What is a custodial Crypto Wallet?

Custodial and non-custodial crypto wallets allow you to hold and transfer digital assets by connecting to and interacting with a particular blockchain network. For instance, a software wallet like MetaMask can be used to connect and interface with the Ethereum blockchain, whereas Solflare is specifically designed to connect to Solana’s blockchain.

Is a custodial wallet better than a non-custodian wallet?

While a custodial wallet may be considered less secure than a non-custodial wallet, many prefer them because they don’t require as much responsibility and are usually more convenient. With a non-custodial wallet, you have sole control of your private keys, which in turn control your cryptocurrency and prove the funds are yours.

Are non-custodial crypto wallets safe?

Although users are taking the risk of losing their funds into their own hands, non-custodial crypto wallets offer better protection against a data breach than custodial wallets. Some non-custodial wallets require internet connectivity to operate, however, so offline hardware wallets are usually the safest option in this regard.

What is a cryptocurrency wallet?

The term “wallet” is used to describe hardware or software that holds cryptocurrencies. Custodial and non-custodial crypto wallets allow you to hold and transfer digital assets by connecting to and interacting with a particular blockchain network.