Custodial vs non-custodial: which crypto wallet is right for you?

What is a Crypto Wallet

If you’re buying crypto, you’ll want to explore the crypto wallet best-suited for your needs. You might be interested in holding a portfolio of different coins and tokens in one wallet. Cold wallets are physical gadgets designed to store crypto in a format that is not connected to the internet, enhancing security. They are typically hardware devices, and some even look like USB sticks. If you’re looking for storage offline, the Exodus wallet is integrated with Trezor, a highly-ranked cold storage option.

If you’re going to use a hardware wallet, you will have to pay a one-off amount to buy the device first. There aren’t usually any fees for using an online or mobile wallet, but you will be charged for any additional features. It employs high-level encryption to improve the security of stored keys. These systems’ critical security features include multi factor authentication, PIN, and face and fingerprint recognition.

ZenGo Becomes The First Seedless Wallet on Polygon

Instead, it’s the private keys that contain your public Bitcoin address and transaction signatures that need to be securely stored. Without your keys, you cannot verify your identity to access your assets, so it is crucial to keep your What is a Crypto Wallet wallet safe. Choosing a crypto wallet is, therefore, a decision that should take some time and research. There are two different types of wallet, each one having its own distinct advantages, and a vast market from which to buy from.

What is a Crypto Wallet

So, continue reading to find out what the most popular types of cryptocurrency are so you can decide which to invest in. Typically, most wallets will allow the storing and trading of the largest cryptocurrencies on the market. For example, you would be hard-pressed to find a wallet that didn’t allow the storing and trading of Bitcoin or Ethereum. If you do want to use a custodial wallet, you should make sure that the provider is trustworthy and reputable. Otherwise, you could end up falling victim to hackers, or end up losing your investment if the wallet provider goes bust.

More crypto guides for beginners

The price or value of cryptocurrencies can rapidly increase or decrease at any time. By using our services you accept at your sole risk changes to underlying asset prices (including changes in the price of stablecoins). A custodial wallet is a place to store your cryptocurrency that is hosted by a third party.

You can stake popular cryptos like Cardano and Polkadot and buy and swap Bitcoin via the Ellipal Titan wallet. is another leading crypto exchange, and the DeFi Wallet is dedicated to storing decentralised finance (DeFi) crypto assets. Users can easily access from their wallet to buy and sell crypto. According to the company, Coinbase Wallet supports “hundreds of thousands” of crypto assets.

Hardware wallet

The decision to award BCH to BTC holders in 2017 was an act of goodwill, and there was no unified response. Hard forks of BTC and other coins do not happen so often in 2020, so holding coins on exchanges will not forfeit that type of income. On the other hand, the big advantage of exchange wallets is the possibility of holding fiat, and immediately acquiring new assets.

What is a Crypto Wallet