What are the importance of this non_ custodial wallet?
What are the importance of this non_ custodial wallet?
I have been mean to ask this question, but it keeps skipping out of my mind. so I have decided to ask to know the importance of non_custodial wallet, because most investors prefer to use non custodial wallet to store most of their asset, why did they choose non custodial wallet when they are many wallet’s out there to use in storing their assets? I keep hearing about non custodial wallet so I will like to know of which importance is this non custodial wallet to us as investors?
A noncustodial wallet gives you the right to be your own bank, you own your private key that only you is in full control of, and the safety of your wallet is in your hands. Noncustodial wallets are the best wallets for storing your bitcoin, because no one can identify the owner of such wallets.
Custodial wallets are the opposite of a noncustodial wallet. You don’t have full control on your private keys and your funds are not safe because, your private key is with a third-party.
It seems you don’t understand what non-custodial storage means. It is a wallet where you have control of the keys and seed phrase. This way the assets or coins on that wallet is controlled by you, you can move funds anytime you like without having to worry for confirmation from any platform. Also it so save in such way that you don’t get the scare of a custodial wallet collapsing.
If you ask me it is one of the core principles of bitcoin; that is been your own bank. The phrase not your keys not your coins is definitely referring to any one not using non-custodial wallet.
With noncustodial wallet, you have the private key. Having the private key means you have the full control over your own coins. Only you can generate the digital signature that can be used to spend the coins.
Unlike custodial wallets that you do not have the private key. The company that provided custodial wallet has the private key and they have the full control over your own money just like banks. They can freeze your coins. They can block your account. There can be account maintenance and other inconveniences.