In a non-custodial wallet, the user is the sole owner of the private keys that provide access to their crypto holdings. This means that the user has complete control over their funds and can manage them directly, without having to trust a centralized entity to hold and manage their assets.
Non-custodial wallet offers private key custodial. Such a type of digital asset custody platform provides full control of your private keys. It allows you to store keys safely in a secure location. Â
There are non-custody wallets that provide wallet backup. So, even if you lose your seed phrase or keys, still with the backup keys you can recover your funds. You don’t have to lose all your funds forever, just because you lost your seed phrase. Â
Unlike custodial wallets, which have a high level of cyber risk associated with your funds, non-custodial wallets allow you to mitigate the downside risk of cyber threats. It does so with the help of top-notch cryptography as well as by securing your private keys. The widely used digital asset custodian usually have significant funds under their belt which makes them a perfect target for hackers. Â
Because non-custody wallets do not require KYC or AML procedures, you do not need to use them to store assets in custody. Â
Usually, with exchange-based custodial wallets, you must wait for more than 24 hours to a few working days to withdraw your funds.. But on the other hand, with non-custody wallets, you can execute unrestricted transactions with any exchange, especially in terms of size and speed. With the digital asset custodian platform, there is always a silent holding period. But, with non-custody wallets, there is no holding period. On top of that, with a non-custodial digital asset custody platform, your assets cannot be frozen or confiscated in any way. Such an act of confiscation, restriction, and limitation often takes place when your assets are in custody wallets. Â
From every aspect, storing with a non-custodial platform is always more beneficial than storing with a custodial platform. Unlike custodial wallets which are often web-based, with non-custodial wallets you get access to both software and hardware support.Â
There are several reasons why you should keep your cryptocurrency assets in a non-custodial wallet:
- Security: When using non-custodial wallets, users have complete control over their private keys, which are used to access their crypto assets.. This means that there is no central point of failure or risk of hacking or fraud from a third-party custodian. However, it’s important to note that users are responsible for securing their private keys properly.
- Privacy: Non-custodial wallets allow users to transact in a decentralized manner, without the need for intermediaries or third-party services. This can help to protect user privacy while also avoiding the exposure of sensitive financial data.
- Control: Non-custodial wallets provide users with complete control over their assets. Users can manage and store their funds as they see fit, without any restrictions or limitations from a centralized authority.
- Access: Non-custodial wallets provide users with the ability to access their assets at any time, as long as they have their private keys or seed phrase. This allows for greater flexibility and mobility, as users can access their funds from anywhere in the world.
- Community: Users have complete control over their private keys, which are used to access their crypto assets when using non-custodial wallets. By using a non-custodial wallet, users can be part of a larger movement towards decentralization and self-sovereignty in the financial world.
Overall, non-custodial wallets offer several advantages over custodial wallets, including increased security, privacy, control, access, and community. However, it’s important to note that non-custodial wallets require users to take proper security measures to safeguard their private keys and seed phrases to avoid the risk of losing access to their funds.
While investing your hard-earned money into crypto and storing assets in a custody platform (self-custody), you must ensure total control over them – and pick the one that ships with in-build remarkable security features.Â
If you’re looking for the best crypto wallet in India then you must opt for a Liminal multi-wallet with hardware wallet support.Â
About Liminal
Liminal is among the leading enterprises offering institution-grade web3 blockchain infrastructure, such as a hot wallet crypto platform designed to assist organizations with their digital asset self-custody need. Â
Liminal has built the entire web3 blockchain-based digital asset custodian platform services including a hot storage wallet and cold storage wallet with a security-first approach – so that you can sleep peacefully without worrying about the security of your digital assets and funds.
