### A primer on what a self-custody or non-custodial wallet is. 

One constant source of chatter in the crypto industry is whether it is worth it to use a self-custody wallet. But what is a self-custody wallet anyway? Here we cut through the noise and give you a primer on the concept.



First, a crypto wallet refers to either hardware or software that allows people to engage in cryptocurrencies. In other words, you use it to transact or store crypto. Crypto wallets are secured using private keys, which are a sequence of letters and numbers. Think of it as a really, really secure password that allows you to send crypto assets from a public address.



Private keys are necessary for differentiating a self-custody (also known as a non-custodial or decentralized) wallet. In a self-custody wallet, you are in charge of generating and storing private keys. Consequently, this type of wallet gives you control of the private keys and therefore, the assets contained in the wallet. Nobody else has access to the private keys.



An example of a self-custody wallet is the hardware of a cold wallet. In this situation, private keys are stored offline in a device similar to a USB drive. You only need to be online when transacting. There are also software self-custody wallets like mobile and desktop wallets, which you can access by downloading an app.



Self-custodial wallets are theoretically the safer choice because you are the only one who can access the assets. But with this security comes great responsibility. No one can help you recover your assets if you lose your private keys or make a mistake when setting up your wallet.



Sometimes another party, like a crypto exchange or wallet provider, keeps the private keys. Known as custodial wallets, it is similar to traditional banks in that it allows users of this service to rely on them to keep their assets secure.

Although this type of wallet has its own advantages, true control is one of the reasons self-custody is at the forefront of discussions in the crypto space. Users don’t have to place their trust in the abilities of another. In this case, holding the keys to your kingdom takes on a more literal meaning.

A primer on what a self-custody or non-custodial wallet is. 

Thu Apr 13 2023

What is a self-custody wallet? (2023 Edition)

Semi-Hot, Semi-Cold: How Warm Crypto Wallets Offer Convenience And Security For Its Users

The Battle For Stability: Centralized VS Decentralized Stablecoins

NFTs and the Fallacy of Duplication: A Detailed Exploration

The Art Of NFT Evaluation: A Step-By-Step Guide To Spotting Valuable Projects

The Bull Market Is (likely) Here: Stay Ahead By Avoiding These 3 Investor Pitfalls

The Battle For Stability: Centralized VS Decentralized Stablecoins

Thu Apr 13 2023 What is a self-custody wallet? (2023 Edition)

Semi-Hot, Semi-Cold: How Warm Crypto Wallets Offer Convenience And Security For Its Users

The Battle For Stability: Centralized VS Decentralized Stablecoins

NFTs and the Fallacy of Duplication: A Detailed Exploration

The Art Of NFT Evaluation: A Step-By-Step Guide To Spotting Valuable Projects

The Bull Market Is (likely) Here: Stay Ahead By Avoiding These 3 Investor Pitfalls

The Battle For Stability: Centralized VS Decentralized Stablecoins

Thu Apr 13 2023

What is a self-custody wallet? (2023 Edition)