Hello, my dear Biswappers!
It’s Robi here. I want to teach you the difference between Custodial & Non-custodial Wallets.
Let me start with a short story.
At the beginning of my crypto journey, my first question was: “Where will my earnings be stored?”. I know that people on your planet store them in their wallets. But what about the Crypto Galaxy?
That’s how I learned about two types of digital wallets: Custodial & Non-custodial. And now I want to tell you more about it.
Why do you need a crypto wallet?
The truth is that you will need one to interact on a blockchain. The wallet is necessary for making transactions, trading on a crypto exchange or using DApps. And, of course, the wallet is needed to send or receive the crypto.
Now, let’s talk about two types of wallets you can have.
This type of wallet means that your private keys are held by a third party. You won’t have complete control over the wallet, but it’s not as bad as it seems at first sight.
For example, if you lost your private key or forgot the password, you will still be able to have access to your assets by writing to the support manager. The custodial wallet can be very useful for crypto beginners. However, you should choose a reliable exchange or service provider.
The Pros of Custodial Wallet
💎Free transactions. Users are able to make transactions for free within the ecosystem.
💎Peace of mind. Because of the custodian, you’ll have access to your wallet and funds no matter what.
💎Higher backup possibility. Central authorities manage your wallets and provide backup services. As a result, it is easier to undo any transaction or restore a previous version.
In contrast to the previous type, a non-custodial wallet means that you have full control of your private keys and earnings. It is also called “to be your own bank”. In addition, these types of wallets are faster because you don’t have to wait for withdrawal approval.
These wallets are needed when interacting with DEXs and DApps, such as Biswap. Great examples of such wallets are MetaMask and Trust Wallet. Non-custodial wallets may seem more comfortable to use, but remember that you have to be responsible for your keys and funds, as no one can have access to them.
The Pros of Non-custodial Wallet
💎Full control of user’s funds. There is no third party to manage the user’s assets or perform any activity.
💎Fast withdrawals. A user doesn’t need any confirmation from a third party to make a transaction.
💎Safety of investing. As all funds rely on the user, the risk of its crack is much lower.
Which wallet should you use on Biswap?
As you know, Biswap is a DEX, so here you will need to have a non-custodial wallet to access all the lucrative features.
To make it easier and better for you, we collaborated with the most reliable services:
💰iToken (aka Huobi)
💰Gnosis Safe Wallet
We want to make sure that your Biswap experience is safe and comfortable. That’s why we made a guide on how to connect your wallet to the platform.
Find it here 🔽
So, as the lesson is over, let’s summarize what we’ve learned. There are two types of crypto wallets: custodial & non-custodial. The main difference between them is that in custodial wallets, your private keys are held by a third party, while in non-custodial wallets, all the control of your crypto is in the user’s hands.
📍Remember that no matter what type of wallet you choose, it’s always your responsibility to take care of the security of your assets!
Biswap, as a DEX, offers you a great variety of non-custodial wallets to use on the platform. Connect one of them to explore all the profitable features.
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