What is the difference between custodial and non-custodial wallets?
The main difference between custodial and non-custodial wallets is ownership. If you use the services of an exchange to store cryptocurrencies, this means that the coins formally belong to the exchange. And if your activity is found to be illegal, you may be blocked from accessing your funds.
To paraphrase a famous saying in the industry – “Not your keys – not your coins.” On the other hand, if everything is in order with you, but you suddenly forgot or lost your password, this is not critical. The support team will help you restore access to your account.
A non-custodial wallet gives you full control over your assets and private keys. Restricting someone’s ability to dispose of money is a more difficult order. But you are solely responsible for the security of your keys. If the keys are lost for any reason, no one can help you restore access to your funds. And in this case, it hardly matters to you what scenario is discussed in Ariva Coin price prediction.
MyEtherWallet (MEW) has been around since 2015. It’s easy to use, but still designed for fairly advanced users. This interface is designed to communicate with the Ethereum blockchain and additional networks based on it. Accordingly, it is possible to store ETHIRUM and ERC-20 tokens in it.
MEW can be integrated with decentralized exchanges and some decentralized aggregators. In addition to the web wallet, there is a MEWconnect mobile app for Android and iOS. The manufacturer positions it as a “hardware wallet without hardware”. This app improves the security of wallets created on MEW, as assets and all personal information of users can be stored on a separate device.
The application does not collect user data. Access to assets can be restored using the mnemonic phrase.
Coinomi is another industry veteran that started in 2014. The modern version supports 120 blockchains and more than 1700 cryptocurrencies, provides access to several Web3 projects, dApps, direct token exchange.
Coinomi is compatible with almost all popular desktop and mobile operating systems.
Exodus is a popular multi-currency cross-platform crypto wallet. It is aimed at users who are just starting to learn cryptography, so its interface is as easy to learn as possible.
Exodus supports 130 popular cryptocurrencies. Collection, trading and other methods for managing assets are available from a single interface.
MetaMask was one of the first browser-based non-custodial wallets. In its 6 years of existence, it has become very popular. This is largely due to the fact that it is one of the few wallets able to interact directly with DeFi. This came in handy during the summer boom of 2020. Over the past year, MetaMask has been massively integrated with OpenSea to buy and sell NFTs.
In addition to the Ethereum blockchain, MetaMask can be integrated to work on other EVM networks and can also be used to communicate with dApps created based on EVM-compatible networks. The wallet has a built-in exchange function. However, Metamask is not suitable for storing Bitcoin and its forks and some other coins. If you are inspired by Мonero Price Prediction 2030, you need a different wallet for this coin.
Coinbase Wallet was created by Coinbase crypto exchange team and is rapidly gaining popularity. First, its interface is similar to the interface of the exchange, which greatly simplifies the transition from custodial storage to non-custodial.
Coinbase Wallet not only supports Ethereum and all EVM compatible blockchains, but also non-EVM compatible coins. The app works independently of the parent company and does not require registration and KYC to use it. At the same time, if desired, it can be connected to an exchange account and quickly transfer assets between wallets.
