Which type of wallet, non-custodial or custodial, offers better security for storing cryptocurrencies?

3 answers

• Dec 17, 2021 · 3 years ago
  Non-custodial wallets, also known as self-custody wallets, offer better security for storing cryptocurrencies. These wallets give you full control over your private keys, which are used to access and manage your digital assets. By keeping your private keys offline and in your possession, non-custodial wallets minimize the risk of hacking and unauthorized access. They provide an extra layer of protection against potential security breaches on centralized platforms. It is recommended to choose a non-custodial wallet if you prioritize security and want to have complete control over your digital assets.
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• Dec 17, 2021 · 3 years ago
  Custodial wallets, on the other hand, may offer convenience but come with certain security risks. These wallets are managed by third-party service providers, such as exchanges or wallet providers. While they may implement security measures, the fact that they hold your private keys means that you are relying on their security practices. If the custodial wallet provider experiences a security breach or gets hacked, your funds could be at risk. It is important to do thorough research and choose a reputable custodial wallet provider if you decide to use this type of wallet. However, it is generally considered safer to opt for a non-custodial wallet for better security and control over your cryptocurrencies.
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• Dec 17, 2021 · 3 years ago
  At BYDFi, we believe in the importance of self-custody and recommend non-custodial wallets for storing cryptocurrencies. Non-custodial wallets offer better security as they eliminate the risk of your funds being compromised due to security breaches on centralized platforms. With a non-custodial wallet, you have full control over your private keys and can ensure the safety of your digital assets. It is crucial to choose a reliable and well-established non-custodial wallet to maximize security and protect your investments.
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