📚 Understand the basics before you store your crypto!
🔐 Custodian vs Non-Custodian Wallets
🔥 Hot vs Cold Wallets
🔐 Custodian Wallet
Your keys? Not really. A third party platform (like an exchange) holds your private keys.
✅ Easy access, good for beginners
✅ provide customer support, password reset
mechanism
⚠️ You rely on the provider’s security
⚠️ Most of them requires KYC verification to
comply with regulations and country specific policies
Example: Binance Wallet, Coinbase, Kraken, Bybit etc
🛡️ Non-Custodian Wallet
Your keys, your crypto. You control the private keys and are fully responsible.
✅ Full control and privacy
⚠️ Lose your key = lose your crypto
⚠️ Needs advanced technical knowledge
Example: MetaMask, Trust Wallet, Ledger etc
❄️ Cold Wallet
Offline = more secure.
Not connected to the internet—harder to hack.
✅ Great for long-term storage
⚠️ Less convenient for quick trades
⚠️ Vulnerable to physical damage
Example: Hardware wallets (Ledger, Trezor), Paper wallets etc
🔥 Hot Wallet
Online = more convenient and flexible.
Always connected to the internet.
✅ Easy access and fast transactions
⚠️ More vulnerable to hacks. Needs constant patching or updating for possible security holes.
Example: Mobile apps, web wallets, exchange wallets
💡Pro 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.
#CryptoSecurity #BinanceSquare #WalletTips #NotYourKeysNotYourCrypto #Write2Earn!