How are you all? I hope you are all doing well, today I will talk about a very important topic, Today we will know what is Custodial Wallet VS non custodial wallet and how it works, what are its advantages and disadvantages?
custodial wallet
A custodial wallet is a type of wallet where a third party stores your wallet private key, such as the wallets of some exchanges that are designated as custodial wallets, such as Binance Wallet, Bybit Wallet, Coinbase Wallet, Kraken Wallet,Some advantages of custodial wallet
First of all, it can be easily used by any new user, if somehow their account password is accidentally lost, they can recover it again, and if somehow the funds go to the wrong account or if it is stolen, the exchange can help if they want,
Some disadvantages
Since you do not have your private key, exchanges can run away with your funds at will, which means that your entire wallet platform is under control,
And if somehow those exchanges are hacked, there is a possibility of losing funds, such as MT.Gox, FTX Scam,non custodial wallet
Non custodial wallet is a type of wallet where you have to keep your wallet private key safe,
For example, TrustWallet, Matamusk, Token Pocket, Ledger Nano X etc.Some of the good points are
Non custodial is completely decentralized, meaning that there is no third-party control here, all your private keys will be safe with you, as a result, it is very difficult to be hacked even if you want, your transactions are completely neutral, you can transact as much as you want without any obstacles,The bad points are
Since this is a non custodial wallet system, if you lose your private key or seed, you will not get your funds back. It is 100% secure, and some wallets charge high network fees, and some problems may arise for those who are new to using this type of wallet,
Today I will talk about the good and bad points of custodial wallet VS non custodial wallet I have presented the aspects, now you can choose which one to use from here, but I think non custodial wallet is a good option for us, but we should use Binance wallet, because it is very safe for us,
But if you want to keep a large amount of funds, then it would be a good advice for you to use non custodial wallet,
So I hope everyone understands, I am ending here today, everyone be well,
0.000 SRY