Today we are going to tell you everything about Ethereum Wallet in detail in this blog. Where we will talk about two types of wallets: Custodial Wallet and Non-Custodial Wallet. This blog will give a complete idea for all of you guys so that you don’t get confused seeing any wallet. Based on their exchanges and wallets which you might know better after this introduction. If you are interested in bitcoin trading you should invest in bitcoin even if they are volatile.
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Understand what a wallet is?
The wallet is a user-friendly interface for the Blockchain network. It manages your private keys which are locked keys on your cryptocurrency wallet. The wallet allows you to store your coins and send cryptocurrency, you can consider it as your bank. But before I jump into it, I want to make you clear about these two types of wallets: Custodial and Non-Custodial Wallets.
Custodial Wallet
If you have already used this type of crypto wallet, such as Gemini or Coinbase which are considered to be custodial wallets. A Custodial Wallet also has another name called Hosted Wallet; in this wallet you can store your private key as it is a digital wallet. It is quite safe for your funds. The best part is that you can never lose your access to this wallet and never lose your private keys as they are not with you. This means a third party has control over your funds, only you are allowed to send them. In our custodial wallet, you will buy and store your cryptocurrency and here you can sell your cryptocurrency. These exchanges are known as custodial wallets, as they are not under our control, they are controlled by a third party. If you want to buy or sell cryptocurrencies you can buy and sell on exchanges.
Non-Custodial Wallets
With a non-custodial wallet, only you are in control of your private keys and your funds. The advantage of this wallet is that you can monitor or control any activity in it. You need to use private keys to perform any transaction. You will be perfectly able to use any non-custodial wallet even without an internet connection, where you can easily check your funds whenever you want. While setting up a non-custodial wallet, you need to keep in mind that hackers can easily access your crypto wallet, to secure it, you will be given a 12 to 24-word phrase that you will write so that You can make it safe.
You have access to your seed phrase. Take care not to share or store them online with anyone. You will have a variety of non-custodial wallets from which to choose the right one. For example, wallets are hardware devices, software or browser-based. You can use them by installing them on your mobile, computer or laptop. If you choose a physical wallet, the first thing you need to make sure is that it is not lost and damaged for you, because if this happens you will never be able to get your money back. If you are planning to buy and hold digital currencies for a long time, then it is better to choose a non-custodial hardware device as it is the best option for you. By using this type of wallet, you can easily complete the transaction process. You can connect them via your computer’s Bluetooth, USB port or mobile device. Keep in mind that you should keep your coins in a safe place so that you can keep your currency safe.
