Topic: How safe is a custodial wallet to a hardware wallet (Read 363 times)
You don't need to buy a hardware wallet, you can use a non-custodial wallet, and this wallet is also secure enough for your bitcoins. What matters is how you use it, not just the hardware wallet that automatically gives you absolute security. I've been using Electrum for years and I haven't had any problems with it.
I recently purchased some Bitcoins butAccording to most posts and replies on this forum it seem the best way to hodl Bitcoin is to use a hardware wallet as long as you can keep it safe.
Well is the hard ware wallet better than a custodial wallet??
Well is the hard ware wallet better than a custodial wallet??
The decision to use a hardware or custodial wallet depends on your preferences and investment goals. For example, a hardware wallet is generally considered the most secure option if you plan to hold a large amount of Bitcoin or other cryptocurrencies for the long term. However, a custodial wallet may be more suitable if you plan to trade frequently or need easy access to your funds.
A hardware wallet is far better than a custodial wallet. If you bought a huge amount of Bitcoin then you should never use any custodial wallet because in crypto we know that " Not your keys, Not your Coins". You can choose any non custodial wallet like Electrum which is better than any custodial wallet in terms of security.
I recently purchased some Bitcoins butAccording to most posts and replies on this forum it seem the best way to hodl Bitcoin is to use a hardware wallet as long as you can keep it safe.
Well is the hard ware wallet better than a custodial wallet??
This is a clear mistake, you decided to buy bitcoin before you were even sure about how you were going to store it, but since the mistake is made already then you need to solve this as soon as possible.Well is the hard ware wallet better than a custodial wallet??
Custodial wallets are by far the worst as you are relying on someone else to store your coins and be nice enough to give them back to you, if you are going to do this you might as well keep your fiat and store it at the bank, as this still be a safer approach compared to custodial wallets, so if we are realistic you only have two options, if you have a decent knowledge about computers you could use a software wallet, or if you do not feel confident on those skills then you could buy a hardware wallet and store your bitcoin in this way.
Custodial wallet is like a bank where you need to follow all of their terms of service including with the change which they will not let you know, vulnerable against hack, charge some hidden fee e.g. during withdrawal or inactivity, ask any form of personal information until they satisfied, and will not able to refund your money if something bad happen in their exchange.
While hardware wallet is non custodial wallet which never connected via internet, you're the one who can access the wallet except you share your seeds or private key to someone.
While hardware wallet is non custodial wallet which never connected via internet, you're the one who can access the wallet except you share your seeds or private key to someone.
Still hardware wallets are a good invention since they make it more easy to store your bitcoins.
Point of owning a hardware wallets is not to make it more easy to store bitcoins (after all software wallets are more convenient for everyday use) but rather to make your bitcoin more secure. Advantage of hardware wallets is that private keys never leave the device so even if you download malware on your PC, attacker still won't be able to steal your bitcoins while same can't be said about software wallets. 
I recently purchased some Bitcoins butAccording to most posts and replies on this forum it seem the best way to hodl Bitcoin is to use a hardware wallet as long as you can keep it safe.
Well is the hard ware wallet better than a custodial wallet??
Well is the hard ware wallet better than a custodial wallet??
You need to learn about custodial and non-custodial wallets, hardware wallets are non-custodial. If you want to be safe, you should spend some money on a hardware wallet, but if you don't have enough money for it, you can use a non-custodial wallet. Whether your assets are safe is largely up to you, so using a software wallet is just as safe as a hardware wallet if you use it correctly. But as non-custodial wallets, don't confuse them.
Software Wallets are 100% safe if they are used correctly. Bitcoin was designed to be used only with software wallets. Still hardware wallets are a good invention since they make it more easy to store your bitcoins. So if you have the money you should get one.
There is nothing 100% safe in the world, and not only software, but also hardware wallets are no exception. But the custodial wallet doesn't even come close to 100%, because not your keys means not your bitcoins. Trusting your bitcoins to a third party is not even close to the spirit of bitcoin, which implies responsibility for any actions with your coins. With due care, a non-custodial wallet can be secure enough to be used, but few people take due care.
I recently purchased some Bitcoins butAccording to most posts and replies on this forum it seem the best way to hodl Bitcoin is to use a hardware wallet as long as you can keep it safe.
Well is the hard ware wallet better than a custodial wallet??
Comparing a hardware wallet to a custodial wallet is identical to keeping money in a safe at home and keeping money in a bank.Well is the hard ware wallet better than a custodial wallet??
In the first case, only you have access to your funds and have full control over the situation. But in connection with this, additional difficulties arise: you take on all the responsibility for ensuring the safety of storing money. If you make a mistake somewhere, then only you will have to sort out the problems.
In the second case, the bank's security service will not allow attacks on your money from outside, but there are no guarantees that there will be no attacks inside the bank. That is, bank employees or management can simply deprive you of access and the money itself. The bank may go bankrupt, cease to exist, and so on. In short, there is always a risk of losing money.
Despite the fact that each of these methods has its own nuances, most bitcoiners prefer HW devices. Trusting your crypto to third parties deprives one of the most important features of bitcoin - it's self-sufficiency.
I recently purchased some Bitcoins butAccording to most posts and replies on this forum it seem the best way to hodl Bitcoin is to use a hardware wallet as long as you can keep it safe.
Well is the hard ware wallet better than a custodial wallet??
And the difference is huge...if we could rate custodial wallet (1-10) it was just 2 while hardware wallet is 9. Well is the hard ware wallet better than a custodial wallet??
Hardware wallet gives us a higher level of security but the question is if the amount of your Bitcoin is worth enough to store there or something you look for another option like using Electrum wallet.
I personally feel like if you know how to use it and if you are aware of how you should not connect to anything if you are not certain, then there shouldn't be any problem at all. There are people who connect to websites with no ssl, imagine that, ssl is mostly free in most shops and they don't even have that, which makes custodial less prone to hacking.
I recently purchased some Bitcoins butAccording to most posts and replies on this forum it seem the best way to hodl Bitcoin is to use a hardware wallet as long as you can keep it safe.
Well is the hard ware wallet better than a custodial wallet??
Well is the hard ware wallet better than a custodial wallet??
A custodial wallet in my eyes is exactly the same thing as a third party wallet, like an exchange wallet for example. And if that wallet is not open source, like Trustwallet (although Trustwallet is non-custodial), then there is even less reason to trust it. Such wallets have to be viewed as third party wallets because in the worst case scenario, your funds could be taken from you for any reason. Its a huge security flaw and I do not recommend it. There is no need for trust when it comes to cryptocurrency.
The best option is always a hardware wallet. 99.9% of the time, nothing will go wrong with any kind of custodial wallet. But if (when) it goes wrong, you lose everything. Thats not something I would want to risk.
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Well, OP, I believe you mean to say a non-custodial wallet because a custodial wallet is just like the bank; they have every detail about your funds. But using a non-custodial wallet means that you have full control over your private key or wallet secret phrase, which you can use to access and import your wallet any time you want. If you want to keep your bitcoins in cold storage, you can use a hardware wallet or an electrum wallet generated on an airgapped device.
@tbct_mt2 already made a good suggestion
@tbct_mt2 already made a good suggestion
Electrum wallet is free for download and use. If you want to use it as a cold wallet or multi-signature wallet, you only have to learn a little bit and can set up yours.
Creating a cold storage wallet in Electrum
Creating a Multi-sign wallet in Electrum
Creating a cold storage wallet in Electrum
Creating a Multi-sign wallet in Electrum
I recently purchased some Bitcoins butAccording to most posts and replies on this forum it seem the best way to hodl Bitcoin is to use a hardware wallet as long as you can keep it safe.
Well is the hard ware wallet better than a custodial wallet??
Well is the hard ware wallet better than a custodial wallet??
Yes, absolutely because it creates the private keys inside the device itself and does not expose them to the network during creation, this is certainly the best way to keep your bitcoins. As an alternative to an HD wallet I suggest you download the ISO image of Tails and burn it on a USB, inside you will find electrum but Tails is an os that only uses tor and is much safer than any other.
I recently purchased some Bitcoins butAccording to most posts and replies on this forum it seem the best way to hodl Bitcoin is to use a hardware wallet as long as you can keep it safe.
Well is the hard ware wallet better than a custodial wallet??
So you want to keep your Bitcoin safe, huh? Well, you got options, but according to the folks on this forum, a hardware wallet is the way to go. Think of it like a physical gizmo that holds your secret codes and gives you access to your Bitcoin.Well is the hard ware wallet better than a custodial wallet??
But why exactly is a hardware wallet better? Simple - it adds an extra layer of security compared to other wallets. Take custodial wallets, for example. These wallets need someone else, like a broker or exchange, to keep your codes safe. It might sound good, but it means you're giving up control over your Bitcoin. And if anything goes wrong, you're up the creek.
If you want to have your Bitcoin under your own control, you gotta use a hardware wallet. That means no third party is holding your money, and you call the shots. But listen up - using a hardware wallet ain't no child's play. It requires a certain level of tech skills, and you gotta read and follow the instructions like it's your bible to make sure your Bitcoin stays safe and sound. So, if you wanna be a pro at hodling, a hardware wallet is the way to go, folks!
I recently purchased some Bitcoins butAccording to most posts and replies on this forum it seem the best way to hodl Bitcoin is to use a hardware wallet as long as you can keep it safe.
Well is the hard ware wallet better than a custodial wallet??
Well is the hard ware wallet better than a custodial wallet??
If you don't want to make it too complicated just use Electrum wallet, It's one of the best wallets to store your Bitcoin, it's secure, has seeds, and a private key, and it's easy to install and access on your computer, obviously better than custodial wallets.
A hardware wallet is the best when it comes to security but your gonna need to buy the hardware if it's not an issue go for it, Custodial wallets are the worst since you don't have control over your funds at any moment they could easily freeze your account, banned it, or worst similar to what happened to FTX.
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Crucial Topic.
Custodial wallet is a type of wallet that requires a third party to takes hold of private keys on behalf of every user.
Which makes asset more secure, because only the third party and the user knows the private key.
In a case where there is missing asset, the private key must have been shared to someone outside the third party and user.
You don't know how a custodial wallet works. You never own the private key in a custodial wallet. It's the third party or your custodial wallet that secures the private key and holds the coins for you. You know it means you don't own the coins but some number in the custodial wallet you use. They can freeze your account, run away with your coins, etc. How come you think a custodial wallet is better? Spend some time learning all these before you invest in cryptocurrencies. Did you know what happen to mtgox, maybe the recent issue with FTX or a lot of issues in the lending platform etc? Have some deep digging on these.Custodial wallet is a type of wallet that requires a third party to takes hold of private keys on behalf of every user.
Which makes asset more secure, because only the third party and the user knows the private key.
In a case where there is missing asset, the private key must have been shared to someone outside the third party and user.
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As for Hardware wallet, just misplacing it could put the user at risk, because no third party to help checkmate the security.
You will have your wallet and the seed key. Just make sure you have access to any of these. Write your seed key few times and store them on different places. 
After reading the pros and contras I tend to believe that non custodials are wisest in safeguarding.
As long as you know how to restore them.
As long as you know how to restore them.
It should be simple enough as long as you can read basic computer-related instructions. And if you understand Bitcoin and/or cryptocurrencies enough to actually risk some of your money, you should be able to easily know how to restore a wallet backup.
I recently purchased some Bitcoins butAccording to most posts and replies on this forum it seem the best way to hodl Bitcoin is to use a hardware wallet as long as you can keep it safe.
Well is the hard ware wallet better than a custodial wallet??
Well is the hard ware wallet better than a custodial wallet??
My friend never trust those custodial wallets, they aren't safe at all. They have access to your whole coins and they can do whatever they want with your coins. They can simply steal your coins and make up a news that their system was compromised by hackers. I would also recommend you to keep in mind that most hardware wallets are unsafe. When you choose a hardware wallet try your best to research as much as possible before deciding to go with any of them.
It should be far better to install a secure software wallet on a separate desktop, and then disconnect that wallet from internet. Also make sure it has a secure SSD installed in it. The software wallet is far safer than the other options.
Hardware wallet is the best if you don’t want to worry much about your asset as a beginner because your private key won’t leave your hardware wallet every time you use it unlike custodial wallet that you don’t have access to your private key.
After reading the pros and contras I tend to believe that non custodials are wisest in safeguarding.
As long as you know how to restore them.
I recently purchased some Bitcoins butAccording to most posts and replies on this forum it seem the best way to hodl Bitcoin is to use a hardware wallet as long as you can keep it safe.
Well is the hard ware wallet better than a custodial wallet??
Well is the hard ware wallet better than a custodial wallet??
The hardware wallet is much safer than a custodial wallet, but if you don't have much Bitcoin, and especially if you have different altcoins it's easier to use a non-custodial wallet.
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