Digital currencies like Bitcoin, Ethereum, and others were introduced into the digital market to facilitate the exchange of goods and services worldwide. The utmost requirement of a user to have cryptos is to own a cryptocurrency wallet. Similar to developing cryptocurrencies, businesses also build wallets for mass audiences to benefit from. So, here comes the Cryptocurrency Wallet Development Company that offers excellent different wallet services to everyone based on their convenience and requirements. It includes custodial wallets, non-custodial wallets, and so on.
Let’s discuss the Non-custodial wallets here as it stores the digital currencies safe and securely than any other wallet.
Want to know why?
Non-custodial wallets offer the user complete access to their funds stored. They will not save private key information in any database. When a non-custodial wallet is created, it displays its private key to the user. After this, it permanently deletes this key from its own database. So, it is completely safe and protected.
Non-custodial wallets store digital currencies, including NFTs, cryptocurrencies, tokens, etc., more safely and privately.
Non-custodial wallets are mainly preferred to provide security, privacy, and anonymity. It interacts directly with decentralized applications. Examples of non-custodial wallets are Trust Wallet, Robinhood Web3 Wallet, Metamask, etc.
Non-custodial wallets do not require KYC verification for the user to interact. But in the case of a custodial wallet, KYC is a must.
Varieties Of Non-custodial Wallets:
Non-custodial wallets could be in the form of,
- Web-based wallets - Metamask, Trustwallet, Robinhood web3 wallet, etc.
- Hardware wallets - Ledger Nano X, Trezor Model T, etc.
- Mobile wallets - Metamask and Trustwallet have mobile apps as well.
What Are The Best Benefits Of Using Non-custodial Wallets?
- Low costs for transactions
- Access and finances are under user control.
- It is safer and more secure.
- No KYC necessary
- Withdrawal speed is quicker.
- Interacting with decentralized apps directly.
Why Non-custodial Wallet Is More Preferable To Custodial Wallet?
- NON-CUSTODIAL WALLET;
- Security: It is more secure as the private keys are only known to the user. It doesn’t store the private key information in any database.
- Funds: Funds are controlled by the user.
- KYC: It is not necessary.
- CUSTODIAL WALLET:
- Security: It is secure. The private key is given to the user and stored in the wallet database. It might be hacked.
- Funds: The service providers can access the funds.
- KYC: KYC is a must.
Analyze the benefits and drawbacks of each wallet before selecting one. It is important to understand that private keys must be protected because they are essential to accessing users’ funds.