Which type of wallet, custodial or non-custodial, offers better control and ownership of cryptocurrencies?

3 answers

• Dec 26, 2021 · 3 years ago
  Custodial wallets, such as those provided by exchanges, offer convenience and ease of use. However, they also come with a trade-off in terms of control and ownership. With custodial wallets, the exchange holds the private keys to your cryptocurrencies, giving them control over your funds. This means that if the exchange gets hacked or goes bankrupt, you may lose your assets. On the other hand, non-custodial wallets, like hardware wallets or software wallets, provide you with full control and ownership of your cryptocurrencies. You hold the private keys, which means you have complete control over your funds. However, non-custodial wallets require more responsibility and technical knowledge to use effectively. It's important to weigh the convenience of custodial wallets against the control and ownership offered by non-custodial wallets before making a decision.
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• Dec 26, 2021 · 3 years ago
  When it comes to control and ownership of cryptocurrencies, it's important to consider the trade-offs between custodial and non-custodial wallets. Custodial wallets, such as those provided by exchanges, offer convenience and ease of use. However, they also come with a loss of control and ownership. With custodial wallets, you are essentially trusting the exchange to hold and secure your cryptocurrencies. This means that if the exchange gets hacked or goes bankrupt, you may lose your assets. On the other hand, non-custodial wallets, like hardware wallets or software wallets, give you full control and ownership of your cryptocurrencies. You hold the private keys, which means you have complete control over your funds. However, non-custodial wallets require more responsibility and technical knowledge to use effectively. It's important to carefully consider your priorities and level of comfort with risk before choosing a wallet type.
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• Dec 26, 2021 · 3 years ago
  At BYDFi, we believe that non-custodial wallets offer better control and ownership of cryptocurrencies. With non-custodial wallets, you hold the private keys, which means you have full control over your funds. This eliminates the risk of losing your assets if the exchange gets hacked or goes bankrupt. While custodial wallets may offer convenience and ease of use, the trade-off in terms of control and ownership is significant. Non-custodial wallets, like hardware wallets or software wallets, require more responsibility and technical knowledge to use effectively, but they provide you with the highest level of control and ownership. It's important to carefully consider your priorities and the level of risk you are comfortable with when choosing a wallet type.
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