Why Is It Important to Keep Your Crypto Funds in a Non-Custodial Wallet


When picking a cryptocurrency wallet, many users seem to make random decisions. It’s utterly wrong since choosing a place to keep your coins is a vital step in the crypto world of digital currency. In reality, your decision will influence many things. It entails your trading habits, the cryptocurrencies the wallet supports, and other essential features.

After swapping some coins like BTC to ADA, you have to decide where you want to keep private keys. Therefore, you should know your crypto goals. Today, users choose non-custodial wallets for the best protection for crypto assets in the blockchain realm. Let’s examine non-custodial storage in detail and see what benefits it can bring to you.

A Non-Custodial Wallet Is: What Is It?

It’s a form of Blockchain wallet that allows you to run your bank from home. Since the private key is linked to your account, you have complete control over the money. As a result, Bitcoin and other digital currencies are safe and can’t be controlled or seized by a single centralized body. 

When you want to access a wallet’s private keys and assets, the non-custodial storage of each user employs a mnemonic phrase or seed phrase. It’s usually made up of 12 or 24 random syllables. Also, you are requested to provide a password. 

Custodial vs. Non-Custodial Wallets: The Difference

A non-custodial wallet differs significantly from a custodial. The first relies only on the user. The latter enables the providers or centralized exchanges to keep the private keys. As a result, the storage provider or exchange is responsible for protecting the assets in the wallet. The user only has access to its public address. 

Custodial storage reduces the burden of learning a seed word or keeping it secure for the ordinary user. The downside is that it leaves users vulnerable to large-scale cyberattacks or data breaches in case of fraud. 

Ultimately, transactions are also entirely different. Non-custodial storage activities reflect on the blockchain in real-time. However, custodial wallet operations may lag for seconds or minutes and are performed within the platform, not on the blockchain.

Benefits of Using Non-Custodial Wallets

No one but you can access your money using non-custodial crypto storage. Many users prefer to keep their crypto in this storage rather than an exchange account since it removes a third party from the equation. This wallet has some more advantages:

  • Your keys, your coins. It’s gained popularity because they provide users with independence. Users don’t need third-party permission to manage assets or trade.
  • Asset protection. Since a user’s crypto storage and money are on their device, a remote attack is unlikely.
  • Fast transactions. Transactions are quicker since no intermediaries or authorities are needed.

All in all, you own your private keys, which control your coins and verify ownership. You don’t need to trust a third party using this place to keep your assets. Also, it stores your private keys for you. However, you’re responsible for not losing your keys and protecting them. In addition, you may also exchange coins with these wallets.

When you’ve done some research and are ready to exchange coins and keep them in the wallet, use LetsExchnage.io, an instant exchange. You can swap numerous popular coins, including BTC to ETC, fast and easy.

In the end, choosing between a custodial and non-custodial wallet is about your security. Some prefer custodial exchange accounts, others non-custodial, and some use both. If you want increased control of your assets and are not afraid of this authority, you have to go for non-custodial storage. Whatever place to keep the coins you use, always adhere to the most secure practices possible.


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