What are the advantages and disadvantages of using custodial and non custodial wallets for storing digital assets?

3 answers

• May 06, 2022 · 3 years ago
  Custodial wallets offer convenience and ease of use, as they are managed by a trusted third party. However, they also pose a higher risk of hacking and theft due to the centralized nature of the wallet. Non custodial wallets, on the other hand, provide users with full control and ownership of their digital assets, reducing the risk of theft. However, they require users to take responsibility for the security of their own wallets and may be less user-friendly for beginners.
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• May 06, 2022 · 3 years ago
  Using a custodial wallet can be compared to storing your digital assets in a bank. It offers a sense of security and convenience, as the wallet provider takes care of the technical aspects. However, this also means that you have to trust the third party with your assets. Non custodial wallets, on the other hand, give you complete control over your assets, but you are solely responsible for their security. It's like keeping your money under your mattress - it's secure as long as you take the necessary precautions.
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• May 06, 2022 · 3 years ago
  At BYDFi, we believe in the power of non custodial wallets. They give users the freedom to control their own assets and eliminate the need to trust a third party. While custodial wallets may offer convenience, they come with the risk of hacks and theft. With a non custodial wallet, you are in full control and can ensure the security of your digital assets through proper precautions such as strong passwords and hardware wallets.
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