what and which are custodial and non custodial wallets. - page 2.

sunsilk

hero member

Activity: 2884

Merit: 620

mk4 has given the brief description and differences of custodial and non custodial wallets. And just for the sake of newbies that don't understand about controlling your funds.

It's about that you have the private keys for your wallets and centralized exchanges don't provide it for us.

Quote from: AirtelBuzz on November 15, 2023, 11:49:15 PM

Some examples of best Non-custodial wallet are:
Exodus,
Coinomi,

Still need to do some research about some critical issues from these wallets.

Quote from: AirtelBuzz on November 15, 2023, 11:49:15 PM

Metamusk,

It's Metamask mate.

Zaguru12

hero member

Activity: 672

Merit: 855

Quote from: AirtelBuzz on November 15, 2023, 11:49:15 PM

Some examples of best Non-custodial wallet are:
Electrum,
Exodus,
Ledger Nano X,
Trezor One,
Zengo,
Wasabi,
Metamusk,
Coinomi,
OKX,
MyEtherWallet,
among others.

I wouldn’t say these are the best Non custodial wallets but probably they are the some of the best out. Firstly the OKX included there is an exchange and not a non custodial wallet AFAIK. There also other wallets there that are not open source and that doesn’t make them one of the best. When recommending wallets that are open source and non custodial I will suggest wallets like
Bitcoin core
Electrum
Trezor
Passport
samourai
BlueWallet
Unstoppable

And any other wallet. OP should know that an open source wallet doesn’t mean it is immune to hack attack but rather the source code are open to the public to review and should the developers tried to temper with anything tech savvy people will be able to see it.

mk4

legendary

Activity: 2716

Merit: 3817

Paldo.io 🤖

Short answer:

Custodial: a company will have control over your funds
Non-custodial: only you have control over your funds

Long answer (I suggest reading it): https://chainsec.io/wallets

Husires

legendary

Activity: 1582

Merit: 1284

Custodial and non-custodial wallets are not common terms that a person without cryptocurrency knowledge can learn. If you know these terms, you will definitely know their meanings. The private keys or seeds of the wallet are what determine its nature. If you are the only one who knows those seeds, generates them, and controls them, then the wallet is non-custodial.

To achieve these requirements, the Non-custodial wallet must be open source, well reviewed, sufficiently cryptography random, have the option to withdraw, and have no restrictions on the ability to send. Otherwise, you cannot guarantee that you are the only one capable of generating the private key.

AirtelBuzz

full member

Activity: 15

Merit: 1

Quote from: Do or Die on November 15, 2023, 11:09:33 PM

Everyone needs to use different types of wallets to work with cryptocurrencies. Wallets are definitely needed to work in crypto. Generally we understand a wallet as a thing that stores all the savings of our daily life. By my question everyone will understand what I mean, what and which are custodial and non custodial wallets.

A crypto-wallet is a type of software. With a crypto wallet you can access the blockchain and execute transactions from there.

1: Custodial Wallet
A custodial wallet is where a third party holds private keys on behalf of users. The third party has full control over the crypto assets, taking responsibility for managing the user's wallet keys, signing transactions and protecting the user's crypto assets.
Some of the popular examples of best Custodial wallets are:

Free Wallet,
Binance,
Kucoin,
BitMex,
Bitgo,
Cobo wallet,
Gemini Wallet,
Venly Wallet,
among others.

2: Non-custodial
The main reason non-custodial wallet users have gained a huge momentum is that they provide users with a separate access to their funds. Those using non-custodial wallets do not have to look to a third party to manage funds or perform any related activities.

Some examples of best Non-custodial wallet are:
Electrum,
Exodus,
Ledger Nano X,
Trezor One,
Zengo,
Wasabi,
Metamusk,
Coinomi,
OKX,
MyEtherWallet,
among others.

Catenaccio

full member

Activity: 420

Merit: 120

Quote from: Do or Die on November 15, 2023, 11:09:33 PM

Everyone needs to use different types of wallets to work with cryptocurrencies. Wallets are definitely needed to work in crypto. Generally we understand a wallet as a thing that stores all the savings of our daily life. By my question everyone will understand what I mean, what and which are custodial and non custodial wallets.

You have private keys, you have your bitcoins.
You don't have private keys, you don't have your bitcoins.

Non custodial wallets give you private keys of your bitcoins.
Non custodial wallets are not enough, you also need those wallets are open source.

Custodial vs. Non Custodial Wallets - "Not your keys, not your coin" Explained.
Bitcoin Q&A: Not your Keys, Not your Coins

Do or Die

newbie

Activity: 25

Merit: 14

Everyone needs to use different types of wallets to work with cryptocurrencies. Wallets are definitely needed to work in crypto. Generally we understand a wallet as a thing that stores all the savings of our daily life. By my question everyone will understand what I mean, what and which are custodial and non custodial wallets.

Topic: what and which are custodial and non custodial wallets. - page 2. (Read 269 times)