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Author: Admin | 2025-04-28
To the crypto stored on that address. Ideally, it shouldn’t be shared with anyone. It’s like the 4-digit PIN of your debit card.Public keys can be thought of as a mailbox in that anyone can send crypto to it while private keys can be thought of as the actual key to that mailbox. What is a Self-Custody Wallet?A self-custody wallet is a crypto wallet that gives you full control over your crypto holdings by storing the private key, which is the code that proves that you are the owner of your crypto.Self-custody wallets differ from custodial wallets, which manage your cryptocurrency on your behalf. Custodial exchanges (CEXs) like Coinbase retain full control over their users’ private keys, and users access these platforms through accounts. While this setup offers convenience, it also makes custodial wallets and CEXs susceptible to hacking attacks, potentially resulting in the loss of user funds.To get full control over your Bitcoin and other digital assets, a self-custody wallet is the best choice. In addition to greater security, these wallets open the door to DeFi opportunities. Types of Self-Custody WalletsThere are two types of self-custody crypto wallets: hot wallets and cold wallets:Hot wallets – these are software wallets that can come as a browser extension or a mobile app on Android or iOS. These are the most popular wallets in DeFi and Web3. While hot wallets help you keep the private key with you, they’re always connected to the internet.Tastycrypto’s self-custody wallet falls under this category – it comes both as a browser extension and as a mobile app.Cold wallets – these are hardware wallets that can store your cryptocurrency offline. They represent physical devices that can be connected to the internet through the USB port when needed. The most popular cold wallet providers are Ledger and Trezor. Why Do I Need a Self-Custody Wallet?Self-custody wallets offer great advantages over custodial ones. Here are some key benefits:Control – you have full control over your Bitcoin holdings. Self-custody wallets are censorship-resistant – no third party can freeze or confiscate your funds for whatever reason.Security – custodial wallets have been targeted by hackers from day one. On the other side, non-custodial wallets provide more security since the private keys are not stored on a central server.Privacy – most self-custody wallets offer greater privacy, as they don’t require you to share personal data or pass through KYC (know your customer) verification.
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