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Author: Admin | 2025-04-27
There are two main types of crypto wallets: custodial and non-custodial.Custodial walletsCustodial wallets are like bank accounts.They are managed by a third party, which could be an exchange, a company, or even just another crypto user. These wallets are convenient because you don’t have to worry about losing your private keys or managing them yourself.However, custodial wallets come with risks. Because a third party manages your crypto, they also control your crypto keys. This means that if the company goes out of business or is hacked, your crypto could be at risk.Non-custodial walletsNon-custodial wallets are the opposite of custodial wallets.With a non-custodial wallet, you are the only one who has access to your private keys. This might sound like a recipe for disaster (after all, if you lose your keys, you lose your crypto), but non-custodial wallets actually offer two big advantages.First, because you are the only one who has access to your private keys, non-custodial wallets are much more secure than custodial wallets. If a non-custodial wallet is hacked, your crypto is safe because the hacker does not have your private keys.Second, non-custodial wallets give you full control of your crypto. This means that you can use your crypto however you want, without having to worry about third-party restrictions.Choosing a crypto walletWhen choosing between a custodial or non-custodial wallet, there is no perfect choice. Each has tradeoffs. The key is finding a wallet that best fits your needs.If you are new to crypto or just want to dip your toe in the water, a custodial wallet might be a good choice. These wallets are easy to use and require no special expertise.If you want total control over your crypto or plan on using web3 applications, a non- custodial wallet is the way to go. These wallets might be slightly more complicated to use, but they offer greater security and flexibility.The Blockchain.com Wallet gives you custodial and non-custodial wallet options in the same app, making it easy to buy, sell, store, and secure your crypto with less effort than managing multiple wallets or apps.
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