๐ Understand the basics before you store your crypto!
๐ Custodian vs Non-Custodian Wallets
๐ฅ Hot vs Cold Wallets
๐ Custodian Wallet
Your keys? Not really. A third party platform (like an exchange) holds your private keys.
โ
Easy access, good for beginners
โ
provide customer support, password reset
mechanism
โ ๏ธ You rely on the providerโs security
โ ๏ธ Most of them requires KYC verification to
comply with regulations and country specific policies
Example: Binance Wallet, Coinbase, Kraken, Bybit etc
๐ก๏ธ Non-Custodian Wallet
Your keys, your crypto. You control the private keys and are fully responsible.
โ
Full control and privacy
โ ๏ธ Lose your key = lose your crypto
โ ๏ธ Needs advanced technical knowledge
Example: MetaMask, Trust Wallet, Ledger etc
โ๏ธ Cold Wallet
Offline = more secure.
Not connected to the internetโharder to hack.
โ
Great for long-term storage
โ ๏ธ Less convenient for quick trades
โ ๏ธ Vulnerable to physical damage
Example: Hardware wallets (Ledger, Trezor), Paper wallets etc
๐ฅ Hot Wallet
Online = more convenient and flexible.
Always connected to the internet.
โ
Easy access and fast transactions
โ ๏ธ More vulnerable to hacks. Needs constant patching or updating for possible security holes.
Example: Mobile apps, web wallets, exchange wallets
๐กPro Tip:
Use hot wallets for daily use & trading. Use cold wallets for long-term holding (HODLing). Choose custodian for convenience or non-custodian for full control.
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