<blockquote>Not Your Keys, Not Your Coins. It’s That Simple.</blockquote>Never share your private key!When the private key isn’t yours, then the coin will no longer be yours. This is the most important concept before possessing crypto assets.<h1 style="margin-left:0cm;">What does “wallet” refer to?</h1>A wallet is what makes your private key (the password that gives you access to your cryptocurrency) secure and accessible.Unlike regular wallets that hold actual cash, we usually refer wallets in blockchain as “crypto wallets”. This wallet doesn’t store crypto assets directly, but rather access crypto assets that exist on the blockchain through a private key. The private key is what proves that you own the corresponding cryptocurrency and allows transactions to take place. If you lose your private key, you will not be able to access your funds, which is why it is so important to know how to keep your private key safe.Wallets allow us to send and receive cryptocurrency in a variety of forms, from hardware wallets like Ledger (which looks like a USB) to applications like KryptoGO Wallet, as follows:1 Paper: The secret key is written on a physical medium such as paper and stored in a secure location.2 Hardware (card, USB): The private key is stored in the hardware and connected to the computer and network only when sending or receiving cryptocurrency.3 Software: The private key is stored in an APP or browser plug-in.<blockquote>Deciding how to store encrypted assets is an important decision. Therefore, understanding the type of wallets is necessary for choosing which wallet works best for us. (these 3 forms above are usually non-custodial wallet presentations.)</blockquote><h1 style="margin-left:0cm;">Non-Custodial Wallet</h1>Using a non-custodial wallet means you are fully responsible for the private key, seed phrase, and funds. Because a third party trust is not needed in non-custodial wallets, you must protect your private key and find a strong password after creating a wallet.Most non-custodial wallets are browser-based or mobile apps like KryptoGO Wallet, a type of wallet also known as a hot wallet. On the other hand, there are cold wallets like the Ledger Nano, which are USB-like wallets that store your private keys offline.The downside to non-custodial wallets is that if you lose your seed phrase, forget your password, or somehow can't access your wallet, you won't be able to recover your wallet and therefore can't access your funds anymore.Non-custodial wallets play an indispensable role in enabling a completely decentralized world, but can be difficult for the newbies. Therefore, when using a non-custodial wallet, make sure you have multiple backups of your seed phrases and passwords, and that no one but yourself knows about them.<h1 style="margin-left:0cm;">Custodial Wallet</h1>If you have previously been to a centralized exchange, this means that you have used a custodian wallet. In this case, the centralized exchange acts as a custodian and holds your funds, private keys, and seed phrases. However, this also means that the exchange can do whatever it wants with the funds (you must choose your exchange carefully), and the concentration of funds is often vulnerable to hacking attacks. In addition, centralized exchanges also offer escrow services for institutional clients, such as Coinbase Custody.<h1 style="margin-left:0cm;">Conclusion</h1>Non-custodial wallets give you full responsibility for private keys, seed phrases, and funds. Custodial wallets, on the other hand, hold funds, private keys, and seed phrases for you.When you use a custodial wallet, you must trust the third party. Conversely, when using a non-custodial wallet, you must protect your key, seed phrase, and password.<img src="https://storage.googleapis.com/kryptogo-website.appspot.com/public/cms/noncustodial_vs_custodial_fdf081a0ad/noncustodial_vs_custodial_fdf081a0ad.png" alt="noncustodial vs custodial.png" srcset="https://storage.googleapis.com/kryptogo-website.appspot.com/public/cms/thumbnail_noncustodial_vs_custodial_fdf081a0ad/thumbnail_noncustodial_vs_custodial_fdf081a0ad.png 245w,https://storage.googleapis.com/kryptogo-website.appspot.com/public/cms/small_noncustodial_vs_custodial_fdf081a0ad/small_noncustodial_vs_custodial_fdf081a0ad.png 500w,https://storage.googleapis.com/kryptogo-website.appspot.com/public/cms/medium_noncustodial_vs_custodial_fdf081a0ad/medium_noncustodial_vs_custodial_fdf081a0ad.png 750w," sizes="100vw">The comparison table of non-custodial &amp; custodial wallet

Deciding how to store encrypted assets is an important decision. Therefore, understanding the type of wallets is necessary for choosing which wallet works best for us. 

Crypto Wallets: Custodial vs. Non-Custodial Wallets

The Pump Hound Update: March 12, 2025

Escape Exchange Risks: Why KryptoGO Self-Custody Wallet is the Ultimate Choice for Web3 Users

Handle Login and Group Chats Update: February 26, 2025

Evolution of Taiwan's VASP Regulation: From Declaration to Licensing

Beginner's Guide to Hyperliquid ft. KryptoGO App: Feb 12, 2025

Refining the Waves with Ocean v3: January 22, 2025

Biweekly Update: January 8th, 2025

The '25 Roadmap Preview: December 18, 2024

“The King of Tron” Update: December 4, 2024

Biweekly Update: November 20, 2024

The 'Pulse' Update: November 6, 2024

Five Stages of Evolution for Crypto Wallets

In-Depth Technical Analysis: Why Choose a Mature Crypto Wallet Service Instead of Building Your Own

Biweekly Update: October 23, 2024

Biweekly Update: October 09, 2024

Biweekly Update: September 25, 2024

Send Via Link campaign and "Gimme more wallets" Update :  September 11, 2024

The “Send Crypto via Link” Update: August 28, 2024

KryptoGO's Award-Winning Innovations at ZK Hack Montreal, ETHDenver, and ETHTaipei

Stake Your Stables! Biweekly update: August 14, 2024

The “Not Just A Wallet” Update: July 31, 2024

Biweekly Dev Update: July 17, 2024

Biweekly Dev Update: July 3, 2024

Biweekly Dev Update: June 5, 2024

Challenges and Solutions for Using Cryptocurrency in Business Operations

Biweekly Dev Update: May 22, 2024

Biweekly Dev Update: May 8th, 2024

Biweekly Dev Update: April 17th, 2024

Biweekly Dev Update: April 3rd, 2024

Biweekly Dev Update: March 20th, 2024

Making Sense of Decentralized Wallets: EOA and Smart Contract Explained

Biweekly Dev Update: March 6th, 2024

Centralized vs. Decentralized: The Ultimate Guide to Choosing the Right Crypto Wallet for Your Business

Navigating Compliance in Taiwan's Cryptocurrency Market: From Fraud Prevention to Enhanced Regulation

【Kind Reminder】Please be vigilant against scams. KryptoGO will never proactively ask you to make investment transactions.

Biweekly Dev Update: February 21th, 2024

Biweekly Dev Update: February 7th, 2024

Web3 Business Operations: Future Trend or Current Necessity?

Biweekly Dev Update: January 24th, 2024

Biweekly Dev Update: January 10th, 2024

Biweekly Dev Update: December 27th, 2023

Biweekly Dev Update: December 13th, 2023

Biweekly Dev Update, November 29th, 2023

Biweekly Dev Update, November 15, 2023

Biweekly Dev Update: November 1st, 2023

Biweekly Dev Update: October 19th, 2023

Biweekly Dev Update: Oct 4th, 2023

The Chatroom and Social Update: September 20th, 2023

Play-to-Earn vs. Blockchain Gaming: Rediscovering the Joy of Play

Product Launch Update: September 6th, 2023

KryptoGO Launches AI-Powered One-Stop Web3 Cloud Solution

Biweekly Update: August 23rd, 2023

The Keyless Wallet Update: August 9th, 2023

Biweekly Update: July 26th, 2023

Biweekly Update: July 12th, 2023

Biweekly Dev Update: June 7th, 2023

Unlock the Future: Passkey + DID + FIDO - Exploring the Next Generation of Digital Wallets and Identities

Biweekly Dev Update: May 24th, 2023

Biweekly Dev Update: May 10th, 2023

Biweekly Dev Update: April 26th, 2023

KryptoGO team wins three ETHGlobal Tokyo Hackathon Awards! Join hands with YGG Japan and IVC to lay out GamiFi industry

Biweekly Dev Update: April 12th, 2023

Help enterprises enter the Web3 world painlessly! What is WaaS?

Biweekly Dev Update: March 22th, 2023

How Much Does It Cost to Develop a Cryptocurrency Wallet on Blockchain?

How to Navigate the Metaverse: A Guide to 7 Different Types of Crypto Wallets

Virtual asset transaction service KYC, AML demand increased! KryptoGO Compliance work with Gaia Information  pioneered regulatory investigation engine

Biweekly Dev Update: March 8th, 2023

DeFi and KYC: Conflict or Coexistence?

Biweekly Dev Update: February 22nd, 2023

KryptoGO Wallet Updates: Supports Ronin chain, Personal Profile, Wallet Connect 2.0

Biweekly Dev Update: February 8th, 2023

Biweekly Dev Update: January 18th, 2023

Coinbase, the most compliant exchange, has been fined $100 million by the government and given a deadline to fix it.

Biweekly Dev Update: January 4th, 2023

Biweekly Dev Update: December 21, 2022

Biweekly Dev Update: December 7th, 2022

Biweekly Dev Update: November 23rd, 2022

Why can't you get your crypto assets back when the FTX exchange collapses? – Not Your Key, Not Your Coin

Biweekly Dev Update: November 9th, 2022

Biweekly Dev Update: October 26th, 2022

Biweekly Dev Update: October 12th, 2022

Biweekly Dev Update: September 28th, 2022

Things you should know about financial security in the Web3 era: How does token, private key, and wallet (account) work?

Collaboration for Web3 Game Wallets: YGG Japan, KryptoGO, and IVC Join Forces

Biweekly Dev Update: September 14th, 2022

Wanting to issue NFT but is complained about the difficult procedure? —Find out what the marketing pain points are from the “distribution process”

Biweekly Dev Update: August 31th, 2022

All You Need to Know About VASP FATF

Biweekly Dev Update: August 17th, 2022

Taiwan-based KryptoGO Secures US$3M in Seed Funding

Biweekly Dev Update: August 3rd, 2022

FATF Methodology with the Rapid Development of Virtual Assets 

How to regulate virtual assets? –about FATF Travel Rule recommendations

Different transaction monitoring mechanism between Fiat and Crypto

Biweekly Dev Update: July 20th, 2022

The difference between KYC & AML?

Always being a concern in the bank? Get to know “KYC” in 5 minutes

Biweekly Dev Update: July 6th, 2022

Crypto Wallets: Custodial vs. Non-Custodial Wallets

Recommend Articles

Hot Articles

Hot Tags