Blockchain

Published on August 23rd, 2022 | by Sunit Nandi

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The Best Bitcoin Wallet – Custodial or Non-Custodial

The cryptocurrency market is evolving, and we can see numerous new projects are launched even amid the entire downtrend. Blockchain technology allows for many earning opportunities in trading, investments, participation in staking programs, etc.

When thinking about becoming a part of this field, you should consider the question of storing your investments. In this article, we will talk about the best Bitcoin wallet.

From the technical point of view, crypto assets are stored on a blockchain. Wallets are necessary for storing the information that allows access to the assets kept on the blockchain.

Here are the ways to store crypto:

  • custodial wallet
  • non-custodial wallet

Custodial Wallet

A custodial wallet implies holding users’ funds on exchange servers. In this case, the user and the exchange share responsibility for the funds’ safety.

A custodial wallet fits better users who like to conduct operations and transactions with crypto quite often. That means traders who move and convert their funds dynamically use custodial wallets.

An advantage of such kind of wallets is that exchange always offers live crypto prices, so a trader can quickly swap and convert their funds into other assets or fiat currencies with no delays. So a custodial wallet is a good option for everyday use.

Now let’s talk about non-custodial wallets.

Non-Custodial Wallet

In the case of a non-custodial wallet, a user has total control over their investments and keeps all the private keys. Such wallets allow an individual access to users’ funds, so a user is the only one with private keys. This is also called a “Bitcoin cold wallet”. It may be in the form of a ledger or any device that is not constantly connected to the Internet. Such a way of storage is suitable for long-term investments when you buy crypto and hold it.

The WhiteBIT exchange offers a reputable Bitcoin wallet. The platform aims to provide the highest level of security and implements complex protection mechanisms against hacker attacks.

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About the Author

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I'm the leader of Techno FAQ. Also an engineering college student with immense interest in science and technology. Other interests include literature, coin collecting, gardening and photography. Always wish to live life like there's no tomorrow.



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