What is a wallet?
A cryptocurrency wallet is a digital wallet that stores your cryptocurrency holdings. It includes a public address, which allows you to receive cryptocurrencies, and a private key, which allows you to spend or transfer them. The private key should be kept secret, as anyone who has access to it can use it to spend your cryptocurrencies.
Difference between Custodial and Non-Custodial cryptocurrency wallets
A Custodial wallet is a type of cryptocurrency wallet where the private keys are stored by a third party, such as an exchange or a provider of online wallet services. This means that you do not have complete control over your private keys, and you are relying on the third party to keep your cryptocurrencies safe.
A Non-Custodial wallet, on the other hand, is a type of wallet where you have complete control over your private keys. This means that you are responsible for keeping your private keys safe, and you are not relying on a third party to do it for you. Non-Custodial wallets can be software wallets, hardware wallets, or paper wallets.
In general, Non-Custodial wallets are considered to be more secure than Custodial wallets because you have complete control over your private keys and you are not relying on a third party to keep them safe. However, they also require you to be more responsible and vigilant in protecting your private keys, as losing them can result in the loss of your cryptocurrencies.
There are several different types of cryptocurrency wallets
Software wallets: These are wallets that you download and install on your computer or mobile device. They provide you with complete control over your private keys, but they also carry some security risks because they are connected to the internet.
Web wallets: These are wallets that are accessed through a web browser. They are convenient to use because they can be accessed from any device with an internet connection, but they also carry some security risks because the private keys are stored on a server controlled by a third party.
Hardware wallets: These are physical devices that store your private keys offline, making them more secure than software or web wallets. They are often small and portable, so you can easily take them with you wherever you go.