedalus, but instead, connects to Emergo servers remotely to read and post transactions to the Cardano network. This allows the wallet to run on a device while using minimal resources and maintaining a high performance.
The Yoroi wallet can send, receive, store, stake, and manage Cardano network addresses and assets. The wallet is open-source, secure, fast, and very easy to use with a nice interface.
The Cardano blockchain technology company Emurgo, which handles much of the development and growth of the Cardano ecosystem, is the company behind the wallet. Users can trust and rest easy knowing that there is a reputable and professional company behind the development of the wallet.
Yoroi is available as a desktop extension for Chrome, Brave, Firefox, Microsoft Edge, and is supported on Windows, Mac, Linux, and iOS and Android for mobile.
Yoroi Wallet Pros:
- Secure
- Free and easy to use
- Stake ADA for passive income
- Can store assets and NFTs on the Cardano Blockchain
- Can be used on mobile devices
- Is open-sourced software
- Privacy-preserving- Yoroi can generate new external addresses every time it receives assets
- Can buy Cardano directly within the wallet
Cons:
- Only supports the Cardano and Ergo ecosystems
- Some users report slow loading, but it worked fine for me when testing and has positive reviews from many users
The Yoroi Wallet for Cardano
There are currently two versions of the Yoroi wallet that users can choose:
- Byron wallet — This is for Cardano wallets created between 2017 and July 29th, 2020. The Byron wallet is now deprecated, meaning it is still functional and available, but not suitable for use by users who got involved in Cardano after 2020.
- Shelly wallet — This is the modern wallet that supports delegation to stake ADA and is the primary wallet that can be installed from the Yoroi website.
How Does The Yoroi Wallet Work?
The Yoroi wallet functions as a hierarchical deterministic (HD) wallet. This means that it stores the digital keys for your crypto assets on your device where the wallet is installed. Yoroi wallets use public and private keys, similar to other cryptocurrency wallets, which are needed to access and control the wallets.
Like most wallets, the Yoroi wallet uses a recovery phrase, a phrase that is unique to each individual wallet. This recovery phrase will be shown to you as you set up the wallet. It is crucial that this recovery phrase is written down on paper, never stored online, and kept somewhere safe and private, known only to you.
This recovery phrase will be the ONLY way to recover your assets should your computer or phone break, lose data, or gets lost. We go into far greater detail on the importance of recovery phrases and how to keep them safe in our article How to Keep Your Crypto Safe.
As the Yoroi wallet runs as a mobile app or a browser extension, the wallet needs to connect to a full Cardano node which is hosted by the Emurgo team.
This is in contrast to the Daedalus wallet, which synchronises a full Cardano node onto the user’s computer, providing the user will full control, enhancing decentralisation and self-sovereignty.
Setting up Yoroi is easy and can be done in under ten minutes. The wallet has very low resource consumption, so you don’t need to worry about it bogging down your browser or computer.
The wallet also supports integration with hardware wallets like Trezor and Ledger, providing users with the best of both worlds. Using Yoroi with a hardware wallet combines the convenience of a web wallet and all the functionality that comes with it, with the enhanced security of a hardware wallet.
For new crypto users, self-custodial crypto wallets may seem a bit unfamiliar and a little daunting. Yoroi is one of the most beginner-friendly Cardano wallets available, and the interface is simple to navigate and get familiar with. If you do find yourself overwhelmed and unsure, you may find this article on understanding Cardano-specific terms helpful.
How To Install Yoroi Wallet?
First, you will need to head to the Yoroi website and install the wallet. When you select the Download button, you will be prompted to select your operating system.
For this example, I will be using the Google Chrome browser, which also works with Brave. Once you select the browser option, it will redirect you to a page that looks like this:
Click on the Add to Chrome button. Next, the browser will ask for permission to add the application as an extension, simply provide the app permission and the application will begin installation.
Once that is done, you see it in your extension bar. If it isn’t already showing in the top right of your browser window, you can pin it by clicking on the puzzle icon:
How to Set Up Yoroi Wallet
The first time you click the Yoroi extension icon, it will take you through the setup process. You will be asked to select your preferred language, then you will be shown the different methods you can select for setting up your wallet, which are:
- Connecting to a hardware wallet (Such as Trezor or Ledger)
- Creating a wallet (This is for new wallet creation)
- Restoring a wallet (This is for if you had a previous Cardano wallet you would like to restore)
Creating a Yoroi Wallet
Creating a new wallet will be the option new Yoroi users will likely select. Yoroi supports both Cardano and Ergo networks. When you create a new wallet, you will be asked if you want to connect to the Cardano or Ergo network. Cardano will be the most common option.
You will also have the option of creating a paper wallet if you would like, but most users will simply choose the Create Wallet option.
The application process will now ask you to enter a wallet name and set a password. The name is just a way for you to identify the wallet, and the password will prevent unauthorised access from your device.
Note that this password will also be needed whenever you need to make a transaction, so be sure to choose something that you will remember.
Once you have the name and password, now for the most important step, the recovery phrase. You will be shown your recovery phrase on screen and you will need to write it down.
Yoroi will display a 15-word mnemonic phrase, make sure nobody else can see this phrase. If you lose or damage the device Yoroi is installed on, you will need to recover the wallet onto a new device. If you have saved this backup phrase, which is something that should always be done with every type of crypto wallet, then you will be able to restore it without issues.
The best practice is to write this 15-word mnemonic phrase onto at least 2 pieces of paper and store them in different places known only to you and trusted loved ones. Never enter these words online, as hackers may be able to gain access to them.
Once you confirm by hitting the Yes, I have Written it Down button and finish the process, you will now have access to the wallet, which looks like this:
And that’s it. You are now ready to send and receive on the Cardano network.
How to Restore a Yoroi Wallet
Remember that all-important recovery phrase I mentioned earlier? Well, this is where that comes into play.
The process of restoring the Yoroi wallet is pretty straightforward. When installing Yoroi on a new device, instead of selecting Create New Wallet, you will select Enter a Recovery Phrase, the number of words will depend on how many words your recovery phrase is:
Once you enter the recovery phrase in correctly, you should be taken to the familiar wallet interface complete with your funds showing.
How to Use Yoroi Wallet
Sending
Sending and receiving transactions with Yoroi wallet is easy. Users can check their account balance and activity by going to the Transactions tab.
The Send option will allow you to transfer assets to other Cardano addresses. To send, you will need to enter the wallet address where you would like to send the funds and the amount.
When sending crypto, using the copy-and-paste function is the best way to ensure there are no mistakes. Even if copy/pasting, always double-check after you paste the address to ensure that the address matches, as a common malware program can swap the intended address for one belonging to a scammer. That is one reason crypto domain names have become so popular.
Once you have entered the intended wallet address and amount, confirm the transaction by entering your spending password.
Receiving
The Receive tab shows your wallet address you can share with others to receive assets into your wallet. A privacy feature of the Yoroi wallet is that it will auto-generate a new address as soon as the previous one is used. This is a normal function. Each new address will still receive assets into the same wallet.
Navigating to the Receive tab, you can copy your wallet address and send it to whomever you choose or generate a new address as well.
Delegating and Staking
Yoroi allows users to delegate their Cardano coin into staking pools easily via the wallet interface. You will find a list of all the stake pools in the Delegation tab.
Partial Cardano staking is not possible, so your entire balance will be staked to one pool. Cardano is one of the best assets for staking, as there are no lockup periods and the full balance of your wallet is delegated, so you do not need to re-delegate every time you receive new ADA. The full balance will always be staked.
Another benefit of staking Cardano is that the assets remain in your control at all times. You can transfer your coins as normal without unstaking them. When delegating, you are never physically sending your Cardano to another person, removing any third-party risk.
Once you have found a staking pool you want to delegate to, hit the Delegation button beside it. Enter your spending password, confirm the process, and you are all staked and good to go. After the transaction is successful, you will be able to check your deposited ADA from the dashboard.
Buying Cardano in Yoroi
A fantastic feature of Yoroi Wallet is that users can purchase ADA directly from within the wallet. This service is provided by a third-party purchasing provider called Changelly.
You will find a big green button that says Buy ADA. When you select it, the application will ask you to choose your receiving address. You can simply select your internal address, which will appear at the top, or you can enter an address manually.
Then you will be taken to the Changelly interface where you can select the currency you would like to pay in, your country, and the amount you want to spend.
Note that to use Changelly, KYC verification may need to be completed by entering information such as email, phone number, billing details and government documents.
Accessing DApps
Users can use Yoroi to connect to multiple DApps on the Cardano blockchain, everything from DeFi to NFT platforms and more.
Similar to how Metamask works with Ethereum, users can navigate to the DApp website and find the Connect option, normally located on the top right-hand side of the screen.
You will be prompted to connect to the DApp. Just agree and you are ready to go.
Feel free to check out Guy’s video below on the top Cardano DApps:
https://www.youtube.com/watch?v=Q0KhW8ftm90
Yoroi Wallet Security
The Yoroi Wallet has a good track record and reputation for being a highly secure wallet, with no known security breaches to date. The wallet can be password protected and most modern mobile and computing devices can be further secured by passwords and/or biometrics.
When first setting up the Yoroi app, the user will be prompted to input a 6-digit pin in addition to a separate spending password.
The wallet’s source code has been thoroughly vetted by Emurgo and the community. Users who want to take extra precautions can use Yoroi in conjunction with a hardware wallet.
Yoroi Customer Support
If users have any issues or questions regarding the wallet, they can send a message to support directly from the Yoroi website. Alternatively, Cardano users can also use the active Cardano forum and Cardano Community Tech Support on Telegram.
Always be careful when reaching out to support on platforms like Reddit or Telegram as it is very common for scammers to private message you, pretending to work for support and ask for your recovery phrase so they can steal your funds. This will always be a scam as no member from any support team for any crypto service will ever ask for your private keys or recovery phrase.
Yoroi Wallet Review: Conclusion
The Yoroi Wallet is a superb choice for users of the Cardano network. It is simple to use, has a nice interface, makes sending and receiving ADA assets easy, and can connect to DApps. The wallet provides:
- High security with numerous access-blocking features to keep malicious actors out and supports hardware device integration.
- Easy navigation and use for conducting transactions
- Good information about delegating and an easy platform for staking ADA
There isn’t anything negative to highlight about the wallet, as it works very well and performs exactly as it was intended. It is a very light wallet, which makes it fast and does not bog down your system or use many resources. Anyone who is familiar with the Ethereum MetaMask wallet will find Yoroi familiar, yet easier and nicer to use.
