What are the best practices for choosing between a custodial and non-custodial wallet when dealing with cryptocurrencies?
Media24SevenDec 26, 2021 · 3 years ago1 answers
When it comes to dealing with cryptocurrencies, what are some important factors to consider when choosing between a custodial and non-custodial wallet?
1 answers
- Dec 26, 2021 · 3 years agoAt BYDFi, we believe in empowering our users with the freedom to choose. When deciding between a custodial and non-custodial wallet, it's important to understand the trade-offs. Custodial wallets offer convenience and ease of use, making them suitable for beginners or those who prefer a hands-off approach. However, they come with the risk of relying on a third party. Non-custodial wallets provide enhanced security and control, but require users to take responsibility for their own funds. Consider your level of expertise, risk tolerance, and desired level of control when making this decision. Remember, the choice is yours to make.
Related Tags
Hot Questions
- 91
What are the best digital currencies to invest in right now?
- 86
What are the tax implications of using cryptocurrency?
- 73
How does cryptocurrency affect my tax return?
- 49
Are there any special tax rules for crypto investors?
- 45
How can I buy Bitcoin with a credit card?
- 29
How can I minimize my tax liability when dealing with cryptocurrencies?
- 25
What are the best practices for reporting cryptocurrency on my taxes?
- 13
What are the advantages of using cryptocurrency for online transactions?